UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FORM 10-K
For the fiscal year ended December 31, 2019
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____to_____
Commission file number: 814-01035
NEWTEK BUSINESS SERVICES CORP.
(Exact name of registrant as specified in its charter)
Maryland
(State or other jurisdiction of
incorporation or organization)
4800 T Rex Avenue, Suite 120, Boca Raton, Florida
(Address of principal executive offices)
46-3755188
(I.R.S. Employer
Identification No.)
33431
(Zip Code)
Registrant’s telephone number, including area code: (212) 356-9500
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.02 per share
6.25% Notes due 2023
5.75% Notes due 2024
NEWT
NEWTI
NEWTL
Nasdaq Global Market LLC
Nasdaq Global Market LLC
Nasdaq Global Market LLC
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐
No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐
No x
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of
“large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Non-accelerated filer
o
o
Accelerated filer
Smaller reporting company
Emerging growth company
x
o
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial or accounting standards
provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately $413,142,000 as of the last business day of the registrant’s second
fiscal quarter of 2019, based on a closing price on that date of $23.00 on the Nasdaq Global Market. For the purposes of calculating this amount only, all directors and executive officers of the
Registrant have been treated as affiliates.
As of March 13, 2020, there were 20,820,356 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
Portions of the registrant’s definitive Proxy Statement relating to the registrant’s 2020 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission within 120 days
following the end of the Company’s fiscal year, are incorporated by reference in Part III of this Annual Report on Form 10-K as indicated herein.
DOCUMENTS INCORPORATED BY REFERENCE
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
TABLE OF CONTENTS
PART I
PART II
Item
1.
Business
1A.
Risk Factors
1B.
Unresolved Staff Comments
Properties
Legal Proceedings
Mine Safety Disclosures
2.
3.
4.
5.
6.
7.
Market for the Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities
Selected Financial Data
Management’s Discussion and Analysis of Financial Condition and Results of Operations
7A.
Quantitative and Qualitative Disclosures About Market Risk
8.
9.
Consolidated Financial Statements and Supplementary Data
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
9A.
Controls and Procedures
9B.
Other Information
PART III
10.
11.
12.
13.
14.
Directors, Executive Officers and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Certain Relationships, Related Party Transactions and Director Independence
Principal Accounting Fees and Services
PART IV
15.
Exhibits and Financial Statement Schedules
Exhibits Index
Signatures
Financial Statements
Page
6
37
69
70
70
70
71
78
78
96
96
96
96
97
97
97
97
98
98
99
99
102
102
Defined Terms
We have used “we,” “us,” “our,” “our company,” and “the Company” to refer to Newtek Business Services Corp. and its subsidiaries in this report. We also have used several other terms in this
report, which are explained or defined below:
Terms
1940 Act
2010-1 Trust
2013-1 Trust
2014-1 Trust
2016-1 Trust
2017-1 Trust
2018-1 Trust
2019-1 Trust
2021 Notes
2022 Notes
2023 Notes
2024 Notes
Investment Company Act of 1940, as amended
Newtek Small Business Loan Trust, Series 2010-1, terminated in March 2019
Newtek Small Business Loan Trust, Series 2013-1, terminated in October 2018
Newtek Small Business Loan Trust, Series 2014-1, terminated in July 2019
Newtek Small Business Loan Trust, Series 2016-1
Newtek Small Business Loan Trust, Series 2017-1
Newtek Small Business Loan Trust, Series 2018-1
Newtek Small Business Loan Trust, Series 2019-1
7.00% Notes due 2021, redeemed in March 2018
7.50% Notes due 2022, redeemed in August 2019
6.25% Notes due 2023
5.75% Notes due 2024
Amended 2019 ATM Distribution Agreement
First Amendment and Supplement to the Equity Distribution Agreement, dated as of February 28, 2020, by and among the Company and the
placement agents
ASC
ASU
Accounting Standards Codification, as issued by the FASB
Accounting Standards Updates, as issued by the FASB
2017 ATM Equity Distribution Agreement
Second Amended and Restated Equity Distribution Agreement, dated August 31, 2018 by and among the Company and the placement agents
2019 ATM Equity Distribution Agreement
Equity Distribution Agreement, dated July 10, 2019 by and among the Company and the placement agents
BDC
Board
Capital One
Code
DRIP
EBITDA
Equity Incentive Plan
Exchange Act
FASB
LIBOR
NAV
NBL Facility
Related Party RLOC
PLP
RIC
S&P
SBA
SBLC
SEC
SMB
Sterling
Business Development Company under the 1940 Act
The Company's board of directors
Capital One Bank, N.A.
Internal Revenue Code of 1986, as amended
The Company's dividend reinvestment plan
Earnings before interest, taxes, depreciation and amortization
The Company's 2015 Equity Incentive Plan
Securities and Exchange Act of 1934, as amended
Financial Accounting Standards Board
London Interbank Offered Rate
Net Asset Value
Revolving Credit and Security Agreement between NBL SPV1, LLC, a wholly-owned subsidiary of NBL and Capital One
Unsecured revolving line of credit agreement between NMS as lender and Newtek as borrower
Preferred Lender Program, as authorized by the SBA
Regulated investment company under the Code
Standard and Poor's
United States Small Business Administration
Small Business Lending Company
Securities and Exchange Commission
Small-and-medium sized businesses
Sterling National Bank
Sterling Receivable and Inventory Facility
Loan and Security Agreement between NBC and Sterling, as lender to fund accounts receivable and inventory financing arrangements
Taxable Subsidiaries
Trustee
U.S. GAAP or GAAP
Companies formed by Newtek which are taxed as corporations for income tax purposes
U.S. Bank, N.A.
Generally accepted accounting principles in the United States
Portfolio Companies and Subsidiaries
NSBF
NBL
NCL
Exponential
NMS
Premier
Mobil Money
NTS
IPM
SIDCO
EWS
NBC
SBL
BSP
NPS or PMT
NIA
TAM
EMCAP
POS
Newtek Small Business Finance, LLC, a consolidated subsidiary
Newtek Business Lending, LLC, a wholly-owned controlled portfolio company
Newtek Conventional Lending, LLC, a 50% owned portfolio company
Exponential Business Development Co., Inc., a Taxable Subsidiary
Newtek Merchant Solutions, LLC (formerly Universal Processing Services of Wisconsin LLC), a wholly-owned controlled portfolio company
Premier Payments LLC, a former wholly-owned controlled portfolio company which merged into NMS at December 31, 2018
Mobil Money, LLC, a wholly-owned controlled portfolio company
Newtek Technology Solutions, Inc., a wholly-owned controlled portfolio company
International Professional Marketing, Inc., a wholly-owned controlled portfolio company
SIDCO, LLC dba Cloud Nine Services, a wholly-owned controlled portfolio company
Excel WebSolutions, LLC, a wholly-owned controlled portfolio company
CDS Business Services, Inc. dba Newtek Business Credit Solutions, a wholly-owned controlled portfolio company
Small Business Lending, LLC, a wholly-owned controlled portfolio company
ADR Partners, LLC dba banc-serv Partners, LLC, a wholly-owned controlled portfolio company
PMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a wholly-owned controlled portfolio company
Newtek Insurance Agency, LLC, a wholly-owned controlled portfolio company
Titanium Asset Management LLC, a wholly-owned controlled portfolio company
EMCAP Loan Holdings, LLC
POS on Cloud, LLC, a controlled portfolio company
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS AND PROJECTIONS
This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations,
estimates and projections about the Company, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,”
“plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to
identify forward-looking statements. The forward-looking statements contained in this report involve risks and uncertainties, including statements as to:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
our future operating results;
our business prospects and the prospects of our portfolio companies;
the impact of investments that we expect to make;
our contractual arrangements and relationships with third parties;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
the ability of our portfolio companies to achieve their objectives;
our expected financings and investments;
our ability to obtain exemptive relief from the SEC to co-invest and to engage in joint restructuring transactions or joint follow-on investments;
competition with other entities and our affiliates for investment opportunities;
the adequacy of our cash resources and working capital; and
the timing of cash flows, if any, from the operations of our portfolio companies.
These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause
actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:
•
•
•
•
•
•
•
•
•
an economic downturn could impair our portfolio companies’ ability to continue to operate or repay their borrowings, which could lead to the loss of some or all of our investments in such
portfolio companies;
an economic downturn could disproportionately impact the companies that we intend to target for investment, potentially causing us to experience a decrease in investment opportunities and
diminished demand for capital from these companies;
an economic downturn could also impact availability and pricing of our financing and our ability to access the debt and equity capital markets;
a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities;
our ability to attract and retain personnel, including key personnel;
the speculative and illiquid nature of our investments;
our ability to qualify for and maintain our tax treatment as a RIC under the Code, and as a BDC;
interest rate volatility, including the decommissioning of LIBOR, could adversely affect our results, particularly if we use leverage as part of our investment strategy; and
the risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this report and in our filings with the SEC.
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-
looking statements based on those assumptions also could be inaccurate. Important assumptions include the ability of NSBF to continue to originate loans under the SBA 7(a) program, maintain its
PLP status and continue to sell SBA guaranteed portions of SBA 7(a) loans at premiums; our ability to originate new loans and investments; certain margins and levels of profitability and the
availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that
our plans and objectives will be achieved. These risks and uncertainties include those described or identified in “Risk Factors” and elsewhere in this report. You should not place undue reliance on
these forward-looking statements, which apply only as of the date of this report. However, we will update this report to reflect any material changes to the information contained herein. The forward-
looking statements in this report are excluded from the safe harbor protection provided by Section 27A of the Securities Act and Section 21E of the Exchange Act.
ITEM 1. BUSINESS.
We are an internally managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. Additionally, we have elected to be treated
as a RIC under the Code for U.S. federal income tax purposes, beginning with our 2015 tax year. Our investment activities are managed by our executive officers and supervised by our Board.
As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance ecosystem and our equity investments in
certain portfolio companies that we control.
Our Business
We are an internally managed BDC that is a leading national non-bank lender that provides, together with our controlled portfolio companies, a wide range of business and financial solutions under
the Newtek® brand to the SMB market. Newtek’s and its portfolio companies’ products and services include: Business Lending including SBA 7(a) loans, 504 loans and conventional loans,
Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial
lines Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries. We have an established and reliable
platform that is not limited by client size, industry type or location. As a result, we believe we have a strong and diversified client base across every state in the U.S. and across a variety of different
industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients in a cost
effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software which is similar to, but we believe is better suited for our needs
than, the system popularized by Salesforce.com. We believe that this technology and low cost business model distinguishes us from our competitors.
We define SMBs as companies having revenues of $1,000,000 to $100,000,000. We focus on serving the SMB market, which we estimate to be over 27 million businesses in the U.S. We believe that
these businesses have historically been underserved by traditional financial institutions and typically lack the capital resources to build a competitive business and marketing infrastructure on their
own. Further, in today’s economic climate, we believe SMBs have particular difficulty obtaining capital from traditional lending sources. While we do not compete directly with alternative online
lenders such as The Lending Club, Prosper.com, OnDeck Capital, Inc. and Kabbage Inc., we do provide financing solutions as an alternative to traditional lending. We believe there is significant
demand for such alternative financing among SMBs. Our lending solutions and our controlled portfolio companies’ outsourced business and financial solutions help clients manage and grow their
businesses and compete effectively in today’s marketplace. We obtain our customers through referrals from various business partners, such as banks, insurance companies, credit unions and other
affinity groups, as well as through our own direct sales force and advertising campaigns. We source, acquire and process SMB customers in a cost-effective manner without reliance on high cost sales
staff and time consuming application processes.
In lending, we believe we are a leading capital provider to SMBs based on our loan volume. We originate loans through a variety of sourcing channels and through a disciplined underwriting process,
and seek to achieve attractive risk-weighted returns. Our multi-faceted relationships with certain borrowers allow us to closely monitor their credit profile and take an active role in managing our
investments. Further, our lending capabilities, coupled with the broad outsourced business and financial solutions of our controlled portfolio companies, create attractive cross-selling opportunities
within our client base. We believe our business model creates powerful network effects which will help drive growth and operating leverage in our business. In addition, our SBA 7(a) loans originated
by NSBF are structured so that the government guaranteed portion can be rapidly sold, which, based on our historic ability to securitize the unguaranteed portions and assuming the continuation of
current market conditions, allows us to quickly recover our principal and earn excess capital on each SBA 7(a) loan we originate, usually in less than a year. We may in the future determine to retain
the government guaranteed or unguaranteed portions of SBA 7(a) loans for longer periods pending deployment of excess capital. From 2012 through 2019, NSBF has consistently been the largest
non-bank SBA 7(a) lender and as of December 31, 2019 is the second largest SBA 7(a) lender in the U.S. based on dollar lending volume.
Newtek and its controlled portfolio companies use NewTracker®, our patented proprietary technology for receiving, processing and monitoring prospective customers. NewTracker® enables Newtek
and its controlled portfolio companies to acquire SMB customers in a cost effective manner as it is all accomplished by skilled staff using state of the art technology without the need for high cost
sales staff or applications processors. NewTracker® also permits our referral partners to have a real time window into the back office processing of the referrals they provide. NewTracker®
automatically pre-populates any necessary forms or
6
applications so the processing is efficient and also cost effective. Finally, NewTracker® also identifies opportunities for the cross-sale of other Newtek branded products or services.
Business Finance Ecosystem
SBA 7(a) Lending
Our portfolio includes guaranteed and unguaranteed non-affiliate SBA 7(a) loan investments that were made through NSBF, a nationally licensed SBA lender under the federal Section 7(a) loan
program, which is part of our business finance ecosystem. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit
guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 75% and 90% of the principal and interest due. NSBF has a
dedicated Senior Lending Team that originates and services SBA 7(a) loans to qualifying SMBs. NSBF sells the guaranteed portions of its SBA 7(a) loans, typically within two weeks of origination,
and retains the unguaranteed portion until accumulating sufficient loans for a securitization. NSBF’s securitization process is as follows. After accumulating sufficient loans, the loans are transferred
to a special purpose vehicle (a “Trust”), which in turn issues notes against the Trust’s assets in a private placement. The Trust’s primary source of income for repaying the securitization notes is the
cash flows generated from the unguaranteed portion of SBA 7(a) loans owned by the Trust; principal on the securitization notes will be paid by cash flow in excess of that needed to pay various fees
related to the operation of the Trust and interest on the debt. Securitization notes have an expected maturity of about five years, and the Trust is dissolved when the securitization notes are paid in full,
either at or prior to maturity.
We intend to continue to expand our business finance ecosystem primarily by expanding senior secured lending through NSBF, as well as through our portfolio companies that make SBA 504 loans,
nonconforming conventional loans and provide accounts receivable and inventory financing, as discussed below. We believe NSBF’s SBA license, combined with NSBF’s PLP designation, provides
us with a distinct competitive advantage over other SMB lenders that have not overcome these significant barriers-to-entry in our primary loan market. NSBF originated $517,692,000 of SBA 7(a)
loans during 2019 and $469,176,000 of SBA 7(a) loans during 2018. We believe that we will continue to be introduced to a variety of high-quality investment opportunities through our existing loan
sourcing channels and our controlled portfolio companies’ relationships with their clients, and our status as a BDC which helps fuel the growth of our loan portfolio by providing us with better access
to lower-cost capital.
Under the SBA’s 7(a) lending program, a bank or other lender such as NSBF underwrites a loan between $5,000 and $5,000,000 for a variety of general business purposes based on the SBA’s
guidelines and the SBA provides a partial guarantee on the loan. Depending on the loan size, the SBA typically guarantees between 50% and 90% of the principal and interest due. The recoveries and
expenses on the unguaranteed portions of these loans are shared pari passu between the SBA and the lender, which substantially reduces the loss severity on the unguaranteed portion of a loan for
SBA 7(a) loan investors. SBA 7(a) loans are typically between five and 25 years in maturity, four to five years in duration and bear interest at the prime rate plus a spread from 2.25% to 2.75%. Since
the guaranteed portions of SBA 7(a) loans carry the full faith and credit of the U.S. government, lenders may, and frequently do, sell the guaranteed portion of SBA 7(a) loans in the capital markets,
hold the unguaranteed portion and retain all loan servicing rights.
NSBF has a dedicated capital markets team that sells the guaranteed portions of its SBA 7(a) loans and sells or securitizes the unguaranteed portions of its SBA 7(a) loans. Historically, NSBF has sold
the guaranteed portions of its originated SBA 7(a) loans shortly after origination and retained the unguaranteed portions until accumulating sufficient loans for a securitization. NSBF has typically
sold SBA guaranteed portions of SBA 7(a) loans at premiums ranging from 106% to 120% of par value, and any portion of the premium that is above 110% of par value is shared equally between
NSBF and the SBA. However, there is no guarantee that NSBF will be able to continue to earn premiums of 106% to 120% on future sales. See “Item 1A. Risk Factors - We have specific risks
associates with SBA loans.” Since December 2010, NSBF has maintained its securitization program for unguaranteed portions of its SBA 7(a) loans and has successfully completed ten securitization
transactions with Standard & Poor’s AA or A ratings and attractive advance rates as high as 83.5% of par value. NSBF’s most recent and largest securitization to date occurred in October 2019, when
it sold $118,920,000 of unguaranteed SBA 7(a) loan-backed notes. NSBF intends to complete additional securitizations in the future which may be on comparable although not necessarily identical
terms and conditions. We may determine to retain the government guaranteed or unguaranteed portions of loans for longer periods, pending deployment of excess capital.
NSBF’s senior lending team has focused on making smaller loans, approximately $1,000,000 or less, in order to maintain a diversified pool of loans that are dispersed both geographically and among
industries, with a goal of limiting NSBF’s exposure to regional and industry-specific economic downturns. Specifically, as of December 31, 2019, NSBF’s loan portfolio consisted of 2,395 loans
originated across 50 states in 78 different industries as defined by the North American Industry Classification
7
System (“NAICS”). The following charts summarize NSBF’s mix of investment concentrations by industry and geography as of December 31, 2019 (in thousands):
Distribution by NAICS Code Description
NAICS Code Description
Food Services and Drinking Places
Truck Transportation
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Repair and Maintenance
Specialty Trade Contractors
Fabricated Metal Product Manufacturing
Administrative and Support Services
Personal and Laundry Services
Other
Total
Distribution by State
State
Florida
California
New York
Texas
Connecticut
Illinois
Georgia
Pennsylvania
New Jersey
North Carolina
Other
Total
Number of Loans
Aggregate Balance ($)
Average Balance ($)
292 $
38,417 $
96
188
124
133
117
120
44
90
97
30,160
25,768
24,513
21,956
20,166
16,435
16,355
11,845
11,706
1,094
2,395 $
212,375
429,696 $
132
314
137
198
165
172
137
372
132
121
194
179
Number of Loans
Aggregate Balance ($)
Average Balance ($)
265 $
40,886 $
184
232
160
129
86
88
89
116
80
966
2,395 $
36,688
35,820
29,329
23,805
19,686
19,557
18,815
17,060
15,893
172,156
429,696 $
154
199
154
183
185
229
222
211
147
199
178
179
Percentage of Balance
8.9%
7.0%
6.0%
5.7%
5.1%
4.7%
3.8%
3.8%
2.8%
2.7%
49.4%
100.0%
Percentage of Balance
9.5%
8.5%
8.3%
6.8%
5.5%
4.6%
4.6%
4.4%
4.0%
3.7%
40.1%
100.0%
NSBF evaluates the credit quality of its loan portfolio by employing a risk rating system that is similar to the Uniform Classification System, which is the asset classification system adopted by the
Federal Financial Institution Examinations Council. NSBF’s risk rating system is granular with multiple risk ratings in both the Acceptable and Substandard categories. Assignment of the ratings are
predicated upon numerous factors, including credit risk scores, collateral type, loan to value ratios, industry, financial health of the business, payment history, other internal metrics/analysis, and
qualitative assessments. Risk ratings are refreshed as appropriate based upon considerations such as market conditions, loan characteristics, and portfolio trends. NSBF’s gross SBA loans by credit
quality indicator are as follows:
8
Risk Rating
Portfolio
Risk Rating 1 – 4
Risk Rating 5
Risk Rating 6
Risk Rating 6/7 and 7
Total
Number of Loans
Aggregate Balance ($)
Average Balance ($)
2,164 $
361,985 $
27
202
2
10,830
56,465
416
2,395 $
429,696 $
167
401
280
208
179
Percentage of Balance
84.2%
2.5%
13.1%
0.1%
100.0%
The weighted average term to maturity and weighted average interest rate of NSBF’s loan portfolio as of December 31, 2019 was 15.3 years and 7.7%, respectively.
Receivables Financing, Inventory Financing, SBA 504 Lending and Non-conforming Conventional Loans
The Company’s business finance ecosystem also includes NBC and NBL, both controlled portfolio companies, as well as NCL, a joint venture. NBC provides receivables financing, inventory
financing and health care receivables financing, and management services to SMBs, which may obtain $10,000 to $2,000,000 per month through the sale of their trade receivables or the financing or
their inventories. In addition, NBL funds SBA 504 loans which provide financing of fixed assets such as real estate or equipment. NCL provides non-conforming conventional commercial and
industrial term loans up to $15 million to U.S. middle-market companies and small businesses.
Third Party Loan Servicing
SBL, a wholly owned, controlled portfolio company, engages in third-party loan servicing for SBA and non-SBA loans and provides lending institutions with outsourced solutions for the entire SBA
lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing. SBL provides loan origination solutions to NSBF and also provides loan origination
and servicing solutions to NBL, NCL, and third parties such as banks, credit unions and government agencies including the FDIC.
Controlled Portfolio Companies
In addition to our debt investments in portfolio companies, either directly or through our business finance ecosystem, we also hold controlling interests in certain portfolio companies that, as of
December 31, 2019, represented approximately 30% of our total investment portfolio. Specifically, we hold controlling interests in NMS, Mobil Money, NTS, SBL, NBC, NBL, TAM, BSP, NPS,
NIA, POS, IPM, and SIDCO. We refer to these entities (among others), collectively, as our “controlled portfolio companies.” Our controlled portfolio companies provide us with an extensive network
of business relationships that supplement our referral sources and that we believe will help us to maintain a robust pipeline of lending opportunities and expand our business finance ecosystem.
The revenues that our controlled portfolio companies generate, after deducting operating expenses, may be distributed to us. As a BDC, our Board will determine quarterly the fair value of our
controlled portfolio companies in a similar manner as our other investments. In particular, our investments in our controlled portfolio companies are valued using a valuation methodology that
incorporates both the market approach (guideline public company method) and the income approach (discounted cash flow analysis). In following these approaches, factors that we may take into
account in determining the fair value of our investments include, as relevant: available current market data, including relevant and applicable market trading comparables, the portfolio company’s
earnings and discounted cash flows of forecasted future earnings, comparisons of financial ratios of peer companies that are public, and enterprise values, among other factors. In addition, the
Company has engaged third party valuation firms to provide valuation consulting services for the valuation of certain of our controlled portfolio companies.
Newtek Merchant Solutions (NMS)
NMS (a 2001 investment) markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit
cards, checks and other non-cash forms of payment. NMS utilizes a multi-pronged sales approach of both direct and indirect sales. NMS’ primary sales efforts focus on direct sales through our Your
Business Solutions Company® brand. Their indirect sales channels consist of alliance partners, principally financial institutions (banks, credit unions, insurance companies and other related
businesses), and independent sales agents
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across the U.S. These referring organizations and associations are typically paid a percentage of the processing revenue derived from the respective merchants that they successfully refer to NMS. In
2019, NMS processed merchant transactions with sales volumes of $5.8 billion.
NMS has a number of competitive advantages which we believe will enable it to exceed industry growth averages. These are:
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focus on non-traditional business generation: referral relationships, wholesale solicitations and financial institutions rather than independent sales agents;
seeks to be a market leader in the implementation of technology in the payment processing business;
It maintains its own staff of trained and skilled customer service representatives; and
It markets and sells the latest in point-of-sale technology hardware, implementing of the EMV system (Europay, MasterCard, Visa inter-operative integrated circuit cards) and continuous
cyber-security services.
NMS maintains its principal customer service and sales support offices in Lake Success, New York, with additional specialists located in Phoenix, Arizona. NMS’s personnel assist merchants with
initial installation of equipment and on-going service, as well as any other special processing needs that they may have.
NMS’ development and growth are focused on selling their services to internally generated referrals, merchant referrals identified by Newtek alliance partners and by independent sales
representatives. We believe NMS is different than most electronic payment processing companies who acquire their clients primarily through independent agents. NMS believes that its business
model provides it with a competitive advantage by enabling it to acquire new merchant customers at a lower cost level for third-party commissions than the industry average. NMS’ business model
allows it to own the customer as well as the stream of residual payments, as opposed to models which rely more heavily on independent sales agents.
POS on Cloud, LLC (POS) and Mobil Money, LLC
Our investment in payment processing companies additionally includes, POS, dba Newtek Payment Systems, a 2019 investment in a cloud based Point of Sale (POS) system for a variety of
restaurant, retail, assisted living, parks and golf course businesses, which provides not only payments and purchase technology solutions, but also inventory, customer management, reporting,
employee time clock, table and menu layouts, and ecommerce solutions as the central operating system for an SMB, as well as Mobil Money, a portfolio of taxi cab merchants and related licensed
payment processing software.
Newtek Technology Solutions (NTS)
NTS offers web hosting and eCommerce, managed IT services, secure private cloud hosting, managed backup and disaster recovery, web design and application development, information technology
security solutions, and other related services to customers worldwide.
NTS provides a full suite of outsourced IT infrastructure services, including managed IT services, private cloud (virtual) servers, shared server hosting, dedicated server hosting, and managed backup
and disaster recovery, under the Newtek® Technology Solutions, Newtek® Web Services and Newtek Web Hosting® brands, for which it receives recurring monthly fees, as well as other fees such
as set-up fees, consulting fees, and domain name registration fees, among others.
While there are many competitors in this space, we believe that NTS’ focus on proactive, reliable, and secure solutions sets us apart. Platforms are available within NTS’ cloud and non-cloud
environment and are fully managed offerings as compared to NTS’ competitors.
NTS has a complete line of cloud-based business and eCommerce packages and Cloud Spaces to streamline the decision process for business owners and accommodate designers and developers that
wish to build sites in both Microsoft and Linux environments. Included with this service offering is full customer service with a real human interface available on a 24/7/365 basis, which we believe
further distinguishes NTS from its competitors who usually offer hosting without the support needed for the SMB market customer.
NTS currently operates data centers in Scottsdale, Arizona, Phoenix, Arizona, and Edison, New Jersey. In the second quarter of 2020, NTS intends to move its main data center in Scottsdale to a new
facility in Phoenix, which is forecasted to result in a material reduction of NTS’ data center expense.
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The data center facilities NTS employs to host its technologies conforms to The Uptime Institute’s 4-Tier Classification System which has become a global standard for third-party validation of data
center critical infrastructure. The Tier Classification System defines the requirements and benefits of four distinct Tier classifications for data center infrastructure. Each Tier sets the appropriate
criteria for power, cooling, maintenance, and capability to withstand a fault. Tiers are progressive; each Tier incorporates the requirements of all the lower Tiers. NTS operates its critical infrastructure
within facilities that have a minimum rating of Tier 3-Certified. NTS data centers meet and exceed Uptime Institute Tier-3 standards in all categories which allows NTS to pursue and service,
compliance-sensitive workloads from the financial services, healthcare, government and military sectors. In addition, NTS includes redundant, carrier-neutral network design for all its
communications paths, multiple locations to host services, and a built in DDOS mitigation platform into the design of its data center services.
Throughout its affiliation with Newtek, over 70% of new NTS customers have come as a result of internal and external referrals without material expenditures by NTS for marketing or advertising.
Many of NTS’ competitors are very price sensitive, offering minimal services at cut-rate pricing. While being cost competitive with most Linux- and Windows-based web hosting services, NTS has
emphasized higher quality uptime, service and support as well as multiple control panel environments for the designer and developer community.
NTS has also launched a turnkey hosting service to meet financial institution needs for server hosting, disaster recovery and/or data storage, enabling these entities to comply with their strict
regulatory requirements that demand very high security protocols and practices be in place.
International Professional Marketing (IPM) and SIDCO
IPM and SIDCO are wholly-owned portfolio companies which consult, strategize, design, and implement technology solutions for enterprise and commercial clients across the U.S., and are expected
to complement the offerings of NTS.
Small Business Lending, LLC (SBL)
SBL provides third-party loan servicing for SBA and non-SBA loans and provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis,
structuring and eligibility, packaging, closing compliance and servicing. SBL provides loan origination solutions to NSBF and is also the loan origination and loan servicing provider for NBL and
NCL.
Newtek Business Lending, LLC (NBL)
NBL provides SBA 504 loans and financing to the SMB market for the acquisition of fixed assets such as real estate or equipment.
Newtek Conventional Lending, LLC (NCL)
On May 20, 2019, the Company and its joint venture partner launched NCL to provide non-conforming conventional commercial and industrial term loans of up to $15,000,000 to U.S. middle-
market companies and small businesses. NCL is a 50/50 joint venture between Newtek Commercial Lending, Inc., a wholly-owned subsidiary of Newtek, and Conventional Lending TCP Holding,
LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq:TCPC).
Newtek Business Credit Solutions (NBC)
NBC provides accounts receivable and inventory financing, management services and managerial assistance to SMBs.
Newtek Insurance Agency (NIA)
NIA is a retail and wholesale brokerage insurance agency licensed in 50 states specializing in the sale of personal, commercial and health/benefits lines insurance products to customers of all of the
Newtek portfolio companies as well as Newtek alliance partners. NIA offers insurance products from multiple insurance carriers providing a wide range of choice for its customers. NIA is also
implementing programs with alliance partners to market commercial and personal insurance. A major sales channel for NIA is the SMB customer base of our lending platform and the other controlled
portfolio companies which allow for many opportunities for cross sales between business lines.
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Newtek Payroll and Benefits Solutions (NPS)
NPS offers an array of industry standard and very competitively priced payroll management, benefit, payment and tax reporting services to SMBs. These payroll and benefit solutions are marketed
through all of Newtek’s available channels including the alliance partnerships and direct marketing campaigns. NPS also benefits by the access to the SMB customer base of the lending platform and
the other controlled portfolio companies.
NPS provides full service payroll and benefit solutions across all industries, processing payroll via software as a service (SaaS) or phone solutions. They have an established and reliable platform that
is not limited by client size, industry type or delivery interface. NPS assists clients in managing their payroll processing needs by calculating, collecting and disbursing their payroll funds, remitting
payroll taxes and preparing and filing all associated tax returns. In addition, NPS offers clients a range of ancillary service offerings, including workers’ compensation insurance, time and attendance,
401(k) administration, pay cards, employee benefit plans, employee background screening, COBRA services, tax credit recovery, Section 125 and flexible benefits spending plans and expense
management services.
Certified Capital Companies (Capcos)
Under state-created Capco programs, states provide a Capco with tax credits generally equal to the amount of funds the Capco raises from insurance company investors. The Capcos then issue the tax
credits to its investors — a process which is designed to reduce the Capco’s investors’ state tax liabilities. In exchange for receiving the tax credits, the Capco is obligated to invest the funds raised in
certain qualified businesses, which generally are defined by statute to include only businesses that meet certain criteria related to the size, location, number of employees, and other characteristics of
the business. If a Capco fails to comply with the performance requirements of each state’s different Capco program, the tax credits are subject to forfeiture.
Under state law, a Capco that has invested in qualified businesses an amount equal to 100% of its initial certified capital is able to decertify (i.e., terminate its status as a Capco) and no longer be
subject to any state Capco regulation. Upon voluntary decertification, the programs in about half of the states require that a Capco share any distributions to its equity holders with the state sponsoring
the Capco. For those states that require a share of distributions, the sharing percentages vary, but are generally from 10% to 30%, usually on distributions above a specified internal rate of return for
the equity owners of the Capco.
Based on the above and that the Capcos were formed to make investments in businesses, the entities were determined to be investment companies and are therefore consolidated subsidiaries of
Newtek.
Our Capcos have historically invested in SMBs and, in addition to interest income and investment returns, have generated non-cash income from tax credits and non-cash interest and insurance
expenses in addition to cash management fees and expenses. We have de-emphasized our Capco business in favor of growing our controlled portfolio companies and do not anticipate creating any
new Capcos. While observing all requirements of the Capco programs and, in particular, financing qualified businesses meeting applicable state requirements as to limitations on the proportion of
ownership of qualified businesses, we believe the growth of our controlled portfolio companies produces a strategic focus on providing goods and services to SMBs such as those in which our Capcos
invest. We continue to invest in and lend to SMBs through our existing Capcos and intend to meet the goals of the Capco programs.
As the Capcos reach 100% investment we will seek to decertify them as Capcos, liquidate their remaining assets and thereby reduce their operational costs, particularly the legal and accounting costs
associated with compliance. Eleven of our original sixteen Capcos have reached this stage.
Newtek Branding
We have developed our branded line of products and services to offer a full service suite of business and financial solutions for the U.S. SMB market. Newtek reaches potential customers through its
integrated multi-channel approach featuring direct, indirect and direct outbound solicitation efforts. We continue to utilize and grow our primary marketing channel of strategic alliance partners as
well as a direct marketing strategy to SMB customers through our “go to market” brand, Your Business Solutions Company®. Through a television advertising campaign built around this brand, and
our web presence, www.newtekone.com, we believe we are establishing ourselves as a preferred “go-to” provider for SMB financing and the services offered by our controlled portfolio companies. In
addition, we supplement these efforts with extensive efforts to present the Company as the authority on small businesses.
We market services through referrals from our strategic alliance partners such as Amalgamated Bank, Banco Popular, Credit Union National Association, ENT Federal Credit Union, Legacy Bank,
Morgan Stanley Smith Barney, Navy Federal Credit
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Union, New York Community Bank, Raymond James, Randolph Brooks Federal Credit Union, UBS, Meineke Dealers Purchasing Cooperative, Independent Community Bankers, Transworld
Business Advisors, Army Navy Federal Credit Union, Teachers Federal Credit Union, Nassau Federal Educators Federal Credit Union, Spire Federal Credit Union, PartsBase Inc., and True Value
Company, among others, (using our patented NewTracker® referral management system) as well as direct referrals from our web presence, www.newtekone.com. Our NewTracker® referral system
has a software application patent covering the systems and methods for tracking, reporting and performing processing activities and transactions in association with referral data and related
information for a variety of product and service offerings in a business-to-business environment. The NewTracker® system provides for transparency between Newtek and referring parties and has
been material in our ability to obtain referrals from a wide variety of sources. This patented system allows us and our alliance partners to review in real time the status of any referral as well as to
provide real time compliance oversight by the respective alliance partner, which we believe creates confidence among the referred business client, the referring alliance partner and us. We own the
NewTracker® patent, as well as all trademarks and other patented intellectual property used by us and our controlled portfolio companies.
Additional referrals are obtained from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and TechExec Programs.
Our BizExecs and TechExecs are traditionally information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. In addition, electronic payment
processing services are marketed through independent sales agents, and web technology and eCommerce services are marketed through internet-based marketing and third-party resellers. A common
thread across all business lines of our controlled portfolio companies relates to acquiring customers at low cost and making strategic alliances primarily where we pay fees only for successful
referrals. We seek to bundle our marketing efforts through our brand, our portal, our patented NewTracker® referral system, our web presence as Your Business Solutions Company® and one easy
entry point of contact. We expect that this approach will allow us to continue to cross-sell the financing services of our business finance ecosystem to customers of our controlled portfolio companies
and build upon our extensive deal sourcing infrastructure. The compensation which we pay for referrals is consistent with industry practices.
Senior Lending Team and Executive Committee
The key members of our Senior Lending Team, most of whom have worked together for more than ten years, each have over 25 years of experience in finance-related fields. These investment
professionals have worked together to screen opportunities, underwrite new investments and manage a portfolio of investments in SMBs through two recessions, a credit crunch, the dot-com boom
and bust and a historic, leverage-fueled asset valuation bubble. Each member brings a complementary component to a team well-rounded in finance, accounting, operations, strategy, business law and
executive management.
Because we are internally managed by our Executive Committee, which includes Barry Sloane, Peter Downs, Michael A. Schwartz and Christopher Towers, under the supervision of our Board, and
do not depend on a third-party investment advisor, we do not pay investment advisory fees and all of our income is available to pay our operating costs and to make distributions to our shareholders.
While our portfolio companies are independently managed, our Executive Committee also oversees our controlled portfolio companies and, to the extent that we may make additional equity
investments in the future, the Executive Committee will also have primary responsibility for the identification, screening, review and completion of such investments. We do not expect to focus our
resources on investing in additional stand-alone equity investments, but may elect to do so from time to time on an opportunistic basis, if such opportunities arise. Messrs. Sloane and Downs have
been involved together in the structuring and management of equity investments for the past sixteen years.
Market Opportunity
We believe that the limited amount of capital and financial products available to SMBs, coupled with the desire of these companies for flexible and partnership-oriented sources of capital and other
financial products, creates an attractive investment environment for us to further expand our business finance ecosystem and overall brand. We believe the following factors will continue to provide
us with opportunities to grow and deliver attractive returns to shareholders.
The SMB market represents a large, underserved market. We estimate the SMB market to include over 27 million businesses in the U.S. We believe that SMBs, most of which are privately-held,
are relatively underserved by traditional capital providers such as commercial banks, finance companies, hedge funds and collateralized loan obligation funds. Further, we believe that such companies
generally possess conservative capital structures with significant enterprise value cushions, as compared to larger companies with more financing options. While the largest originators of SBA 7(a)
loans have traditionally been regional and national banks, from 2012 through 2019, NSBF has consistently been the largest non-bank originator of SBA 7(a) loans by dollar lending volume and is
currently the second largest SBA 7(a) lender in the U.S. As a result, we believe we and our controlled portfolio companies are well positioned to provide financing to the types of SMBs that we have
historically targeted
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and we have the technology and infrastructure in place presently to do it cost effectively in all 50 states and across many industries.
Future refinancing activity is expected to create additional investment opportunities. A high volume of financings completed between 2005 and 2008 will mature in the coming years. We believe
this supply of opportunities coupled with limited financing providers focused on SMBs will continue to offer investment opportunities with attractive risk-weighted returns.
The increased capital requirements and other regulations placed on banks may reduce lending by traditional large financial institutions and community banks. While many SMBs were
previously able to raise debt financing through traditional large financial institutions, we believe this approach to financing will continue to be constrained for several years as continued
implementation of U.S. and international financial reforms, such as Basel III, phase in and rules and regulations are promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection
Act. We believe that these regulations will increase capital requirements and have the effect of further limiting the capacity of traditional financial institutions to hold non-investment grade loans on
their balance sheets. As a result, we believe that many of these financial institutions have de-emphasized their service and product offerings to SMBs, which we believe will make a higher volume of
deal flow available to us.
Increased demand for comprehensive, business-critical SMB solutions. Increased competition and rapid technological innovation are creating an increasingly competitive business environment that
requires SMBs to fundamentally change the way they manage critical business processes. This environment is characterized by greater focus on increased quality, lower costs, faster turnaround and
heightened regulatory scrutiny. To make necessary changes and adequately address these needs, we believe that companies are focusing on their core competencies and utilizing cost-effective
outsourced solutions to improve productivity, lower costs and manage operations more efficiently. Our controlled portfolio companies provide critical business solutions such as electronic payment
processing, managed IT solutions, personal and commercial insurance services and full-service payroll and benefit solutions, receivables financing and funding of SBA 504 loans which provide
financing of fixed assets such as real estate or equipment. We believe that each of these market segments are underserved for SMBs and since we are able to provide comprehensive solutions under
one platform, we are well positioned to continue to realize growth from these product offerings.
Competitive Advantages
We believe that we are well positioned to take advantage of investment opportunities in SMBs due to the following competitive advantages:
Internally Managed Structure and Significant Management Resources. We are internally managed by our executive officers under the supervision of our Board and do not depend on an external
investment advisor. As a result, we do not pay investment advisory fees and all of our income is available to pay our operating costs, which include employing investment and portfolio management
professionals, and to make distributions to our shareholders. We believe that our internally managed structure provides us with a lower cost operating expense structure, when compared to other
publicly traded and privately-held investment firms which are externally managed, and allows us the opportunity to leverage our non-interest operating expenses as we grow our investment portfolio.
Our senior lending team has developed one of the largest independent loan origination and servicing platforms that focuses exclusively on SMBs.
Business Model Enables Attractive Risk-Weighted Return on Investment in SBA 7(a) Lending. Our SBA 7(a) loans are structured so as to permit rapid sale of the U.S. government guaranteed
portions, often within weeks of origination, and the unguaranteed portions have been successfully securitized, with the securitization notes being sold, usually within a year of origination. The return
of principal and premium may result in an advantageous risk-weighted return on our original investment in each loan. We may determine to retain the government guaranteed or unguaranteed
portions of loans pending deployment of excess capital.
State of the Art Technology. Our patented NewTracker® software enables us to board a SMB customer, process the application or inquiry, assemble necessary documents, complete the transaction
and create a daily reporting system that is sufficiently unique as to receive a U.S. patent. This system enables us to identify a transaction, similar to a merchandise barcode or the customer
management system used by SalesForce.com, then process a business transaction and generate internal reports used by management and external reports for strategic referral partners. It allows our
referral partners to have digital access into our back office and follow on a real time, 24/7 basis the processing of their referred customers. This technology has been applied to all of the service and
product solutions we offer directly or through our controlled portfolio companies.
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Established Direct Origination Platform with Extensive Deal Sourcing Infrastructure. We have established a direct origination pipeline for investment opportunities without the necessity for
financial institutions or brokers as well as broad marketing channels that we believe allow for highly selective underwriting. We believe the combination of our brand, our portal, our patented
NewTracker® technology, and our web presence as Your Business Solutions Company® have created an extensive deal sourcing infrastructure. Although we pay fees for loan originations that are
referred to us by our alliance partners, our investment team works directly with the borrower to assemble and underwrite loans. We rarely invest in pre-assembled loans that are sold by investment
banks or brokers. As a result, we believe that our unique national origination platform allows us to originate attractive credits at a low cost. During 2019 we funded $517,692,000 of SBA 7(a) loans,
based on the increased volume of loan referrals we received in 2019. We anticipate that our principal source of investment opportunities will continue to be in the same types of SMBs to which we
currently provide financing. Our Executive Committee and Senior Lending Team will also seek to leverage our extensive network of additional referral sources, including law firms, accounting firms,
financial, operational and strategic consultants and financial institutions, with whom we have completed investments. We believe our current infrastructure and expansive relationships will continue
to enable us to review a significant amount of direct (or non-brokered) investment opportunities.
Experienced Senior Lending Team with Proven Track Record. We believe that our Senior Lending Team is one of the leading capital providers to SMBs. Our Senior Lending Team has expertise in
managing the SBA process and has managed a diverse portfolio of investments with a broad geographic and industry mix. While the primary focus of NSBF is to expand its debt financing activities
in SBA 7(a) loans, our Senior Lending Team is also focused on growing our business finance ecosystem through our controlled portfolio companies NBC, which provides receivables financing,
inventory financing and health care receivables financing, NBL, which funds SBA 504 loans, and NCL, which funds nonconforming (non SBA) commercial loans.
Flexible, Customized Financing Solutions for Seasoned, Smaller Businesses. While NSBF’s primary focus is to expand its lending by activities by providing SBA 7(a) loans to SMBs, we also seek
to offer SMBs a variety of attractive financing structures, as well as cost effective and efficient business services, to meet their capital needs through our subsidiaries and controlled portfolio
companies. In particular, through our controlled portfolio companies, we offer larger loans, between $5,000,000 and $15,000,000, greater than loans available with the SBA guarantee, but with a
higher interest rate to compensate for the increased risk. Unlike many of our competitors, we believe we have the business finance ecosystem that allows us to provide a complete package of service
and financing options for SMBs, which allows for cross-selling opportunities and improved client retention. We expect that a large portion of our capital will be loaned to companies that need growth
capital, acquisition financing or funding to recapitalize or refinance existing debt facilities. Our lending will continue to focus on making loans to SMBs that:
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have 3 to 10 years of operational history;
significant experience in management;
credit worthy owners who provide a personal guarantee for our investment;
show a strong balance sheet to collateralize our investments; and
show sufficient cash flow to be able to service the payments on our investments comfortably.
Although we may make investments in start-up businesses, we generally seek to avoid investing in high-risk, early-stage enterprises that are only beginning to develop their market share or build their
management and operational infrastructure with limited collateral.
Disciplined Underwriting Policies and Rigorous Portfolio Management. We pursue rigorous due diligence of all prospective investments originated through our business finance ecosystem. Our
senior lending team has developed an extensive underwriting due diligence process, which includes a review of the operational, financial, legal and industry performance and outlook for the
prospective investment, including quantitative and qualitative stress tests, review of industry data and when necessary, consultation with outside experts regarding the creditworthiness of the
borrower. These processes continue during the portfolio monitoring process, when we will conduct field examinations, review all compliance certificates and covenants and regularly assess the
financial and business conditions and prospects of portfolio companies. In addition, SBL is the servicer for commercial, SBA 7(a) and other government guaranteed investments whose exceptional
servicing capabilities with compact timelines for loan resolutions and dispositions has attracted various third-party portfolios to these controlled portfolio companies. SBL services the loans funded
by NBL and NCL.
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Business Development Company Status
Our predecessor was formed on June 29, 1999 under the laws of the State of New York and, on November 12, 2014, in connection with our election to be regulated as a BDC, merged with and into us
for the purpose of reincorporating under the laws of the State of Maryland.
As a BDC, we are required to meet regulatory tests, including the requirement to invest at least 70% of our gross assets in “qualifying assets.” Qualifying assets generally include debt or equity
securities of private or thinly traded public U.S. companies and cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, as a
BDC, and pursuant to the approval that we received from our shareholders on July 26, 2018, we are not permitted to incur indebtedness unless immediately after such borrowing we have an asset
coverage for total borrowings of at least 150% (i.e., the amount of debt may not exceed 66 2/3% of the value of our total assets). See “Regulation.”
As a RIC, we generally will not have to pay corporate-level federal income taxes on any ordinary income or capital gains that we distribute to our shareholders. To maintain our RIC tax treatment, we
must meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized
net long-term capital losses, if any.
Investments
We engage in various investment strategies from time to time in order to achieve our overall investment objectives.
Portfolio Company Characteristics
We have and will continue to target investments in future portfolio companies that generate both current income and capital appreciation. In each case, the following criteria and guidelines are applied
to the review of a potential investment however, not all criteria are met in every single investment, nor do we guarantee that all criteria will be met in the investments we will make in the future. We
have and will continue to limit our investments to the SMB market.
Experienced Management with Meaningful Investment. We seek to invest in companies in which senior or key managers have significant company-or industry-level experience and have
significant equity ownership. It has been our experience that these experienced managers are more committed to the portfolio company’s success and more likely to manage the company in a manner
that protects our debt and equity investments.
Significant Invested Capital. We believe that the existence of an appropriate amount of equity beneath our debt capital provides valuable support for our investment. In addition, the degree to which
the particular investment is a meaningful one for the portfolio company’s owners (and their ability and willingness to invest additional equity capital as and to the extent necessary) are also important
considerations.
Appropriate Capital Structures. We seek to invest in portfolio companies that are appropriately capitalized. First, we examine the amount of equity that is being invested by the company’s equity
owners to determine whether there is a sufficient capital cushion beneath our invested capital. We also analyze the amount of leverage, and the characteristics of senior debt with lien priority over our
senior subordinated debt. A key consideration is a strong balance sheet and sufficient free cash flow to service any debt we may invest.
Strong Competitive Position. We invest in portfolio companies that have developed strong, defensible product or service offerings within their respective market segment(s). These companies should
be well positioned to capitalize on organic and strategic growth opportunities, and should compete in industries with strong fundamentals and meaningful barriers to entry. We further analyze
prospective portfolio investments in order to identify competitive advantages within their industry, which may result in superior operating margins or industry-leading growth.
Customer and Supplier Diversification. We expect to invest in portfolio companies with sufficiently diverse customer and supplier bases. We believe these companies will be better able to endure
industry consolidation, economic contraction and increased competition than those that are not sufficiently diversified. However, we also recognize that from time to time, an attractive investment
opportunity with some concentration among its customer base or supply chain will present itself. We believe that concentration issues can be evaluated and, in some instances (whether due to supplier
or customer product or platform diversification, the existence and quality of long-term agreements with such customers or suppliers or other select factors), mitigated, thus presenting a superior risk-
weighted pricing scenario.
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Investment Objectives
Debt Investments
We target our debt investments, which are principally made through our business finance ecosystem under the SBA 7(a) program, to produce generally, a coupon rate of prime plus 2.75% which
enables us to generate rapid sales of loans in the secondary market historically producing gains and with a yield on investment in excess of 30%. We typically structure our debt investments with the
maximum seniority and collateral along with personal guarantees from portfolio company owners, in many cases collateralized by other assets including real estate. In most cases, our debt investment
will be collateralized by a first lien on the assets of the portfolio company and a first or second lien on assets of guarantors, in both cases primarily real estate. All SBA 7(a) loans are made with
personal guarantees from any owner(s) of 20% or more of the portfolio company’s equity. As of December 31, 2019, substantially all of our SBA 7(a) portfolio at fair value consisted of debt
investments that were secured by first or second priority liens on the assets of the portfolio company.
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First Lien Loans. Our first lien loans generally have terms of one to twenty-five years, provide for a variable interest rate, contain no prepayment penalties (however, the SBA will charge the
borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years) and are secured by a first priority security interest in all existing and
future assets of the borrower. Our first lien loans may take many forms, including revolving lines of credit, term loans and acquisition lines of credit.
Second Lien Loans. Our second lien loans generally have terms of five to twenty-five years, also primarily provide for a variable interest rate, contain no prepayment penalties (however, the
SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years) and are secured by a second priority security interest
in all existing and future assets of the borrower. We typically only take second lien positions on additional collateral where we also have first lien positions on business assets.
Unsecured Loans. We make few unsecured investments, primarily to our controlled portfolio companies, which because of our equity ownership are deemed to be more secure. Typically,
these loans are to meet short-term funding needs.
We typically structure our debt investments to include non-financial covenants that seek to minimize our risk of capital loss such as lien protection and prohibitions against change of control. Our
debt investments have strong protections, including default penalties, information rights and, in some cases, affirmative, negative and financial covenants.
Equity Investments
While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to
enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments in our controlled portfolio companies, we focus more on tailoring them to the long-term
growth needs of the companies than to immediate return. Our objective with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving
the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise as another means of supporting their development and that of the
integrated whole.
In Capco investments, we often make debt investments in conjunction with being granted equity in the company in the same class of security as the business owner receives upon funding. We
generally seek to structure our equity investments to provide us with minority rights provisions and event-driven put rights.
Investment Process
The members of our Senior Lending Team and our Executive Committee are responsible for all aspects of our investment selection process. The discussion below describes our investment
procedures. The stages of our investment selection process are as follows:
Loan and Deal Generation/Origination
We believe that the combination of our brand, our portal, our patented NewTracker® technology, and our web presence as Your Business Solutions Company® have created an extensive loan and deal
sourcing infrastructure. This is maximized through long-standing and extensive relationships with industry contacts, brokers, commercial and investment bankers, entrepreneurs,
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services providers (such as lawyers and accountants), as well as current and former clients, portfolio companies and our extensive network of strategic alliance partners. We supplement our
relationships by the selective use of television advertising aimed primarily at lending to the SMB market. We believe we have developed a reputation as a knowledgeable and reliable source of
capital, providing value-added advice, prompt processing, and management and operations support to our portfolio companies.
We market our loan and investment products and services, and those of our controlled portfolio companies, through referrals from our alliance partners such as Amalgamated Bank, Banco Popular,
Credit Union National Association, ENT Federal Credit Union, Legacy Bank, Morgan Stanley Smith Barney, Navy Federal Credit Union, New York Community Bank, Raymond James, Randolph
Brooks Federal Credit Union, UBS, Meineke Dealers Purchasing Cooperative, Independent Community Bankers, Transworld Business Advisors, Army Navy Federal Credit Union, Teachers Federal
Credit Union, Nassau Federal Educators Federal Credit Union, Spire Federal Credit Union, PartsBase Inc., and True Value Company, among others using our patented NewTracker® referral system
as well as direct referrals from our web presence, www.newtekone.com. The patent for our NewTracker® referral system is a software application patent covering the systems and methods for
tracking, reporting and performing processing activities and transactions in association with referral data and related information for a variety of product and service offerings in a business-to-
business environment providing further for security and transparency between referring parties. This system allows us and our alliance partners to review in real time the status of any referral as well
as to provide real time compliance oversight by the respective alliance partner, which we believe creates confidence between the referred business client, the referring alliance partner and us.
Additional deal sourcing and referrals are obtained from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and
TechExec Programs. The BizExecs and TechExecs are traditionally information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. In addition,
electronic payment processing services are marketed through independent sales representatives and web technology and eCommerce services are marketed through internet-based marketing and third-
party resellers. A common thread across all business lines of our subsidiaries and controlled portfolio companies relates to acquiring customers at low cost. We seek to bundle our marketing efforts
through our brand, our portal, NewTracker®, our web presence as Your Business Solutions Company® and one easy entry point of contact. We expect that this approach will allow us to continue to
cross-sell the financing services of our business finance ecosystem to our customers and customers of our controlled portfolio companies, and to build upon our extensive deal sourcing infrastructure.
Screening
We screen all potential debt or equity investment proposals that we receive for suitability and consistency with our investment criteria (see “Portfolio Company Characteristics,” above). In screening
potential investments, our Senior Lending Team and our Executive Committee utilize a value-oriented investment philosophy and commit resources to managing downside exposure. If a potential
investment meets our basic investment criteria, a business service specialist or other member of our team is assigned to perform preliminary due diligence.
SBA Lending Procedures
We originate loans under the SBA 7(a) Program in accordance with our credit and underwriting policy, which incorporates by reference the SBA Rules and Regulations as they relate to the financing
and servicing of such loans, including the U.S. Small Business Administration Standard Operating Procedures, Lender and Development Company Loan Program (“SOP 50 10”).
During the initial application process for a loan originated under the SBA 7(a) Program, a business service specialist assists and guides the applicant through the application process, which begins
with the submission of an online form through our customized loan portal. The online loan processing system collects required information and ensures that all necessary forms are provided to the
applicant and filled out. The system conducts two early automatic screenings focused primarily on whether (i) the requested loan is for an eligible purpose, (ii) the requested loan is for an eligible
amount and (iii) the applicant is an eligible borrower. If the applicant is eligible to fill out the entire application, the online system pre-qualifies the applicant based on preset credit parameters that
meet the standards of Newtek and the SBA.
Once the online form and the application materials have been completed, our underwriting department (the “Underwriting Department”) becomes primarily responsible for reviewing and analyzing
the application in order to accurately assess the level of risk being undertaken in making a loan. The Underwriting Department is responsible for assuring that all information necessary to prudently
analyze the risk associated with a loan application has been obtained and has been analyzed. Credit files are developed and maintained with the documentation received during the application process
in such a manner as to facilitate file review during subsequent developments during the life of the loan.
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Required Information
For a loan originated under the SBA 7(a) Program, the primary application document is SBA Form 1919 (Borrower Information Form) (“Form 1919”). Among other things, Form 1919 requires
identifying information about the applicant, loan request, indebtedness, the principals, current or previous government financing, and certain other disclosures.
In addition to Form 1919, the following additional information is required:
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an SBA Form 912 (Statement of Personal History), if question 1, 2, or 3 of Form 1919 is answered affirmatively;
an SBA Form 413 (Personal Financial Statement), for all owners of 20% or more (including the assets of the owner’s spouse and any minor children), and proposed guarantors;
business financial statements dated within 180 days prior to submission to SBA, consisting of (a) year-end balance sheets for the last three years, including detailed debt schedule, (b) year-
end profit & loss (P&L) statements for the last three years, (c) reconciliation of net worth, (d) interim balance sheet, and (e) interim P&L statements;
a list of names and addresses of any subsidiaries and affiliates, including concerns in which the applicant holds a controlling interest and other concerns that may be affiliated by stock
ownership, franchise, proposed merger or otherwise with the applicant, and business financial statements meeting the same requirements as above of such subsidiaries and affiliates;
the applicant’s original business license or certificate of doing business;
records of any loans the applicant may have applied for in the past;
signed personal and business federal income tax returns of the principals of the applicant’s business for previous three years;
personal résumés for each principal;
a brief history of the business and its challenges, including an explanation of why the SBA loan is needed and how it will help the business;
a copy of the applicant’s business lease, or note from the applicant’s landlord, giving terms of proposed lease; and
if purchasing an existing business, (a) current balance sheet and P&L statement of business to be purchased, (b) previous two years federal income tax returns of the business, (c) proposed
Bill of Sale including Terms of Sale, and (d) asking price with schedule of inventory, machinery and equipment, furniture and fixtures.
We view current financial information as the foundation of sound credit analysis. To that end, we verify all business income tax returns with the Internal Revenue Service and generally request that
financial statements be submitted on an annual basis after the loan closes. For business entities or business guarantors, we request federal income tax returns for each fiscal year-end to meet the prior
three-year submission requirement. For interim periods, we will accept management-prepared financial statements. The most recent financial information may not be more than 180 days old at the
time of the approval of the loan, but we generally request that the most recent financial information not be older than 90 days in order to provide time for underwriting and submission to SBA for
guaranty approval. For individuals or personal guarantors, we require a personal financial statement dated within 180 days of the application (sixty days is preferred) and personal income tax returns
for the prior three years. In connection with each yearly update of business financial information, the personal financial information of each principal must also be updated. Spouses are required to
sign all personal financial statements in order for the Underwriting Department to verify compliance with the SBA’s personal resource test. In addition, the Underwriting Department will ensure that
there has been no adverse impact on financial condition of the applicant or its principals since the approval of the loan. If closing does not occur within ninety days of the date on which the loan is
approved, updated business and personal financial statements must be obtained and any adverse change must be addressed before the proceeds of the loan may be disbursed. If closing does not occur
within six months of the date on which the loan is approved, the applicant is generally required to reapply for the loan.
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Stress Test
The standard underwriting process requires a stress test on the applicant’s interest rate to gauge the amount of increase that can be withstood by the applicant’s cash flow and still provide sufficient
cash to service debt. The applicant’s cash flow is tested up to a 2% increase in interest rate. If the applicant’s debt service coverage ratio decreases to 1:1 or less than 1:1, the loan may only be made as
an exception to our Underwriting Guidelines and would require the approval of our credit committee.
Required Site Visit
No loan will be funded without an authorized representative of NSBF first making a site visit to the business premises. We generally use a contracted vendor to make the required site visit but may
from time to time send our own employees to perform this function. Each site visit will generate a narrative of the business property as well as photographs of the business property. Additional site
visits will be made when a physical on-site inspection is warranted.
Credit Assessment of Applicant
Loan requests are assessed primarily based upon an analysis of the character, cash flow, capital, liquidity and collateral involved in the transaction.
Character: We require a personal credit report to be obtained on any principal or guarantor involved in a loan transaction. Emphasis is placed upon the importance of individual credit histories, as
this is a primary indicator of an individual’s willingness and ability to repay debt. Any material negative credit information must be explained in writing by the principal, and must be attached to the
personal credit report in the credit file. No loan will be made where an individual’s credit history calls into question the repayment ability of the business operation. A loan request from an applicant
who has declared bankruptcy within the ten years preceding the loan application will require special consideration. A thorough review of the facts behind the bankruptcy and impact on creditors will
be undertaken in determining whether the principal has demonstrated the necessary willingness and ability to repay debts. In addition, we will examine whether the applicant and its principals and
guarantors have abided by the laws of their community. Any situation where a serious question concerning a principal’s character exists will be reviewed on a case-by-case basis. Unresolved
character issues are grounds for declining a loan request regardless of the applicant’s financial condition or performance.
Cash Flow: We recognize that cash flow is the primary and desired source of repayment on any loan, and therefore is the primary focus of the credit decision. Any transaction in which the repayment
is not reasonably assured through cash flow will be declined, regardless of other possible credit strengths. At a minimum, combined EBITDA will be used to evaluate repayment ability. Other
financial analysis techniques will be employed as needed to establish the reasonableness of repayment. Where repayment is based on past experience, the applicant must demonstrate minimum
combined cash flow coverage of 1.2 times based upon the most recent fiscal year-end financial statement. A determination of the ability to repay will not be based solely upon interim operating
results. Where repayment ability is not evident from historical combined earnings (including new businesses and changes of ownership), projections will be analyzed to determine whether repayment
ability is reasonably assured. For changes in ownership, monthly cash flow forecasts will be analyzed to determine adequacy to meet all of the borrower’s needs.
For business acquisition applications, the applicant will be required to submit projections and support such projections by detailed assumptions made for all major revenue and expense categories and
an explanation of how the projections will be met. Analysis must include comparisons with relevant Risk Management Association (“RMA”) industry averages. EBITDA must be reasonably forecast
to exceed debt service requirements by at least 1.2 times, after accounting for the initial phase of operations. For change of ownership applications, projections will also be measured against the actual
historical financial results of the seller of the business concern. Projections must demonstrate repayment ability of not less than 1.2 times.
Capital: Capital is a strong traditional indicator of the financial health of a business. For going concern entities, the pro-forma leverage position, as measured by the debt to tangible net worth ratio,
may not exceed the RMA industry median or 4 to 1, whichever is greater. For change of ownership transactions, generally 25% of total project costs should be contributed as equity resulting in debt
to tangible net worth ratio of 3 to 1.
For a change of ownership transaction where a substantial portion of intangibles are included within the transaction, adequacy of capital will be determined based upon an evaluation of the business
value and level of injection. In determining the legitimacy of the business value, the loan underwriter must utilize two SBA approved valuation methods, as outlined in SBA SOP 50 10. If the
business value is found to be acceptable, and the equity injection into the project is within our requirements as outlined herein, then the capital position will be considered satisfactory.
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As a general rule, shareholder and affiliate loans may be added back to net worth only if such loans will be subordinated for the life of the SBA loan, with no principal or interest payments to be
made. Financing by the seller of the business may also be considered as equity if the loan will be placed on full standby for the life of the SBA loan. Adjustments to net worth to account for the
difference between the book value and appraised value of fixed assets may be made only when supported by a current appraisal. Appraisals on a “subject to” basis are not acceptable.
Liquidity: Liquidity, as measured by the current ratio, must be in line with the RMA industry average. An assessment of the adequacy of working capital is required. An assessment of the liquidity of
a business is essential in determining the ability to meet future obligations. Lending to cash businesses such as hotels and restaurants requires less analysis of the liquidity of the business due to the
timing of cash receipts. Industries with large receivables, payables, and inventory accounts require thorough review of the cash cycle of the business and evaluation of the applicant’s ability to
manage these accounts. The current and quick ratios and turnover of receivables, payables and inventory are measured against the RMA industry median in determining the adequacy of these
liquidity measures.
Collateral. We are required to reasonably secure each loan transaction with all worthwhile and available assets. Pursuant to SBA SOP 50 10, we may not (and will not) decline a loan if the only
weakness in the application is the value of collateral in relation to the loan amount, provided that all assets available to the business and its principals have been pledged. As set forth in SBA SOP 50
10, the SBA considers a loan to be fully secured if the lender has taken a security interest in all available fixed assets with a combined “net book value” adjusted up to the loan amounts below. For
7(a) loans, “fixed assets” means real estate, including land and structures and machinery and equipment owned by the business. “Net book value” is defined as an asset’s original price minus
depreciation and amortization.
We attempt to secure each loan transaction with as much real estate and liquid asset collateral as necessary; however, all fixed assets must be evaluated. Fixed assets are evaluated on the basis of the
net book value to determine the realizable value among collateral types. Valuation factors are applied as follows:
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Commercial real estate — 75%
Residential real estate — 85%
Vacant land — 50%
• Machinery & Equipment — 50%
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Furniture & Fixtures — 10%
Accounts receivable & inventory — 20%
Leasehold improvements — 5%
Certificate of Deposit — 100%
Regulated Licenses — will vary dependent upon type of license and geographic area. The liquidation rate used must be fully justified.
In addition to an assessment of the criteria specified above, there are certain special industry-specific requirements that will be considered in the loan application decision.
Change of Ownership: The minimum equity injection required in a change of ownership transaction is generally 20% but may be lower for specific industries such as medical and dental practices,
gas stations and convenience stores, flag hotels and “strong” non-lodging franchises.
In the event of financing from the seller of the business, the applicant must inject not less than 10% of the project cost; the seller of the business may provide the balance on a complete standby basis
for the life of the SBA loan. Exceptions to the equity requirement are reviewed on a case-by-case basis.
For a change of ownership transaction, the application must be accompanied by a business plan including reasonable financial projections. The financial performance of the seller of the business must
be evaluated based upon three years of corporate
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income tax returns and a current interim financial statement. Projections for the applicant must be in line with the historical financial performance at the business location. In cases where financial
performance of the seller of the business is poor, a satisfactory explanation must be provided to detail the circumstances of performance. Projections for the applicant must be accompanied by detailed
assumptions and be supported by information contained in the business plan.
Management should have related experience in the industry and demonstrate the ability to successfully operate the business. In the absence of satisfactory related experience, an assessment of
management’s experience and capabilities, given the complexity and nature of the business, will be made. In the case of a franchise, we will generally take into account the reputation of a franchisor
for providing worthwhile management assistance to its franchisees.
We carefully review change of ownership transactions. The loan underwriter will review the contract for sale, which will be included in the credit file. The contract for sale must include a complete
breakdown of the purchase price, which must be justified through either a third party appraisal or directly by the loan underwriter through an approved valuation method specified in SBA SOP 50 10.
The contract of sale must evidence an arm’s length transaction (but transactions between related parties are permitted so long as they are on an arm’s-length basis) which will preserve the existence of
the small business or promote its sound development. In addition, a satisfactory reason for the sale of the business must be provided. The seller of the business must provide the prior three years of
business tax returns and a current interim financial statement, as applicable.
Also, in connection with a change of ownership transaction, the Loan Processing area of the Underwriting Department will order Uniform Commercial Code searches on the seller of the existing
business. If such a search identifies any adverse information, the Loan Processor will advise the Underwriting Manager or Operations Manager so a prudent decision may be made with respect to the
application.
Real Estate Transactions: Loan proceeds for the acquisition or refinancing of land or an existing building or for renovation or reconstruction of an existing building must meet the following criteria:
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the property must be at least 51% owner-occupied pursuant to SBA policies; and
loan proceeds may not be used to remodel or convert any rental space in the property.
Loan proceeds for construction or refinancing of construction of a new building must meet the following criteria:
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the property must be at least 60% owner-occupied pursuant to SBA policies; and
if the building is larger than current requirements of the applicant, projections must demonstrate that the applicant will need additional space within three years, and will use all of the
additional space within ten years.
Commercial real estate appraisals are required on all primary collateral prior to the loan closing. In general, appraisals will be required as follows:
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for loans up to $100,000 — a formal opinion of value prepared by a real estate professional with knowledge of the local market area;
for loans from $100,000 to $500,000 — a limited summary appraisal completed by a state certified appraiser;
for loans from $500,000 to $1 million — a limited summary appraisal by a Member of the Appraisal Institute (“MAI”) appraiser; and
for loans over $1 million — a complete self-contained appraisal by a MAI appraiser.
Environmental screenings and an environmental questionnaire are required for all commercial real estate taken as collateral.
In general, environmental reports are required as follows:
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for real estate valued up to $500,000 — a transaction screen including a records review;
for real estate valued in excess of $500,000 — a Phase I Environmental Report; and
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for the following types of property, a Phase I Environmental Report will be required regardless of property value: gasoline service stations, car washes, dry cleaners and any other business
known to be in environmentally polluting industries.
In all cases for commercial real estate taken as collateral:
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if further testing is recommended, the recommended level of testing will be performed prior to the loan closing; and
if the report indicates remedial action to be taken by the business, such actions must be completed prior to the loan closing and a closure letter must be provided prior to funding.
Medical Professionals: In connection with a loan application relating to the financing of a medical business, all medical licenses will be verified, with the loss or non-renewal of license constituting
grounds for denial of the application. In addition, medical professionals must provide evidence of malpractice liability insurance of at least $2,000,000 or the loan amount, whichever is higher.
Malpractice insurance must be maintained for the life of the loan.
Franchise Lending: All franchise loan applications will be evaluated as to eligibility by accessing SBA’s Franchise Registry. If the franchise is listed in the registry and the current franchise
agreement is the same as the agreement listed in the registry, Newtek will not review the franchise agreement. However, the franchise agreement will be reviewed for eligibility by the loan
underwriter when either of the following applies: (i) the franchise is not listed on the SBA’s Franchise Registry or (ii) the franchise is on the registry, but the franchisor has not provided a
“Certification of No Change on Behalf of a Registered Franchisor” or a “Certification of Changes on Behalf of a Registered Franchisor.”
Credit Package
For each loan application, the loan underwriter will prepare a credit package (the “Credit Package”). All credit and collateral issues are addressed in the Credit Package, including but not limited to,
the terms and conditions of the loan request, use of proceeds, collateral adequacy, financial condition of the applicant and business, management strength, repayment ability and conditions precedent.
The Underwriting Department will recommend approval, denial or modification of the loan application. The Credit Package is submitted to our credit committee for further review and final decision
regarding the loan application.
Other than rejections for ineligibility of the applicant, the type of business or the loan purpose, NSBF may decline a loan application for the following reasons:
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after taking into consideration prior liens and considered along with other credit factors, the net value of the collateral offered as security is not sufficient to protect the interest of the U.S.
Government;
lack of reasonable assurance of ability to repay loan (and other obligations) from earnings;
lack of reasonable assurance that the business can be operated at a rate of profit sufficient to repay the loan (and other obligations) from earnings;
disproportion of loan requested and of debts to tangible net worth before and after the loan;
inadequate working capital after the disbursement of the loan;
the result of granting the financial assistance requested would be to replenish funds distributed to the owners, partners, or shareholders;
lack of satisfactory evidence that the funds required are not obtainable without undue hardship through utilization of personal credit or resources of the owner, partners or shareholders;
the major portion of the loan requested would be to refinance existing indebtedness presently financed through normal lending channels;
credit commensurate with applicant’s tangible net worth is already being provided on terms considered reasonable;
gross disproportion between owner’s actual investment and the loan requested;
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lack of reasonable assurance that applicant will comply with the terms of the loan agreement;
unsatisfactory experience on an existing loan; or
economic or physical injury not substantiated.
If a loan application is accepted, we will issue a commitment letter to the applicant. After approval, the SBA and NSBF enter into a Loan Authorization Agreement which sets forth the terms and
conditions for the SBA’s guaranty on the loan. The closing of a loan is handled by an internal attorney, whose primary responsibility is closing the loan in accordance with the related Loan
Authorization in a manner consistent with prudent commercial loan closing procedures, to ensure that the SBA will not repudiate its guaranty due to ineligibility, noncompliance with SBA Rules and
Regulations or defective documentation. Before loan proceeds are disbursed, the closing attorney will verify the applicant’s required capital injection, ensure that proceeds are being used for a
permitted purpose and ensure that other requirements of the Loan Authorization Agreement (including, but not limited to, required insurance and lien positions and environmental considerations) and
SBA Rules and Regulations (including the use of proper SBA forms) have been met.
Maintenance of Credit Files
A credit file is developed on each borrowing account. Credit files, in either hard copy format or electronic copy, are maintained by the Underwriting Department and organized according to a
specified format. The file contains all documentation necessary to show: (a) the basis of the loan, (b) purpose, compliance with policy, conditions, rate, terms of repayment, collateral, and (c) the
authority for granting the loan. The credit file is subject to review or audit by the SBA at any time. Upon final action being taken on a loan application, information necessary for closing and servicing
will be copied and maintained, while information not considered necessary will be transferred to off-site storage. Once a loan has been disbursed in full, credit files containing all documentation will
be transferred to the file room or other electronic storage media and maintained under the authority of the administration staff. Any individual needing an existing credit file must obtain it from the
administration staff member having responsibility for safeguarding all credit files or access it by a prearranged electronic file process. Removal of any information from the file will compromise the
credit file and is prohibited.
Other, Primarily Equity Investments
Due Diligence and Underwriting
In making loans or equity investments other than SBA 7(a) loans or similar conventional loans to SMBs, our Executive Committee will take a direct role in screening potential loans or investments,
in supervising the due diligence process, in the preparation of deal documentation and the completion of the transactions. The members of the Executive Committee and/or Senior Lending Team
complete due diligence and analyze the relationships among the prospective portfolio company’s business plan, operations and expected financial performance. Due diligence may address some or all
of the following depending on the size and nature of the proposed investment:
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on-site visits with management and relevant key employees;
in-depth review of historical and projected financial statements, including covenant calculation work sheets;
interviews with customers and suppliers;
• management background checks;
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review reports by third-party accountants, outside counsel and other industry, operational or financial experts; and/or
review material contracts.
During the underwriting process, significant, ongoing attention is devoted to sensitivity analyses regarding whether a company might bear a significant “downside” case and remain profitable and in
compliance with assumed financial covenants. These “downside” scenarios typically involve assumptions regarding the loss of key customers and/or suppliers, an economic downturn, adverse
regulatory changes and other relevant stressors that we attempt to simulate in our quantitative and qualitative analyses. Further, we continually examine the effect of these scenarios on financial ratios
and other metrics.
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Approval, Documentation and Closing
Upon the completion of the due diligence process, the Executive Committee will review the results and determine if the transaction should proceed to approval. If approved by our Senior Lending
Team and Executive Committee, the underwriting professionals heretofore involved proceed to documentation.
As and to the extent necessary, key documentation challenges are brought before our Senior Lending Team and Executive Committee for prompt discussion and resolution. Upon the completion of
satisfactory documentation and the satisfaction of closing conditions, final approval is sought from our Executive Committee before closing and funding.
Ongoing Relationships with Portfolio Companies
Monitoring, Managerial Assistance
We have and will continue to monitor our portfolio companies on an ongoing basis. We monitor the financial trends of each portfolio company to determine if it is meeting its business plan and to
assess the appropriate course of action for each company. We generally require our portfolio companies to provide annual audits, quarterly unaudited financial statements with management discussion
and analysis and covenant compliance certificates, and monthly unaudited financial statements. Using these monthly financial statements, we calculate and evaluate all financial covenants and
additional financial coverage ratios that might not be part of our covenant package in the loan documents. For purposes of analyzing a portfolio company’s financial performance, we sometimes
adjust their financial statements to reflect pro-forma results in the event of a recent change of control, sale, acquisition or anticipated cost savings. Additionally, we believe that, through our integrated
marketing and sale of each service line of NSBF and our controlled portfolio companies to our controlled portfolio companies (including electronic payment processing services through NMS,
technology solutions through NTS, IPM and SIDCO, insurance solutions through NIA and payroll and benefits solutions through NPS) and non-affiliate portfolio companies, we have in place
extensive and robust monitoring capabilities.
We have several methods of evaluating and monitoring the performance and fair value of our investments, including the following:
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assessment of success in adhering to each portfolio company’s business plan and compliance with covenants;
periodic and regular contact with portfolio company management to discuss financial position, requirements and accomplishments;
comparisons to our other portfolio companies in the industry, if any;
attendance at and participation in board meetings; and/or
review of monthly and quarterly financial statements and financial projections for portfolio companies.
As part of our valuation procedures, we risk rate all of our investments including loans. In general, our rating system uses a scale of 1 to 8, with 1 being the lowest probability of default and principal
loss. Our internal rating is not an exact system, but is used internally to estimate the probability of: (i) default on our debt securities and (ii) loss of our debt or investment principal, in the event of a
default. In general, our internal rating system may also assist our valuation team in its determination of the estimated fair value of equity securities or equity-like securities. Our internal risk rating
system generally encompasses both qualitative and quantitative aspects of our portfolio companies.
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Our internal loan and investment risk rating system incorporates the following eight categories:
Rating
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Summary Description
Acceptable — Highest Quality — Loans or investments that exhibit strong financial condition and repayment capacity supported by adequate financial information. Generally,
as loans these credits are well secured by marketable collateral. These credits are current and have not demonstrated a history of late-pay or delinquency. There are no or few
credit administration weaknesses. This score represents a combination of a strong acceptable credit and adequate or better credit administration. Newly underwritten loans or
investments may be rated in this category if they clearly possess above-average attributes in all of the above areas. In general, as investments these credits are performing within
our internal expectations, and potential risks to the applicable investment are considered to be neutral or favorable compared to any potential risks at the time of the original
investment.
Acceptable — Average Quality — These loans or investments are supported by financial condition and repayment strengths that offset marginal weaknesses. Generally, as loans
these credits are secured but may be less than fully secured. These loans are current or less than 30 days past due and may or may not have a history of late payments. They may
contain non-material credit administration weaknesses or errors in verifying that do not put the guaranty at risk or cause wrong or poor credit decisions to be made. This risk
rating should also be used to assign an initial risk rating to loans or investments that are recommended for approval by underwriting. Without a performance history and/or
identified credit administration deficiencies, emphasis should be placed on meeting or exceeding underwriting standards collateral protection, industry experience, and guarantor
strength. It is expected that most of our underwritten loans will be of this quality.
Acceptable — Below Average — These loans or investments are the low-end range of acceptable. Loans would be less than fully secured and probably have a history of late pay
and/or delinquency, though not severe. They contain one or more credit administration weaknesses that do not put the guaranty at risk or cause wrong or poor credit decisions to
be made. This risk rating may also be used to identify new loans or investments that may not meet or exceed all underwriting standards, but are approved because of offsetting
strengths in other areas. These credits, while of acceptable quality, typically do not possess the same strengths as those in the 1 or 2 categories. In general, the investment may be
performing below internal expectations and quantitative or qualitative risks may have increased materially since the date of the investment.
Other Assets Especially Mentioned (OAEM or Special Mention) — Strong — These loans or investments are currently protected by sound worth and cash flow or other
paying capacity, but exhibit a potentially higher risk situation than acceptable credits. While there is an undue or unwarranted credit risk, it is not yet to the point of justifying a
substandard classification. Generally, these loans demonstrate some delinquency history and contain credit administration weaknesses. Performance may show signs of slippage,
but can still be corrected. Credit does not require a specific allowance at this point but a risk of loss is present.
Substandard — Workout — These assets contain well defined weaknesses and are inadequately protected by the current sound worth and paying capacity of the borrower.
Generally, loan collateral protects to a significant extent. There is a possibility of loss if the deficiencies are not corrected and secondary sources may have to be used to repay
credit. Credit administration can range from very good to adequate indicating one or more oversights, errors, or omissions which are considered significant but not seriously
misleading or causing an error in the loan decision. Performance has slipped and there are well-defined weaknesses. A specific allowance is in order or risk of loss is present.
Substandard — Liquidation — These assets contain well defined weaknesses and are inadequately protected by the current sound worth and paying capacity of the borrower or
investee. In addition, the weaknesses are so severe that resurrection of the credit is unlikely. For loans, secondary sources will have to be used for repayment. Credits in this
category would be severely stressed, non-accrual, and the business may be non-viable. There could be character and significant credit administration issues as well. A specific
allowance should be established or the lack of one clearly justified.
Doubtful — This classification contains all of the weaknesses inherent in a substandard classification but with the added characteristic that the weaknesses make collection or
repayment of principal in full, on the basis of existing facts, conditions and values, highly questionable and improbable. The probability of loss is very high, but the exact amount
may not be estimable at the current point in time. Loans in this category are severely stressed, generally non-accrual and/or involve a non-viable operation. Collateral may be
difficult to value because of limited salability, no ready and available market, or unknown location or condition of the collateral. Credit administration weaknesses can range from
few to severe and may jeopardize the credit as well as the guaranty. All such loans or investments should have a specific allowance.
Loss — Loans or investments classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is no longer warranted. This
classification does not mean that the credit has no recovery or salvage value but, rather, it is not practical to defer writing off this asset. It is also possible that the credit decision
cannot be supported by the credit administration process. Documents and verification are lacking; analysis is poor or undocumented, there is no assurance that the loan is eligible
or that a correct credit decision was made. Loss loans are loans where a loss total can be clearly estimated. Losses should be taken during the period in which they are identified.
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We will monitor and, when appropriate, change the investment ratings assigned to each loan or investment in our portfolio. In connection with our valuation process, our management will review
these investment ratings on a quarterly basis, and our Board will affirm such ratings. The investment rating of a particular investment should not, however, be deemed to be a guarantee of the
investment’s future performance.
Historically, we have offered to provide significant operating and managerial assistance to our portfolio companies and have provided significant operating and managerial assistance to our controlled
portfolio companies. As a BDC, we will continue to offer, and must provide upon request, managerial assistance to our portfolio companies. This assistance will typically involve, among other things,
monitoring the operations and financial performance of our portfolio companies, participating in board and management meetings, consulting with and advising officers of portfolio companies and
providing other organizational and financial assistance. We may sometimes receive fees for these services.
Valuation Procedures
We conduct the valuation of our assets, pursuant to which our net asset value shall be determined, at all times consistent with GAAP and the 1940 Act. Our valuation procedures are set forth in more
detail below:
Securities for which market quotations are readily available on an exchange shall be valued at such price as of the closing price on the day of valuation. We may also obtain quotes with respect to
certain of our investments from pricing services or brokers or dealers in order to value assets. When doing so, we will determine whether the quote obtained is sufficient according to GAAP to
determine the fair value of the security. If determined adequate, we will use the quote obtained. We also employ independent third-party valuation firms for certain of our investments for which there
is not a readily available market value.
Securities for which reliable market quotations are not readily available or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in
the judgment of our Board, does not represent fair value, which we expect will represent a substantial majority of the investments in our portfolio, shall be valued as follows: (i) each portfolio
company or investment is initially valued by the investment professionals responsible for the portfolio investment; (ii) preliminary valuation conclusions are documented and discussed with our
Senior Lending Team and Executive Committee; (iii) independent third-party valuation firms engaged by, or on behalf of, the Board will conduct independent appraisals, review management’s
preliminary valuations and prepare separate preliminary valuation conclusions on a selected basis; (iv) the Board reviews the preliminary valuations of members of our Senior Lending Team and
Executive Committee and/or that of the third-party valuation firm and responds to the valuation recommendation with comments, if any; and (v) the Board will discuss valuations and determine the
fair value of each investment in our portfolio in good faith.
Determination of fair value involves subjective judgments and estimates not susceptible to substantiation by auditing procedures. Accordingly, under current auditing standards, the notes to our
financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.
The determination of fair value will generally be based on the following factors, as relevant:
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the nature and realizable value of any collateral;
adherence to the portfolio company’s business plan and compliance with covenants;
periodic and regular contact with the portfolio company’s management to discuss financial position, requirements and accomplishments;
comparison to portfolio companies in the same industry, if any;
the portfolio company’s ability to make payments;
the portfolio company’s earnings and discounted cash flow;
the markets in which the portfolio company does business; and
comparisons to publicly traded securities.
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Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include, but are not limited to, the following:
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private placements and restricted securities that do not have an active trading market;
securities whose trading has been suspended or for which market quotes are no longer available;
debt securities that have recently gone into default and for which there is no current market;
securities whose prices are stale;
securities affected by significant events; and
securities that our investment professionals believe were priced incorrectly.
Competition
We compete for SBA 7(a) and other SMB loans with other financial institutions and various SMB lenders, as well as other sources of funding. Additionally, competition for investment opportunities
has emerged among alternative investment vehicles, such as collateralized loan obligations, some of which are sponsored by other alternative asset investors, as these entities have begun to focus on
making investments in SMBs. As a result of these new entrants, competition for our investment opportunities may intensify. Many of these entities have greater financial and managerial resources
than we do but we believe that they invariably lack the ability to process loans as quickly as we can and do not have the depth of our customer service capabilities. We believe we will be able to
compete with these entities primarily on the basis of our financial technology infrastructure, our experience and reputation, our deep industry knowledge and ability to provide customized business
solutions, our willingness to make smaller investments than other specialty finance companies, the breadth of our contacts, our responsive and efficient investment analysis and decision-making
processes, and the investment terms we offer.
We and our controlled portfolio companies compete in a large number of markets for the sale of financial and other services to SMBs. Each of our controlled portfolio companies competes not only
against suppliers in its particular state or region of the country but also against suppliers operating on a national or even a multi-national scale. None of the markets in which our controlled portfolio
companies compete are dominated by a small number of companies that could materially alter the terms of the competition.
Our electronic payment processing portfolio companies compete with entities including Global Payments, First National Bank of Omaha and Paymentech, L.P. Our managed technology solutions
portfolio company competes with 1&1, Hosting.com, Discount ASP, Maxum ASP, GoDaddy®, Yahoo!®, BlueHost®, iPowerWeb®, Amazon Web Services®, Microsoft® Azure, Google®, and
RackSpace among others.
Our business finance ecosystem competes with regional and national banks and non-bank lenders. Intuit® is bundling electronic payment processing, web hosting and payroll services similar to ours
in offerings that compete in the same SMB market.
In many cases, we believe that our competitors are not as able as we are to take advantage of changes in business practices due to technological developments and, for those with a larger size, are
unable to offer the personalized service that many SMB owners and operators desire.
While we compete with many different providers in our various businesses, we have been unable to identify any direct and comprehensive competitors that deliver the same broad suite of services
focused on the needs of the SMB market with the same marketing strategy as we do. We believe that some of the competitive advantages of our platform include:
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compatible products such as our e-commerce offerings that we are able to bundle to increase sales, reduce costs and reduce risks for our customers and enable us to sell two, three, or four
products at the same time;
the patented NewTracker® referral system, which allows us and our portfolio companies to process new business utilizing a web-based, centralized processing point and provides back end
scalability, and allows our alliance partners to offer a centralized access point for their SMB clients as part of their larger strategic approach to marketing, thus demonstrating their focus on
providing a suite of services to the SMB market in addition to their core service;
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the focus on developing and marketing business solutions and financial products and services aimed at the SMB market;
scalability, which allows us to size our business solutions capabilities very quickly to meet customer and market needs;
the ability to offer personalized service and competitive rates;
a strategy of multiple channel distribution, which gives us maximum exposure in the marketplace;
high quality customer service 24/7/365 across all business lines, with a focus primarily on absolute customer service and;
a telephonic interview process, as opposed to requiring handwritten or data-typing processes, which allows us to offer high levels of customer service and satisfaction, particularly for SMB
owners who do not get this service from our competitors
Revenues by Geographic Area
During the years ended December 31, 2019, 2018 and 2017, all of our revenue was derived from customers in the United States.
Employees
As of December 31, 2019, we had a total of 109 employees.
Available Information
We are subject to the informational requirements of the SEC and in accordance with those requirements file reports, proxy statements and other information with the SEC. The SEC maintains a web
site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the SEC’s web site is http://www.sec.gov.
Our principal offices are located at 4800 T Rex Avenue, Suite 120, Boca Raton, Florida and our telephone number is (212) 356-9500. Our website may be directly accessed at
http://www.newtekone.com. We make available through our website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file
such material with, or furnish it to, the SEC. These documents may be directly accessed at http://investor.newtekbusinessservices.com. Information contained on our website is not a part of this
report.
Regulation
We have elected to be regulated as a BDC under the 1940 Act. We have also elected to be treated for tax purposes as a RIC under Subchapter M of the Code. The 1940 Act contains prohibitions and
restrictions relating to transactions between BDCs and their affiliates (including any investment advisers or sub-advisers), principal underwriters and affiliates of those affiliates or underwriters and
requires that a majority of the directors be persons other than “interested persons,” as that term is defined in the 1940 Act.
In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by “a majority of our outstanding
voting securities” as defined in the 1940 Act. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company’s voting
securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of
such company. We do not anticipate any substantial change in the nature of our business.
We generally are not able to issue and sell our common stock at a price below net asset value per share. We may, however, issue and sell our common stock, or warrants, options or rights to acquire
our common stock, at a price below the then-current net asset value of our common stock if (1) our Board determines that such sale is in our best interests and the best interests of our stockholders,
and (2) our stockholders have approved our policy and practice of making such sales within the preceding 12
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months. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our board of directors, closely approximates the market
value of such securities. During 2019, the Company did not sell any shares of its common stock at a price below then-current net asset value per share.
Under the 1940 Act, a BDC generally may not issue senior securities unless the ratio of its total assets (less total liabilities other than indebtedness represented by senior securities) to its total
indebtedness represented by senior securities plus preferred stock, if any, is at least 200%. This means that a BDC generally may borrow up to $1 for every $1 of investor equity. However, legislation
enacted in March 2018 modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio of 200% to an asset coverage ratio of 150%,
if, among other things, shareholders representing at least a majority of the votes cast, when quorum is met, approve a proposal to do so. At a Special Meeting of Shareholders held on July 26, 2018,
our stockholders approved a proposal to reduce our minimum required asset coverage to 150%, effective July 27, 2018. As a result, we generally may borrow up to $2 for every $1 of investor
equity. See “Senior Securities; Coverage Ratio.”
We may be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our Board who are not interested persons and, in some
cases, prior approval by the SEC.
We may invest up to 100% of our assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, we may, for the purpose of public resale, be
deemed an “underwriter” as that term is defined in the Securities Act of 1933, or the Securities Act. We do not intend to acquire securities issued by any investment company that exceed the limits
imposed by the 1940 Act. Under these limits, except for registered money market funds, we generally cannot acquire more than 3% of the voting stock of any investment company, invest more than
5% of the value of our total assets in the securities of one investment company or invest more than 10% of the value of our total assets in the securities of more than one investment company. With
regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might indirectly subject our stockholders to additional expenses
as they will indirectly be responsible for the costs and expenses of such companies. None of our investment policies are fundamental and any may be changed without stockholder approval.
Exemptive Relief
On May 10, 2016, we received an order from the SEC for exemptive relief that, with the shareholders’ approval we received on July 27, 2016, allows us to take certain actions that would otherwise
be prohibited by the 1940 Act, as applicable to BDCs. Specifically, the order permits us to (i) issue restricted stock awards to our officers, employees and employee and non-employee directors, (ii)
issue stock options to our employees, (iii) withhold shares of the Company’s common stock to satisfy tax withholding obligations relating to the vesting of restricted stock or the exercise of options
that were granted to pursuant to the 2014 Plan or the Amended Stock Plan, and (iv) permit participants to pay the exercise price of Options that were granted to them pursuant to the 2014 Plan or will
be granted to them pursuant to Amended Stock Plan with shares of Applicant’s common stock.
Qualifying Assets
Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition
is made, qualifying assets represent at least 70% of the company’s total assets. The principal categories of qualifying assets relevant to our proposed business are the following:
(1) Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company,
or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be
prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which:
(a) is organized under the laws of, and has its principal place of business in, the United States;
(b) is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions
under the 1940 Act: and
(c) does not have any class of securities listed on a national securities exchange; or if it has securities listed on a national securities exchange such company has market capitalization of less
than $250 million; is controlled by the
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BDC and has an affiliate of a BDC on its board of directors; or meets such other criteria as may be established by the SEC.
(2) Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is
in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance
other than conventional lending or financing arrangements.
(3) Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding
equity of the eligible portfolio company.
(4) Securities received in exchange for or distributed on or with respect to securities described in (1) through (3) above, or pursuant to the exercise of warrants or rights relating to such
securities.
(5) Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment.
Control, as defined by the 1940 Act, is presumed to exist where a BDC beneficially owns more than 25% of the outstanding voting securities of the portfolio company.
We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, we generally cannot acquire more than 3% of the voting
stock of any investment company (as defined in the 1940 Act), invest more than 5% of the value of our total assets in the securities of one such investment company or invest more than 10% of the
value of our total assets in the securities of such investment companies in the aggregate. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be
noted that such investments might subject our stockholders to additional expenses. None of our investment policies are fundamental and any may be changed without stockholder approval.
Significant Managerial Assistance
A BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in
“Qualifying Assets” above. Business development companies generally must offer to make available to the issuer of the securities significant managerial assistance, except in circumstances where
either (i) the business development company controls such issuer of securities or (ii) the business development company purchases such securities in conjunction with one or more other persons
acting together and one of the other persons in the group makes available such managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby
the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business
objectives and policies of a portfolio company.
Temporary Investments
Pending investment in other types of “qualifying assets,” as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities
maturing in one year or less from the time of investment, which we refer to, collectively, as temporary investments, so that 70% of our assets are qualifying assets. Typically, we invest in highly rated
commercial paper, U.S. Government agency notes, U.S. Treasury bills or in repurchase agreements relating to such securities that are fully collateralized by cash or securities issued by the U.S.
government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-
upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. Consequently, repurchase agreements are functionally similar to loans.
There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, the 1940 Act and certain diversification tests in order to qualify as a
RIC for federal income tax purposes typically require us to limit the amount we invest with any one counterparty. Our investment Advisor monitors the creditworthiness of the counterparties with
which we enter into repurchase agreement transactions.
Warrants and Options
Under the 1940 Act, a BDC is subject to restrictions on the amount of warrants, options, restricted stock or rights to purchase shares of capital stock that it may have outstanding at any time. Under
the 1940 Act, we may generally only offer warrants
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provided that (i) the warrants expire by their terms within ten years, (ii) the exercise or conversion price is not less than the current market value at the date of issuance, (iii) our stockholders authorize
the proposal to issue such warrants, and our board of directors approves such issuance on the basis that the issuance is in the best interests of the Company and its stockholders and (iv) if the warrants
are accompanied by other securities, the warrants are not separately transferable unless no class of such warrants and the securities accompanying them has been publicly distributed. The 1940 Act
also provides that the amount of our voting securities that would result from the exercise of all outstanding warrants, as well as options and rights, at the time of issuance may not exceed 25% of our
outstanding voting securities. In particular, the amount of capital stock that would result from the conversion or exercise of all outstanding warrants, options or rights to purchase capital stock cannot
exceed 25% of the BDC’s total outstanding shares of capital stock.
Senior Securities; Coverage Ratio
We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if we meet certain asset coverage requirements. On April 27,
2018, we announced that our Board, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act”) of the Board, approved a proposal to reduce our asset coverage
requirement as set forth in Section 61(a)(2) of the 1940 Act, from 200% to 150%, pursuant to recent modifications included in the Small Business Credit Availability Act. Such change would have
been effective April 27, 2019. However, on July 26, 2018, our stockholders approved a proposal to reduce our asset coverage requirement to 150%, effective July 27, 2018. In addition, we may not be
permitted to declare any cash dividend or other distribution on our outstanding common shares, or purchase any such shares, unless, at the time of such declaration or purchase, we have asset
coverage of at least 150% after deducting the amount of such dividend, distribution, or purchase price. We may also borrow amounts up to 5% of the value of our total assets for temporary purposes.
For a discussion of the risks associated with the resulting leverage, see “Risk Factors – Risks Related to Our Business And Structure – Because we borrow money, the potential for loss on amounts
invested in us is magnified and may increase the risk of investing in us.”
As of December 31, 2019, we had an aggregate principal amount of senior securities outstanding of $439,550,000 and our asset coverage ratio was 173%.
Issuance of Shares Below Current Net Asset Value
At a Special Meeting of Shareholders held on July 26, 2018, our common stockholders approved a proposal that allowed us to issue common stock at a discount from our NAV per share, effective for
a period that expired on June 14, 2019. We have agreed to limit the number of shares that we issue at a price below NAV pursuant to this authorization so that the aggregate dilutive effect on our then
outstanding shares will not exceed 20%. At a Special Meeting of Shareholders held on August 2, 2019, our common stockholders authorized us to issue common stock at a discount from our NAV
per share, effective for a period expiring on the earlier of August 2, 2020, or the date of our 2020 annual meeting of stockholders. Under the approved proposal, our Board, subject to its fiduciary
duties and regulatory requirements, has the discretion to determine the amount of the discount, and as a result, the discount could be up to 100% of net asset value per share. During the year ended
December 31, 2019, the Company did not sell any shares of common stock at a price below NAV per share.
Code of Ethics
We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain transactions by our personnel. Our code of ethics
generally does not permit investments by our employees in securities that may be purchased or held by us. The code of ethics is published and available on the Company’s website at
http://investor.newtekbusinessservices.com/corporate-governance is attached as an exhibit and is available on the EDGAR Database on the SEC’s Internet site at www.sec.gov. You may also obtain
copies of the code of ethics, after paying a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.
Compliance Policies and Procedures
We have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and are required to review these compliance
policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a chief compliance officer to be responsible for administering the policies and
procedures. Mr. Michael Schwartz currently serves as our Chief Compliance Officer.
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Privacy Principles
We are committed to maintaining the privacy of our shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what
personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.
Generally, we do not receive any non-public personal information relating to our shareholders, although certain non-public personal information of our shareholders may become available to us. We
do not disclose any non-public personal information about our shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts
(for example, to a transfer agent).
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us.
For example:
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pursuant to Rule 13a-14 of the 1934 Act, our Chief Executive Officer and Chief Accounting Officer must certify the accuracy of the consolidated financial statements contained in our
periodic reports;
pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures;
pursuant to Rule 13a-15 of the 1934 Act, our management must prepare a report regarding its assessment of our internal controls over financial reporting; and
pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, our periodic reports must disclose whether there were significant changes in our internal controls or in other factors
that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will
continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.
Proxy Voting Policies and Procedures
We vote proxies relating to our portfolio securities in a manner in which we believe is in the best interest of our stockholders. We review on a case-by-case basis each proposal submitted to a
stockholder vote to determine its impact on the portfolio securities held by us. Although we generally vote against proposals that may have a negative impact on our portfolio securities, we may vote
for such a proposal if there exists compelling long-term reasons to do so.
Our proxy voting decisions are made by our Senior Lending Team and our Executive Committee, which are responsible for monitoring each of our investments. To ensure that our vote is not the
product of a conflict of interest, we require that: (i) anyone involved in the decision making process disclose to our chief compliance officer any potential conflict that he or she is aware of and any
contact that he or she has had with any interested party regarding a proxy vote; and (ii) employees involved in the decision making process or vote administration are prohibited from revealing how
we intend to vote on a proposal in order to reduce any attempted influence from interested parties.
Stockholders may obtain information regarding how we voted proxies with respect to our portfolio securities by making a written request for information to: Chief Compliance Officer, 1981 Marcus
Avenue, Suite 130, Lake Success, NY 11042.
Other
We will be periodically examined by the SEC for compliance with the Exchange Act and the 1940 Act.
We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from
protecting any director or officer against any liability to our
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stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office.
We are required to adopt and implement written policies and procedures reasonably designed to prevent violation of the federal securities laws, review these policies and procedures annually for their
adequacy and the effectiveness of their implementation. We have designated Michael Schwartz to be our Chief Compliance Officer to be responsible for administering these policies and procedures.
Nasdaq Global Market Requirements
We have adopted certain policies and procedures intended to comply with the Nasdaq Global Market’s corporate governance rules. We will continue to monitor our compliance with all future listing
standards that are approved by the SEC and will take actions necessary to ensure that we are in compliance therewith.
Regulation as a Small Business Lending Company
Our wholly owned subsidiary, NSBF, is licensed by the SBA as an SBLC that originates loans through the SBA 7(a) Program. The SBA 7(a) Program is the SBA’s primary loan program. In order to
operate as an SBLC, a licensee is required to maintain a minimum regulatory capital (as defined by SBA regulations) of the greater of (1) 10% of its outstanding loans receivable and other
investments or (2) $1,000,000. In addition, a SBLC is subject to certain other regulatory restrictions.
The SBA generally reduces risks to lenders by guaranteeing major portions of qualified loans made to small businesses. This enables lenders to provide financing to small businesses when funding
may otherwise be unavailable or not available on reasonable terms. Under the SBA 7(a) Program, the SBA typically guarantees 75% of qualified loans over $150,000. The eligibility requirements of
the SBA 7(a) Program vary by the industry of the borrower and affiliates and other factors.
The SBA grants PLP status to certain lenders originating SBA 7(a) loans based on achievement of certain standards in lending which are regularly monitored by the SBA. NSBF has been granted
national PLP status and originates, sells and services SBA 7(a) loans. As a Preferred Lender, NSBF is authorized to place SBA guarantees on SBA 7(a) loans without seeking prior SBA review and
approval. Designated PLP lenders are delegated the authority to process, close, service, and liquidate most SBA guaranteed loans without prior SBA review. PLP lenders are authorized to make SBA
guaranteed loans, subject only to a brief eligibility review and assignment of a loan number by SBA. In addition, they are expected to handle servicing and liquidation of all of their SBA loans with
limited involvement of SBA. If NSBF were to lose PLP status, it would have a material adverse impact on NSBF’s ability to originate loans at current levels. See “Item 1A. Risk Factors – NSBF’s
failure to maintain PLP status or maintain its SBA 7(a) license could adversely affect our results of operations.”
Among other things, SBLCs are required to: submit to the SBA for review a credit policy that demonstrates the SBLC’s compliance with the applicable regulations and the SBA’s Standard Operating
Procedures for origination, servicing and liquidation of 7(a) loans; submit to the SBA for review and approval annual validation, with supporting documentation and methodologies, demonstrating
that any scoring model used by the SBLC is predictive of loan performance; obtain SBA approval for loan securitization and borrowings; and adopt and fully implement an internal control policy
which provides adequate direction for effective control over and accountability for operations, programs, and resources.
Pursuant to the SBA’s regulations, the SBA is released from liability on its guaranty of a 7(a) loan and may, in its sole discretion, refuse to honor a guaranty purchase request in full or in part, or
recover all or part of the funds already paid in connection with a guaranty purchase, if the lender failed to comply materially with a program requirement; failed to make, close, service or liquidate the
loan in a prudent manner; placed the SBA at risk through improper action or inaction; failed to disclose a material fact to the SBA in a timely manner; or misrepresented a material fact to the SBA
regarding the loan. In certain instances, the SBA may refuse to honor a guaranty purchase request in full (referred to by the SBA as a “denial”) or in part (referred to by the SBA as a “repair”), or
recover all or part of the funds already paid in connection with a guaranty purchase. In the event of a repair or denial, liability on the guaranty, in whole or part, would be transferred to NSBF. In
addition, the growth in the number of loans made by NSBF, changes in SBA regulations and economic factors may adversely impact our current repair and denial rates. See “Item 1A. Risk Factors –
We have specific risks associated with SBA loans.”
In connection with our most recent examination by the SBA, we entered into a voluntary agreement with the SBA. We have adopted the agreement pursuant to our commitment to operate under the
SBA’s regulations and the agreement formalizes many of the actions to strengthen our operational procedures as they relate to our delegated lender authorities. Consistent with the terms of the
agreement, we will establish and maintain a segregated restricted cash account in the amount of no less than $10 million to account for potential post-purchase repairs and denials of guaranteed
portions of SBA 7(a) loans, and take certain
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actions to demonstrate the sufficiency of NSBF’s liquidity. We also have agreed to repurchase the guaranteed portions of several loans in the amount of approximately $5.6 million, and establish
certain additional reporting and compliance procedures. In relation to the rapid growth of our 7(a) loan portfolio, we continue to assess and develop our policies and procedures to facilitate the
successful implementation of our business, liquidity and operations.
The SBA restricts the ability of an SBLC to lend money to any of its officers, directors and employees or to invest in associates thereof. The SBA also prohibits, without prior SBA approval, a
“change of control” of an SBLC. A “change of control” is any event which would result in the transfer of the power, direct or indirect, to direct the management and policies of a SBLC, whether
through ownership, contractual arrangements or otherwise. SBLCs are periodically examined and audited by the SBA to determine compliance with SBA regulations.
Taxation as a Regulated Investment Company
For any taxable year in which we:
•
•
qualify as a RIC; and
satisfy the Annual Distribution Requirement,
We generally will not be subject to U.S. federal income tax on the portion of our income we distribute (or are deemed to distribute) to stockholders. We will be subject to U.S. federal income tax at
the regular corporate rates on any income or capital gains not distributed (or deemed distributed) to our stockholders.
We will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our net
ordinary income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending October 31 in that calendar year and (3) any income recognized, but not distributed, in
preceding years and on which we paid no corporate-level income tax (the “Excise Tax Avoidance Requirement”). We generally will endeavor in each taxable year to make sufficient distributions to
our stockholders to avoid any U.S. federal excise tax on our earnings.
In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:
•
•
•
continue to qualify as a BDC under the 1940 Act at all times during each taxable year;
derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to loans of certain securities, gains from the sale of stock or other securities,
net income from certain “qualified publicly traded partnerships,” or other income derived with respect to our business of investing in such stock or securities (the “90% Income Test”); and
diversify our holdings so that at the end of each quarter of the taxable year:
•
•
at least 50% of the value of our assets consists of cash, cash equivalents, U.S. Government securities, securities of other RICs, and other securities if such other securities of any
one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and
no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer, of two or more issuers that
are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or of certain “qualified publicly traded
partnerships” (the “Diversification Tests”).
Qualified earnings may exclude such income as management fees received in connection with our subsidiaries or other potential outside managed funds and certain other fees.
We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having
original issue discount (such as debt instruments with PIK interest or, in certain cases, increasing interest rates or issued with warrants), we must include in income each year a portion of the original
issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income other
amounts that we have not yet received in cash, such as PIK interest, deferred loan origination fees that are paid after origination of the loan or are paid in non-cash compensation such as warrants or
stock, or certain income with respect to equity investments in foreign corporations. Because any original issue discount or other amounts accrued will be included in our investment company taxable
income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution
35
Requirement, even though we will not have received any corresponding cash amount. The Company does not currently hold investments that have original issue discount.
Gain or loss realized by us from the sale or exchange of warrants acquired by us as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. Such gain
or loss generally will be long-term or short-term, depending on how long we held a particular warrant.
Although we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy the Annual Distribution Requirement and the Excise Tax Avoidance
Requirement. However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain “asset
coverage” tests are met. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating
to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such
dispositions at times that, from an investment standpoint, are not advantageous. If we are prohibited from making distributions or are unable to obtain cash from other sources to make the
distributions, we may fail to qualify as a RIC, which would result in us becoming subject to corporate-level federal income tax.
In addition, we will be partially dependent on our subsidiaries for cash distributions to enable us to meet the RIC distribution requirements. Some of our subsidiaries may be limited by the Small
Business Investment Act of 1958, and SBA regulations, from making certain distributions to us that may be necessary to maintain our status as a RIC. We may have to request a waiver of the SBA’s
restrictions for our subsidiaries to make certain distributions to maintain our RIC status. We cannot assure you that the SBA will grant such waiver. If our subsidiaries are unable to obtain a waiver,
compliance with the SBA regulations may cause us to fail to qualify as a RIC, which would result in us becoming subject to corporate-level federal income tax.
The remainder of this discussion assumes that we will qualify as a RIC and will have satisfied the Annual Distribution Requirement for the year ended December 31, 2019.
Any transactions in options, futures contracts, constructive sales, hedging, straddle, conversion or similar transactions, and forward contracts will be subject to special tax rules, the effect of which
may be to accelerate income to us, defer losses, cause adjustments to the holding periods of our investments, convert long-term capital gains into short-term capital gains, convert short-term capital
losses into long-term capital losses or have other tax consequences. These rules could affect the amount, timing and character of distributions to stockholders. We do not currently intend to engage in
these types of transactions.
A RIC is limited in its ability to deduct expenses in excess of its “investment company taxable income” (which is, generally, ordinary income plus net realized short-term capital gains in excess of net
realized long-term capital losses). If our expenses in a given year exceed gross taxable income (e.g., as the result of large amounts of equity-based compensation), we would experience a net operating
loss for that year. However, a RIC is not permitted to carry forward net operating losses to subsequent years. In addition, expenses can be used only to offset investment company taxable income, not
net capital gain. Due to these limits on the deductibility of expenses, we may for tax purposes have aggregate taxable income for several years that we are required to distribute and that is taxable to
our stockholders even if such income is greater than the aggregate net income we actually earned during those years. Such required distributions may be made from our cash assets or by liquidation of
investments, if necessary. We may realize gains or losses from such liquidations. In the event we realize net capital gains from such transactions, stockholders may receive a larger capital gain
distribution than in the absence of such transactions.
Investment income received from sources within foreign countries, or capital gains earned by investing in securities of foreign issuers, may be subject to foreign income taxes withheld at the source.
In this regard, withholding tax rates in countries with which the United States does not have a tax treaty are often as high as 35% or more. The United States has entered into tax treaties with many
foreign countries that may entitle us to a reduced rate of tax or exemption from tax on this related income and gains. The effective rate of foreign tax cannot be determined at this time since the
amount of our assets to be invested within various countries is not now known. We do not anticipate being eligible for the special election that allows a RIC to treat foreign income taxes paid by such
RIC as paid by its stockholders.
If we purchase shares in a “passive foreign investment company,” or PFIC, we may be subject to U.S. federal income tax on a portion of any “excess distribution” or gain from the disposition of such
shares even if such income is distributed as a taxable dividend by us to our stockholders. Additional charges in the nature of interest may be imposed on us in respect of deferred taxes arising from
such distributions or gains. If we invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, or QEF, in lieu of the foregoing requirements, we will be required to
include in income each year a portion of the ordinary earnings and net capital gain of the QEF, even if such income is not distributed to it. Alternatively, we can elect to mark-to-market at the end of
each taxable year our shares in a PFIC; in this case, we will recognize as ordinary income any
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increase in the value of such shares and as ordinary loss any decrease in such value to the extent it does not exceed prior increases included in income. Under either election, we may be required to
recognize in a year income in excess of our distributions from PFICs and our proceeds from dispositions of PFIC stock during that year, and such income will nevertheless be subject to the Annual
Distribution Requirement and will be taken into account for purposes of the 4% U.S. federal excise tax. We intend to limit and/or manage our holdings in PFICs to minimize our liability for any taxes
and related interest charges.
Foreign exchange gains and losses realized by us in connection with certain transactions involving non-dollar debt securities, certain foreign currency futures contracts, foreign currency option
contracts, foreign currency forward contracts, foreign currencies, or payables or receivables denominated in a foreign currency are subject to Code provisions that generally treat such gains and losses
as ordinary income and losses and may affect the amount, timing and character of distributions to our stockholders. Any such transactions that are not directly related to our investment in securities
(possibly including speculative currency positions or currency derivatives not used for hedging purposes) could, under future Treasury regulations, produce income not among the types of “qualifying
income” from which a RIC must derive at least 90% of its annual gross income.
Failure to Qualify as a RIC
If we fail to satisfy the 90% Income Test or the Diversification Tests for any taxable year, we may nevertheless continue to qualify as a RIC for such year if certain relief provisions are applicable
(which may, among other things, require us to pay certain corporate-level federal taxes or to dispose of certain assets).
If we were unable to qualify for treatment as a RIC and the foregoing relief provisions are not applicable, we would be subject to tax on all of our taxable income at regular corporate rates, regardless
of whether we make any distributions to our stockholders. Distributions would not be required, and any distributions would be taxable to our stockholders as ordinary dividend income to the extent of
our current and accumulated earnings and profits and, subject to certain limitations, may be eligible for the 20% maximum rate for non-corporate taxpayers provided certain holding period and other
requirements were met. Subject to certain limitations under the Code, corporate distributees would be eligible for the dividends-received deduction. Distributions in excess of our current and
accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis, and any remaining distributions would be treated as a capital gain. Generally, a
non-taxable return of capital will reduce an investor’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold. Stockholders should read any written
disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains. Certain written disclosure will present a calculation of
return of capital on a tax accounting basis.
To requalify as a RIC in a subsequent taxable year, we would be required to satisfy the RIC qualification requirements for that year and dispose of any earnings and profits from any year in which we
failed to qualify as a RIC. Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year prior to disqualification and that requalify as a
RIC no later than the second year following the non-qualifying year, we could be subject to tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to
qualify as a RIC that are recognized within the subsequent 5 years, unless we made a special election to pay corporate-level tax on such built-in gain at the time of our requalification as a RIC.
ITEM 1A. RISK FACTORS.
The following is a summary of the risk factors that we believe are most relevant to our business. These are factors that, individually or in the aggregate, we think could cause our actual results to
differ significantly from anticipated or historical results. If any of the following risks occur, our business, financial condition and results of operations could be materially and adversely affected. In
that case, the value of our common stock could decline and shareholders may lose all or part of their investment. You should understand that it is not possible to predict or identify all such factors.
Consequently, you should not consider the following to be a complete discussion of all potential risks or uncertainties. We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events, or otherwise, unless required by law.
RISKS RELATED TO OUR BUSINESS AND STRUCTURE
Our investment portfolio is recorded at fair value, with our Board having final responsibility for overseeing, reviewing and approving, in good faith, its estimate of fair value and, as a result,
there is uncertainty as to the value of our portfolio investments.
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Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us, with our Board having final
responsibility for overseeing, reviewing and approving, in good faith, our estimate of fair value. Typically, there is not a public market for the securities of the privately held companies in which we
invest. As a result, we value these securities annually and quarterly at fair value based on various inputs, including management, third-party valuation firms and our audit committee, and with the
oversight, review and approval of our Board.
The determination of fair value and consequently, the amount of unrealized gains and losses in our portfolio, are to a certain degree, subjective and dependent on a valuation process approved by our
Board. Certain factors that may be considered in determining the fair value of our investments include external events, such as private mergers, sales and acquisitions involving comparable
companies. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based
on estimates. Our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to this uncertainty, our fair value
determinations may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors
purchasing our common stock based on an overstated net asset value would pay a higher price than the value of our investments might warrant. Conversely, investors selling stock during a period in
which the net asset value understates the value of our investments will receive a lower price for their stock than the value of our investments might warrant.
Any unrealized depreciation we experience in our portfolio may be an indication of a portfolio company’s inability to meet its repayment obligations to us with respect to affected loans or a
potential impairment of the value of affected equity investments. This could result in realized losses in the future and ultimately in reductions of our income and gains available for distribution
in future periods.
As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at the fair value as determined in good faith by our Board. Decreases in the market values
or fair values of our investments will be recorded as unrealized depreciation. Any unrealized depreciation in our portfolio could be an indication of a portfolio company's inability to meet its
repayment obligations to us with respect to affected loans or a potential impairment of the value of affected equity investments. This could result in realized losses in the future and ultimately in
reductions of our income and gains available for distribution in future periods.
Our financial condition and results of operations will depend on our ability to manage and deploy capital effectively.
Our ability to achieve our investment objective will depend on our ability to manage and deploy capital, which will depend, in turn, on our management’s ability to identify, evaluate and monitor, and
our ability to finance and invest in, companies that meet our investment criteria.
Accomplishing our investment objective on a cost-effective basis will largely be a function of our management’s handling of the investment process, its ability to provide competent, attentive and
efficient services and our access to investments offering acceptable terms. In addition to monitoring the performance of our existing investments, our Senior Lending Team and our Executive
Committee is called upon, from time to time, to provide managerial assistance to some of our portfolio companies.
These demands on their time may distract them or slow the rate of investment. Even if we are able to grow and build upon our investment operations, any failure to manage our growth effectively
could have a material adverse effect on our business, financial condition, results of operations and prospects. The results of our operations will depend on many factors, including the availability of
opportunities for investment, readily accessible short and long-term funding alternatives in the financial markets and economic conditions. Furthermore, if we cannot successfully operate our business
or implement our investment policies and strategies as described herein, it could negatively impact our ability to pay dividends.
We are dependent upon our Senior Lending Team and our Executive Committee for our future success, and if we are unable to hire and retain qualified personnel or if we lose any member of
our Senior Lending Team or our Executive Committee our ability to achieve our investment objective could be significantly harmed.
We depend on our Senior Lending Team and Executive Committee as well as other key personnel for the identification, final selection, structuring, closing and monitoring of our investments. These
executive officers and employees have critical industry experience and relationships that we rely on to implement our business plan. Our future success depends on the continued service of our Senior
Lending Team and our Executive Committee and the replacement of any departing individuals with others of comparable skills and experience. The departure of any of the members of our Senior
Lending Team, our Executive Committee or a significant number of our senior personnel could have a material adverse effect on our ability to achieve our
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investment objective. As a result, we may not be able to operate our business as we expect, and our ability to compete could be harmed, which could cause our operating results to suffer.
We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.
We compete for investments with other financial institutions and various SMB lenders, as well as other sources of funding. Additionally, competition for investment opportunities has emerged among
alternative investment vehicles, such as CLOs, some of which are sponsored by other alternative asset investors, as these entities have begun to focus on making investments in SMBs. As a result of
these new entrants, competition for our investment opportunities may intensify. Many of our competitors will be substantially larger and have considerably greater financial, technical and marketing
resources than us. For example, some competitors may have a lower cost of capital and access to funding sources that will not be available to us. In addition, some of our competitors may have higher
risk tolerances or different risk assessments than we will have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer
better pricing and more flexible structuring than we will be able to offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we are forced to
match our competitors’ pricing, terms and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss. Furthermore, many of our
competitors will have greater experience operating under, or will not be subject to, the regulatory restrictions that the 1940 Act will impose on us as a BDC, or the source-of-income, asset
diversification, and distribution requirements we must satisfy to maintain our tax treatment as a RIC.
If we are unable to source investments effectively, we may be unable to achieve our investment objective.
Our ability to achieve our investment objective depends on our Senior Lending Team’s and our Executive Committee’s ability to identify, evaluate and invest in suitable companies that meet our
investment criteria. Accomplishing this result on a cost-effective basis is largely a function of our marketing capabilities, our management of the investment process, our ability to provide efficient
services and our access to financing sources on acceptable terms. In addition to monitoring the performance of our existing investments, members of our Senior Lending Team, our Executive
Committee and our other investment professionals may also be called upon to provide managerial assistance to our portfolio companies. These demands on their time may distract them or slow the
rate of investment. To grow, we need to continue to hire, train, supervise and manage new employees and to implement computer and other systems capable of effectively accommodating our growth.
However, we cannot provide assurance that any such employees will contribute to the success of our business or that we will implement such systems effectively. Failure to manage our future growth
effectively could have a material adverse effect on our business, financial condition and results of operations.
Our business model depends to a significant extent upon strong referral relationships, and our inability to maintain or further develop these relationships, as well as the failure of these
relationships to generate investment opportunities, could adversely affect our business.
We expect that members of our Senior Lending Team and our Executive Committee will maintain their relationships with intermediaries, financial institutions, investment bankers, commercial
bankers, financial advisors, attorneys, accountants, consultants, alliance partners, and other individuals within their networks, and we will rely, to a significant extent, upon these relationships to
provide us with potential investment opportunities. If our Senior Lending Team and our Executive Committee fail to maintain its existing relationships or develop new relationships with sources of
investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom members of our Senior Lending Team and our Executive Committee have
relationships are not obligated to provide us with investment opportunities, and, therefore, there is no assurance that such relationships will generate investment opportunities for us.
Any failure on our part to maintain our status as a BDC would reduce our operating flexibility.
We have elected to be regulated as a BDC under the 1940 Act. The 1940 Act imposes numerous constraints on the operations of BDCs. For example, BDCs are required to invest at least 70% of their
gross assets in specified types of securities, primarily in private companies or thinly-traded U.S. public companies, cash, cash equivalents, U.S. government securities and other high quality debt
investments that mature in one year or less. Furthermore, any failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against
us and/or expose us to claims of private litigants. In addition, upon approval of a majority of our shareholders, we may elect to withdraw our status as a BDC. If we decide to withdraw our election, or
if we otherwise fail to maintain our qualification, as a BDC, we may be subject to the substantially greater regulation under the 1940 Act as a closed-end investment company. Compliance with such
regulations would significantly decrease our operating flexibility, and could significantly increase our costs of doing business.
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Regulations governing our operation as a BDC affect our ability to raise additional capital and the way in which we do so. As a BDC, the necessity of raising additional capital may expose us to
risks, including the typical risks associated with leverage.
We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount
permitted by the 1940 Act. Under the provisions of the 1940 Act, and pursuant to the approval that we received from our shareholders on July 26, 2018, we are permitted, as a BDC, to issue senior
securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after
each issuance of senior securities. See “Regulation.” If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments
and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would
not be available for distributions to our common shareholders. Continuing to expand our debt financing activities in SBA 7(a) loans, SBA 504 loans and conventional loans will require us to raise
additional capital. The failure to continue to generate such loans on a consistent basis could have a material impact on our results of operations, and accordingly, our ability to make distributions to
our shareholders.
We generally may not issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common
stock, at a price below the then-current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and
our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely
approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities convertible into, or
exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and shareholders may experience dilution.
Because we intend to distribute substantially all of our income to our shareholders to maintain our tax treatment as a RIC, we will continue to need additional capital to finance our growth, and
regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital and make distributions.
As a RIC, we generally are required to distribute substantially all of our ordinary income to meet the Annual Distribution Requirement and the Excise Tax Avoidance Requirement (discussed below),
which consequently increases the need to raise additional debt and equity capital. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with
leverage, including an increased risk of loss. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred shareholders would have separate
voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common shareholders, and the issuance of preferred stock could have the
effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest.
Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.
Borrowings, also known as leverage, magnify the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments,
investors will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase
more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have
had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would
without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect
our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique.
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Illustration: The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table
below are hypothetical and actual returns may be higher or lower than those appearing in the table below:
Assumed Return on Our Portfolio (1)
(net of expenses)
Corresponding net return to shareholders (2)
(10)%
(5)%
0%
5%
10%
(30.95)%
(18.58)%
(6.20)%
6.17%
18.55%
(1) Assumes $797,410,000 in total assets, $439,550,000 in debt outstanding, $322,226,000 in net assets as of December 31, 2019, and an average cost of funds of 4.55%. Actual interest payments may
be different.
(2) In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our December 31, 2019 total assets of at least 2.51%.
Our ability to achieve our investment objective may depend in part on our ability to access additional leverage on favorable terms, and there can be no assurance that such additional leverage can in
fact be achieved.
To the extent we borrow money to finance our investments, changes in interest rates will affect our cost of capital and net investment income.
To the extent we borrow money to finance investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest
those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income in the event we borrow money
to finance our investments. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income. We expect that our long-term fixed-rate investments
will be financed primarily with equity and/or long-term debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may
include various interest rate hedging activities to the extent permitted by the 1940 Act. If we do not implement these techniques properly, we could experience losses on our hedging positions, which
could be material. In addition, depending on the frequency and magnitude of rising interest rates, these interest rate increases could negatively impact premiums received on the sale of guaranteed
SBA loans, and further, could increase prepayment speeds on outstanding SBA loans, potentially negatively impacting the Company’s financial results.
Because we have received the approval of our shareholders, we are subject to 150% asset coverage beginning after July 26, 2018.
At the Company’s Special Meeting of Shareholders, held on July 26, 2018, its shareholders approved, among other things, the reduction of the Company’s asset coverage requirements for senior
securities from 200% to 150%, effective July 27, 2018. As a result, we are able to increase our leverage up to an amount that reduces our asset coverage ratio from 200% to 150% (i.e., the amount of
debt may not exceed 66 2/3% of the value of our assets) beginning on July 27, 2018, assuming that additional borrowings are available. As of December 31, 2019, we had aggregate principal amount
of senior securities outstanding of $439,550,000, and our asset coverage was 173%.
Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, investors will experience
increased risks of investing in our securities. If the value of our assets increases, then the additional leverage would cause the net asset value attributable to our common stock to increase more sharply
than it would have had we not increased our leverage. Conversely, if the value of our assets decreases, the additional leverage would cause net asset value to decline more sharply than it otherwise
would have had we not increased our leverage. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than
it would without the additional leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not increased our leverage. Such a
decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative
investment technique.
In addition, the ability of BDCs to increase their leverage will increase the capital available to BDCs and thus competition for the investments that we seek to make. This may negatively impact
pricing on the investments that we do make and adversely affect our net investment income and results of operations.
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We may experience fluctuations in our quarterly and annual results.
We may experience fluctuations in our quarterly and annual operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment
criteria, the interest rate payable on the debt securities we acquire, the default rate of such securities, the level of portfolio dividend and fee income, the level of our expenses, variations in and the
timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, results
for any period should not be relied upon as being indicative of performance in future periods.
Regulations governing our operation as a BDC affect our ability to raise additional capital and the way in which we do so. As a BDC, the necessity of raising additional capital may expose us to
risks, including the typical risks associated with leverage.
We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount
permitted by the 1940 Act. Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act,
equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be
unable to satisfy this test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when
such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common shareholders. Continuing to expand our debt
financing activities in SBA 7(a) loans will require us to raise additional capital. The failure to continue to generate such loans on a consistent basis could have a material impact on our results of
operations, and accordingly, our ability to make distributions to our shareholders.
We generally may not issue and sell our common stock at a price below net asset value per share. However, at a July 26, 2018 Special Meeting of Shareholders, our shareholders authorized us to sell
shares of our common stock (during the following 12 months) at a price below its then current net asset value per share subject to certain conditions (including that the cumulative number of shares
sold does not exceed 20% of its then outstanding common stock immediately prior to each such sale). We also may sell our common stock, or warrants, options or rights to acquire our common stock,
at a price below the then-current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and our
shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates
the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable
for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and shareholders may experience dilution.
Our Board may change our investment objective, operating policies and strategies without prior notice or shareholder approval, the effects of which may be adverse.
Although we must obtain shareholder approval to cease to be, or withdraw our election as, a BDC, our Board has the authority to modify or waive our investment objective, current operating policies,
investment criteria and strategies without prior notice and without shareholder approval. We cannot predict the effect any changes to our current operating policies, investment criteria and strategies
would have on our business, net asset value, operating results and value of our stock. However, the effects might be adverse, which could negatively impact our ability to make distributions and cause
shareholders to lose all or part of their investment.
We will be subject to corporate-level income tax if we are unable to maintain our treatment as a RIC or are unable to make the distributions required to maintain RIC tax treatment.
Although we have elected to be treated as a RIC, no assurance can be given that we will be able to maintain our tax treatment as a RIC in the future. To maintain our tax treatment as a RIC, we must
meet certain source-of-income, asset diversification, and distribution requirements.
The income source requirement will be satisfied if we obtain at least 90% of our income for each year from dividends, interest, gains from the sale of stock or securities or similar sources.
The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure to meet those requirements may result
in our having to dispose of certain investments
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quickly in order to prevent the loss of our qualification as a RIC. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be
made at disadvantageous prices and could result in substantial losses. The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our shareholders on an annual basis at least
90% of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses, if any. Because we use debt financing, we are subject to certain asset coverage ratio
requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the
distribution requirement. If we are unable to obtain cash from other sources, we could fail to qualify for tax treatment as a RIC.
If we fail to qualify for RIC tax treatment for any reason and remain or become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of
income available for distribution and the amount of our distributions.
We cannot predict how tax reform legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business.
Legislative or other actions relating to taxes could have a negative effect on us. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative
process and by the Internal Revenue Service and the U.S. Treasury Department. In December 2017, the U.S. House of Representatives and U.S. Senate passed tax reform legislation, which the
President signed into law. Such legislation has made many changes to the Code, including significant changes to the taxation of business entities, the deductibility of interest expense, and the tax
treatment of capital investment. We cannot predict with certainty how any changes in the tax laws might affect us, our stockholders, or our portfolio investments. New legislation and any U.S.
Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S.
federal income tax consequences to us and our stockholders of such qualification, or could have other adverse consequences. Stockholders are urged to consult with their tax advisor regarding tax
legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our securities.
We may not be able to pay distributions to our shareholders, our distributions may not grow over time and a portion of our distributions may be a return of capital.
We intend to pay distributions to our shareholders out of assets legally available for distribution. We cannot assure investors that we will achieve investment results that will allow us to make a
specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by, among other things, the impact of one or more of the
risk factors described in this prospectus. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC can limit our ability to pay distributions. All distributions will be paid at
the discretion of our Board and will depend on our earnings, our financial condition, maintenance of our RIC tax treatment, compliance with applicable BDC regulations and such other factors as our
Board may deem relevant from time to time. We cannot assure investors that we will pay distributions to our shareholders in the future.
When we make distributions, we will be required to determine the extent to which such distributions are paid out of current or accumulated earnings and profits. Distributions in excess of current and
accumulated earnings and profits will be treated as a non-taxable return of capital to the extent of an investor’s basis in our stock and, assuming that an investor holds our stock as a capital asset,
thereafter as a capital gain. Generally, a non-taxable return of capital will reduce an investor’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold.
Stockholders should read any written disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains.
We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.
For U.S. federal income tax purposes, we are required to include in our taxable income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we
receive warrants in connection with the origination of a loan or possibly in other circumstances, or PIK interest. Such original issue discount or increases in loan balances as a result of contractual PIK
arrangements will be included in our taxable income before we receive any corresponding cash payments. We also may be required to include in our taxable income certain other amounts that we will
not receive in cash. Since, in certain cases, we may recognize taxable income before or without receiving corresponding cash payments, we may have difficulty meeting the Annual Distribution
Requirement necessary to maintain our tax treatment as a RIC. Accordingly, to satisfy our RIC distribution requirements, we may have to sell some of our investments at times and/or at prices we
would not consider
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advantageous, raise additional debt or equity capital or forgo new investment opportunities. If we are not able to obtain cash from other sources, we may fail to qualify for tax treatment as a RIC and
thus become subject to corporate-level income tax.
We may in the future choose to pay dividends in our own stock, in which case investors may be required to pay tax in excess of the cash they receive.
We may distribute taxable dividends that are payable in part in our stock. In accordance with certain applicable Treasury regulations and published guidance issued by the Internal Revenue Service, a
publicly offered RIC may treat a distribution of its own stock as fulfilling the RIC distribution requirements if each shareholder may elect to receive his or her entire distribution in either cash or stock
of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all shareholders must be at least 20% of the aggregate declared distribution. If too many shareholders elect to
receive cash, the cash available for distribution must be allocated among the shareholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any shareholder,
electing to receive cash, receive less than the lesser of (a) the portion of the distribution such shareholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the
percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to
the amount of cash that could have been received instead of stock. Taxable shareholders receiving such dividends will be required to include the amount of the dividends as ordinary income (or as
long-term capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for United States federal income
tax purposes. As a result, a U.S. shareholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. shareholder sells the stock it receives as a dividend in
order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore,
with respect to non-U.S. shareholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In
addition, if a significant number of our shareholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.
Internal control deficiencies could impact the accuracy of our financial results or prevent the detection of fraud. As a result, shareholders could lose confidence in our financial and other public
reporting, which would harm our business and the trading price of our common stock.
Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent
fraud. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the
Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Any failure by us to identify future deficiencies in our internal control over financial reporting in
a timely manner or remediate any such deficiencies, could prevent us from accurately and timely reporting our financial results. Inferior internal controls could also cause investors to lose confidence
in our reported financial information, which could have a negative effect on the trading price of our common stock.
We are required to disclose changes made in our internal control and procedures on a quarterly basis and our management is required to assess the effectiveness of these controls annually. An
independent assessment of the effectiveness of our internal controls could detect problems that our management’s assessment might not. Undetected material weaknesses in our internal controls could
lead to financial statement restatements and require us to incur the expense of remediation. In the event that we are unable to maintain or achieve compliance with Section 404 of the Sarbanes-Oxley
Act and related rules, the market price of our common stock may be adversely affected.
Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.
We and our portfolio companies will be subject to applicable local, state and federal laws and regulations, including, without limitation, federal immigration laws and regulations. New legislation may
be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we are permitted to make, any of which could harm us and our
shareholders, potentially with retroactive effect. Additionally, any changes to the laws and regulations governing our operations relating to permitted investments may cause us to alter our investment
strategy in order to avail ourselves of new or different opportunities. Such changes could result in material differences to the strategies and plans set forth herein and may result in our investment
focus shifting from the areas of expertise of our Senior Lending Team and our Executive Committee to other types of investments in which our Senior Lending Team and our Executive Committee
may have
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less expertise or little or no experience. Thus, any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment.
NSBF, our wholly-owned subsidiary, is subject to regulation by the SBA.
Our wholly-owned subsidiary, NSBF, is licensed by the SBA as an SBLC. In order to operate as an SBLC, a licensee is required to maintain a minimum regulatory capital (as defined by SBA
regulations) of the greater of (1) 10% of its outstanding loans receivable and other investments or (2) $1,000,000. Moreover, before consenting to a securitization, NSBF and other securitizers must be
considered well capitalized by the SBA. For NSBF and other SBLC securitizers, the SBA will consider it well capitalized if it maintains a minimum unencumbered paid in capital and paid in surplus
equal to at least 10% of its assets, excluding the guaranteed portion of 7(a) loans. In addition, an SBLC is subject to certain other regulatory restrictions. Among other things, SBLCs are required to:
establish, adopt, and maintain a formal written capital plan; submit to the SBA for review a credit policy that demonstrates the SBLC’s compliance with the applicable regulations and the SBA’s
Standard Operating Procedures for origination, servicing and liquidation of 7(a) loans; submit to the SBA for review and approval annual validation, with supporting documentation and
methodologies, demonstrating that any scoring model used by the SBLC is predictive of loan performance; obtain SBA approval for loan securitization and borrowings; and adopt and fully
implement an internal control policy which provides adequate direction for effective control over and accountability for operations, programs, and resources.
Additionally, in connection with our most recent examination by the SBA, we have entered into a voluntary agreement with the SBA to meet certain other requirements and conditions. See “Item 1A.
Risk Factors – If NSBF fails to comply with SBA regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, liability on the SBA guaranty, in whole or in part, could
be transferred to NSBF.”
We have specific risks associated with SBA loans.
We have generally sold the guaranteed portion of SBA loans in the secondary market. Such sales have resulted in our earning premiums and creating a stream of servicing income. Sale prices for
guaranteed portions of SBA 7(a) loans can be negatively impacted by market conditions, in particular a higher interest rate environment, which can lead to higher prepayments during the period,
resulting in lower sale prices in the secondary market. A reduction in the price of guaranteed SBA 7(a) loans could negatively impact our business. There can be no assurance that we will be able to
continue originating these loans, or that a secondary market will exist for, or that we will continue to realize premiums upon the sale of the guaranteed portions of the SBA 7(a) loans.
If NSBF fails to comply with SBA regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, liability on the SBA guaranty, in whole or part, could be
transferred to NSBF.
Since we sell the guaranteed portion of substantially all of our SBA 7(a) loan portfolio, we retain credit risk on the non-guaranteed portion of the SBA loans. We share pro rata with the SBA in any
recoveries. In the event of default on an SBA loan, our pursuit of remedies against a borrower is subject to SBA approval.
If we fail to comply with certain of the SBA’s regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, the SBA may be released from liability on its guaranty of a
7(a) loan, and may refuse to honor a guaranty purchase request in full (referred to by SBA as a “denial”) or in part (referred to by SBA as a “repair”), or recover all or part of the funds already paid in
connection with a guaranty purchase. In the event of a repair or denial, liability on the guaranty, in whole or part, would be transferred to NSBF. In addition, the growth in the number of loans made
by NSBF, changes in SBA regulations and economic factors may adversely impact our current repair and denial rate. In connection with our most recent examination by the SBA, we entered into a
voluntary agreement with the SBA. We have adopted the agreement pursuant to our commitment to operate under the SBA’s regulations and the agreement formalizes many of the actions to
strengthen our operational procedures as they relate to our delegated lender authorities. Consistent with the terms of the agreement, we will establish and maintain a segregated restricted cash account
in the amount of no less than $10 million to account for potential post-purchase repairs and denials of guaranteed portions of SBA 7(a) loans, and take certain actions to demonstrate the sufficiency of
NSBF’s liquidity. We also have agreed to repurchase the guaranteed portions of several loans in the amount of approximately $5.6 million, and establish certain additional reporting and compliance
procedures. In relation to the rapid growth of our 7(a) loan portfolio, we continue to assess and develop our policies and procedures to facilitate the successful implementation of our business,
liquidity and operations.
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Curtailment of the government-guaranteed loan programs could adversely affect our results of operations.
Although the program has been in existence since 1953, there can be no assurance that the federal government will maintain the SBA 7(a) loan program, or that it will continue to guarantee loans at
current levels. If we cannot continue originating and selling government-guaranteed loans, we will generate fewer origination fees and our ability to generate gains on the sale of loans will decrease.
From time-to-time, the government agencies that guarantee these loans reach their internal budgeted limits and cease to guarantee loans for a stated time period or shut down. In addition, these
agencies may change their rules for extending loans. Also, Congress may adopt legislation that would have the effect of discontinuing or changing the SBA’s programs. Non-governmental programs
could replace government programs for some borrowers, but the terms might not be equally acceptable. If these changes occur, the volume of loans to SMBs and industrial borrowers of the types that
now qualify for government-guaranteed loans could decline, as could the profitability of these loans.
Curtailment of our ability to utilize the SBA 7(a) Loan Program by the Federal government could adversely affect our results of operations.
We are dependent upon the federal government to maintain the SBA 7(a) Program. There can be no assurance that the program will be maintained or that loans will continue to be guaranteed at
current levels. From time-to-time the SBA has reached its internal budgeted limits and ceased to guarantee loans for a stated period of time. In addition, the SBA may change its rules regarding loans
or Congress may adopt legislation or fail to approve a budget that would have the effect of discontinuing, reducing availability of funds for, or changing loan programs. Non-governmental programs
could replace government programs for some borrowers, but the terms might not be equally acceptable. If these changes occur, the volume of loans to small businesses that now qualify for
government guaranteed loans could decline, as could the profitability of these loans.
NSBF’s failure to maintain PLP status or maintain its SBA 7(a) license could adversely affect our results of operations.
NSBF has been granted PLP status and originates, sells and services small business loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a
national lender, PLP status allows NSBF to expedite loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status would adversely
impact our marketing efforts and ultimately loan origination volume which would negatively impact our results of operations.
There can be no assurance that NSBF will be able to maintain its status as a PLP or that NSBF can maintain its SBA 7(a) license. If NSBF cannot continue originating and selling government
guaranteed loans at current levels, we would experience a decrease in future servicing spreads and earned premiums and negatively impact our results of operations.
Our loans under the Section 7(a) Loan Program involve a high risk of default and such default could adversely impact our results of operations.
Loans to small businesses involve a high risk of default. Such loans are generally not rated by any statistical rating organization. Small businesses usually have smaller product lines and market shares
than larger companies and therefore may be more vulnerable to competition and general economic conditions. These businesses’ success typically depends on their management talents and efforts of
one person or a small group of persons whose death, disability or resignation would adversely affect the business. Because these businesses frequently have highly leveraged capital structures,
reduced cash flow resulting from economic downturns can severely impact the businesses’ ability to meet their obligations, which could impact our results of operations. The portions of Section 7(a)
loans to be retained by us do not benefit directly from any SBA guarantees; in an event of default, however, we and the SBA typically cooperate in collateral foreclosure or other work-out efforts and
share in any resulting collections.
The loans we make under the Section 7(a) Loan Program face competition.
There are several other non-bank lenders as well as a large number of banks that participate in the SBA Section 7(a) Loan Program. All of these participants compete for the business of eligible
borrowers. In addition, pursuant to the 1940 Act, the Company is limited as to the amount of indebtedness it may have. Accordingly, we may be at a competitive disadvantage with regard to other
lenders or financial institutions that may be able to achieve greater leverage at a lower cost and are not subject to SBA regulations.
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Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that are costly and could adversely affect our business and financial
results.
We are subject to changing rules and regulations of federal and state government as well as the stock exchange on which our common stock is listed. These entities, including the Public Company
Accounting Oversight Board, the SEC and the Nasdaq Global Market, have issued a significant number of new and increasingly complex requirements and regulations over the course of the last
several years and continue to develop additional regulations and requirements in response to laws enacted by Congress. Our efforts to comply with existing requirements, or any revised or amended
requirements, have resulted in, and may continue to result in, an increase in expenses and a diversion of management’s time from other business activities.
In addition, our failure to keep pace with any such rules, or for our management to appropriately address compliance with such rules fully and in a timely manner, exposes us to an increasing risk of
inadvertent non-compliance. While our management team takes reasonable efforts to ensure that we are in full compliance with all laws applicable to its operations, the increasing rate and extent of
regulatory change increases the risk of a failure to comply, which may result in our ability to operate our business in the ordinary course or may subject us to potential fines, regulatory findings or
other matters that may materially impact our business.
If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset
value could decrease and our level of distributions and liquidity could be affected adversely.
Our ability to secure additional financing and satisfy our financial obligations under indebtedness outstanding from time to time will depend upon our future operating performance, which is subject
to the prevailing general economic and credit market conditions, including interest rate levels and the availability of credit generally, and financial, business and other factors, many of which are
beyond our control. The prolonged continuation or worsening of current economic and capital market conditions could have a material adverse effect on our ability to secure financing on favorable
terms, if at all.
If we are unable to obtain additional debt capital, then our equity investors will not benefit from the potential for increased returns on equity resulting from leverage to the extent that our investment
strategy is successful and we may be limited in our ability to make new commitments or fundings to our portfolio companies.
Capital markets may experience periods of disruption and instability and we cannot predict when these conditions will occur. Such market conditions could materially and adversely affect debt
and equity capital markets in the United States and abroad, which could have a negative impact on our business, financial condition and results of operations.
As a BDC, we must maintain our ability to raise additional capital for investment purposes. Without sufficient access to the capital markets or credit markets, we may be forced to curtail our business
operations or we may not be able to pursue new business opportunities. The U.S. and global capital markets experienced extreme volatility and disruption during the economic downturn that began in
mid-2007, and the U.S. economy was in a recession for several consecutive calendar quarters during the same period. In 2010, a financial crisis emerged in Europe, triggered by high budget deficits
and rising direct and contingent sovereign debt, which created concerns about the ability of certain nations to continue to service their sovereign debt obligations. Risks resulting from such debt crisis,
including any austerity measures taken in exchange for the bail out of certain nations, and any future debt crisis in Europe or any similar crisis elsewhere could have a detrimental impact on the global
economic recovery, sovereign and non-sovereign debt in certain countries and the financial condition of financial institutions generally.
The decision made in the United Kingdom referendum to leave the European Union has led to volatility in global financial markets, and in particular in the markets of the United Kingdom and across
Europe, and may also lead to weakening in consumer, corporate and financial confidence in the United Kingdom and Europe. The United Kingdom and European Union announced in March 2018 an
agreement in principle to transitional provisions under which European Union law would remain in force in the United Kingdom until the end of December 2020, but this remains subject to the
successful conclusion of an agreement between the United Kingdom and the European Union. In the absence of such an agreement there would be no transitional provisions and the United Kingdom
would exit the European Union and the relationship between the United Kingdom and the European Union would be based on the World Trade Organization rules (a “hard Brexit”). On October 28,
2019, the United Kingdom came to an agreement with the European Union to delay the deadline for withdrawal; however, the United Kingdom parliament did not approve the withdrawal agreement
by January 31, 2020 and there was a hard Brexit on that date. While it is not currently possible to determine the extent of the impact a hard Brexit may have on our investments, certain measures are
being proposed and/or will be introduced, at the European Union level or at the member state level, which are designed to minimize disruption in the financial markets
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A failure or the perceived risk of a failure to raise the statutory debt limit of the U.S. could have a material adverse effect on our business, financial condition and results of operations.
Recent U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the U.S. In the future, the U.S.
government may not be able to meet its debt payments unless the federal debt ceiling is raised. If legislation increasing the debt ceiling is not enacted, as needed, and the debt ceiling is reached, the
U.S. federal government may stop or delay making payments on its obligations, which could negatively impact the U.S. economy and our portfolio companies. In addition, disagreement over the
federal budget has caused the U.S. federal government to shut down for periods of time, most recently, in December 2018 to January 2019. Continued adverse political and economic conditions could
have a material adverse effect on our business, financial condition and results of operations.
A government shutdown could adversely affect NSBF’s SBA 7(a) loan originations and our results of operations.
We are dependent upon the Federal government to maintain the SBA 7(a) Program. NSBF’s lending business could be materially and adversely affected by circumstances or events limiting the
availability of funds for this program. In October 2013, Congress failed to approve a budget, which, in turn, eliminated availability of funds for the SBA 7(a) program. At the time, the government
shutdown affected SBA 7(a) lenders’ ability to originate SBA 7(a) loans. More recently, the partial government shut down in December 2018 until January 2019, the longest standing partial shutdown
in history, resulted in a halt to the SBA 7(a) program. The government could again experience a government shutdown which would affect NSBF’s ability to originate government guaranteed loans
and to sell the government guaranteed portions of those loans in the secondary market. Any government shutdown could adversely affect NSBF’s SBA 7(a) loan originations and our results of
operations.
We are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our securities and our
ability to make distributions to our shareholders.
Our business is highly dependent on our communications and information systems. Certain of these systems are provided to us by third-party service providers. Any failure or interruption of such
systems, including as a result of the termination of an agreement with any such third party service provider, could cause delays or other problems in our activities. This, in turn, could have a material
adverse effect on our operating results and negatively affect the market price of our securities and our ability to make distributions to our shareholders.
Terrorist attacks, acts of war, global health emergencies, or natural disasters may affect any market for our securities, impact the businesses in which we invest and harm our business, operating
results and financial condition.
Terrorist acts, acts of war, global health emergencies, or natural disasters may disrupt our operations, as well as the operations of the businesses in which we invest. Such acts have created, and
continue to create, economic and political uncertainties and have contributed to global economic instability. Future terrorist activities, military or security operations, or natural disasters could further
weaken the domestic/global economies and create additional uncertainties, which may negatively impact the businesses in which we invest directly or indirectly and, in turn, could have a material
adverse impact on our business, operating results and financial condition. Losses from terrorist attacks and natural disasters are generally uninsurable.
Events outside of our control, including public health crises, may negatively affect the results of our operations.
Periods of market volatility may continue to occur in response to pandemics or other events outside of our control. These types of events could adversely affect our operating results. For example, in
December 2019, a novel strain of coronavirus surfaced in Wuhan, China, which has resulted in the temporary closure of many corporate offices, retail stores, and manufacturing facilities and factories
across China. As the potential impact on global markets from the coronavirus is difficult to predict, the extent to which the coronavirus may negatively affect our operating results or the duration of
any potential business disruption is uncertain. Any potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration
and severity of the coronavirus and the actions taken by authorities and other entities to contain the coronavirus or treat its impact, all of which are beyond our control. These potential impacts, while
uncertain, could adversely affect our operating results.
We could be adversely affected by information security breaches or cyber security attacks.
Our business operations and our portfolio companies’ business operations rely upon secure information technology systems for data processing, storage and reporting. Despite security and controls
design, implementation and updating, such information technology systems could become subject to cyber-attacks. Network, system, application and data breaches could result in
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operational disruptions or information misappropriation, which could have a material adverse effect on our business, results of operations and financial condition.
In addition, our business operations and our portfolio companies’ business operations involve the storage and transmission of Newtek, portfolio company, customer and employee proprietary
information. Our businesses rely on our digital technologies, computer and email systems, software, and networks to conduct operations. Our technologies, systems and networks may become the
target of criminal cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other
information of us, our portfolio companies, or third parties with whom we and our portfolio companies deal, or otherwise disrupt our or our customers’ or other third parties’ business operations. It is
critical to our business strategy that our facilities and infrastructure remain secure and are perceived by the marketplace to be secure. Although we believe we and our IT providers employ appropriate
security technologies (including data encryption processes, intrusion detection systems), and conduct comprehensive risk assessments and other internal control procedures to assure the security of
our and our customers’ data, we cannot guarantee that these measures will be sufficient for this purpose. If our and our IT provider’s security measures are breached as a result of third-party action,
employee error or otherwise, and as a result our or our customers’ data becomes available to unauthorized parties, we could incur liability and our reputation would be damaged, which could lead to
the loss of current and potential customers. If we experience any breaches of our network security or sabotage, we might be required to expend significant capital and other resources to detect,
remedy, protect against or alleviate these and related problems, and we may not be able to remedy these problems in a timely manner, or at all. Because techniques used by outsiders to obtain
unauthorized network access or to sabotage systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or implement
adequate preventative measures. For example, in early 2018, an unauthorized third-party misappropriated three of NTS’ domain names. NTS’ management and forensic investigators determined that
attackers compromised a portion of NTS’ shared webhosting system, and may have acquired certain customer information limited to its shared webhosting customers, and/or gained access to certain
of its shared webhosting servers. In response, NTS has taken a range of steps designed to further secure its systems, enhance its security protections, enhance access controls, and prevent future
unauthorized activity.
As cyber threats continue to evolve, we and our portfolio companies may be required to expend significant additional resources to continue to modify or enhance our protective measures or to
investigate and remediate any information security vulnerabilities. Although we have insurance in place that covers such incidents, the cost of a breach or cyber-attack could well exceed any such
insurance coverage.
The failure in cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct
business effectively.
The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure
from external providers, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if those events affect our computer-based
data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our
business could be severely compromised.
We and our portfolio companies depend heavily upon computer systems to perform necessary business functions. Despite our portfolio companies’ implementation of a variety of security measures,
our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we and our portfolio
companies may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs,
it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our and our portfolio company computer systems and networks, or
otherwise cause interruptions or malfunctions in our operations, which could result in damage to our and our portfolio companies’ reputation, financial losses, litigation, increased costs, regulatory
penalties and/or customer dissatisfaction or loss.
We are subject to risks related to corporate social responsibility.
Our business faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number
of areas, such as environmental stewardship, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could
impact the value of our brand, the cost of our operations and relationships with investors, all of
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which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business.
RISKS RELATED TO OUR INVESTMENTS GENERALLY
Our investments are very risky and highly speculative.
We invest primarily in senior secured term loans and select equity investments issued by companies, some of which are highly leveraged. The majority of senior secured loans are SBA 7(a) loans and
the majority of equity investments are comprised of controlled affiliate equity investments.
Senior Secured Loans. There is a risk that the collateral securing our loans, in most cases real estate, may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to
appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital, and, in
some circumstances, our lien could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise
additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and
interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies. In some cases we may take second lien position on
additional business or personal assets to secure further our first lien positions.
Equity Investments. We occasionally invest directly in the equity securities of portfolio companies. The equity interests we receive may not appreciate in value and, in fact, may decline in value.
Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we
experience.
In addition, investing in SMBs involves a number of significant risks, including:
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these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in
the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment;
they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions
and market conditions, as well as general economic downturns;
they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons
could have a material adverse impact on our portfolio company and, in turn, on us;
they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk
of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;
they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity; and
our executive officers and directors may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies.
An investment strategy focused primarily on smaller privately held companies involves a high degree of risk and presents certain challenges, including the lack of available information about
these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.
Our portfolio consists primarily of debt and equity investments in smaller privately-owned companies. Investing in these types of companies involves a number of significant risks. Typically, the debt
in which we invest is not initially rated by any rating agency; however, we believe that if such investments were rated, they would be below investment grade. Below investment grade securities,
which are often referred to as “high yield” or “junk,” have predominantly speculative characteristics with
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respect to the issuer’s capacity to pay interest and repay principal. Compared to larger publicly-owned companies, these small companies may be in a weaker financial position and experience wider
variations in their operating results, which may make them more vulnerable to economic downturns. Typically, these companies need more capital to compete; however, their access to capital is
limited and their cost of capital is often higher than that of their competitors. Our portfolio companies often face intense competition from larger companies with greater financial, technical and
marketing resources and their success typically depends on the managerial talents and efforts of an individual or a small group of persons. Therefore, any loss of its key employees could affect a
portfolio company’s ability to compete effectively and harm its financial condition. Further, some of these companies conduct business in regulated industries that are susceptible to regulatory
changes. These factors could impair the cash flow of our portfolio companies and result in other events, such as bankruptcy. These events could limit a portfolio company’s ability to repay its
obligations to us, which may have an adverse effect on the return on, or the recovery of, our investment in these businesses. Deterioration in a borrower’s financial condition and prospects may be
accompanied by deterioration in the value of the loan’s collateral.
Generally, little public information exists about these companies, and we are required to rely on the ability of our Senior Lending Team and our Executive Committee to obtain adequate information
to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment
decision, and we may lose money on our investments. Also, privately held companies frequently have less diverse product lines and smaller market presence than larger competitors. These factors
could adversely affect our investment returns as compared to companies investing primarily in the securities of public companies.
We are exposed to risks associated with changes in interest rates.
The majority of our debt investments are based on floating rates, primarily the Prime Rate. General interest rate fluctuations can be expected to have a substantial impact on the interest income we
receive on our debt investments. For example, a reduction in interest rates could decrease the value of any investments we hold which earn floating interest rates. Alternatively, an increase in interest
rates could decrease the value of any investments we hold which earn fixed interest rates.
General interest rate fluctuations may also have an impact on the value of our stock and our rate of return on invested capital. Because we have borrowed money, our net investment income depends,
in part, upon the difference between the rate at which we borrow funds and the rate that our investments yield. As a result, we can offer no assurance that a significant change in market interest rates
will not have a material adverse effect on our net investment income. For example, rising interest rates could also adversely affect our performance if such increases cause our borrowing costs to rise
at a rate in excess of the rate that our investments yield, thereby decreasing our net income. Also, an increase in interest rates available to investors could make an investment in our common stock
less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.
If general interest rates rise, there is a risk that the borrowers on our debt investments in floating rate loans will be unable to pay escalating interest amounts, which could result in a default under their
loan documents with us. Rising interest rates could also cause borrowers to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business
and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on us to provide fixed rate loans to our borrowers, which could adversely affect
our net investment income in the future as interest rates continue to fluctuate.
We do hold some floating rate debt investments that are tied to LIBOR. On July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop persuading or compelling banks to
submit LIBOR rates after 2021. At this time, it is not possible to predict the establishment of alternative reference rates or any other reforms to LIBOR that may be enacted in the United Kingdom or
elsewhere, or how such changes could affect our results of operations or financial condition. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR
could have an adverse impact on the market for or value of any LIBOR-linked loans, and other financial obligations or extensions of credit held by or due to us. If LIBOR ceases to exist, we may
need to renegotiate agreements extending beyond 2021 that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established. Following
the replacement of LIBOR, some or all of these credit agreements may bear interest a less favorable interest rate, which could have an adverse impact on our overall financial condition and results of
operations.
Additionally, on July 12, 2019, the SEC’s Division of Corporate Finance, Division of Investment Management, Division of Trading and Markets, and Office of the Chief Accountant issued a
statement about the potentially significant effects on financial markets and market participants if LIBOR is discontinued in 2021 and no longer available as a reference benchmark rate. The Staff
encouraged all market participants to identify contracts that reference LIBOR and begin transitions to alternative rates. On December 30, 2019, the SEC’s Chairman, Division of Corporate Finance
and Office of the Chief Accountant issued a
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statement to encourage audit committees in particular to understand management’s plans to identify and address the risks associated with the elimination of LIBOR, and, specifically, the impact on
accounting and financial reporting and any related issues associated with financial products and contracts that reference LIBOR, as the risks associated with the discontinuation of LIBOR and
transition to an alternative reference rate will be exacerbated if the work is not completed in a timely manner.
The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities,
loans, and other financial obligations or extensions of credit held by or due to us, or on our overall financial condition or results of operations. If LIBOR ceases to exist, we may need to renegotiate
the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with the new standard that is established.
Our investments in leveraged portfolio companies may be risky, and you could lose all or part of your investment.
Investment in leveraged companies involves a number of significant risks. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations
under their loans and debt securities that we hold. Such developments may be accompanied by deterioration in the value of any collateral and a reduction in the likelihood of our realizing any
guarantees that we may have obtained in connection with our investment. Smaller leveraged companies also may have less predictable operating results and may require substantial additional capital
to support their operations, finance their expansion or maintain their competitive position.
Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.
Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or in some cases senior to, the debt in which we invest. By their terms, such debt instruments may
entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the
event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would
typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have sufficient remaining assets to repay its
obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the
event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.
Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of
the collateral may not be sufficient to repay in full both the first priority creditors and us.
Certain loans that we make are secured by a second priority security interest in the same collateral pledged by a portfolio company to secure senior first lien debt owed by the portfolio company to
commercial banks or other traditional lenders. Often the senior lender has procured covenants from the portfolio company prohibiting the incurrence of additional secured debt without the senior
lender’s consent. Prior to and as a condition of permitting the portfolio company to borrow money from us secured by the same collateral pledged to the senior lender, the senior lender will require
assurances that it will control the disposition of any collateral in the event of bankruptcy or other default. In many such cases, the senior lender will require us to enter into an “intercreditor
agreement” prior to permitting the portfolio company to borrow from us. Typically the intercreditor agreements we will be requested to expressly subordinate our debt instruments to those held by the
senior lender and further provide that the senior lender shall control: (1) the commencement of foreclosure or other proceedings to liquidate and collect on the collateral; (2) the nature, timing and
conduct of foreclosure or other collection proceedings; (3) the amendment of any collateral document; (4) the release of the security interests in respect of any collateral; and (5) the waiver of defaults
under any security agreement. Because of the control we may cede to senior lenders under intercreditor agreements we may enter, we may be unable to realize the proceeds of any collateral securing
some of our loans.
If we make subordinated investments, the obligors or the portfolio companies may not generate sufficient cash flow to service their debt obligations to us.
We may make subordinated investments that rank below other obligations of the obligor in right of payment. Subordinated investments are subject to greater risk of default than senior obligations as a
result of adverse changes in the financial condition of the obligor or economic conditions in general. If we make a subordinated investment in a portfolio company, the portfolio company may be
highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations.
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The disposition of our investments may result in contingent liabilities.
We currently expect that substantially all of our investments will involve loans and private securities. In connection with the disposition of an investment in loans and private securities, we may be
required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. We may also be required to
indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to potential liabilities. These arrangements may result in contingent
liabilities that ultimately result in funding obligations that we must satisfy through our return of distributions previously made to us.
There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.
Even though we may have structured certain of our investments as secured loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, and based upon
principles of equitable subordination as defined by existing case law, a bankruptcy court could subordinate all or a portion of our claim to that of other creditors and transfer any lien securing such
subordinated claim to the bankruptcy estate. The principles of equitable subordination defined by case law have generally indicated that a claim may be subordinated only if its holder is guilty of
misconduct or where the senior loan is re-characterized as an equity investment and the senior lender has actually provided significant managerial assistance to the bankrupt debtor. We may also be
subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a
lender’s liability claim, including as a result of actions taken in rendering significant managerial assistance or actions to compel and collect payments from the borrower outside the ordinary course of
business.
Economic recessions could impair our portfolio companies and harm our operating results.
Certain of our portfolio companies may be susceptible to an economic downturn and may be unable to repay our loans during this period. Therefore, assets may become non-accrual and the value of
our portfolio may decrease during this period. The adverse economic conditions also may decrease the value of collateral securing some of our loans and the value of our equity investments. A
recession could lead to financial losses in our portfolio and a decrease in revenues, net income and the value of our assets.
The lack of liquidity in our investments may adversely affect our business.
We generally invest in companies whose securities are not publicly traded, and whose securities will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly
traded securities. There is no established trading market for the securities in which we invest. The illiquidity of these investments may make it difficult for us to sell these investments when desired.
In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded these investments. As a result,
we do not expect to achieve liquidity in our investments in the near-term. Further, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we
have material non-public information regarding such portfolio company.
Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.
Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments, in order to: (1) increase or maintain in whole or in
part our equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or a subsequent financing; or (3) attempt to preserve or enhance the
value of our investment. We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. We will have the discretion to make any follow-on
investments, subject to the availability of capital resources. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our
initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we
may elect not to make a follow-on investment because we do not want to increase our concentration of risk, we prefer other opportunities, we are subject to BDC requirements that would prevent
such follow-on investments, or the follow-on investment would affect our qualification as a RIC.
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Our portfolio may lack diversification among portfolio companies which may subject us to a risk of significant loss if one or more of these companies default on its obligations under any of its
debt instruments.
Our portfolio holds a limited number of controlled affiliate portfolio companies. Beyond the asset diversification requirements associated with our qualification as a RIC under the Code, we do not
have fixed guidelines for diversification, and our investments may be concentrated in relatively few companies. As our portfolio is less diversified than the portfolios of some larger funds, we are
more susceptible to failure if a single loan fails. Similarly, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to
write down the value of any one investment.
We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers, which
subjects us to a risk of significant loss if any of these
issuers defaults on its obligations under any of its debt instruments or as a result of a downturn in the particular industry.
We are classified as a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers
in a limited number of industries. As of December 31, 2019, our three largest investments, NMS, NTS and NBL equaled approximately 15%, 2% and 3%, respectively, of the fair value of our total
assets. Beyond the asset diversification requirements associated with our qualification as a RIC, we do not have fixed guidelines for diversification, and while we are not targeting any specific
industries, relatively few industries may become significantly represented among our investments. To the extent that we assume large positions in the securities of a small number of issuers, our net
asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer, changes in fair
value over time or a downturn in any particular industry. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company.
Our portfolio may be concentrated in a limited number of industries, which may subject us to a risk of significant loss if there is a downturn in a particular industry in which a number of our
investments are concentrated.
Our portfolio may be concentrated in a limited number of industries. A downturn in any particular industry in which we are invested could significantly impact the aggregate returns we realize. If an
industry in which we have significant investments suffers from adverse business or economic conditions, as these industries have to varying degrees, a material portion of our investment portfolio
could be affected adversely, which, in turn, could adversely affect our financial position and results of operations.
Because we may not hold controlling equity interests in certain of our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by
management of our portfolio companies that could decrease the value of our investments.
We do not currently hold controlling equity positions in the majority of our portfolio companies where our investments are in the form of debt, particularly SBA loans. As a result, we are subject to
the risk that a portfolio company may make business decisions with which we disagree, and that the management and/or shareholders of a portfolio company may take risks or otherwise act in ways
that are adverse to our interests. Due to the lack of liquidity of the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in
the event we disagree with the actions of a portfolio company and may therefore suffer a decrease in the value of our investments.
Defaults by our portfolio companies will harm our operating results.
A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured
assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses
to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. Any extension or restructuring of our loans could adversely affect our cash flows.
In addition, if one of our portfolio companies were to go bankrupt, even though we may have structured our interest as senior debt, depending on the facts and circumstances, including the extent to
which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt holding and subordinate all or a portion of our claim to that of other
creditors. If any of these occur, it could materially and adversely affect our operating results and cash flows.
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If we and our portfolio companies are unable to protect our intellectual property rights, our business and prospects could be harmed, and if we and our portfolio companies are required to
devote significant resources to protecting their intellectual property rights, the value of our investment could be reduced.
The proprietary software essential to our business and that of our controlled portfolio companies is owned by us and made available to them for their use. Our future success and competitive position
will depend in part upon our ability to maintain and protect proprietary technology used in our products and services. We will rely, in part, on patent, trade secret and trademark law to protect that
technology, but competitors may misappropriate our intellectual property, and disputes as to ownership of intellectual property may arise. We may, from time to time, be required to institute litigation
to enforce the patents, copyrights or other intellectual property rights, protect trade secrets, determine the validity and scope of the proprietary rights of others or defend against claims of
infringement. Such litigation could result in substantial costs and diversion of resources.
Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.
We will be subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity; most of our SBA loans do not carry prepayment penalties. When this occurs,
we will generally reinvest these proceeds in temporary investments or repay outstanding debt, depending on future investment in new portfolio companies. Temporary investments will typically have
substantially lower yields than the debt being prepaid and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at
lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us.
Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our securities.
We may not realize gains from our equity investments.
Certain investments that we may make in the future include warrants or other equity securities. Investments in equity securities involve a number of significant risks, including the risk of further
dilution as a result of additional issuances, inability to access additional capital and failure to pay current distributions. Investments in preferred securities involve special risks, such as the risk of
deferred distributions, credit risk, illiquidity and limited voting rights. In addition, we may from time to time make non-control, equity investments in portfolio companies. Our goal is ultimately to
realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to
realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.
We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the
underlying equity interests. We will often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company issuer. We may be unable to exercise these puts
rights for the consideration provided in our investment documents if the issuer is in financial distress.
We may expose ourselves to risks if we engage in hedging transactions.
If we engage in hedging transactions, we may expose ourselves to certain risks associated with such transactions. We may utilize instruments such as forward contracts, currency options and interest
rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates and market interest rates. Hedging
against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline.
However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions
may also limit the opportunity for gain if the values of the underlying portfolio positions increase. It may not be possible to hedge against an exchange rate or interest rate fluctuation that is so
generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such
hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not
be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a
result of factors not related to currency fluctuations.
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An increase in non-accrual assets would reduce our income and increase our expenses.
If our level of non-accrual assets in our SBA lending business rises in the future, it could adversely affect our investment income and earnings. Non-accrual assets are primarily loans on which
borrowers are not making their required payments. Non-accrual assets also include loans that have been restructured to permit the borrower to have smaller payments and real estate that has been
acquired through foreclosure of unpaid loans. To the extent that our financial assets are non-accrual, we will have less cash available for lending and other activities.
If the assets securing the loans that we make decrease in value, then we may lack sufficient collateral to cover losses.
To attempt to mitigate credit risks, we will typically take a security interest in the available assets of our portfolio companies. There is no assurance that we will obtain or properly perfect our liens.
There is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the
success of the business and market conditions, including as a result of the inability of a portfolio company to raise additional capital. In some circumstances, our lien could be subordinated to claims
of other creditors. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or that we will be able to collect
on the loan should we be forced to enforce our remedies.
In addition, because we may invest in technology-related companies, a substantial portion of the assets securing our investment may be in the form of intellectual property, if any, inventory and
equipment and, to a lesser extent, cash and accounts receivable. Intellectual property, if any, that is securing our loan could lose value if, among other things, the company’s rights to the intellectual
property are challenged or if the company’s license to the intellectual property is revoked or expires, the technology fails to achieve its intended results or a new technology makes the intellectual
property functionally obsolete. Inventory may not be adequate to secure our loan if our valuation of the inventory at the time that we made the loan was not accurate or if there is a reduction in the
demand for the inventory.
Similarly, any equipment securing our loan may not provide us with the anticipated security if there are changes in technology or advances in new equipment that render the particular equipment
obsolete or of limited value, or if the company fails to adequately maintain or repair the equipment. Any one or more of the preceding factors could materially impair our ability to recover principal in
a foreclosure.
We could be adversely affected by weakness in the residential housing and commercial real estate markets.
Continued weakness in residential home and commercial real estate values could impair our ability to collect on defaulted SBA loans as real estate is pledged in many of our SBA loans as part of the
collateral package.
Changes to United States tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.
There has been on-going discussion and commentary regarding potential significant changes to United States trade policies, treaties and tariffs. The current administration, along with Congress, has
created significant uncertainty about the future relationship between the United States and other countries with respect to the trade policies, treaties and tariffs. These developments, or the perception
that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in
particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers and
have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.
The Company is a Guarantor on a number of credit facilities entered into by certain of its subsidiaries and controlled portfolio companies
As discussed further herein, the Company is a guarantor on credit facilities entered into by NSBF, NBL, NMS and NBC with various lenders. If any of these borrowers default on these lines of credit,
we would be required to make payments under the guarantees, which could have a material adverse effect on our financial condition and results of operations.
Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.
In November 2019, the SEC published a proposed rule regarding the ability of a BDC (or a registered investment company) to use derivatives and other transactions that create future payment or
delivery obligations (except reverse repurchase agreements
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and similar financing transactions). If adopted as proposed, BDCs that use derivatives would be subject to a value-at-risk leverage limit, certain other derivatives risk management program and testing
requirements and requirements related to board reporting. These new requirements would apply unless the BDC qualified as a “limited derivatives user,” as defined in the SEC’s proposal. A BDC that
enters into reverse repurchase agreements or similar financing transactions would need to aggregate the amount of indebtedness associated with the reverse repurchase agreements or similar financing
transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the BDC’s asset coverage ratio. Under the proposed rule, a BDC may enter into an
unfunded commitment agreement that is not a derivatives transaction, such as an agreement to provide financing to a portfolio company, if the BDC has a reasonable belief, at the time it enters into
such an agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due. If the BDC
cannot meet this test, it is required to treat unfunded commitments as a derivatives transaction subject to the requirements of the rule. Collectively, these proposed requirements, if adopted, may limit
our ability to use derivatives and/or enter into certain other financial contracts.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK MERCHANT SOLUTIONS (NMS)
We could be adversely affected if either of NMS’ two bank sponsors is terminated.
Because NMS is not a bank, it is unable to belong to and directly access the Visa® and MasterCard® bankcard associations. The Visa® and MasterCard® operating regulations require NMS to be
sponsored by a bank in order to process bankcard transactions. A bank sponsorship is an agreement under which a financial institution that has a membership with MasterCard®, Visa® or American
Express sponsors an independent sales organization, like NMS, that markets credit card processing services to merchants who accept credit cards as a form of payment, gains access to the Visa®,
MasterCard®, and American Express networks. NMS is currently sponsored by two banks. If either of the sponsorships is terminated, and NMS is not able to secure or transfer the respective
merchant portfolio to a new bank sponsor or sponsors, the business, financial condition, results of operations and cash flows of the electronic payment processing business could be materially
adversely affected. If both the sponsorships are terminated and NMS is unable to secure a bank sponsor for the merchant portfolios, it will not be able to process bankcard transactions for the affected
portfolios. Consequently, the loss of both of NMS’ sponsorships would have a material adverse effect on our business. Furthermore, NMS’ agreements with sponsoring banks gives the sponsoring
banks substantial discretion in approving certain elements of its business practices, including its solicitation, application and qualification procedures for merchants, the terms of their agreements with
merchants, the processing fees that they charge, their customer service levels and its use of independent sales organizations and independent sales agents. We cannot guarantee that NMS’ sponsoring
banks’ actions under these agreements would not be detrimental to us.
Other service providers, some of whom are NMS’ competitors, are necessary for the conduct of NMS’ business. The termination by service providers of these arrangements with NMS or their failure
to perform these services efficiently and effectively may adversely affect NMS’ relationships with the merchants whose accounts it serves and may cause those merchants to terminate their processing
agreements with NMS.
If NMS or its processors or bank sponsors fail to adhere to the standards of the Visa® and MasterCard® bankcard associations, its registrations with these associations could be terminated and
it could be required to stop providing payment processing services for Visa® and MasterCard®.
Substantially all of the transactions NMS processes involve Visa® or MasterCard®. If NMS, its bank sponsors or its processors fail to comply with the applicable requirements of the Visa® and
MasterCard® bankcard associations, Visa® or MasterCard® could suspend or terminate its registration. The termination of NMS’ registration or any changes in the Visa® or MasterCard® rules that
would impair its registration could require it to stop providing payment processing services, which would have a material adverse effect on its business and could be detrimental to us.
On occasion, NMS experiences increases in interchange and sponsorship fees. If it cannot pass along these increases to its merchants, its profit margins will be reduced.
NMS pays interchange fees or assessments to bankcard associations for each transaction it processes using their credit, debit and gift cards. From time to time, the bankcard associations increase the
interchange fees that they charge processors and the sponsoring banks, which generally pass on such increases to NMS. From time to time, the sponsoring banks increase their fees as well. If NMS is
not able to pass these fee increases along to merchants through corresponding increases in its processing fees, its profit margins in this line of business will be reduced.
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Unauthorized disclosure of merchant or cardholder data, whether through breach of our computer systems or otherwise, could expose us to liability and business losses.
Through NMS, we collect and store sensitive data about merchants and cardholders, and we maintain a database of cardholder data relating to specific transactions, including payment, card numbers
and cardholder addresses, in order to process the transactions and for fraud prevention and other internal processes. If anyone penetrates our network security or otherwise misappropriates sensitive
merchant or cardholder data, we could be subject to liability or business interruption. While we subject these systems to periodic independent testing and review, we cannot guarantee that our systems
will not be penetrated in the future. If a breach of our system occurs, we may be subject to liability, including claims for unauthorized purchases with misappropriated card information, impersonation
or other similar fraud claims. Similar risks exist with regard to the storage and transmission of such data by our processors. In the event of any such a breach, we may also be subject to a class action
lawsuit. SMBs are less prepared for the complexities of safeguarding cardholder data than their larger counterparts. In the event of noncompliance by a customer of card industry rules, we could face
fines from payment card networks. There can be no assurance that we would be able to recover any such fines from such customer.
NMS is liable if its processing merchants refuse or cannot reimburse charge-backs resolved in favor of their customers.
If a billing dispute between a merchant and a cardholder is not ultimately resolved in favor of the merchant, the disputed transaction is “charged back” to the merchant’s bank and credited to the
account of the cardholder. If NMS or its processing banks are unable to collect the charge-back from the merchant’s account, or if the merchant refuses or is financially unable due to bankruptcy or
other reasons to reimburse the merchant’s bank for the charge-back, NMS must bear the loss for the amount of the refund paid to the cardholder’s bank. Most of NMS’ merchants deliver products or
services when purchased, so a contingent liability for charge-backs is unlikely to arise, and credits are issued on returned items. However, some of its merchants do not provide services until
sometime after a purchase, which increases the potential for contingent liability and future charge-backs. NMS and the sponsoring bank can require that merchants maintain cash reserves under its
control to cover charge-back liabilities but such reserves may not be sufficient to cover the liability or may not even be available to them in the event of a bankruptcy or other legal action.
NMS has potential liability for customer or merchant fraud.
Credit card fraud occurs when a merchant’s customer uses a stolen card (or a stolen card number in a card-not-present transaction) to purchase merchandise or services. In a traditional card-present
transaction, if the merchant swipes the card, receives authorization for the transaction from the card issuing bank and verifies the signature on the back of the card against the paper receipt signed by
the customer, the card issuing bank remains liable for any loss. In a fraudulent card-not-present transaction, even if the merchant receives authorization for the transaction, the merchant is liable for
any loss arising from the transaction. Many NMS customers are small and transact a substantial percentage of their sales over the Internet or by telephone or mail orders. Because their sales are card-
not-present transactions, these merchants are more vulnerable to customer fraud than larger merchants, and NMS could experience charge-backs arising from cardholder fraud more frequently with
these merchants.
Merchant fraud occurs when a merchant, rather than a customer, knowingly uses a stolen or counterfeit card or card number to record a false sales transaction or intentionally fails to deliver the
merchandise or services sold in an otherwise valid transaction. Anytime a merchant is unable to satisfy a charge-back, NMS is ultimately responsible for that charge-back unless it has required that a
cash reserve be established. We cannot assure that the systems and procedures NMS has established to detect and reduce the impact of merchant fraud are or will be effective. Failure to effectively
manage risk and prevent fraud could increase NMS charge-back liability and adversely affect its results of operations.
NMS payment processing systems may fail due to factors beyond its control, which could interrupt its business or cause it to lose business and likely increase costs.
NMS depends on the uninterrupted operations of our computer network systems, software and our processors’ data centers. Defects in these systems or damage to them due to factors beyond its
control could cause severe disruption to NMS’ business and other material adverse effects on its payment processing businesses.
The electronic payment processing business is undergoing very rapid technological changes which may make it difficult or impossible for NMS to compete effectively.
The introduction of new technologies, primarily mobile payment capabilities, and the entry into the payment processing market of new competitors, Apple, Inc., for example, could dramatically
change the competitive environment and require significant
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changes and costs for NMS to remain competitive. There is no assurance that NMS will have the capability to stay competitive with such changes.
NMS and others in the payment processing industry have come under increasing pressures from various regulatory agencies seeking to use the leverage of the payment processing business to
limit or modify the practices of merchants which could lead to increased costs.
Various agencies, particularly the Federal Trade Commission (“FTC”), have within the past few years attempted to pressure merchants to discontinue or modify various sales or other practices. As a
part of the payment processing industry, processors such as NMS could experience pressure and/or litigation aimed at restricting access to credit card sales by such merchants. These efforts could
cause an increase in the cost to NMS of doing business or otherwise make its business less profitable and may subject NMS to assess penalties for not taking actions deemed sufficiently aggressive to
limit such practices. As a result of a prior litigation with the FTC, NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its business
practices.
Increased regulatory focus on the payments industry may result in costly new compliance burdens on NMS’ clients and on NMS itself, leading to increased costs and decreased payments volume
and revenues.
Regulation of the payments industry has increased significantly in recent years. Complying with these and other regulations increases costs and can reduce revenue opportunities. Similarly, the impact
of such regulations on clients may reduce the volume of payments processed. Moreover, such regulations can limit the types of products and services that are offered. Any of these occurrences can
materially and adversely affect NMS’ business, prospects for future growth, financial condition and results of operations.
Examples include:
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Data Protection and Information Security. Aspects of NMS’ operations and business are subject to privacy and data protection regulation. NMS’ financial institution clients are subject to
similar requirements under the guidelines issued by the federal banking agencies. In addition, many individual states have enacted legislation requiring consumer notification in the event of a
security breach.
Anti-Money Laundering and Anti-Terrorism Financing. The U.S.A. PATRIOT Act requires NMS to maintain an anti-money laundering program. Sanctions imposed by the U.S. Treasury
Office of Foreign Assets Control, or OFAC, restrict NMS from dealing with certain parties considered to be connected with money laundering, terrorism or narcotics. NMS has controls in
place designed to ensure OFAC compliance, but if those controls should fail, it could be subject to penalties, reputational damage and loss of business.
• Money Transfer Regulations. As NMS expands its product offerings, it may become subject to money transfer regulations, increasing regulatory oversight and costs of compliance.
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Formal Investigation. If NMS is suspected of violating government statutes, such as the Federal Trade Commission Act or the Telemarketing and Consumer Fraud and Abuse Prevention
Act, governmental agencies may formally investigate NMS. As a result of such a formal investigation, criminal or civil charges could be filed against NMS and it could be required to pay
significant fines or penalties in connection with such investigation or other governmental investigations. Any criminal or civil charges by a governmental agency, including any fines or
penalties, could materially harm NMS’ business, results of operations, financial position and cash flows. Currently, NMS is operating under an order for injunctive relief it voluntarily
entered into with the Federal Trade Commission.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK TECHNOLOGY SOLUTIONS (NTS)
NTS operates in a highly competitive industry in which technological change can be rapid.
The information technology business and its related technology involve a broad range of rapidly changing technologies. NTS equipment and the technologies on which it is based may not remain
competitive over time, and others may develop superior technologies that render its products non-competitive, without significant additional capital expenditures. Some of NTS’ competitors are
significantly larger and have substantially greater market presence as well as greater financial, technical, operational, marketing and other resources and experience than NTS. In the event that such a
competitor expends significant
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sales and marketing resources in one or several markets, NTS may not be able to compete successfully in such markets. We believe that competition will continue to increase, placing downward
pressure on prices. Such pressure could adversely affect NTS gross margins if it is not able to reduce its costs commensurate with such price reductions. There can be no assurances that NTS will
remain competitive.
NTS’ technology solutions business depends on the efficient and uninterrupted operation of its computer and communications hardware systems and infrastructure.
Despite precautions taken by NTS against possible failure of its systems, interruptions could result from natural disasters, power loss, the inability to acquire fuel for its backup generators,
telecommunications failure, terrorist attacks and similar events. NTS also leases telecommunications lines from local, regional and national carriers whose service may be interrupted. NTS’ business,
financial condition and results of operations could be harmed by any damage or failure that interrupts or delays its operations. There can be no assurance that NTS’ insurance will cover all of the
losses or compensate NTS for the possible loss of clients occurring during any period that NTS is unable to provide service.
NTS’ inability to maintain the integrity of its infrastructure and the privacy of confidential information would materially affect its business.
The NTS infrastructure is potentially vulnerable to physical or electronic break-ins, viruses or similar problems. If its security measures are circumvented, it could jeopardize the security of
confidential information stored on NTS’ systems, misappropriate proprietary information or cause interruptions in NTS’ operations. We may be required to make significant additional investments
and efforts to protect against or remedy security breaches. Security breaches that result in access to confidential information could damage our reputation and expose us to a risk of loss or liability.
The security services that NTS offers in connection with customers’ networks cannot assure complete protection from computer viruses, break-ins and other disruptive problems. The occurrence of
these problems may result in claims against NTS or us or liability on our part. These claims, regardless of their ultimate outcome, could result in costly litigation and could harm our business and
reputation and impair NTS’ ability to attract and retain customers.
NTS could be adversely affected by information security breaches or cyber security attacks.
NTS’ web and cloud services involve the storage and transmission of our customers’, employees’, and portfolio companies’ proprietary information. NTS’ business relies on its digital technologies,
computer and email systems, software, and networks to conduct its operations. NTS’ technologies, systems and networks may become the target of criminal cyber-attacks or information security
breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of NTS or third parties with whom NTS
deals, or otherwise disrupt our or our customers’ or other third parties’ business operations. It is critical to NTS’ business strategy that its facilities and infrastructure remain secure and are perceived
by the marketplace to be secure. Although NTS believes it employs appropriate security technologies, NTS cannot guarantee that the security technologies (including data encryption processes,
intrusion detection systems) it employs or, the comprehensive risk assessments it conducts, or its other internal control procedures will assure the security of its customers’ data. If NTS’ security
measures are breached as a result of third-party action, employee error or otherwise, and as a result, its customers’ data becomes available to unauthorized parties, NTS and our other portfolio
companies could incur liability and its reputation would be damaged, which could lead to the loss of current and potential customers. In addition, NTS will be required to expend significant capital
and other resources to detect, remedy, protect against or alleviate breaches of its network and security, and it may not be able to remedy these problems in a timely manner, or at all. Because
techniques used by outsiders to obtain unauthorized network access or to sabotage systems change frequently and generally are not recognized until launched against a target, NTS may be unable to
anticipate these techniques or implement adequate preventative measures. For example, in early 2018 an unauthorized third party misappropriated three of NTS’ domain names. NTS’ management
and forensic investigators determined that attackers compromised a portion of its shared webhosting system, and may have acquired certain customer information limited to its shared webhosting
customers, and/or gained access to certain of its shared webhosting servers. In response, NTS has taken a range of steps designed to further secure its systems, enhance its security protections,
enhance access controls, and prevent future unauthorized activity.
NTS’ business depends on Microsoft Corporation and others for the licenses to use software as well as other intellectual property in the managed technology solutions business.
NTS’ managed technology business is built on technological platforms relying on the Microsoft Windows® products and other intellectual property that NTS currently licenses. As a result, if NTS is
unable to continue to have the benefit of those licensing arrangements or if the products upon which its platform is built become obsolete, its business could be materially and adversely affected.
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RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK INSURANCE AGENCY (NIA)
NIA depends on third parties, particularly property and casualty insurance companies, to supply the products marketed by its agents.
NIA contracts with property and casualty insurance companies typically provide that the contracts can be terminated by the supplier without cause. NIA’s inability to enter into satisfactory
arrangements with these suppliers or the loss of these relationships for any reason would adversely affect the results of its insurance business. Also, NIA’s inability to obtain these products at
competitive prices could make it difficult for it to compete with larger and better capitalized providers of such insurance services.
If NIA fails to comply with government regulations, its insurance agency business would be adversely affected.
NIA insurance agency business is subject to comprehensive regulation in the various states in which it conducts business. NIA’s success will depend in part upon its ability to satisfy these regulations
and to obtain and maintain all required licenses and permits. NIA’s failure to comply with any statutes and regulations could have a material adverse effect on it. Furthermore, the adoption of
additional statutes and regulations, changes in the interpretation and enforcement of current statutes and regulations could have a material adverse effect on it.
NIA does not have any control over the commissions it earns on the sale of insurance products which are based on premiums and commission rates set by insurers and the conditions prevalent
in the insurance market.
NIA earns commissions on the sale of insurance products. Commission rates and premiums can change based on the prevailing economic and competitive factors that affect insurance underwriters. In
addition, the insurance industry has been characterized by periods of intense price competition due to excessive underwriting capacity and periods of favorable premium levels due to shortages of
capacity. We cannot predict the timing or extent of future changes in commission rates or premiums or the effect any of these changes will have on the operations of NIA.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK PAYROLL AND BENEFIT SOLUTIONS (NPS)
Unauthorized disclosure of employee data, whether through a cyber-security breach of our computer systems or otherwise, could expose NPS to liability and business losses.
NPS collects and stores sensitive data about individuals in order to process the transactions and for other internal processes. If anyone penetrates its network security or otherwise misappropriates
sensitive individual data, NPS could be subject to liability or business interruption. NPS is subject to laws and rules issued by different agencies concerning safeguarding and maintaining the
confidentiality of this information. Its activities have been, and will continue to be, subject to an increasing risk of cyber-attacks, the nature of which is continually evolving. Cyber-security risks
include unauthorized access to privileged and sensitive customer information, including passwords and account information of NPS’ customers. While it subjects its data systems to periodic
independent testing and review, NPS cannot guarantee that its systems will not be penetrated in the future. Experienced computer programmers and hackers may be able to penetrate NPS’ network
security, and misappropriate or compromise our confidential information, create system disruptions, or cause shutdowns. As a result, NPS’ customers’ information may be lost, disclosed, accessed or
taken without its customers’ consent. If a breach of NPS’ system occurs, it may be subject to liability, including claims for impersonation or other similar fraud claims. In the event of any such
breach, NPS may also be subject to a class action lawsuit. Any significant violations of data privacy could result in the loss of business, litigation and regulatory investigations and penalties that could
damage NPS’ reputation, and the growth of its business could be adversely affected.
NPS is subject to risks surrounding Automated Clearing House (“ACH”) payments.
Credit risk in ACH payments arises when a party to a contract fails to deposit funds required to settle the contract. This can occur if a client of NPS suffers losses, enters into bankruptcy or defrauds
NPS. In such an event, NPS could bear the financial burden of settling the customer’s contract.
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NPS’ systems may be subject to disruptions that could adversely affect its business and reputation.
NPS’ payroll business relies heavily on its payroll, financial, accounting and other data processing systems. If any of these systems or any of the vendors which supply them fails to operate properly
or becomes disabled even for a brief period of time, NPS could suffer financial loss, a disruption of its business, liability to clients, regulatory intervention or damage to its reputation. NPS has
disaster recovery plans in place to protect its businesses against natural disasters, security breaches, military or terrorist actions, power or communication failures or similar events. Despite NPS’
preparations, its disaster recovery plans may not be successful in preventing the loss of client data, service interruptions, and disruptions to its operations or damage to its important facilities.
If NPS fails to adapt its technology to meet client needs and preferences, the demand for its services may diminish.
NPS operates in industries that are subject to rapid technological advances and changing client needs and preferences. In order to remain competitive and responsive to client demands, NPS
continually upgrades, enhances and expands its existing solutions and services. If NPS fails to respond successfully to technological challenges, the demand for its services may diminish.
NPS could incur unreimbursed costs or damages due to delays in processing inherent in the banking system.
NPS generally determines the availability of customer (employer) funds prior to making payments to employees or taxing authorities, and such employer funds are generally transferred in to its
accounts prior to making payments out. Due to the structure of the banking system however, there are times when NPS may make payroll or tax payments and not immediately receive the funds to do
so from the employer. There can be no assurance that the procedures NPS has in place to prevent these occurrences or mitigate the damages will be sufficient to prevent loss to its business. In
addition, NPS could incur unreimbursed costs or damages due to delays in processing customer payrolls or payroll taxes in a timely manner.
RISKS RELATED TO OUR CONTROLLED PORTFOLIO COMPANIES - NEWTEK BUSINESS CREDIT SOLUTIONS (NBC)
An unexpected level of defaults in NBC’s accounts receivables or inventory portfolios would reduce its income and increase its expenses.
If NBC’s level of non-accrual assets in its receivable financing or inventory financing business rises in the future, it could adversely affect its revenue, earnings and cash flow. Non-accrual assets
primarily consist of receivables for which the customer has not made timely payment. In certain situations, NBC may restructure the receivable to permit such a customer to have smaller payments
over a longer period of time. Such a restructuring or non-payment by a receivables or inventory customer will result in lower revenue and less cash available for NBC’ operational activities.
NBC’s reserve for credit losses may not be sufficient to cover unexpected losses.
NBC’s business depends on the behavior of its customers. In addition to its credit practices and procedures, NBC maintains a reserve for credit losses on its accounts receivable and inventory
portfolios, which it has judged to be adequate given the receivables it purchases. NBC periodically reviews its reserve for adequacy considering current economic conditions and trends, charge-off
experience and levels of non-accrual assets, and adjusts its reserve accordingly. However, because of recent unstable economic conditions, its reserves may prove inadequate, which could have a
material adverse effect on its financial condition and results of operations.
NBC depends on outside financing to support its receivables financing and inventory financing business.
NBC’s receivables and inventory financing business depends on outside financing to support its acquisition of receivables. Termination of the credit lines for any reason would have a material
adverse effect on its business, including but not limited to, the liquidation of its receivables portfolios to pay down the lines. If funds from such sale were insufficient to completely pay down the line
of credit, NBC’s would be responsible for any short fall. We are a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and
Inventory Facility are $35,000,000. The Sterling Receivable and Inventory Facility matures in August 2022 and automatically renews annually. At December 31, 2019, total principal owed by NBC
was $25,802,000.
We have guaranteed NBC’s obligations under this facility. If NBC defaults on this line of credit, we would be required to make payments under the guarantee, which could have a material adverse
effect on our financial condition and results of operations.
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In addition, if NBC loses this line of credit and NBC is unable to renew or replace this line of credit, it would materially impact the business of NBC and have a material adverse effect on its financial
condition and results of operations.
LEGAL PROCEEDINGS - PORTFOLIO COMPANIES
Our portfolio companies may, from time to time, be involved in various legal matters, which may have an adverse effect on their operations and/or financial condition.
From time to time, we may be subject to legal actions as well as various regulatory, governmental and law enforcement inquiries, investigations and subpoenas. In any such claims or actions,
demands for substantial monetary damages may be asserted against our portfolio companies and may result in financial liability for us or an adverse effect on our reputation among investors. We may
be unable to accurately estimate our portfolio companies’ exposure to litigation risk. In regulatory enforcement matters, claims for disgorgement, the imposition of penalties, and the imposition of
other remedial sanctions against our portfolio companies are possible, and may have a material adverse effect on our results of operations.
As a result of a prior litigation with the FTC, NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its business practices.
RISKS RELATED TO OUR CAPCO BUSINESS
The Capco programs and the tax credits they provide are created by state legislation and implemented through regulation, and such laws and rules are subject to possible action to repeal or
retroactively revise the programs for political, economic or other reasons. Such an attempted repeal or revision would create substantial difficulty for the Capco programs and could, if ultimately
successful, cause us material financial harm.
The tax credits associated with the Capco programs and provided to our Capcos’ investors are to be utilized by the investors over a period of time, which is typically ten years. Much can change
during such a period and it is possible that one or more states may revise or eliminate the tax credits. Any such revision or repeal could have a material adverse economic impact on our Capcos, either
directly or as a result of the Capco’s insurer’s actions. Any such final state action that jeopardizes the tax credits could result in the provider of our Capco insurance assuming partial or full control of
the particular Capco in order to minimize its liability under the Capco insurance policies issued to our investors.
Because our Capcos are subject to requirements under state law, a failure of any of them to meet these requirements could subject the Capco and our shareholders to the loss of one or more
Capcos.
Despite the fact that we have met all applicable minimum requirements of the Capco programs in which we still participate, each Capco remains subject to state regulation until it has invested 100%
of its funds and otherwise remains in full legal compliance. There can be no assurance that we will continue to be able to do so. A major regulatory violation, while not fatal to our Capco business,
would materially increase the cost of operating the Capcos.
We know of no other publicly-held company that sponsors and operates Capcos as a part of its business. As such, there are, to our knowledge, no other companies against which investors may
compare our Capco business and its operations, results of operations and financial and accounting structures.
In the absence of any meaningful peer group comparisons for our Capco business, investors may have a difficult time understanding and judging the strength of our business. This, in turn, may have a
depressing effect on the value of our stock.
RISKS RELATED TO OUR SECURITIES
As of December 31, 2019, our CEO beneficially owns and has shared voting power over approximately 5.5% of our common stock, and may be able to exercise significant influence over the
outcome of most shareholder actions.
Because of his ownership of and shared voting power over our stock, Barry Sloane, our Chairman, Chief Executive Officer and President, may be able to exercise significant influence over actions
requiring shareholder approval, including the election of directors, the adoption of amendments to the certificate of incorporation, approval of stock incentive plans and approval of major transactions
such as a merger or sale of assets. This could delay or prevent a change in control of the Company, deprive
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our shareholders of an opportunity to receive a premium for their common stock as part of a change in control and have a negative effect on the market price of our common stock.
Our common stock price may be volatile and may decrease substantially.
The trading price of our common stock may fluctuate substantially. The price of our common stock may be higher or lower depending on many factors, some of which are beyond our control and
may not be directly related to our operating performance. These factors include, but are not limited to, the following:
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price and volume fluctuations in the overall stock market from time to time;
investor demand for our stock;
significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these
companies;
changes in regulatory policies or tax guidelines with respect to RICs, BDCs, or SBLCs;
failure to qualify as a RIC, or the loss of RIC status;
any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;
changes, or perceived changes, in the value of our portfolio investments;
departures of key Company personnel;
operating performance of companies comparable to us; or
general economic conditions and trends and other external factors.
In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Due to the potential volatility of
our stock price once a market for our stock is established, we may become the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management’s
attention and resources from our business.
Future issuances of our common stock or other securities, including preferred shares, may dilute the per share book value of our common stock or have other adverse consequences to our
common shareholders.
Our Board has the authority, without the action or vote of our shareholders, to issue all or part of the approximately 179,469,690 authorized but unissued shares of our common stock. Our business
strategy relies upon investments in and acquisitions of businesses using the resources available to us, including our common stock. Additionally, we anticipate granting additional options or restricted
stock awards to our employees and directors in the future. Absent exemptive relief, a BDC generally may not issue restricted stock to its directors, officers and employees. In May 2016, the SEC
issued an order granting the Company’s request for exemptive relief to allow us to amend our equity compensation plan and make such grants and awards, subject to shareholder approval. We may
also issue additional securities, through public or private offerings, in order to raise capital. Future issuances of our common stock will dilute the percentage of ownership interest of current
shareholders and could decrease the per share book value of our common stock. In addition, option holders may exercise their options at a time when we would otherwise be able to obtain additional
equity capital on more favorable terms. In July 2016, our shareholders approved the amendments to our equity compensation plan, and certain restricted stock awards granted thereunder.
We may also issue additional securities, through public or private offerings, in order to raise capital. Future issuances of our common stock will dilute the percentage of ownership interest of current
shareholders and could decrease the per share book value of our common stock. In addition, option holders may exercise their options at a time when we would otherwise be able to obtain additional
equity capital on more favorable terms.
Pursuant to our amended and restated charter, our Board is authorized to classify any unissued shares of stock and reclassify any previously classified but unissued shares of stock of any class or
series from time to time, into one or more classes or series of stock, including preferred stock. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our
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capital structure, preferred shareholders would have separate voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common
shareholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our
common stock or otherwise be in your best interest. We will not generally be able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common
stock, or warrants, options or rights to acquire our common stock, at a price below the then current net asset value per share of our common stock if our Board determines that such sale is in our best
interests and in the best interests of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price
that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common
stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and shareholders may experience
dilution.
Our shareholders may experience dilution upon the repurchase of common shares.
The Company has instituted in the past, and may institute in the future, programs that may allow the Company to repurchase the Company’s outstanding common shares on the open market. Under
such programs, purchases generally may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations, which
may have a dilutive effect on current shareholders. Most recently, on December 17, 2018, the Company announced that its Board approved a share repurchase program under which the Company was
able to repurchase up to 300,000 of the Company’s outstanding common shares on the open market. The program terminated on June 18, 2019, was extended on June 21, 2019 and terminated on
December 18, 2019.
Dilution may occur under repurchase programs if the Company repurchases shares of its common stock at prices that are below the Company’s net asset value per share. This may cause a
proportionately smaller increase in our shareholders' interest in our earnings and assets and their voting interest in us than the decrease in our assets resulting from such repurchase. As a result of any
such dilution, our market price per share may decline. The actual dilutive effect will depend on the number of shares of common stock that could be so repurchased, the price and the timing of any
repurchases under any such program.
The authorization and issuance of “blank check” preferred shares could have an anti-takeover effect detrimental to the interests of our shareholders.
Our certificate of incorporation allows our Board to issue preferred shares with rights and preferences set by the Board without further shareholder approval. The issuance of these “blank check”
preferred shares could have an anti-takeover effect detrimental to the interests of our shareholders. For example, in the event of a hostile takeover attempt, it may be possible for management and the
Board to impede the attempt by issuing the preferred shares, thereby diluting or impairing the voting power of the other outstanding common shares and increasing the potential costs to acquire
control of us. Our Board has the right to issue any new shares, including preferred shares, without first offering them to the holders of common shares, as they have no preemptive rights. The
Company does not currently intend to issue preferred shares.
Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder
execution of investment strategy and impact our stock price.
In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Stockholder activism, which
could take many forms or arise in a variety of situations, has been increasing in the BDC space recently. While we are currently not subject to any securities litigation or shareholder activism, due to
the potential volatility of our stock price and for a variety of other reasons, we may in the future become the target of securities litigation or shareholder activism. Securities litigation and shareholder
activism, including potential proxy contests, could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. Additionally, such
securities litigation and shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with service providers and make it more difficult to attract
and retain qualified personnel. Also, we may be required to incur significant legal fees and other expenses related to any securities litigation and activist shareholder matters. Further, our stock price
could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and shareholder activism.
65
Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.
The Maryland General Corporation Law and our charter and bylaws contain provisions that may discourage, delay or make more difficult a change in control of Newtek or the removal of our
directors. We are subject to the Maryland Business Combination Act, subject to any applicable requirements of the 1940 Act. Our Board has adopted a resolution exempting from the Business
Combination Act any business combination between us and any other person, subject to prior approval of such business combination by our Board, including approval by a majority of our
independent directors. If the resolution exempting business combinations is repealed or our Board does not approve a business combination, the Business Combination Act may discourage third
parties from trying to acquire control of us and increase the difficulty of consummating such an offer. Our bylaws exempt from the Maryland Control Share Acquisition Act acquisitions of our stock
by any person.
The SEC staff has taken the position that, under the 1940 Act, an investment company may not avail itself of the Control Share Act. As a result, we will amend our bylaws to be subject to the Control
Share Act only if the Board determines that it would be in our best interests and, after notification, the SEC staff does not object to our determination that our being subject to the Control Share Act
does not conflict with the 1940 Act. If such conditions are met, and we amend our bylaws to repeal the exemption from the Control Share Acquisition Act, the Control Share Acquisition Act also may
make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such a transaction.
We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our charter classifying our Board in three classes serving staggered three-
year terms and authorizing our Board to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, to amend our charter without
shareholder approval and to increase or decrease the number of shares of stock that we have authority to issue. These provisions, as well as other provisions of our charter and bylaws, may delay,
defer or prevent a transaction or a change in control that might otherwise be in the best interests of our shareholders.
Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.
All of the common stock held by our executive officers and directors, represents approximately 1,283,000 shares, or approximately 6% of our total outstanding shares as of December 31, 2019. Such
shares are generally freely tradable in the public market. Sales of substantial amounts of our common stock, or the availability of such common stock for sale, could adversely affect the prevailing
market prices for our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of securities should we desire to do so.
If we issue preferred stock, the net asset value and market value of our common stock will likely become more volatile.
We cannot assure you that the issuance of preferred stock would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock would likely cause the net asset
value and market value of the common stock to become more volatile. If the dividend rate on the preferred stock were to approach the net rate of return on our investment portfolio, the benefit of
leverage to the holders of the common stock would be reduced. If the dividend rate on the preferred stock were to exceed the net rate of return on our portfolio, the leverage would result in a lower
rate of return to the holders of common stock than if we had not issued preferred stock. Any decline in the net asset value of our investments would be borne entirely by the holders of common stock.
Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in net asset value to the holders of common stock than if we were not leveraged through
the issuance of preferred stock. This greater net asset value decrease would also tend to cause a greater decline in the market price for the common stock. We might be in danger of failing to maintain
the required asset coverage of the preferred stock or of losing our ratings, if any, on the preferred stock or, in an extreme case, our current investment income might not be sufficient to meet the
dividend requirements on the preferred stock. To counteract such an event, we might need to liquidate investments to fund a redemption of some or all of the preferred stock. In addition, we would
pay (and the holders of common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, including higher advisory fees if our total return
exceeds the dividend rate on the preferred stock. Holders of preferred stock may have different interests than holders of common stock and may at times have disproportionate influence over our
affairs.
66
Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current net asset value per share of our common stock or issue securities
to subscribe to, convert to or purchase shares of our common stock.
The 1940 Act prohibits us from selling shares of our common stock at a price below the current net asset value per share of such stock, with certain exceptions. One such exception is prior
shareholder approval of issuances below net asset value provided that our Board makes certain determinations. On August 2, 2019, at our Special Meeting of Shareholders, our shareholders approved
a proposal that authorizes us to sell up to 20% of our common stock at a price below the Company’s then-current net asset value per share, subject to certain conditions. Any decision to sell shares of
our common stock below the then current net asset value per share of our common stock or securities to subscribe to, convert to, or purchase shares of our common stock would be subject to the
determination by our Board that such issuance is in our and our shareholders’ best interests.
If we were to sell shares of our common stock below net asset value per share, such sales would result in an immediate dilution to the net asset value per share. This dilution would occur as a result of
the sale of shares at a price below the then current net asset value per share of our common stock and a proportionately greater decrease in a shareholder’s interest in our earnings and assets and
voting interest in us than the increase in our assets resulting from such issuance. In addition, if we issue securities to subscribe to, convert to or purchase shares of common stock, the exercise or
conversion of such securities would increase the number of outstanding shares of our common stock. Any such exercise would be dilutive on the voting power of existing shareholders, and could be
dilutive with regard to dividends and our net asset value, and other economic aspects of the common stock. Because the number of shares of common stock that could be so issued and the timing of
any issuance is not currently known, the actual dilutive effect cannot be predicted; however, the example below illustrates the effect of dilution to existing shareholders resulting from the sale of
common stock at prices below the net asset value of such shares.
RISKS RELATED TO OUR PUBLICLY-TRADED DEBT
The 2023 Notes and the 2024 Notes, together, the “Notes” are unsecured and therefore are effectively subordinated to any secured indebtedness we have outstanding or may incur in the future.
In February 2018 and July 2019, we issued $57,500,000 and $63,250,000 in aggregate principal amount of the 2023 Notes and 2024 Notes, respectively. The Notes are not secured by any of our
assets or any of the assets of our subsidiaries. As a result, the Notes are effectively subordinated to any secured indebtedness we or our subsidiaries have outstanding or may incur in the future (or any
indebtedness that is initially unsecured to which we subsequently grant security). In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future
secured indebtedness and the existing or future secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness to receive full payment of their
indebtedness before the assets may be used to pay other creditors, including the holders of the Notes.
The Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.
The Notes are obligations exclusively of the Company and not of any of our subsidiaries. None of our subsidiaries is a guarantor of the Notes and the Notes are not required to be guaranteed by any
subsidiaries we may acquire or create in the future. Any assets of our subsidiaries will not be directly available to satisfy the claims of our creditors, including holders of the Notes.
Except to the extent we are a creditor with recognized claims against our subsidiaries, all claims of creditors (including trade creditors) and holders of preferred stock, if any, of our subsidiaries will
have priority over our equity interests in such subsidiaries (and therefore the claims of our creditors, including holders of the Notes) with respect to the assets of such subsidiaries. Even if we are
recognized as a creditor of one or more of our subsidiaries, our claims would still be effectively subordinated to any security interests in the assets of any such subsidiary and to any indebtedness or
other liabilities of any such subsidiary senior to our claims. Consequently, the Notes are structurally subordinated to all indebtedness and other liabilities (including trade payables) of any of our
subsidiaries and any subsidiaries that we may in the future acquire or establish as financing vehicles or otherwise.
The indenture under which the Notes were issued contains limited protection for holders of the Notes.
The indentures under which the Notes were issued offers limited protection to holders of the Notes. The terms of the indentures and the Notes do not restrict our or any of our subsidiaries’ ability to
engage in, or otherwise be a party to, a variety of
67
corporate transactions, circumstances or events that could have a material adverse impact on your investment in the Notes. In particular, the terms of the indentures and the Notes do not place any
restrictions on our or our subsidiaries’ ability to:
•
•
•
•
•
issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations that would be equal in right of payment to the Notes,
(2) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to the Notes, (3) indebtedness of ours that is guaranteed by one or
more of our subsidiaries and which therefore is structurally senior to the Notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior to
our equity interests in our subsidiaries and therefore rank structurally senior to the Notes with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or
other obligation that would cause a violation of Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, but giving effect to any exemptive relief
granted to us by the SEC. Currently, these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt
securities, unless our asset coverage, as defined in the 1940 Act, equals at least 150% after such borrowings;
pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the Notes, including subordinated
indebtedness, in each case other than dividends, purchases, redemptions or payments that would cause a violation of Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or
any successor provisions, giving effect to (i) any exemptive relief granted to us by the SEC and (ii) no-action relief granted by the SEC to another BDC (or to the Company if it determines to
seek such similar no-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by
Section 61(a)(1) of the 1940 Act in order to maintain the BDC’s status as a RIC under Subchapter M of the Code (these provisions generally prohibit us from declaring any cash dividend or
distribution upon any class of our capital stock, or purchasing any such capital stock if our asset coverage, as defined in the 1940 Act, is below 150% at the time of the declaration of the
dividend or distribution or the purchase and after deducting the amount of such dividend, distribution or purchase;
sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets);
enter into transactions with affiliates;
create liens (including liens on the shares of our subsidiaries) or enter into sale and leaseback transactions;
• make investments; or
•
create restrictions on the payment of dividends or other amounts to us from our subsidiaries.
In addition, the indentures do not require us to offer to purchase the Notes in connection with a change of control, asset sale or any other event. Furthermore, the terms of the indentures and the Notes
do not protect holders of the Notes in the event that we experience changes (including significant adverse changes) in our financial condition, results of operations or credit ratings, as they do not
require that we or our subsidiaries adhere to any financial tests or ratios or specified levels of net worth, revenues, income, cash flow or liquidity. Our ability to recapitalize, incur additional debt and
take a number of other actions that are not limited by the terms of the Notes may have important consequences for holders of the Notes, including making it more difficult for us to satisfy our
obligations with respect to the Notes or negatively affecting the trading value of the Notes.
Other debt we issue or incur in the future could contain more protections for its holders than the indentures and the Notes, including additional covenants and events of default. The issuance or
incurrence of any such debt with incremental protections could affect the market for and trading levels and prices of the Notes.
If we default on our obligations to pay other indebtedness that we may incur in the future, we may not be able to make payments on the Notes.
In the future, we may enter into agreements to incur additional indebtedness, including a secured credit facility. A default under such agreements to which we may be a party that is not waived by the
required lenders or holders, and the remedies sought by the holders of such indebtedness could make us unable to pay principal, premium, if any, and interest on the Notes and substantially decrease
the market value of the Notes. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and
interest on such future additional indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants, in the
68
instruments governing such future additional indebtedness, we could be in default under the terms of the agreements governing such indebtedness. In the event of such default, the holders of such
indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, the lenders of other debt we may incur in the future could elect
to terminate their commitments, cease making further loans and institute foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. If we are unable to repay
debt, lenders having secured obligations could proceed against the collateral securing the debt. Because any future credit facilities likely will have customary cross-default provisions, if the
indebtedness under any future credit facility is accelerated, we may be unable to repay or finance the amounts due.
We may choose to redeem the Notes when prevailing interest rates are relatively low.
On or after March 1, 2020 and August 1, 2021, we may choose to redeem the 2023 Notes and the 2024 Notes, respectively, especially if prevailing interest rates are lower than the interest rates on the
2023 Notes or 2024 Notes. If prevailing rates are lower at the time of redemption, holders of the Notes may not be able to reinvest the redemption proceeds in a comparable security at an effective
interest rate as high as the interest rate on the Notes being redeemed. Our redemption right also may adversely impact your ability to sell the Notes as the optional redemption date or period
approaches.
On November 21, 2016, the Company announced that its Board approved a repurchase program under which the Company may repurchase up to 10%, or $832,400 in aggregate principal amount, of
its 2022 Notes and up to 10%, or $4,025,000 in aggregate principal amount, of its 2021 Notes through open market purchases, including block purchases, in such manner as will comply with the
provisions of the 1940 Act and the Exchange Act. The repurchase plan expired on May 21, 2017, however, the Company may institute a new repurchase plan in the future.
On March 22, 2018, the Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes on the redemption date at 100% of their principal amount ($25 per Note), plus the
accrued and unpaid interest thereon from December 31, 2017, through, but excluding, the Redemption Date.
On August 29, 2019, the Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on the redemption date at 100% of their principal amount ($25 per Note), plus the
accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.
The trading market or market value of our publicly traded debt securities may fluctuate.
The 2023 Notes and the 2024 Notes are new issues of debt securities listed on the Nasdaq Global Market under the symbols “NEWTZ” and “NEWTI,” respectively. Although the Notes are listed on
Nasdaq, we cannot assure you that a trading market for our publicly issued debt securities will be maintained. In addition to our creditworthiness, many factors may materially adversely affect the
trading market for, and market value of, our publicly issued debt securities. These factors include, but are not limited to, the following:
•
•
•
•
•
•
the time remaining to the maturity of these debt instruments;
the outstanding principal amount of debt securities with terms identical to these debt securities;
the ratings assigned by the national statistical rating agencies;
the general economic environment;
the supply of debt securities trading in the secondary market, if any;
the level, direction and volatility of market interest rates generally; and
• market rates of interest higher or lower than rates borne by the debt securities.
You should be aware that there may be a limited number of buyers should holders of the Notes decide to sell the securities. This too may materially adversely affect the market value of the debt
securities of the trading market for the debt securities.
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
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ITEM 2. PROPERTIES.
We conduct our principal business activities in facilities leased from unrelated parties at market rates. Our headquarters are located in Boca Raton, Florida. Our operating subsidiaries have properties
which are material to the conduct of their business as noted below. In addition, our Capcos maintain offices in each of the states in which they operate.
Below is a list of our leased offices and space as of December 31, 2019 which are material to the conduct of our business:
Location
4800 T Rex Avenue
Boca Raton, FL 33431
1981 Marcus Avenue
Lake Success, NY 11042
1985 Marcus Avenue
Lake Success, NY 11042
4 Park Plaza
Irvine, CA 92614
14 East Washington Street
Orlando, FL 32801
Lease expiration
Purpose
Approximate square feet
April 2026
April 2027
Corporate headquarters and NSBF lending operations
Lending operations, corporate operations, NY Capco offices and certain
controlled portfolio companies’ offices
April 2027
Lending operations and certain controlled portfolio companies’ offices
February 2021
NSBF lending operations
August 2022
NSBF lending operations and certain controlled portfolio companies’ offices
7,800
36,000
7,300
3,300
1,700
We believe that our leased facilities are adequate to meet our current needs and that additional facilities are available to meet our development and expansion needs in existing and projected target
markets.
ITEM 3. LEGAL PROCEEDINGS.
In the ordinary course of business, the Company and its wholly-owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by
case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company is not currently involved in any litigation matters that are expected to have a
material impact on the Company’s financial condition. For legal proceedings involving controlled portfolio companies, refer to “Risk Factors - Legal Proceedings - Portfolio Companies.”
As a result of a prior litigation with the Federal Trade Commission (the “FTC”), NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its
business practices.
ITEM 4. MINE SAFETY DISCLOSURES.
None.
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PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Price Range of Common Stock
Our common stock is traded on the Nasdaq Global Market under the symbol “NEWT.” High and low prices for the common stock over the previous two years are set forth below, based on the highest
and lowest intraday sales price per share during that period.
2018
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2019
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Price Range
NAV (1)
Premium of High Sales
Price to NAV (2)
Premium of Low Sales
Price to NAV (2)
High
$18.95
$20.76
$24.24
$21.85
$20.74
$23.83
$23.99
$23.73
Low
$16.07
$17.53
$19.93
$15.59
$17.23
$19.70
$20.21
$20.75
$15.05
$15.06
$15.28
$15.19
$15.31
$15.33
$15.41
$15.70
26%
38%
59%
44%
35%
55%
56%
51%
7%
16%
30%
3%
13%
29%
31%
32%
(1) Net asset value per share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date of the high and low sales prices. The values
reflect net asset value per share and are based on outstanding shares at the end of each period.
(2)Calculated as the respective high or low sales price divided by net asset value and subtracting 1.
The last reported price for our common stock on March 13, 2020 was $13.77 per share.
Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from net
asset value or at premiums that are unsustainable over the long term are separate and distinct from the risk that our net asset value will decrease. It is not possible to predict whether our shares will
trade at, above, or below net asset value. Since our conversion to a BDC, our shares of common stock have traded at prices both less than and exceeding our NAV per share.
Holders
As of March 13, 2020, there were approximately 91 holders of record of our common stock.
Fees and Expenses
The following table is intended to assist stockholders in understanding the costs and expenses that stockholders will bear directly or indirectly. We caution you that many of the percentages indicated
in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this Annual Report contains a reference to fees or expenses paid by “you,” “us” or “Newtek,” or
that “we” will pay fees or expenses, the Company will pay such fees and expenses out of its net assets and, consequently, stockholders will indirectly bear such fees or expenses as an investor in
Newtek Business Services
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Corp. However stockholders will not be required to deliver any money or otherwise bear personal liability or responsibility for such fees or expenses.
Stockholder transaction expenses:
Sales load (as a percentage of offering price) (1)
Offering expenses borne by the Company (as a percentage of offering price) (2)
Dividend reinvestment plan fees (3)
Total stockholder transaction expenses (as a percentage of offering price) (4)
—%
—%
$
15.00
—%
Annual expenses (as a percentage of net assets attributable to common stock) (5):
Operating expenses (6)
Interest payments on borrowed funds (7)
Other expenses (8)
Acquired funds fees and expenses (9)
Total annual expenses (10)
20.14%
(1) In the event that the securities applicable to a prospectus relates to shares that are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load and
13.78%
0.02%
6.34%
—%
the example will be updated accordingly.
(2) A prospectus supplement corresponding to each offering will disclose the applicable estimated amounts of offering expenses of the offering and offering expenses borne by the Company as a
percentage of the offering price.
(3) The expenses of the dividend reinvestment plan are included in “other expenses.” The plan administrator’s fees will be paid by the Company. There will be no brokerage charges or other charges to
stockholders who participate in the plan except that, if a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan
administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15.00 transaction fee plus a $0.10 per share brokerage
commission from the proceeds.
(4) Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus supplement, if any.
(5) The annualized expenses are based on the Company’s expenses and net asset value for the year ended December 31, 2019 and as of December 31, 2019.
(6) “Operating expenses” represents an estimate of the Company’s annual operating expense. The Company does not have an investment advisor. We are internally managed by our executive officers
under the supervision of our Board. As a result, we do not pay investment advisory fees. Instead we pay the operating costs associated with employing investment management professionals.
(7) The Company may borrow funds from time to time to make investments to the extent that the economic situation is conducive to doing so. “Interest Payments on Borrowed Funds” represents
estimated interest and fee payments on borrowed funds by estimating our annualized interest, fees and other debt-related expenses incurred for the year ended December 31, 2019, including our
bank notes payable, 2024 Notes, 2023 Notes, Notes payable - related party and securitization notes payable.
(8) “Other expenses” consist of estimated transfer agent expenses related to our dividend reinvestment plan.
(9) We have no current intention to invest in the securities of other investment companies. However, we are permitted to make such investments in limited circumstances under the 1940 Act. If we
were to make such investments, we would incur fees and our stockholders would pay two levels of fees. As we have no current expectation of making any such investments, any estimate of the
amount of such fees would be highly speculative.
(10) The holders of shares of our common stock indirectly bear the cost associated with our annual expenses.
Example
The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common
stock. In calculating the following expense amounts, we have assumed that our annual operating expenses would remain at the levels set forth in the table above.
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A stockholder would pay the following expenses on a $1,000 investment, assuming a 5% annual return
$
212 $
667 $
1,169 $
2,661
1 Year
3 Years
5 Years
10 Years
The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. While the example
assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. Further, while the example assumes reinvestment of all dividends
and distributions at net asset value, participants in our dividend reinvestment plan will receive a number of shares of our common stock, generally determined by dividing the total dollar amount of
the dividend payable to a participant by the market price per share of our common stock at the close of trading on the dividend payment date, which may be at, above or below net asset value.
Sales of Unregistered Securities
We did not engage in any sales of unregistered securities during the year ended December 31, 2019.
During the year ended December 31, 2018, in connection with our investment in Mobil Money, we issued 10,966 shares of restricted common stock.
During the year ended December 31, 2017, in connection with our investment in IPM, we issued 60,490 shares of restricted common stock.
During the year ended December 31, 2017, in connection with our investment in UCS, we issued 28,741 shares of restricted common stock.
Distributions
In order to be subject to tax as a RIC, we must distribute to our shareholders, in respect of each taxable year, dividends for U.S. federal income tax purposes of an amount generally at least equal to
the Annual Distribution Requirement. Upon satisfying this requirement in respect of a taxable year, we generally will not be subject to corporate taxes on any income we distribute to our shareholders
as dividends for U.S. federal income tax purposes.
However, as a RIC we will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income and gains unless we make distributions treated as dividends for U.S. federal
income tax purposes in a timely manner to our shareholders in respect of each calendar year of an amount at least equal to the Excise Tax Avoidance Requirement. We will not be subject to this excise
tax on any amount on which we incurred U.S. federal corporate income tax (such as the tax imposed on a RIC’s retained net capital gains).
Depending on the level of taxable income earned in a taxable year, we may choose to carry over taxable income in excess of current taxable year distributions treated as dividends for U.S. federal
income tax purposes from such taxable income into the next taxable year and incur a 4% excise tax on such taxable income, as required. The maximum amount of excess taxable income that may be
carried over for distribution in the next taxable year under the Code is the total amount of distributions treated as dividends for U.S. federal income tax purposes paid in the following taxable year,
subject to certain declaration and payment guidelines. To the extent we choose to carry over taxable income into the next taxable year, distributions declared and paid by us in a taxable year may
differ from our taxable income for that taxable year as such distributions may include the distribution of current taxable year taxable income, the distribution of prior taxable year taxable income
carried over into and distributed in the current taxable year, or returns of capital.
We can offer no assurance that we will achieve results that will permit the payment of any cash distributions and, if we issue senior securities, we will be prohibited from making distributions if doing
so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings. Our ability to make distributions will be
limited by the asset coverage requirements under the 1940 Act. See “Item 1. Business— Regulation.”
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The following table summarizes our dividend declarations and distributions through December 31, 2019:
Record Date
March 30, 2015
June 29, 2015
October 22, 2015
November 18, 2015(1)
January 7, 2016
March 22, 2016
June 20, 2016
September 20, 2016
December 15, 2016
March 20, 2017
May 31, 2017
September 22, 2017
December 18, 2017
March 20, 2018
June 15, 2018
September 17, 2018
December 18, 2018
March 15, 2019
June 14, 2019
September 20, 2019
December 16, 2019
Payment Date
April 13, 2015
July 15, 2015
November 3, 2015
December 31, 2015
January 19, 2016
March 31, 2016
June 30, 2016
September 30, 2016
December 30, 2016
March 31, 2017
June 30, 2017
September 29, 2017
December 28, 2017
March 30, 2018
June 29, 2018
September 28, 2018
December 28, 2018
March 29, 2019
June 28, 2019
September 30, 2019
December 30, 2019
Distribution Declared
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0.39
0.47
0.50
2.69
0.40
0.35
0.35
0.43
0.40
0.36
0.40
0.44
0.44
0.40
0.42
0.48
0.50
0.40
0.46
0.58
0.71
11.57
(1) The Special dividend was declared as a result of the Company’s RIC election for tax year 2015 and represents the distribution of 100% of the Company’s accumulated earnings and profits through
$
December 31, 2014. Pursuant to applicable Treasury Regulation and IRS guidance, 27% of the dividend was paid in cash and 73% was paid in newly issued shares of our common stock.
Our Board maintains a variable distribution policy with the objective of distributing four quarterly distributions in an amount that approximates 90 - 100% of our estimated annual taxable income for
a particular taxable year. In addition, at the end of our taxable year, our Board may choose to pay an additional special distribution, or fifth distribution, so that we may distribute approximately all of
our annual taxable income in the taxable year in which it was earned, or may elect to maintain the option to spill over our excess taxable income into the following taxable year as part of any future
distribution payments.
Distributions in excess of our current and accumulated earnings and profits would generally be treated first as a return of capital to the extent of a shareholder’s tax basis in our shares, and any
distributions paid in excess of a shareholder’s tax basis in our shares would generally be treated as a capital gain. The determination of the tax attributes of our distributions is made annually as of the
end of our taxable year and is generally based upon our taxable income for the full taxable year and distributions paid for the full taxable year. Of the distributions declared during the years ended
December 31, 2019 and 2018, 100% were distributions derived from our current and accumulated earnings and profits and capital gains, see NOTE 17—INCOME TAXES. There can be no certainty
to shareholders that this determination is representative of the tax attributes of the 2020 distributions that we anticipate would be made to shareholders.
We maintain an “opt-out” dividend reinvestment plan for our common shareholders. As a result, if we declare a distribution, cash distributions will be automatically reinvested in additional shares of
our common stock unless the shareholder specifically “opts out” of the dividend reinvestment plan and chooses to receive cash distributions. During the years ended December 31, 2019 and 2018, we
issued 54,000 and 61,000 shares, respectively, of common stock to shareholders in connection with the dividend reinvestment plan.
74
Table of Contents
Securities authorized for issuance under equity compensation plans as of December 31, 2019:
Plan Category
(a)
Number of securities to be issued upon
exercise of outstanding options, warrants and
rights
(b)
Weighted-average exercise price of
outstanding options, warrants and rights
(c)
Number of securities remaining available for
future issuance under equity compensation
plans (excluding securities reflected in
column (a))
Equity compensation plans approved by security holders
Equity compensation plans not approved by security holders
None
None
None
None
2,774,207 shares
None
Stock Performance Graph
The following graph compares the return on our common stock with that of the Standard & Poor’s 500 Stock Index, the NASDAQ Composite Index, the Russell 2000, and S&P Small Cap 600 for the
period from December 31, 2014 through December 31, 2019. The graph assumes that, on January 1, 2015, a person invested $100 in each of our common stock, the Nasdaq Composite, S&P 500
Index, Russell 2000 and S&P Small Cap 600. The graph measures total shareholder return, which takes into account both changes in stock price and dividends. It assumes that dividends paid are
invested in like securities.
75
Senior Securities
Information about our senior securities is shown in the following table as of the end of each fiscal year for the past ten years. The information as of December 31, 2019, 2018, 2017, 2016, 2015, 2014,
2013, 2012, 2011, and 2010 has been derived from Newtek Business Services Corp. and Subsidiaries’, and Newtek Business Services, Inc. and Subsidiaries’, consolidated financial statements, which
have been audited by independent registered public accounting firms. Information as of December 31, 2019, 2018, 2017, 2016, 2015, 2014, and 2013 was audited by RSM US LLP and information as
of December 31, 2012, 2011, and 2010 was audited by our previous independent registered public accounting firm. RSM US LLP’s report on the senior securities table as of December 31, 2019 is
attached as an exhibit to this Annual Report.
Class and Year
Securitization Trust
Total Amount Outstanding Exclusive of
Treasury Securities (1)
(in thousands)
Asset Coverage
Ratio Per Unit (2)
Involuntary Liquidation
Preference Per Unit (3)
Average Market
Value Per Unit (4)
December 31, 2019 $
276,637 $
2,754 $
2018
2017
2016
2015
2014
2013
2012
2011
2010
Bank Notes Payable
December 31, 2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Notes Payable Related Parties
December 31, 2019
2018
2017
2016
2015
2014
2013
2012
2011
220,137
165,432
120,945
91,745
79,520
60,140
22,039
26,368
15,104
30,000
34,700
—
5,100
29,100
43,023
41,218
39,823
13,565
12,949
12,163
16,840
7,001
1,400
5,647
—
—
—
—
76
2,839
3,018
3,184
3,692
3,634
2,966
5,933
3,758
5,538
25,392
18,010
—
75,512
11,641
6,716
4,327
3,284
7,305
6,460
62,633
37,111
71,324
275,081
59,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2010
—
—
—
N/A
December 31, 2019
63,250
7,670
—
1,009
Notes due 2024
Notes due 2023
Notes due 2022 (5)
December 31, 2019
2018
December 31, 2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Notes due 2021 (6)
December 31, 2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
57,500
57,500
13,248
10,869
—
8,324
8,324
8,324
8,324
—
—
—
—
—
—
—
40,250
40,250
—
—
—
—
—
—
—
75,078
59,988
46,265
40,697
—
—
—
—
—
—
—
12,406
9,568
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,027
1,023
N/A
968
1,018
969
1,025
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1,019
972
N/A
N/A
N/A
N/A
N/A
N/A
(1) Total amount of each class of senior securities outstanding at the end of the period presented.
(2) Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior
securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
(3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information that the
SEC expressly does not require to be disclosed for certain types of senior securities.
(4) Not applicable for senior securities that are not registered for public trading. The average market values per unit for our 2024 Notes, 2023 Notes, 2022 Notes, and for our 2021 Notes are based on
the average daily prices of such notes and are expressed per $1,000 of indebtedness.
(5) The Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on August 29, 2019.
(6) The Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes on March 23, 2018.
(7) The Company had $7,653,000 of unfunded commitments as of December 31, 2019, and our asset coverage ratio was 173%.
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Table of Contents
ITEM 6. SELECTED FINANCIAL DATA.
The following selected statements of operations and balance sheet data have been derived from the audited financial statements for each of the five years ended December 31, 2019. The Consolidated
Financial Statements for each of the five years ended December 31, 2019 have been audited by RSM US LLP. The selected financial data set forth below should be read in conjunction with, and is
qualified by reference to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements, including the Notes thereto,
available at www.sec.gov.
Statement of Operations Data:
Investment income
Expenses
Net investment loss
Net increase in net assets resulting from operations
Net realized and unrealized gains (losses)
Per Share Data:
Net investment loss
Net increase in net assets resulting from operations
Dividends declared
Balance Sheet Data (at end of period):
Investments, at fair value
Total assets
Total debt
Total liabilities
Total net assets
Common shares outstanding at end of period
2019
2018
2017
2016
2015
$
$
$
$
$
$
$
$
$
$
$
$
$
59,295 $
64,914 $
(5,619) $
41,135 $
46,754 $
(0.29) $
2.13 $
2.15 $
49,515 $
57,003 $
(7,488) $
35,678 $
43,166 $
(0.40) $
1.91 $
1.80 $
38,914 $
46,795 $
(7,881) $
38,976 $
46,857 $
(0.45) $
2.25 $
1.64 $
30,965 $
40,225 $
(9,260) $
27,305 $
36,565 $
(0.64) $
1.88 $
1.53 $
659,043 $
541,096 $
456,689 $
345,224 $
797,410 $
653,341 $
519,611 $
401,450 $
370,574 $
331,630 $
216,252 $
171,242 $
475,185 $
365,896 $
241,282 $
192,356 $
322,225 $
287,445 $
278,329 $
209,094 $
20,530
18,919
18,457
14,624
26,070
32,255
(6,185)
35,736
41,921
(0.57)
3.32
4.45
266,874
352,430
131,761
148,481
203,949
14,509
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Introduction and Certain Cautionary Statements
The following discussion and analysis of our financial condition and results of operations is intended to assist in the understanding and assessment of significant changes and trends related to the
results of operations and financial position of the Company together with its subsidiaries. This discussion and analysis should be read in conjunction with the consolidated financial statements and
the accompanying notes.
The statements in this Annual Report may contain forward-looking statements relating to such matters as anticipated future financial performance, business prospects, legislative developments and
similar matters. We note that a variety of factors could cause our actual results to differ materially from the anticipated results expressed in the forward-looking statements such as intensified
competition and/or operating problems in our operating business projects and their impact on revenues and profit margins or additional factors as described under “Risk Factors” above.
Executive Overview
We are a leading national non-bank lender and own and control certain portfolio companies under the Newtek® brand (our “controlled portfolio companies,” as defined below) that provide a wide
range of business and financial solutions to SMBs. Newtek's and its portfolio companies’ business and financial solutions include: Business Lending, including origination of SBA 7(a), SBA 504
loans and nonconforming (non SBA) conventional loans, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts
Receivable and Inventory Financing, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts
nationwide across all industries. We have an established and reliable platform that is not limited by client size, industry type, or location. As a result, we believe we have a strong and diversified client
base across every state in the U.S. and across a variety of different industries. In addition, we have developed a financial and technology based business model that
78
enables us and our controlled portfolio companies to acquire and process our SMB clients in a very cost effective manner. This capability is supported in large part by NewTracker®, our patented
prospect management technology software, which is similar to, but we believe better suited for our needs than, the system popularized by Salesforce.com. We believe that this technology and
business model distinguishes us from our competitors.
We consolidate the following wholly-owned subsidiaries:
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
CCC Real Estate Holdings, LLC
The Whitestone Group, LLC
Wilshire Colorado Partners, LLC (1)
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana BIDCO, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire New York Partners IV, LLC (2)
Wilshire New York Partners V, LLC (2)
Wilshire Partners, LLC
Exponential Business Development Co., Inc.
Newtek Commercial Lending, Inc.
Newtek LSP Holdco, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.
Newtek Business Services Holdco 3, Inc.
Newtek Business Services Holdco 4, Inc.
Newtek Business Services Holdco 5, Inc. (formerly Banc-Serv Acquisition, Inc.)
Newtek Business Services Holdco 6, Inc.
(1) Entity was merged into The Whitestone Group, LLC on December 31, 2018.
(2) Entity was merged into The Whitestone Group, LLC on December 31, 2017.
We are an internally-managed, closed-end, non-diversified investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we
have elected to be treated as a RIC under the Code beginning with our 2015 tax year. As a BDC and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act
and the Code. As a result, previously consolidated subsidiaries are now recorded as investments in controlled portfolio companies, at fair value. NSBF is a consolidated subsidiary and originates
loans under the SBA's 7(a) loan program.
Our common shares are currently listed on the Nasdaq Global Market under the symbol “NEWT”.
NSBF has been granted PLP status and originates, sells and services SBA 7(a) loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a
national lender with PLP status allows NSBF to expedite the origination of loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP
status would adversely impact our marketing efforts and ultimately our loan origination volume which would negatively impact our results of operations.
79
As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance ecosystem and our equity investments in
certain portfolio companies that we control.
We target our debt investments, which are principally made through our business finance ecosystem under the SBA 7(a) program, to produce a coupon rate of prime plus 2.75% which enables us to
generate rapid sales of guaranteed portions of SBA 7(a) loans in the secondary market. We typically structure our debt investments with the maximum seniority and collateral along with personal
guarantees from portfolio company owners, in many cases collateralized by other assets including real estate. In most cases, our debt investment will be collateralized by a first lien on the assets of
the portfolio company and a first or second lien on assets of guarantors, in both cases primarily real estate. All SBA loans are made with personal guarantees from any owner(s) of 20% or more of the
portfolio company’s equity. The amount of new debt investments, particularly SBA 7(a) loans that we originate, will directly impact future investment income. In addition, future amounts of
unrealized appreciation or depreciation on our investments, as well as the amount of realized gains or losses, will also fluctuate depending upon economic conditions and the performance of our
investment portfolio. The changes in realized gains and losses and unrealized appreciation or depreciation could have a material impact on our operating results.
We typically structure our debt investments to include non-financial covenants that seek to minimize our risk of capital loss such as lien protection and prohibitions against change of control. Our
debt investments have strong protections, including default penalties, information rights and, in some cases, board observation rights and affirmative, negative and financial covenants. Debt
investments in portfolio companies, including the controlled portfolio companies, have historically and are expected to continue to comprise the majority of our overall investments in number and
dollar volume.
While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to
enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments in our controlled portfolio companies, we focus more on tailoring them to the long term
growth needs of the companies than to return. Our objectives with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving the SMB
market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise and as another means of supporting their development.
We regularly engage in discussions with third parties with respect to various potential transactions. We may acquire an investment or a portfolio of investments or an entire company or sell a portion
of our portfolio on an opportunistic basis. We, our subsidiaries, or our affiliates may also agree to manage certain other funds that invest in debt, equity or provide other financing or services to
companies in a variety of industries for which we may earn management or other fees for our services. We may also invest in the equity of these funds, along with other third parties, from which we
would seek to earn a return and/or future incentive allocations. Some of these transactions could be material to our business. Consummation of any such transaction will be subject to completion of
due diligence, finalization of key business and financial terms (including price) and negotiation of final definitive documentation as well as a number of other factors and conditions including, without
limitation, the approval of our board of directors and required regulatory or third-party consents and, in certain cases, the approval of our shareholders. Accordingly, there can be no assurance that any
such transaction would be consummated. Any of these transactions or funds may require significant management resources either during the transaction phase or on an ongoing basis depending on
the terms of the transaction.
Revenues
We generate revenue in the form of interest, dividend, servicing and other fee income on debt and equity investments. Our debt investments typically have terms of 10 to 25 years and bear interest at
prime plus a margin. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our
debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of
sales of securities. We receive servicing income related to the guaranteed portions of SBA investments which we originate and sell into the secondary market. These recurring fees are earned daily
and recorded when earned. In addition, we may generate revenue in the form of packaging, prepayment, legal and late fees. We record such fees related to loans as other income. Dividends are
recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income is recorded at the time
dividends are declared. Distributions of earnings from portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.
We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or
losses previously recognized. We record current period
80
changes in fair value of investments and assets that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments or servicing assets, as
appropriate, in the consolidated statements of operations.
Expenses
Our primary operating expenses are salaries and benefits, interest expense, origination and servicing and other general and administrative costs, such as professional fees, marketing, referral fees,
servicing costs and rent. Since we are an internally-managed BDC with no outside adviser or management company, the BDC incurs all the related costs to operate the Company.
Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and Inventory Facility are $35,000,000. The Sterling
Receivable and Inventory Facility matures in August 2022 and automatically renews annually. At December 31, 2019, total principal owed by NBC was $25,802,000. In addition, the Company
deposited $750,000 to collateralize the guarantee. At December 31, 2019, the Company determined that it is not probable that payments would be required to be made under the guarantee.
The Company is a guarantor on the NBL Facility. Maximum borrowings under the NBL Facility are $75,000,000 with an accordion feature to increase maximum borrowings to $150,000,000. The
NBL Facility matures in July 2021. At December 31, 2019, total principal owed by NBL was $12,165,000. At December 31, 2019, the Company determined that it is not probable that payments
would be required to be made under the guarantee.
The Company is a guarantor on the Webster Facility, a term loan facility between NMS with Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in
November 2023. At December 31, 2019, total principal outstanding was $32,375,000. At December 31, 2019, the Company determined that it is not probable that payments would be required to be
made under the guarantee.
Unfunded Commitments
At December 31, 2019, the Company had $7,653,000 of unfunded commitments in connection with its SBA 7(a) non-affiliate investments related to portions of loans originated which are partially
funded. The Company will fund these commitments from the same sources it uses to fund its other investment commitments.
Loan Portfolio Asset Quality and Composition
The following tables set forth distributions of the cost basis of the Company’s SBA 7(a) loan portfolio at December 31, 2019 and December 31, 2018, respectively, in thousands. The tables include
loans in which NSBF owns 100% as a result of NSBF originating the loan and subsequently repurchasing the guaranteed portion from the SBA. The total of 100% NSBF-owned loans at
December 31, 2019 and December 31, 2018 is $11,307,000 and $11,605,000, respectively.
Distribution by Business Type
As of December 31, 2019
Existing Business
Business Acquisition
Start-Up Business
Total
As of December 31, 2018
Existing Business
Business Acquisition
Start-Up Business
Total
Business Type
# of Loans
Balance
Average Balance
% of Balance
1,892 $
349,320 $
273
230
58,155
22,221
2,395 $
429,696 $
185
207
96
179
Business Type
# of Loans
Balance
Average Balance
% of Balance
1,556 $
292,200 $
233
171
47,333
16,056
1,960 $
355,589 $
81
188
203
94
181
81.3%
13.5%
5.2%
100.0%
82.2%
13.3%
4.5%
100.0%
Distribution by Borrower Credit Score
December 31, 2019
500 to 550
551 to 600
601 to 650
651 to 700
701 to 750
751 to 800
801 to 850
Not available
Total
December 31, 2018
500 to 550
551 to 600
601 to 650
651 to 700
701 to 750
751 to 800
801 to 850
Not available
Total
Credit Score
# of Loans
Balance
Average Balance
% of Balance
20 $
4,315 $
66
344
749
709
439
65
3
18,296
69,265
126,797
124,725
77,646
8,528
124
2,395 $
429,696 $
216
277
201
169
176
177
131
41
179
1.0%
4.3%
16.1%
29.5%
29.0%
18.1%
2.0%
—%
100.0%
Credit Score
# of Loans
Balance
Average Balance
% of Balance
22 $
4,332 $
65
285
592
569
367
53
7
16,739
58,269
107,359
97,117
65,324
5,634
815
1,960 $
355,589 $
197
258
204
181
171
178
106
116
181
Distribution by Primary Collateral Type
December 31, 2019
Collateral Type
# of Loans
Balance
Average Balance
% of Balance
Commercial Real Estate
Machinery and Equipment
Residential Real Estate
Accounts Receivable and Inventory
Other
Unsecured
Furniture and Fixtures
Liquid Assets
Total
962 $
225,434 $
420
507
255
105
104
28
14
82,725
41,713
39,380
32,380
4,362
2,674
1,026
2,395 $
429,696 $
82
234
197
82
154
308
42
96
73
179
1.2%
4.7%
16.4%
30.2%
27.3%
18.4%
1.6%
0.2%
100.0%
52.5%
19.3%
9.7%
9.2%
7.5%
1.0%
0.6%
0.2%
100.0%
December 31, 2018
Commercial Real Estate
Machinery and Equipment
Residential Real Estate
Other
Accounts Receivable and Inventory
Liquid Assets
Unsecured
Furniture and Fixtures
Total
Distribution by Days Delinquent
Collateral Type
# of Loans
Balance
Average Balance
% of Balance
867 $
195,908 $
343
401
93
182
11
40
23
66,099
32,285
30,703
26,456
511
1,070
2,557
1,960 $
355,589 $
226
193
81
330
145
46
27
111
181
December 31, 2019
Accrual
Current
31 to 60 days
61 to 90 days
91 days or greater
Non-accrual
Total
December 31, 2018
Accrual
Current
31 to 60 days
61 to 90 days
91 days or greater
Non-accrual
Total
Delinquency Status
# of Loans
Balance
Average Balance
% of Balance
2,086 $
338,919 $
48
—
48
213
14,459
—
17,233
59,085
2,395 $
429,696 $
162
301
—
359
277
179
Delinquency Status
# of Loans
Balance
Average Balance
% of Balance
1,765 $
303,320 $
34
—
13
148
7,562
—
7,980
36,727
1,960 $
355,589 $
172
222
—
614
248
181
Set forth below is a comparison of the results of operations for the years ended December 31, 2019 and 2018. For a comparison of the results of operations for the years ended December 31, 2018 and
2017, see the Company's Form 10-K for the year ended December 31, 2018, as filed with the SEC on March 18, 2019.
83
55.1%
18.6%
9.1%
8.6%
7.4%
0.1%
0.3%
0.8%
100.0%
78.8%
3.4%
—%
4.0%
13.8%
100.0%
85.3%
2.1%
—%
2.2%
10.4%
100.0%
Comparison of the year ended December 31, 2019 and 2018
Investment Income
(in thousands)
Investment income:
Interest income
Dividend income
Servicing income
Other income
Total investment income
Interest Income
Year Ended December 31, 2019
Year Ended December 31, 2018
Change
$
$
29,491 $
14,398
10,078
5,328
59,295 $
23,807 $
12,630
8,552
4,526
49,515 $
5,684
1,768
1,526
802
9,780
The increase in interest income was attributable to the average outstanding accrual portfolio of SBA non-affiliate investments increasing to $339,128,000 from $282,378,000 for the year ended
December 31, 2019 and 2018, respectively. The increase in the average outstanding accrual portfolio resulted from the origination of new SBA non-affiliate investments period over period. We also
recognized an additional $897,000 of interest income period over period from holding SBA guaranteed loans.
Dividend Income
Dividend income is dependent on portfolio company earnings. Current year dividend income may not be indicative of future period dividend income. Dividend income was earned from the following
portfolio companies for the year ended December 31, 2019 and 2018:
(in thousands)
Newtek Merchant Solutions, LLC (NMS)
Premier Payments LLC (1)
International Professional Marketing, Inc.
SIDCO, LLC
United Capital Source LLC (UCS)
Mobil Money, LLC
Newtek Conventional Lending, LLC
EMCAP Loan Holdings, LLC
Total dividend income
(1)On December 31, 2018, Premier was merged into NMS.
NSBF Servicing Portfolio and Related Servicing Income
Year Ended December 31, 2019
Year Ended December 31, 2018
Change
$
$
11,490 $
7,800 $
—
900
700
—
375
822
111
2,950
125
1,250
275
165
—
65
3,690
(2,950)
775
(550)
(275)
210
822
46
14,398 $
12,630 $
1,768
The following table represents the NSBF originated servicing portfolio and servicing income earned for the year ended December 31, 2019 and 2018:
(in thousands):
Total NSBF originated servicing portfolio (1)
Total servicing income earned
Year Ended December 31, 2019
Year Ended December 31, 2018
Change
$
$
1,770,864 $
10,078 $
1,498,907 $
8,552 $
271,957
1,526
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $1,180,558,000 and $975,852,000 for the year ended December 31, 2019 and 2018, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $204,706,000
period over period. The increase was attributable to an increase in SBA 7(a) non-affiliate investments period over period.
84
Other Income
Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA 7(a) loans. The increase was
related to an increase in legal, prepayment and packaging fees earned as a result of the larger dollar volume of loans originated.
Expenses:
(in thousands)
Salaries and benefits
Interest
Depreciation and amortization
Professional fees
Origination and loan processing
Origination and loan processing - related party
Change in fair value of contingent consideration liabilities
Loss on extinguishment of debt
Other general and administrative costs
Total expenses
Salaries and Benefits
Year Ended
December 31, 2019
Year Ended
December 31, 2018
Change
14,305 $
20,422
501
3,807
9,215
9,944
42
251
6,427
21,082 $
16,066
484
3,094
8,362
—
(51)
1,059
6,907
64,914 $
57,003 $
(6,777)
4,356
17
713
853
9,944
93
(808)
(480)
7,911
$
$
As discussed below, the decrease in salaries and benefits was the result of certain NSBF employees being hired by SBL. SBL is a lender service provider that, effective January 1, 2019, provides
NSBF with loan origination and loan processing functions performed by its employees. As a result, costs related to these employees previously included in salaries and benefits, are included in
origination and loan processing - related party. The decrease was partially offset due to an increase in headcount, primarily related to employees performing loan processing, loan closing or loan
servicing functions as a result of the increase in loan originations.
Interest Expense
The following is a summary of interest expense by facility for the year ended December 31, 2019 and 2018:
(in thousands)
Notes payable - Securitization Trusts
Bank notes payable
Notes due 2022
Notes due 2021
Notes due 2023
Notes due 2024
Notes payable - related parties
Other
Total interest expense
Year Ended December 31, 2019
Year Ended December 31, 2018
Change
$
$
11,148 $
2,122
469
—
4,065
1,701
911
6
8,748 $
1,473
707
718
3,483
—
916
21
20,422 $
16,066 $
2,400
649
(238)
(718)
582
1,701
(5)
(15)
4,356
The increase in interest expense period over period is primarily related to interest from the Notes payable - Securitization Trusts, Bank notes payable, 2023 Notes and 2024 Notes. The increase from
Notes payable - Securitization Trusts was the result of an additional securitization transaction completed in October 2019. We recognized $4,065,000 of interest expense attributable to the 2023 Notes
which represented a full period of interest as compared to partial period of interest during the year ended December 31, 2018. We recognized $1,701,000 interest expense related to the 2024 Notes
offset by a reduction of interest expense related to our redemption of the 2022 Notes. These increases were offset by the decrease in interest expense related the 2021 Notes of $718,000 as a result of
our redemption of the 2021 Notes in March 2018 and issuance of $57,500,000
85
of 2023 Notes. The increase in interest expense from Bank Notes payable was related to an increase in the average outstanding balance period over period.
During the year ended December 31, 2018, we redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes at 100% of their principal amount ($25 per Note), plus the accrued and
unpaid interest thereon. As a result, we recorded loss on extinguishment of debt of $1,059,000.
During the year ended December 31, 2019, we redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes at 100% of their principal amount ($25 per Note), plus the accrued and
unpaid interest thereon. As a result, we recorded loss on extinguishment of debt of $251,000.
Origination and Loan Processing - Related Party
The increase in origination and servicing expenses was attributed to $9,944,000 of origination and servicing costs incurred from SBL. Effective January 1, 2019, certain employees performing
origination and loan processing functions were hired by SBL. As a result, costs related to these employees previously included in salaries and benefits, are included in origination and loan processing
- related party.
Net Realized Gains and Net Unrealized Appreciation and Depreciation
Net realized gains from SBA non-affiliate investments for the year ended December 31, 2019 and 2018 were $47,816,000 and $42,845,000, respectively, which included realized losses of $3,924,000
and $1,751,000, respectively.
Net Realized Gains on SBA Non-Affiliate Investments
SBA non-affiliate investments originated
SBA guaranteed non-affiliate investments sold
Realized gains recognized on sale of SBA guaranteed non-affiliate investments
Average sale price as a percent of principal balance (1)
December 31, 2019
December 31, 2018
# of Debt Investments
$ Amount
(in thousands)
# of Debt Investments
$ Amount
(in thousands)
Year Ended
659 $
633 $
— $
—
517,692
394,248
51,740
111.16%
569 $
563 $
— $
—
469,176
360,483
45,583
110.52%
(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with the SBA.
Net Realized Gains on Controlled Investments
During the year ended December 31, 2019, realized gains on controlled investments were $2,585,000 and represent distributions in excess of our cost basis from NMS.
Net Unrealized Appreciation (Depreciation) on Investments
(in thousands)
Net unrealized depreciation on SBA guaranteed non-affiliate investments
Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
Net unrealized appreciation on controlled investments
Change in deferred taxes
Total net unrealized appreciation on investments
Year Ended December 31, 2019
Year Ended December 31, 2018
Change
$
$
(225) $
(6,291)
11,211
(3,164)
1,531 $
(766) $
3,471
4,048
(1,077)
5,676 $
541
(9,762)
7,163
(2,087)
(4,145)
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to guaranteed portions of SBA debt investments made which the Company sells into a secondary
market. Unrealized appreciation of SBA guaranteed
86
investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when the
SBA 7(a) loans are sold.
Net Unrealized Appreciation (Depreciation) on Controlled Investments
Unrealized appreciation (depreciation) was derived from the following portfolio companies for the year ended December 31, 2019 and 2018:
(in thousands)
Newtek Merchant Solutions, LLC (NMS)
Newtek Technology Solutions, Inc. (NTS)
CDS Business Services, Inc.
International Professional Marketing, Inc.
SIDCO, LLC
PMTWorks Payroll, LLC
banc-serv Partners, LLC (BSP)
Small Business Lending, LLC
Newtek Insurance Agency, LLC
Newtek Business Lending, LLC
Newtek Conventional Lending, LLC
Titanium Asset Management LLC
Mobil Money, LLC
Excel WebSolutions, LLC
Year Ended December 31, 2019
Year Ended December 31, 2018
Change
$
5,000 $
13,250 $
(8,250)
500
(2,000)
850
(1,170)
(622)
(286)
6,002
—
630
1,853
(316)
770
—
(3,900)
(3,000)
(700)
700
(381)
(4,939)
550
(420)
3,000
—
—
—
(112)
4,048 $
4,400
1,000
1,550
(1,870)
(241)
4,653
5,452
420
(2,370)
1,853
(316)
770
112
7,163
Total net unrealized appreciation on controlled investments
$
11,211 $
Provision for Deferred Taxes on Unrealized Appreciation of Investments
Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are
consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the
subsidiaries. During the year ended December 31, 2019 and 2018, we recognized a provision for deferred taxes of $3,164,000 and $1,077,000 related to the net unrealized appreciation of controlled
portfolio company investments, respectively.
Liquidity and Capital Resources
Overview
Our liquidity and capital resources are derived from our Capital One Facility, Notes payable - related parties, 2023 Notes, 2024 Notes, securitization transactions and cash flows from operations,
including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating
expenses we incur. We have used, and expect to continue to use, our borrowings and the proceeds from the turnover of our portfolio and from public and private offerings of securities to finance our
investment objectives. We may raise additional equity or debt capital through both registered offerings off a shelf registration, including “at-the-market”, or ATM, and private offerings of securities.
As of December 31, 2019, our asset coverage was 173% based on $439,550,000 of aggregate principal amount of senior securities outstanding. On April 27, 2018, we announced that our Board,
including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the Board, approved a proposal to reduce our asset coverage requirement as set forth in Section 61(a)(2)
of the 1940 Act, from 200% to 150%, pursuant to recent modifications included in the Small Business Credit Availability Act. Such change would have been effective April 27, 2019. However, on
July 26, 2018, our stockholders approved a proposal to reduce our asset coverage requirement to 150%, effective July 27, 2018.
87
Public Offerings
ATM Program
The 2017 ATM Equity Distribution Agreement provided that we may offer and sell up to 4,400,000 shares of common stock from time to time through the placement agents. From inception through
December 31, 2019, we sold 1,618,375 shares of our common stock at a weighted average price of $18.07 per share. Proceeds, net of offering costs and expenses were $28,466,000 . On July 8, 2019,
the Company gave notice to terminate the 2017 ATM Equity Distribution Agreement, with such termination effective as of July 9, 2019.
On July 10, 2019, the Company entered into the 2019 ATM Equity Distribution Agreement. The 2019 ATM Equity Distribution Agreement provides that the Company may offer and sell up to
3,000,000 shares of common stock from time to time through the placement agents. From inception through December 31, 2019, we sold 1,356,698 shares of our common stock at a weighted average
price of $22.27 per share. Proceeds, net of offering costs and expenses were $30,212,000.
We used the net proceeds for funding investments in debt and equity securities in accordance with our investment objective and strategies and for general corporate purposes including funding
investments, repaying outstanding indebtedness and other general corporate purposes.
As of December 31, 2019, there were 1,643,302 shares of common stock available for sale under the 2019 ATM Equity Distribution Agreement.
On February 28, 2020, we entered into the Amended 2019 ATM Equity Distribution Agreement with the placement agents. The purpose of the amendment is to add UBS Securities LLC as a
placement agent. See “Recent Developments.”
Debt Offerings
In July 2019, the Company and the Trustee entered into the Fourth Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and
sale of $55,000,000 aggregate principal amount of 5.75% Notes due 2024. The Company granted an overallotment option of up to $8,250,000 in aggregate principal amount of the 2024 Notes. The
sale of the 2024 Notes generated proceeds of approximately $53,186,000, net of underwriter's fees and expenses. In July 20189 the underwriters exercised their option to purchase $8,250,000 in
aggregate principal amount of 2024 Notes for an additional $8,003,000 in net proceeds. The 2024 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s
other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2024 Notes; (iii) effectively subordinated
to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the
assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
The 2024 Notes will mature on August 1, 2024 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after August 1, 2021, at a redemption price of
100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed
for redemption. The 2024 Notes bear interest at a rate of 5.75% per year payable quarterly on February 1, May 1, August 1, and November 1 of each year, commencing on November 1, 2019, and
trade on the Nasdaq Global Market under the trading symbol “NEWTL.” At December 31, 2019, the Company was in compliance with all covenants related to the 2024 Notes.
In February 2018, the Company and the Trustee entered into the Third Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer
and sale of $50,000,000 aggregate principal amount of 6.25% Notes due 2023. The Company granted an overallotment option of up to $7,500,000 in aggregate principal amount of the 2023 Notes.
The sale of the Notes generated proceeds of approximately $47,901,000, net of underwriter's fees and expenses. In February 2018, the underwriters exercised their option to purchase $7,500,000 in
aggregate principal amount of notes for an additional $7,275,000 in net proceeds. The 2023 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other
outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2023 Notes; (iii) effectively subordinated to all
the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets
securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
88
The 2023 Notes will mature on March 1, 2023 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after March 1, 2020, at a redemption price of
100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed
for redemption. The 2023 Notes bear interest at a rate of 6.25% per year payable quarterly on March 1, June 1, September 1, and December 1 of each year, commencing on June 1, 2018, and trade on
the Nasdaq Global Market under the trading symbol “NEWTI.”
The Base Indenture, as supplemented by the Third Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with (regardless of whether it is subject
to) the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a) of the 1940 Act (or any successor provisions), to comply with (regardless of whether
it is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a) of the 1940 Act and to provide
financial information to the holders of the 2023 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange Act. These covenants are subject
to important limitations and exceptions that are described in the Base Indenture, as supplemented by the First Supplemental Indenture. The Base Indenture provides for customary events of default
and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2023 Notes may declare such 2023 Notes immediately due and payable upon the
occurrence of any event of default after expiration of any applicable grace period. At December 31, 2019, the Company was in compliance with all covenants related to the 2023 Notes.
In April 2016, the Company and the Trustee, entered into the Second Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer
and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021. The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The
sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter's fees and expenses. In May 2016, the underwriters exercised their option to purchase $5,250,000 in aggregate
principal amount of notes for an additional $5,066,000 in net proceeds. The 2021 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding
and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2021 Notes; (iii) effectively subordinated to all the
Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets
securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
On March 22, 2018, the Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest
thereon from December 31, 2017, through, but excluding, the redemption date.
In September 2015, the Company and the Trustee entered into the Base Indenture and the First Supplemental Indenture relating to the Company's issuance, offer, and sale of $8,324,000, including the
underwriter's partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022. The 2022 Notes are the Company’s direct unsecured obligations and rank:
(i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2022
Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants
security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s
subsidiaries.
On August 29, 2019, the Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on the redemption date of August 29, 2019 at 100% of their principal amount ($25 per
Note), plus the accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.
Capital One Facilities
In May 2017, NSBF amended its Capital One facility to increase the facility from $50,000,000 to $100,000,000 and reduce the interest rate. The facility was amended again in June 2018 and the
portion of the facility collateralized by the government guaranteed portion of SBA 7(a) loans, was reduced to Prime minus 0.75% (previously Prime minus 0.25%). The interest rate on the portion of
the facility, collateralized by the non-guaranteed portion of SBA 7(a) loans, was reduced to Prime plus 0.25% (previously Prime plus 0.75%). The facility provides for a 55% advance rate on the non-
guaranteed portions of the SBA 7(a) loans NSBF originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition, the amendment extended the date on
which the facility will convert to a term loan from May 16, 2017 to May 11, 2020 and extended the maturity date of the facility to May 11, 2022. In June 2019, the facility was increased from
$100,000,000 to $150,000,000.
89
At December 31, 2019, there was $0 and $30,000,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At December 31, 2019, we were in full compliance with all
applicable loan covenants.
Notes Payable - Related Parties
In June 2015, the Company entered into the Related Party RLOC with certain controlled portfolio companies. Maximum borrowings under the Related Party RLOC were $38,000,000.
In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance had an interest rate equal to 1 month LIBOR (with a floor of 0.50%)
plus 6.0% or at a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to the lesser of 1 month LIBOR
plus 2.5% or the Prime Rate plus 1.5%.
At December 31, 2019, the Related Party RLOC interest rate was 4.71%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings due to NMS at December 31,
2019 were $12,163,000.
Securitization Transactions
Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the “Trust”) which is considered a variable
interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective
January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation
to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust’s assets and liabilities. NSBF reflects
the assets in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable - Securitization trusts on the Consolidated Statements of Assets and Liabilities.
In November 2016, NSBF completed its seventh securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the 2016-1 Trust. The 2016-1 Trust in turn
issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the assets in a private placement. The Class A and
Class B notes received an “A” and “BBB+” rating by S&P, respectively, and the final maturity date of the notes is February 2042. The Class A and Class B notes bear interest at a rate of 1 month
LIBOR plus 3.0% and 4.25%, respectively.
In December 2017, NSBF completed its eighth securitization which resulted in the transfer of $76,188,000 of unguaranteed portions of SBA loans to the 2017-1 Trust. The 2017-1 Trust in turn
issued securitization notes for the par amount of $75,426,000, consisting of $58,111,000 Class A notes and $17,315,000 of Class B notes, against the assets in a private placement. The Class A and
Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2043. The Class A and Class B notes bear interest at a rate of 1 month
LIBOR plus 2.0% and 3.0%, respectively.
In October 2018, the 2013-1 Trust was terminated as a result of NSBF purchasing the 2013-1 Trust assets, with the 2013-1 Trust’s noteholders receiving the redemption price. Certain of the 2013-1
Trust’s assets were subsequently transferred to the 2018-1 Trust.
In November 2018, NSBF completed its ninth securitization which resulted in the transfer of $108,551,000 of unguaranteed portions of SBA loans to the 2018-1 Trust. The 2018-1 Trust in turn issued
securitization notes for the par amount of $108,551,000, consisting of $82,876,000 Class A notes and $25,675,000 of Class B notes, against the assets in a private placement. The Class A and Class B
notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2044.
In March 2019, the 2010-1 Trust was terminated as a result of NSBF purchasing the 2010-1 Trust assets, with the 2010-1 Trust’s noteholders receiving the redemption price.
In July 2019, the 2014-1 Trust was terminated as a result of NSBF purchasing the 2014-1 Trust assets, with the 2014-1 Trust’s noteholders receiving the redemption price.
90
In October 2019, NSBF completed its tenth securitization which resulted in the transfer of $118,920,000 of unguaranteed portions of SBA loans to the 2019-1 Trust, The 2019-1 Trust in turn issued
securitization notes for the par amount of $118,920,000, consisting of $93,540,000 of Class A notes and $25,380,000 Class B notes, against the assets in a private placement. The Class A and Class B
notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is December 2044. The Class A and Class B notes bear interest at a rate of LIBOR plus 1.83%
across both classes.
Cash Flows and Liquidity
As of December 31, 2019, the Company’s unused sources of liquidity consisted of $40,639,000 available through the Capital One facility; $21,206,000 available through notes payable with related
parties; and $1,762,000 in unrestricted cash.
Restricted cash of $31,445,000 as of December 31, 2019 is primarily held by NSBF. The majority, or $30,692,000 of restricted cash includes reserves in the event payments are insufficient to cover
interest and/or principal with respect to securitizations and loan principal and interest collected which are due to loan participants.
The Company generated and used cash as follows:
(in thousands)
Net cash used in operating activities
Net cash used in investing activities
Net cash provided by financing activities
Net increase in cash and restricted cash
Cash and restricted cash, beginning of period
Cash and restricted cash, end of period
Year Ended December 31, 2019
Year Ended December 31, 2018
$
$
(88,957) $
(126)
90,940
1,857
31,350
33,207 $
(73,666)
(627)
85,105
10,812
20,538
31,350
During the year ended December 31, 2019, operating activities used cash of $88,957,000, consisting primarily of (i) $517,692,000 of SBA 7(a) loan investments funded and (ii) $39,650,000 of
investments in controlled portfolio companies including $14,270,000 investments in NCL and $17,378,000 of investments in NBL.
These decreases were offset by (i) $445,988,000 of proceeds from the sale of SBA 7(a) guaranteed loan investments, (ii)$47,171,000 of principal payments received from SBA non-affiliate
investments, and (iii) a $8,557,000 decrease in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded in the period but settled during the current period end
and the cash was received from the purchasing broker during the current period; the amount varies depending on loan origination volume and timing of sales at quarter end,.
Net cash provided by financing activities was $90,940,000 consisting primarily of (i) $63,250,000 of proceeds from the issuance of the 2024 Notes, (ii) $33,740,000 of net proceeds from the sale of
common shares under the ATM Equity Distribution Agreement and (iii) the issuance of additional securitization notes payable of $118,920,000.
These increases were offset by (i) $40,769,000 of dividend payments, (ii) $62,507,000 of principal payments related to securitization notes payable and (iii) a redemption of $8,324,000 related to the
2022 Notes, (iv) net repayments of $4,678,000 under the Related Party RLOC (v) net repayments of $4,700,000 under our bank notes payable.
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Contractual Obligations
The following table represents the Company’s obligations and commitments as of December 31, 2019:
(in thousands)
Contractual Obligations
Bank notes payable
Securitization notes payable (1)
Notes due 2023 (1)
Notes due 2024 (1)
Notes payable - related parties
Employment agreements
Operating leases
Totals
Payments due by period
Total
2020
2021
2022
2023
2024
Thereafter
$
30,000 $
30,000 $
— $
— $
276,637
57,500
63,250
12,163
384
13,371
—
—
—
—
384
1,662
$
453,305 $
32,046 $
—
—
—
—
—
—
—
—
—
—
1,563
1,563 $
1,576
1,576 $
— $
—
57,500
—
12,163
—
1,619
— $
—
—
63,250
—
—
3,281
71,282 $
66,531 $
—
276,637
—
—
—
—
3,670
280,307
(1) Amounts represent principal only and are not shown net of unamortized debt issuance costs. See NOTE 8—BORROWINGS.
Critical Accounting Policies and Estimates
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those
estimates. We have identified the following items as critical accounting policies.
Fair Value Measurements
We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in
our portfolio, and we value these portfolio investments at fair value as determined in good faith by our Board under our valuation policy and process. We may seek pricing information with respect to
certain of our investments from pricing services or brokers or dealers in order to value such investments. We also employ independent third party valuation firms for certain of our investments for
which there is not a readily available market value.
The application of our valuation methods may include comparisons of the portfolio companies to peer companies that are public, the enterprise value of a portfolio company, the nature and realizable
value of any collateral, the portfolio company’s ability to make payments and its earnings, discounted cash flow, the markets in which the portfolio company does business and other relevant factors.
When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity
valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from
the values that would have been used had a readily available market value existed for such investments and may differ materially from values that may ultimately be received or settled.
Our Board is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly
basis or any other situation where portfolio investments require a fair value determination.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). ASC
820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels for disclosure purposes. The Company carries all investments at fair
value. Additionally, the Company carries its servicing assets at fair value. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or
liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of the significant input to its
valuation. The levels of the fair value hierarchy are as follows:
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Level 1
Level 2
Level 3
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active
exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-
counter markets.
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or
can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are
traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or
can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities,
corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial
instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair
value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations,
residential mortgage servicing rights, and highly structured or long-term derivative contracts.
Valuation of Investments
Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices
for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation
firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-
month period under a valuation policy and a consistently applied valuation process.
When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature
and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business,
comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other
relevant factors. The primary methods for determining enterprise value include a discounted cash flow analysis and a multiple analysis whereby appropriate multiples are applied to the portfolio
company’s EBITDA or revenue. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments
are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the
Company uses a market interest rate yield analysis to determine fair value.
In addition, for certain debt investments, the Company may base its valuation on quotes provided by an independent third party broker.
For certain investments, the Company generally calculates the fair value of the investment primarily based on the NAV of the entity and adjusts the fair value for other factors that would affect the
fair value of the investment. The Company uses this valuation approach for its investment in NCL.
Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from
the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments
are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or
liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.
The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the
markets in which the investments are traded.
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Changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these
investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or
depreciation. Our investment portfolio is carried on the consolidated statements of assets and liabilities at fair value with any adjustments to fair value recognized as "Net unrealized appreciation
(depreciation)" on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net realized gains (losses)."
Our Board has the final responsibility for overseeing, reviewing and approving, in good faith, our determination of the fair value for our investment portfolio and our valuation procedures, consistent
with 1940 Act requirements. We believe our investment portfolio as of December 31, 2019 and December 31, 2018 approximates fair value as of those dates based on the markets in which we operate
and other conditions in existence on those reporting dates.
Income Recognition
Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on
management’s designation of non-accrual status. Interest receivable is analyzed regularly and may be reserved against when deemed uncollectible. Interest payments received on non-accrual loans
may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and
interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of
collection.
We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned and recorded daily. Servicing
income is earned for the full term of the loan or until the loan is repaid.
We receive a variety of fees from borrowers in the ordinary course of conducting our business, including packaging fees, legal fees, late fees and prepayment fees. All other income is recorded when
earned.
Dividend income is recorded at the time dividends are declared. Distributions of earnings from a portfolio companies are evaluated to determine if the distribution is income, return of capital or
realized gain.
Income Taxes
Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the
year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not
be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.
The Company’s U.S. federal and state income tax returns prior to fiscal year 2015 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed
settlements, changes in tax law and new authoritative rulings.
The Company has elected to be treated as a RIC under the Code beginning with the 2015 tax year and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The
RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC tax return.
The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not included in the RIC tax return. In order to maintain its RIC tax treatment, among other
things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90% of investment company taxable income,
as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with
respect to any income that is distributed to its stockholders as dividends.
Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable
income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable
income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the
94
Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the years ended December 31, 2019 and 2018, no U.S. federal excise taxes were due.
The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the net unrealized appreciation generated by the controlled investments held by the
Taxable Subsidiaries. Such deferred tax liabilities amounted to $12,405,000 and $9,241,000 at December 31, 2019 and December 31, 2018, respectively, and are recorded as deferred tax liabilities on
the consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investments in the consolidated
statements of operations.
Recently Adopted Accounting Standards
In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease
liability for leases with a duration of greater than one year.
The Company adopted ASC 842 on January 1, 2019 using the modified transition method. As part of the transition to ASC 842, the Company elected the package of practical expedients that allowed
it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing
leases. The Company recognized the cumulative effect of applying ASC 842 as an opening balance sheet adjustment at January 1, 2019. The comparative information has not been retrospectively
adjusted and continues to be reported under the accounting standards in effect for those periods.The adoption of ASC 842 did not have a material impact on the Company’s accompanying
consolidated statements of assets and liabilities, statements of operations or statements of cash flows. Due to the adoption of ASC 842, the Company recognized operating lease right-of-use assets and
lease liabilities for its operating leases with lease terms greater than one year. The Company expects the adoption of ASC 842 will not materially impact its results of operations, financial condition,
or cash flows on an ongoing basis.
New Accounting Standards
In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820)”, which is intended to improve fair value and defined benefit disclosure requirements by removing disclosures
that are not cost-beneficial, clarifying disclosures' specific requirements, and adding relevant disclosure requirements. The ASU is effective for annual reporting periods beginning after December 15,
2019 and interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2018-13 on December 31, 2019. No significant changes to our fair value
disclosures were necessary in the notes to the consolidated financial statements in order to comply with ASU 2018-13.
Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of December 31, 2019.
Recent Developments
Common Stock
On February 28, 2020, we entered into the Amended 2019 ATM Equity Distribution Agreement with the placement agents. The purpose of the amendment was to add UBS Securities LLC as a
placement agent.
From January 1, 2020 through March 13, 2020 the Company sold 290,046 shares of its common stock at a weighted average price of $21.47 per share under the 2019 ATM Equity Distribution
Agreement. Proceeds, net of offering costs and expenses were $6,228,000. As of March 13, 2020, there were 1,353,256 shares of common stock available for sale under the 2019 ATM Equity
Distribution Agreement.
Dividend Declaration
On February 5, 2020, the Company declared a quarterly cash dividend of $0.44 per share payable on March 31, 2020 to
shareholders of record as of March 18, 2020. The dividend will be paid in cash or shares of the Company's common stock
through participation in the Company's DRIP, at the election of shareholders.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We consider the principal types of risk in our investing activities to be fluctuations in interest rates and loan portfolio valuations and the availability of the secondary market for our SBA loans. Risk
management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable
administrative and information systems and other policies and programs.
NSBF primarily lends at an interest rate of prime, which resets on a quarterly basis, plus a fixed margin. The Capital One revolver lines are on a prime plus or minus a fixed factor basis and the
securitization notes are at prime or 1 month LIBOR, plus a fixed margin, whichever is less. As a result, the Company believes it has matched its cost of funds to its interest income in its financing
activities. However, because of the differential between the amount lent and the smaller amount financed a significant change in market interest rates will have a material effect on our income. In
periods of sharply rising interest rates, our cost of funds will increase at a slower rate than the interest income earned on the loans we have originated; this should improve our net investment income,
holding all other factors constant. However, a reduction in interest rates will result in the Company experiencing a reduction in investment income; that is, its interest income will decline more
quickly than interest expense resulting in a net reduction of benefit to investment income.
NSBF depends on the availability of secondary market purchasers for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. Sale prices for
guaranteed portions of SBA 7(a) loans could be negatively impacted by market conditions, in particular a higher interest rate environment, which typically lead to higher prepayments during the
period, resulting in lower sale prices in the secondary market. A reduction in the price of guaranteed SBA 7(a) loans could negatively impact our business.
We do not have significant exposure to changing interest rates on invested cash (includes cash and cash equivalents and restricted cash) which was approximately $33,207,000 at December 31,
2019. We do not purchase or hold derivative financial instruments for trading purposes. All of our transactions are conducted in U.S. dollars and we do not have any foreign currency or foreign
exchange risk. We do not trade commodities or have any commodity price risk.
We believe that we have placed our demand deposits, cash investments and their equivalents with high credit-quality financial institutions. As of December 31, 2019, cash deposits in excess of
insured amounts totaled approximately $15,490,000.
ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Our consolidated financial statements and related notes begin on Page F-1, which are included in this Annual Report on Form 10-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
ITEM 9A. CONTROLS AND PROCEDURES.
(a) Evaluation of Disclosure Controls and Procedures.
As of December 31, 2019 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Accounting Officer, evaluated the effectiveness of the design and
operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including our Chief Executive Officer and Chief
Accounting Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is
recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and
procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives,
and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. There has not been any change in our internal controls
over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially
affect, our internal controls over financial reporting.
96
(b) Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial
reporting as of December 31, 2019. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Management performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2019 based upon criteria in Internal Control — Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment, management determined that the Company’s internal
control over financial reporting was effective as of December 31, 2019 based on the criteria in Internal Control — Integrated Framework (2013) issued by COSO.
(c) Attestation Report of the Registered Public Accounting Firm.
RSM US LLP, our independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting as of December 31,
2019, as stated in its report, which is included under “ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this annual report on Form 10-K.
(d) Changes in Internal Control over Financial Reporting.
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during our most recently completed
fiscal quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B. OTHER INFORMATION.
None.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
The information required by Item 10 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2020 Annual Meeting of Shareholders, to be filed with the Securities and
Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 11. EXECUTIVE COMPENSATION
The information required by Item 11 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2020 Annual Meeting of Shareholders, to be filed with the Securities and
Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
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The information required by Item 12 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2020 Annual Meeting of Shareholders, to be filed with the Securities and
Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 13. CERTAIN RELATIONSHIPS, RELATED PARTY TRANSACTIONS AND DIRECTOR INDEPENDENCE
The information required by Item 13 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2020 Annual Meeting of Shareholders, to be filed with the Securities and
Exchange Commission not later than 120 days following the end of our fiscal year.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The information required by Item 14 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2020 Annual Meeting of Shareholders, to be filed with the Securities and
Exchange Commission not later than 120 days following the end of our fiscal year.
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PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
(a)(1) Financial Statements.
(a)(2) The following financial statement schedule is filed herewith:
Schedule of Investments In and Advances to Affiliates as of December 31, 2019
F-243
No other financial statement schedules are filed herewith because (1) such schedules are not required or (2) the information has been presented in the aforementioned financial statements.
(a)(3) Exhibits.
The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the Securities and Exchange Commission.
Number
Description
3.1
3.2
4.1
4.2
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
Amended and Restated Articles of Incorporation of Newtek Business Services Corp. (Previously filed in connection with Pre-Effective Amendment No. 3 to the Registrant’s
Registration Statement on Form N-2 (File No. 333-191499) filed on November 3, 2014, and incorporated by reference herein).
Bylaws of Newtek Business Services Corp. (Incorporated by reference to Exhibit 99.2 to Registrant’s Registration Statement on Form N-14 (File No. 333-195998), filed
September 24, 2014).
Form of Common Stock Certificate (Incorporated by reference to Exhibit 99.5 to Registrant’s Registration Statement on Form N-14 (File No. 333-195998), filed September 24,
2014).
Description of Securities filed herewith.
Form of Dividend Reinvestment Plan (Previously filed in connection with Pre-Effective Amendment No. 3 to the Registrant’s Registration Statement on Form N-2 (File No.
333-191499) filed on November 3, 2014, and incorporated by reference herein).
Newtek Business Services Corp. 2014 Stock Incentive Plan (Incorporated herein by reference to Exhibit 8.6 to Registrant’s Registration Statement on Form N-14 (File No. 333-
195998), filed September 24, 2014).
Guaranty, dated as of February 28, 2011, by and between Newtek Business Services, Inc. and Sterling National Bank (Incorporated herein by reference to Exhibit 10.10.2 to
Newtek Business Services, Inc.’s Current Report on Form 8-K (File No. 001-16123), filed March 3, 2011).
Fourth Amended and Restated Loan and Security Agreement, dated as of May 11, 2017, by and among Newtek Small Business Finance, LLC, Capital One, National
Association and UBS Bank USA as Lenders, and Capital One, National Association as Administrative Agent, Sole Bookrunner and Sole Lead Arranger (Incorporated by
reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed May 16, 2017).
Second Amended and Restated Guaranty of Payment and Performance, dated as of May 11, 2017, delivered by Newtek Business Services Corp. in favor of Capital One,
National Association, in its capacity as administrative agent, and the Lenders under the Fourth Amended and Restated Loan and Security Agreement (incorporated by reference
herein to Exhibit 10.2 to Newtek’s Current Report on Form 8-K, filed May 16, 2017).
Revolving Credit and Security Agreement, dated as of July 31, 2018, by and among Newtek Business Lending, LLC and Capital One, National Association (Incorporated by
reference to Exhibit k.4 to Post-Effective Amendment No. 2 to Newtek’s Registration Statement on Form N-2, No. 333-224976, filed August 31, 2018).
Guaranty of Payment and Performance, dated as of July 31, 2018, by and among Newtek and Capital One, National Association (Incorporated by reference to Exhibit k.5 to
Post-Effective Amendment No. 2 to Newtek’s Registration Statement on Form N-2, No. 333-224976, filed August 31, 2018).
Omnibus Amendment No. 3 to Loan Documents, dated as of September 13, 2019, by and among Newtek Small Business Finance, LLC, Capital One, National Association and
UBS Bank USA as Lenders, and Capital One, National Association as Administrative Agent filed herewith.
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10.9
10.10
10.11
10.12
10.13
10.14
10.15
10.16
10.17
10.18
10.19
10.20
10.21
10.22
14.1
21.1
23.1
31.1
31.2
32.1
Amended and Restated Form of Custody Agreement dated as of October 30, 2015 by and between Newtek Business Services Corp. and U.S. Bank National Association
(Incorporated herein by reference to Exhibit 99.1 to Newtek Business Services Corp.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 (File No. 814-
01035) filed on November 5, 2015.
Membership Purchase Agreement, dated July 23, 2015, by and among Newtek Business Services Corp., Newtek Business Services Holdco1, Inc., Premier Payments LLC and
Jeffrey Rubin (Incorporated herein by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K (File No. 814-01035), filed on July 29, 2015).
Omnibus Amendment No. 2 to Loan Documents, dated as of June 24, 2019, by and among Newtek Small Business Finance, LLC, and UBS Bank USA, as lender, and Capital
One, National Association as Administrative Agent (Incorporated by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed June 24, 2019).
Base Indenture, dated as of September 23, 2015, between Newtek, as issuer, and U.S. Bank National Association, as trustee (Incorporated by reference to Exhibit D.2 to
Newtek’s Post-Effective Amendment No. 1 to its Registration Statement on Form N-2, No. 333-204915, filed September 23, 2015).
Third Supplemental Indenture, dated as of February 21, 2018, between Newtek, as issuer, and U.S. Bank National Association, as trustee (Previously filed in connection with
Post-Effective Amendment No. 7 to the Registrant’s Registration Statement on Form N-2 (File No. 333-212436), filed February 21, 2018).
Form of Global Note with respect to the 6.25% Notes due 2023 (Incorporated by reference to Exhibit d.8 to Newtek’s Post-Effective Amendment No. 7 to its Registration
Statement on Form N-2, No 333-212436, filed February 21, 2018).
Fourth Supplemental Indenture, dated as of July 29, 2019, between Newtek, as issuer, and U.S. Bank, National Association, as trustee (Incorporated by reference to Exhibit d.8
to Newtek’s Post-Effective Amendment No. 7 to its Registration Statement on Form N-2, No. 333-224976, filed July 29, 2019).
Form of Global Note with respect to the 5.75% Notes due 2024 (Incorporated by reference to Exhibit d.8 to Newtek’s Post-Effective Amendment No. 7 to its Registration
Statement on Form N-2, No. 333-224976, filed July 29, 2019).
Credit Agreement dated November 8, 2018, by and among Universal Processing Services of Wisconsin LLC and Premier Payments LLC, and the several banks and other
parties from time to time parties thereto as lenders and Webster Bank, National Association. (Incorporated by reference herein to Exhibit k.6 to Newtek’s Post-Effective
Amendment No. 3 to its Registration Statement on Form N-2, No. 333-224976, filed December 14, 2018).
Parent Guaranty Agreement, dated November 8, 2018, by and among the Company and Webster Bank, National Association. (Incorporated by reference herein to Exhibit k.7 to
Newtek’s Post-Effective Amendment No. 3 to its Registration Statement on Form N-2, No. 333-224976, filed December 14, 2018).
Limited Liability Agreement, dated as of November 27, 2018, by and between Newtek Commercial Lending, Inc. and Conventional Lending TCP Holdings LLC (Incorporated
by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-K filed November 29, 2018).
Employment Agreement with Barry Sloane, dated March 15, 2020 filed herewith.
Employment Agreement with Michael A. Schwartz, dated March 15, 2020 filed herewith.
Employment Agreement with Peter Downs, dated March 15, 2020 filed herewith.
Code of Ethics (Previously filed in connection with Pre-Effective Amendment No. 3 to the Registrant’s Registration Statement on Form N-2 (File No. 333-191499) filed on
November 3, 2014, and incorporated by reference herein).
Subsidiaries of the Registrant filed herewith.
Report of Independent Registered Public Accounting Firm on Supplemental Information filed herewith.
Certification by Principal Executive Officer required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, furnished herewith.
Certification by Principal Financial Officer required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, furnished herewith.
Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.
100
Table of Contents
32.2
99.1
99.2
99.3
Certification by Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.
Financial Statements of Newtek Merchant Solutions, LLC and Subsidiaries as of and for the year ended December 31, 2019 (audited) filed herewith.
Financial Statements of Newtek Merchant Solutions, LLC and Subsidiaries as of and for the year ended December 31, 2018 (audited) filed herewith.
Financial Statements of Universal Processing Services of Wisconsin, LLC and Subsidiary as of and for the year ended December 31, 2017 (unaudited) filed herewith.
101
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SIGNATURES
Date: March 16, 2020
Date: March 16, 2020
NEWTEK BUSINESS SERVICES CORP.
By:
By:
/S/ BARRY SLOANE
Barry Sloane
Chief Executive Officer, President and Chairman of the Board
(Principal Executive Officer)
/S/ CHRISTOPHER TOWERS
Christopher Towers
Chief Accounting Officer
(Principal Financial Officer and Principal Accounting Officer)
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
/S/ BARRY SLOANE
Barry Sloane
/S/ CHRISTOPHER TOWERS
Christopher Towers
/S/ RICHARD SALUTE
Richard Salute
/S/ SALVATORE MULIA
Salvatore Mulia
/S/ GREGORY ZINK
Gregory Zink
/S/ PETER DOWNS
Peter Downs
Title
Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)
Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer)
Director
Director
Director
Director
Date
March 16, 2020
March 16, 2020
March 16, 2020
March 16, 2020
March 16, 2020
March 16, 2020
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Table of Contents
Report of Independent Registered Public Accounting Firm
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting
Consolidated Statements of Assets and Liabilities as of December 31, 2019 and 2018
Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2019, 2018 and 2017
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017
Consolidated Schedules of Investments as of December 31, 2019 and 2018
Notes to Consolidated Financial Statements
PAGE NO.
F-1
F-2
F-3
F-4
F-6
F-7
F-8
F-216
102
To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries
Report of Independent Registered Public Accounting Firm
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Newtek Business Services Corp. and Subsidiaries (the
Company) as of December 31, 2019 and 2018, and the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31,
2019, and the related notes to the consolidated financial statements and the financial statement schedule of the Company listed in the accompanying index appearing under Item 15(a)(2) (collectively,
the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its
operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America, and in
our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information
set forth therein.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of
December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our
report dated March 16, 2020, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a
public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. Our procedures included confirmation of investments owned as of December 31, 2019 and 2018, by correspondence with the borrowers or by other appropriate auditing procedures where
replies from the borrowers were not received and with respect to controlled investments. We believe that our audits provide a reasonable basis for our opinion.
/s/ RSM US LLP
We have served as the Company's auditor since 2013.
New York, New York
March 16, 2020
F-1
To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries
Report of Independent Registered Public Accounting Firm
Opinion on the Internal Control Over Financial Reporting
We have audited Newtek Business Services Corp. and Subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control
- Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission in 2013.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of assets and liabilities of the
Company, including the consolidated schedules of investments, as of December 31, 2019 and 2018, and the related consolidated statements of operations, changes in net assets, and cash flows for
each of the three years in the period ended December 31, 2019, and our report dated March 16, 2020 expressed an unqualified opinion.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in
the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on
our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ RSM US LLP
New York, New York
March 16, 2020
F-2
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
December 31, 2019
December 31, 2018
Investments, at fair value
ASSETS
SBA unguaranteed non-affiliate investments (cost of $429,697 and $355,589, respectively; includes $364,063 and $323,388,
respectively, related to securitization trusts)
$
417,223 $
SBA guaranteed non-affiliate investments (cost of $23,345 and $17,217, respectively)
Controlled investments (cost of $107,300 and $74,279, respectively)
Non-control/affiliate investments (cost of $1,000 and $1,000, respectively)
Investments in money market funds (cost of $0 and $9, respectively)
Total investments at fair value
Cash
Restricted cash
Broker receivable
Due from related parties
Servicing assets, at fair value
Right of use assets
Other assets
Total assets
Liabilities:
Bank notes payable
LIABILITIES AND NET ASSETS
Notes due 2022 (par: $0 as of December 31, 2019 and $8,324 as of December 31, 2018, Note 8)
Notes due 2023 (par: $57,500 as of December 31, 2019 and December 31, 2018, Note 8)
Notes due 2024 (par: $63,250 as of December 31, 2019 and $0 as of December 31, 2018, Note 8)
Notes payable - Securitization trusts (par: $276,637 and $220,137 as of December 31, 2019 and December 31, 2018, Note 8)
Notes payable - related parties
Due to related parties
Lease liabilities
Deferred tax liabilities
Accounts payable, accrued expenses and other liabilities
Total liabilities
Commitment and contingencies (Note 9)
Net assets:
Preferred stock (par value $0.02 per share; authorized 1,000 shares, no shares issued and outstanding)
Common stock (par value $0.02 per share; authorized 200,000 shares, 20,530 and 18,919 issued and outstanding, respectively)
Additional paid-in capital
Accumulated undistributed earnings
Total net assets
Total liabilities and net assets
Net asset value per common share
F-3
See accompanying notes to consolidated financial statements.
25,004
215,817
1,000
—
659,044
1,762
31,445
51,173
2,972
24,411
7,990
18,614
797,411 $
30,000 $
—
56,035
61,354
272,376
12,163
131
9,897
12,405
20,824
475,185
—
411
289,963
31,852
322,226
797,411 $
15.70 $
$
$
$
$
349,402
19,100
171,585
1,000
9
541,096
2,316
29,034
42,617
3,232
21,360
—
13,686
653,341
34,700
8,019
55,564
—
216,507
16,840
4
—
9,241
25,021
365,896
—
379
254,498
32,568
287,445
653,341
15.19
sn
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
Investment income
From non-affiliate investments:
Interest income
Servicing income
Other income
Total investment income from non-affiliate investments
From non-control/affiliate investments:
Dividend income
From controlled investments:
Interest income
Dividend income
Other income
Total investment income from controlled investments
Total investment income
Expenses:
Salaries and benefits
Interest
Depreciation and amortization
Professional fees
Origination and loan processing
Origination and loan processing - related party
Change in fair value of contingent consideration liabilities
Loss on extinguishment of debt
Other general and administrative costs
Total expenses
Net investment loss
Net realized and unrealized gains (losses):
Net realized gain on non-affiliate investments - SBA 7(a) loans
Net realized gain on non-affiliate investments - conventional loan
Net realized gain (loss) on controlled investments
Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments
Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
Net unrealized appreciation on controlled investments
Change in deferred taxes
Net unrealized depreciation on servicing assets
Net realized and unrealized gains
Net increase in net assets resulting from operations
Net increase in net assets resulting from operations per share
Net investment loss per share
F-4
See accompanying notes to consolidated financial statements.
Year ended December 31,
2019
2018
2017
$
28,467 $
23,067 $
10,078
5,328
43,873
8,552
4,526
36,145
18,018
7,206
3,236
28,460
111
65
—
1,024
14,287
—
15,311
59,295
14,305
20,422
501
3,807
9,215
9,944
42
251
6,427
64,914
(5,619)
47,816
—
2,585
(225)
(6,291)
11,211
(3,164)
(5,178)
740
12,565
—
13,305
49,515
21,082
16,066
484
3,094
8,362
—
(51)
1,059
6,907
57,003
(7,488)
42,845
278
52
(766)
3,471
4,048
(1,077)
(5,685)
$
$
$
$
46,754 $
41,135 $
2.13 $
(0.29) $
43,166 $
35,678 $
1.91 $
(0.40) $
653
9,747
54
10,454
38,914
19,292
11,397
402
3,009
5,871
—
(455)
—
7,279
46,795
(7,881)
39,617
—
(200)
1,398
(1,342)
12,957
(2,179)
(3,394)
46,857
38,976
2.25
(0.45)
Weighted average number of shares outstanding
19,326
18,714
17,327
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
F-5
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In Thousands)
Increase in net assets:
Net investment loss
Net realized gains on investments
Net unrealized (depreciation) appreciation on investments
Net increase in net assets resulting from operations
Distributions to common stockholders
Capital share transactions:
Issuance of common stock under dividend reinvestment plan
Stock-based compensation expense
Issuance of common stock in connection with investment in Mobil Money, LLC
Issuance of common stock in connection with investment in International Professional Marketing, Inc.
Issuance of common stock in connection with investment in United Capital Source, LLC
Purchase of vested stock for employee payroll tax withholding
Issuance of common stock, net of offering costs
Net increase in net assets from capital share transactions
Impact of ASC 842 adoption
Total increase in net assets
Net assets at beginning of period
Net assets at end of period
Common shares outstanding at end of period
Capital share activity:
Shares issued under dividend reinvestment plan
Shares issued in connection with sales of common stock
Shares issued in connection with investment in Mobil Money, LLC
Shares issued in connection with International Professional Marketing, Inc.
Shares issued in connection with investment in United Capital Source, LLC
Purchase of vested stock for employee payroll tax withholding
Restricted shares issued under Equity Incentive Plan, net of forfeitures
Net increase in capital activity
F-6
See accompanying notes to consolidated financial statements.
Year Ended December 31,
2019
2018
2017
$
(5,619) $
(7,488) $
50,401
(3,646)
41,136
(41,895)
1,126
636
—
—
—
(92)
33,740
35,410
130
34,781
287,445
43,175
(9)
35,678
(33,533)
1,099
585
200
—
—
(109)
5,196
6,971
—
9,116
278,329
$
322,226 $
287,445 $
20,530
18,919
54
1,545
—
—
—
(4)
17
1,612
61
291
11
—
—
(6)
105
462
(7,881)
39,417
7,440
38,976
(28,934)
735
963
—
1,000
500
(667)
56,662
59,193
—
69,235
209,094
278,329
18,457
44
3,727
—
60
29
(39)
12
3,833
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Cash flows from operating activities:
Net increase in net assets resulting from operations
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating
activities:
Net unrealized depreciation (appreciation) on controlled investments
Net unrealized depreciation (appreciation) on non-affiliate investments
Net unrealized depreciation on servicing assets
Net realized (gains) losses on controlled investments
Net realized gains on non-affiliate investments
Allowance for doubtful accounts
Change in fair value of contingent consideration liabilities
Loss on extinguishment of debt
Amortization of deferred financing costs
Deferred income taxes
Depreciation and amortization
Purchase of loans
Purchase of SBA 7(a) loan portfolio
Funding of guaranteed non-affiliate SBA loans
Funding of unguaranteed non-affiliate SBA loans
Funding of controlled investments
Funding of non-control/affiliate investment
Funding of non-control/non-affiliate investment
Proceeds from sale of non-affiliate SBA loans
Proceeds from sale of controlled investment
Proceeds from sale of non-control/non-affiliate investment
Principal received on SBA non-affiliate investments
Principal received from controlled investments
Distributions received from investments in excess of basis
Return of investment from controlled investments
Other, net
Changes in operating assets and liabilities:
Investment in money market funds
Broker receivable
Due to/from related parties
Other assets
Accounts payable, accrued expenses and other liabilities
Capitalized servicing asset
Other, net
Net cash used in operating activities
Cash flows from investing activities:
Year Ended December 31,
2019
2018
2017
$
41,135 $
35,678 $
38,976
(11,211)
6,515
5,178
(2,585)
(47,816)
33
42
251
1,961
3,164
501
(10,438)
—
(387,479)
(130,214)
(39,650)
—
—
445,988
—
—
47,171
2,429
2,585
4,200
(282)
9
(8,557)
351
(2,013)
(2,093)
(8,229)
97
(88,957)
(4,048)
(2,706)
5,685
(52)
(43,122)
537
(51)
1,059
1,871
1,077
484
(1,206)
—
(356,075)
(113,101)
(38,077)
(1,000)
(5,700)
406,066
2,502
5,978
42,505
14,011
—
8,785
995
—
(34,078)
(1,511)
410
7,162
(7,686)
(58)
(73,666)
(12,957)
(56)
3,394
200
(39,617)
1,397
(455)
—
1,392
2,179
402
(6,469)
(175)
(296,120)
(89,762)
(32,320)
—
(3,255)
324,141
—
—
27,035
16,846
100
50
908
26
(6,137)
(1,131)
(632)
2,374
(6,506)
(19)
(72,936)
F-7
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Purchase of fixed assets
Cash flows from financing activities:
Net borrowings on bank notes payable
Proceeds from common shares sold, net of offering costs
Net (repayments) proceeds under related party line of credit
Proceeds from Notes due 2023
Proceeds from Notes due 2024
Redemption of Notes due 2021
Redemption of Notes due 2022
Payments on Notes Payable - Securitization Trusts
Issuance of Notes Payable - Securitization Trusts
Dividends paid
Additions to deferred financing costs
Purchase of vested stock for employee payroll tax withholding
Net cash provided by financing activities
Net increase (decrease) in cash and restricted cash
Cash and restricted cash—beginning of period (Note 2)
Cash and restricted cash—end of period (Note 2)
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired
Issuance of common shares in connection with investment in Mobil Money, LLC
Issuance of common shares in connection with investment in International Professional Marketing, Inc.
Issuance of common shares in connection with investment in United Capital Source, LLC
Issuance of common shares under dividend reinvestment plan
Year Ended December 31,
2019
2018
2017
(126)
(627)
(4,700)
33,740
(4,678)
—
63,250
—
(8,324)
(62,507)
118,920
(40,769)
(3,899)
(93)
90,940
1,857
31,350
34,700
5,196
9,839
57,500
—
(40,250)
—
(53,938)
108,551
(32,433)
(3,951)
(109)
85,105
10,812
20,538
$
$
$
$
$
33,207 $
31,350 $
2,540 $
— $
— $
$
1,126 $
2,367 $
200 $
— $
— $
1,099 $
(446)
(5,100)
56,662
5,601
—
—
—
—
(31,036)
75,426
(28,198)
(1,664)
(667)
71,024
(2,358)
22,896
20,538
503
—
1,000
500
735
F-8
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Global Information
Technology, Inc
(#)
Nick's Country Kitchen, LLC (#)
Bearwaters Brewing Company (#)
Pecos Entertainment LLC dba
State Theater
(#)
Spinnaker Vero Inc.
Kiddie Garden Child
Development Center, LLC
VIP Construction Group Inc.
Kwik Stop dba Dilpreet
Hundai
Jauchem & Meeh Inc.dba
Gregory Meeh Design;Jermy
Chernick Design;J&M S
Home Decor Liquidators, LLC
dba Home Decor
Outlets;Home Decor Mattress
Destination Hope, Inc. and The
Academy for Addiction
Professionals, In
Larry J. Frick dba L & S
Trucking
Vance Ewing LLC
Destination Hope, Inc,
TrilogyTreatment & Wellness
Center, Inc, The Ac
American Landscaping
Company and Ground Effects
Landscaping, LLC
Mankamana Holdings, LLc
dba Perfect Brow Art,
Mankamana Holdings, LLC
Irony LLC dba Mulberry’s
Garment Care
American Landscaping
Company
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
% of Net
Assets
322,226
0.16%
0.10%
0.09%
0.04%
0.25%
0.01%
0.02%
0.08%
501.2
308.3
281.1
136.8
814.1
46.9
65.2
1 Cragwood Rd, South Plainfield,
NJ 07080
3 Flanders Rd, Bethlehem, CT
06751
101 Park St, Canton, NC 28716
421 South Oak St, Pecos, TX
79772
983 12th St., Vero Beach, FL
32960
2809 W. Atkinson Ave,
Milwaukee, WI 53209
3332 W Mulberry Drive,
Mequon, WI 53092
1001 Sacramento Ave, West
Sacramento, CA 95605
Term Loan
Prime plus 2.75%
12/31/2029 $
567.5
$
567.5
$
Administrative and Support
Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Motion Picture and Sound
Recording Industries
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
12/31/2044
Term Loan
Prime plus 2.75%
12/31/2044
Term Loan
Prime plus 2.75%
12/31/2029
Term Loan
Prime plus 2.75%
12/30/2044
Social Assistance
Term Loan
Prime plus 2.75%
12/30/2044
Construction of Buildings
Term Loan
Prime plus 2.75%
12/30/2029
287.5
257.5
130.0
787.5
43.0
62.5
287.5
257.5
130.0
787.5
43.0
62.5
Gasoline Stations
Term Loan
Prime plus 2.75%
12/30/2044
242.0
242.0
254.8
524 Sackett St., Brooklyn, NY
11217
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/30/2029
275.0
275.0
264.9
0.08%
4187 Pleasant Hill Rd, Duluth,
GA 30096
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
12/30/2029
987.5
987.5
897.7
0.28%
6555 NW 9th Ave, Fort
Lauderdale, FL 33309
157571 E Wausau Ave, Wausau,
WI 54403
22940 Harlan Ln, St. Robert, MO
65584
6555 NW 9th Ave, Fort
Lauderdale, FL 33309
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/30/2044
Truck Transportation
Term Loan
Prime plus 2.75%
12/30/2029
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/30/2029
375.0
49.5
112.5
375.0
49.5
112.5
397.1
46.2
117.3
0.12%
0.01%
0.04%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/30/2029
363.8
363.8
324.5
0.10%
6151 A St., Anchorage, AK
99518
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2044
646.7
646.7
713.7
0.22%
7302 Kirby Ave, Lubbock, TX
79424
2579 Fairview Ave North,
Roseville, MN 55113
6151 A St., Anchorage, AK
99518
Gasoline Stations
Term Loan
Prime plus 2.75%
12/27/2029
137.5
137.5
Personal and Laundry Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2029
1,042.5
1,042.5
Term Loan
Prime plus 2.75%
12/27/2029
326.3
326.3
132.1
925.1
321.3
0.04%
0.29%
0.10%
F-9
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Pro-Tek Pest Control, Inc, Pro-
Tek Nurseries, LLC, Pro-Tek
Irrigation
313 Air Duct LLC Dba Jouny
Cleaning Services, M & J
Restoration Emerge
313 Air Duck LLC dba Jouny
Cleaning Services, M & J
Restoration Emerge
Tatoo Tony's Under My Skin
LLC
QXC Communications, Inc
K&S Hardware mLLC dba
Gopher Ace
Watearth Inc
A Family Member Homecare
Group Inc, A Family Member
Homecare Holdings,
Protek Pest Control, Inc. Pro-
tek Nurseries LLC, Pro-Tek
Irrigation
Icebox Cafe L.C. and Icebox
Pantry, LLC
Bhatti LLC 2, Bhatti LLC
Ink! Coffee Company
Richwood Enterprises, LLC,
Richwood Transport LLC,
Richwood Transport
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Synergistic-Designs, LLC
Aitheras Aviation Group, LLC
and International Aviation
Sales, Ltd.
Food Civilization Services
LLC and 1701 W 15th St LLC (#)
512 E 11th Street LLC and Big
Brand Management Ltd. Co.
(#)
(#)
8712 60th Terrace South, Lake
Worth, FL 33467
Administrative and Support
Services
25150 W Warren Ave, Dearborn
Heights, MI 48127
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2029
186.3
186.3
170.7
0.05%
Term Loan
Prime plus 2.75%
12/27/2044
250.0
250.0
269.6
0.08%
25150 W Warren Ave, Dearborn
Heights, MI 48127
73 Memorial Parkway, Atlantic
Highlands, NJ 07716
4541 N Dixie Hwy, Boca Raton,
FL 33431
1865 Wayzata Blvd, Long Lake,
MN 55356
3371 Glendale Blvd Ste 208, Los
Angeles, CA 90039
11788 Sample Rd, Coral Springs,
FL 33065
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/27/2044
Telecommunications
Term Loan
Prime plus 2.75%
12/27/2029
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/27/2029
Term Loan
Prime plus 2.75%
12/27/2029
162.0
100.0
525.0
62.5
46.8
162.0
100.0
525.0
62.5
46.8
151.0
112.5
464.5
61.3
41.2
0.05%
0.03%
0.14%
0.02%
0.01%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/27/2044
118.8
118.8
125.4
0.04%
8712 60TH TER South, Lake
Worth, FL 33467
219 NE 3rd St., Hallendale
Beach, FL 33009
1451 Coral Ridge Ave,
Coralville, IA 52241
2851 Larimer St., Denver, CO
80205
Administrative and Support
Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/27/2044
Term Loan
Prime plus 2.75%
4/26/2030
Term Loan
Prime plus 2.75%
12/26/2029
Term Loan
Prime plus 2.75%
12/24/2029
2564 Branch St., Middleton, WI
53562
493 Wilson Mill Rd, New
Wilmington, PA 16142
Transit and Ground Passenger
Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/24/2029
Term Loan
Prime plus 2.75%
12/24/2029
2301 N Marginal Rd, Cleveland,
OH 44114
1701 W 15th St, Houston, TX
77008
512 E 11th St, Houston, TX
77008
Air Transportation
Term Loan
Prime plus 2.75%
12/23/2029
Real Estate
Real Estate
Term Loan
Prime plus 2.75%
12/23/2044
Term Loan
Prime plus 2.75%
12/23/2044
142.5
242.9
112.5
515.3
134.2
7.5
527.5
150.0
333.8
142.5
242.9
112.5
515.3
134.2
7.5
527.5
150.0
333.8
157.4
229.6
101.3
454.3
0.05%
0.07%
0.03%
0.14%
137.4
0.04%
6.6
—%
481.7
167.3
366.1
0.15%
0.05%
0.11%
F-10
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
The Lamkin Group LLC and
National Championship
Enterprises LLC
Chris Farley DVM PA. dba
Farley Veterinary Clinic
Freedom Enterprises, Inc
Shaddai Aesthetics Inc
ACC International LLC
Romain Tower Inc.
Macon Arts Center LLC
Freedom Enterprises, Inc -
New RE company to be
formed
La Tradicion Cubana Inc
United Capital Group LLC
RWBB LLC
Nebulos, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
New Casa Technologies, LLC (#)
MBK IT Services Inc.
Kuros, LLC
Kuros, LLC
GDIM Enterprises Inc dba
AAMCO
Skyfall LLC dba EZ Self
Storage
(#)
(#)
(#)
(#)
(#)
Premier Gaming Solutions Inc (#)
Louisiana Apple, LLC,
Mountain Apple, LLC,
Kentucky Apple, LLC
(#)
901 Lily Creek Rd, Ste 102,
Louisville, KY 40243
6487 Taft St., Hollywood, CA
33024
2431 14th Ave SE, Watertown,
SD 57201
706 W 34th St., Austin, TX
78705
200 N Furnace St, Birdsboro, PA
19508
215 S Persimmon St, Tomball,
TX 77375
4570 Pio Nono Ave, Macon, GA
31206
2431 14th Ave SE, Watertown,
SD 57201
1336 SW 8th St., Miami, FL
33135
23022 La Cadena Dr, Laguna
Hills, CA 92653
4120 7th Ave, Kenosha, WI
53140
5428 Twilight Way, Parker, CO
80134
7928 S 70th Lane, Laveen, AZ
85339
626 Trailwood Ct., Garland, TX
75043
21221 Baron Lake Drive,
Cedaredge, CO 81413
21221 Baron Lake Drive,
Cedaredge, CO 81413
1657 Whiskey Rd., Aiken, SC
29803
2705 US Hwy 45 N, Henderson,
TN 38340
17 South Grand Ave, Passedena,
CA 91105
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/23/2029
Term Loan
Prime plus 2.75%
12/20/2029
Truck Transportation
Term Loan
Prime plus 2.75%
12/20/2029
Personal and Laundry Services
Administrative and Support
Services
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Prime plus 2.75%
12/20/2044
Term Loan
Prime plus 2.75%
12/20/2044
Term Loan
Prime plus 2.75%
12/20/2044
Truck Transportation
Term Loan
Prime plus 2.75%
12/20/2044
Miscellaneous Store Retailers
Term Loan
Prime plus 6.5%
12/20/2029
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/19/2029
Term Loan
Prime plus 2.75%
12/19/2029
Term Loan
Prime plus 2.75%
12/19/2029
Truck Transportation
Term Loan
Prime plus 2.75%
12/19/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/19/2029
667.5
13.5
325.0
18.9
322.5
897.5
625.0
207.5
12.5
322.0
16.7
62.5
8.3
21.6
667.5
13.5
325.0
18.9
322.5
897.5
625.0
207.5
12.5
322.0
16.7
62.5
8.3
21.6
589.2
14.2
295.5
16.7
335.2
923.6
684.8
226.1
12.8
295.7
15.6
59.8
7.4
22.7
Term Loan
Prime plus 2.75%
12/19/2044
397.5
397.5
446.2
Term Loan
Prime plus 2.75%
3/19/2045
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/19/2029
Real Estate
Term Loan
Prime plus 2.75%
12/18/2044
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/18/2029
9.3
19.5
146.3
11.3
9.3
19.5
146.3
11.3
10.5
18.4
164.4
11.8
Accommodation
Accommodation
3909 Ambassador Caffrey Pkwy
Bldg 1, Lafayette, LA 70503
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/18/2029
900.0
900.0
793.6
0.25%
F-11
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.18%
—%
0.09%
0.01%
0.10%
0.29%
0.21%
0.07%
—%
0.09%
—%
0.02%
—%
0.01%
0.14%
—%
0.01%
0.05%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
The Burlington Academy of
Learning LLC
Sago Technologies Inc. dba Jak
Ecig
Pamela Bruner Enterprises,
LLC
HADD Corp
J and K Project Management
Consultants LLC
Signco America LP & Sparkle
corporation Inc.
Farain Saremi dba USA
Produce
J and K Project Management
Consultants dba A. C. T.
Construction
Nulane Entertainment LLC
Dr Steven J Seidel
WURA LLC dba Dickey's
Barbecue Pit
Math Enrichment, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Jen Macias LLC dba Duende
(#)
The Crane Guys, LLC
The Floor Covering
Warehouse, Inc
(#)
(#)
Essex Indoor Golf Center LLC (#)
Belle Properties Northwest,
Inc.
(#)
Stockton TRI Industries, LLC (#)
Joyner5, Inc.dba British Swim
School
(#)
Abylex, Inc and Worpex LLC (#)
10 Covey Rd, Burlington, CT
06013
785 Woodfern Drive, Hampshire,
IL 60140
4370 Old US 25 Hwy, Zinconia,
NC 28790
364 Rugby Rd, Cedarhurst, NY
11516
350 Mc Donnell St, Lewisville,
TX 75057
7938 Wright Rd, Houston, TX
77041
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/18/2029
Term Loan
Prime plus 2.75%
12/17/2029
Term Loan
Prime plus 2.75%
12/17/2029
Term Loan
Prime plus 6.5%
12/17/2029
50.0
235.0
62.5
12.5
50.0
235.0
62.5
12.5
52.5
246.9
57.6
12.8
Construction of Buildings
Term Loan
Prime plus 2.75%
12/16/2044
313.4
313.4
350.0
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
12/16/2044
1,250.0
1,250.0
1,405.2
461 G St., Los Banos, CA 93635
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/16/2044
475.0
475.0
511.5
350 Mc Donnell St, Lewisville,
TX 75057
4100 W. Alameda Ave # 300,
Burbank, CA 91505
42 Campeau Place, Bergenfield,
NJ 07621
4325 E. University Drive Ste 40,
Prosper, TX 75078
1009 E Capitol Expressway, San
Jose, CA 95121
2301 NW Thurman St., Portland,
OR 97210
14480 Alondra Blvd, La Mirada,
CA 90638
112 Orchard St., Stamford, CT
06902
23 Saybrook Rd, Essex, CT
06426
223 Ave B, Snohomish, WA
98290
2141 E Anderson St., Stockton,
CA 95205
1000 Settlers Landing Court,
Wake Forest, NC 27587
7473 Reese Rd #2, Sacremento,
CA 95828
Construction of Buildings
Term Loan
Prime plus 2.75%
12/16/2029
207.8
207.8
215.2
0.07%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/13/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/13/2029
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/13/2029
Educational Services
Term Loan
Prime plus 2.75%
12/13/2029
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/13/2029
7.5
81.3
90.8
200.0
8.1
7.5
81.3
90.8
200.0
8.1
6.6
71.8
82.1
176.3
7.1
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/13/2029
1,250.0
1,250.0
1,172.8
Furniture and Home Furnishings
Stores
Amusement, Gambling, and
Recreation Industries
Personal and Laundry Services
Fabricated Metal Product
Manufacturing
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/13/2044
Term Loan
Prime plus 2.75%
12/13/2029
Term Loan
Prime plus 2.75%
12/12/2044
240.0
78.8
131.3
240.0
78.8
131.3
269.8
73.6
142.8
Term Loan
Prime plus 2.75%
12/12/2044
1,107.5
1,107.5
1,197.0
Term Loan
Prime plus 2.75%
12/12/2029
Term Loan
Prime plus 2.75%
12/12/2044
22.5
95.0
22.5
95.0
19.8
91.3
—%
0.02%
0.03%
0.05%
—%
0.36%
0.08%
0.02%
0.04%
0.37%
0.01%
0.03%
F-12
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.02%
0.08%
0.02%
—%
0.11%
0.44%
0.16%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
(#)
(#)
(#)
Chambers Funeral Home &
Crematorium PA & Riverdale
Park Crematory, LLC
Vaughn Chiropractic, PLLC
dba Catalyst Chiropractic and
Rehab
CCD Construction Services
LLC dba Clearwater Outdoor
Design, CCD Exca
Professional Plumbing
Services of Nela, LLC
Ciel Du Mel LLC dba Lala's
Creamery
Helping Hands Group Daycare
dba Dawn to Dusk Learning
and Child Care L
SLCP Transport, LLC dba
Aamco
Elita 7, LLC and Behavioral
Nutrition Inc.
Eagle Eye Truck Lines LLC
and Eagle Eye Logistics LLC (#)
Bay Area Metal Fabricarion
LLC
(#)
(#)
(#)
(#)
(#)
(#)
The Stout Group LLC
DB Talak LLC
Scott's Hardware, Inc., dba
Medford Inc
Mazhar Family, Inc dba Edible
Arrangements
Glen Lamb dba Lambs Tree
And Plant Health Care
Natalie Enterprise Inc
Wolf Pack, LLC
Ohanyan LLC dba Nestle Toll
House Caf'e By Chip
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
5801 Cleveland Ave, Riverdale,
MD 20737
10904 Baltimore St NE, Blaine,
MN 55449
175 W Borgfeld Drive, San
Antonio, TX 78260
99 Plum St., West Monroe, LA
71292
134 Petaluma Blvd North,
Petalumaca, CA 94952
10 Tremont Rd, Tremont, PA
17981
1407 Lomaland Drive, El Paso,
TX 79935
16 Marble St., Worchester, MA
01603
560 56th St SW, Grand Rapids,
MI 49548
510 -512 Stone Rd, Benicia, CA
94510
10850 NW 138th St, Hialeah
Gardens, FL 33018
2018 SE 6th Ave, Portland, OR
97214
200 Tuckerton Rd, Medford, NJ
08055
601 Portion Rd, #17, Lake
Ronkonkoma, NY 11779
413 Pond Meadow Rd,
Westbrook, CT 06498
2500 Grand Ave, Billings, MT
59102
939 South 25th East, Ste. 115,
Ammon, ID 83406
14006 Riverside Dr. #9270,
Sherman Oaks, CA 91423
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/11/2044
300.0
300.0
337.3
0.10%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/11/2029
41.5
41.5
36.7
0.01%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/10/2029
12/11/2044
12/11/2029
Social Assistance
Term Loan
Prime plus 2.75%
12/10/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/10/2029
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 6.5%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Administrative and Support
Services
Management of Companies and
Enterprises
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-13
See accompanying notes to consolidated financial statements.
12/9/2029
12/6/2029
12/6/2029
12/6/2029
12/6/2044
12/6/2029
12/6/2029
12/6/2029
12/6/2029
3/6/2030
12/6/2029
112.5
112.5
121.0
18.0
16.5
39.0
62.5
18.0
16.5
39.0
62.5
300.0
300.0
1,100.0
1,100.0
136.8
240.0
153.5
12.5
67.5
18.8
20.3
224.5
33.3
136.8
240.0
153.5
12.5
67.5
18.8
20.3
224.5
33.3
17.8
15.1
42.3
59.8
291.4
983.3
127.2
222.4
172.6
12.8
60.0
17.5
21.3
206.3
31.3
0.04%
0.01%
—%
0.01%
0.02%
0.09%
0.31%
0.04%
0.07%
0.05%
—%
0.02%
0.01%
0.01%
0.06%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Clearwater Engineering Inc
Used Tire Express 1, Corp
Standard Capital Corp
Hook Line and Schooner
Vinings LLC
Soto Injury Law Firm, PA and
My Attorney Inc
Mega Sales Detergent
Distributor, LLC
(#)
(#)
(#)
(#)
(#)
(#,^)
Loading Arms Plus Inc
Behind the Scenes Chicago,
LLC dba Paramount Events
Keith E Burks dba 3B's Chalk
It Up
American Bio Source, LLC
dba Dieselgreen Fuels
(#)
(#)
(#)
(#)
Codorado, Inc. dba Dentalmart (#,^)
Alice's Tea Cup, ATC !! LLC
and ATC 111, LLC
(#)
Roots'n Shoots, LLC
Haversack Holdings LLC
Kanti Group Inc, Marina 84
Sport Bar & Grill LLC and Pub
52 Sports
ADPM Inc.
(#)
(#)
(#)
(#,^)
Ultra Flow Dispense, LLC
(#)
Ford Custom Renovation LLC (#,^)
Fullmer's Landscaping, Inc.
B.S Carrier LLC and United
Truck & Trailer Repair LLC
(#)
(#)
301 N River St., Derby, KS
67037
437 N. Battlefield, Chesapeake,
VA 23320
2377 Wessington Drive, Virginia
Beach, VA 23456
400 West Village Way #3009,
Smyrna, GA 30008
2050 Capital Circle NE Ste B,
Tallahassee, FL 32308
1 Ackerman Ave, Clifton, NJ
07011
5401 Mitchelldale St., Ste B4,
Houston, TX 77092
1750 W Lake St., Chicago, IL
60612
22540 Foothill Boulevard,
Hayward, CA 94541
2522 N Hwy 287, Decatur, TX
76234
10 Glorieta Rd, Sante Fe, NM
87508
102 W 73rd St., New York, NY
10023
86 Boston Rd, Chelmsford, MA
01824
101 S Tryon St., Charlotte, NC
28280
2440 Wesr State Rd 84, Fort
Lauderdale, FL 33312
77 Main St, Amesbury, MA
01913
820 Prospect Hill Rd, Windsor,
CT 06095
405 Broadway St., Muncy, PA
17756
9547 W Third St., Dayton, OH
45417
3716 Garman Rd, Salem, VA
24153
Transportation Equipment
Manufacturing
Motor Vehicle and Parts Dealers
Insurance Carriers and Related
Activities
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Waste Management and
Remediation Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
F-14
See accompanying notes to consolidated financial statements.
12/5/2029
12/5/2029
12/5/2029
12/4/2029
12/3/2029
11/29/2029
11/27/2029
11/27/2029
11/27/2029
11/27/2029
11/27/2029
11/27/2029
11/27/2029
11/27/2029
11/27/2029
11/26/2029
11/26/2029
11/26/2029
11/26/2029
11/25/2029
% of Net
Assets
322,226
0.17%
0.02%
—%
0.01%
0.02%
0.01%
0.02%
0.13%
—%
0.02%
—%
13.2
60.2
9.3
243.4
0.08%
9.4
—%
110.2
0.03%
133.8
41.9
91.0
7.3
178.2
232.2
0.04%
0.01%
0.03%
—%
0.06%
0.07%
590.0
590.0
548.6
86.3
12.5
22.5
62.5
50.0
79.3
86.3
12.5
22.5
62.5
50.0
79.3
78.8
12.8
21.1
55.2
44.1
70.9
464.6
464.6
427.2
13.5
57.3
10.5
272.5
10.7
125.0
150.0
47.5
102.5
8.3
195.3
236.3
13.5
57.3
10.5
272.5
10.7
125.0
150.0
47.5
102.5
8.3
195.3
236.3
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Hurricane Group, Inc.dba
Crate Club Group
S&C Cookies, Inc
Peanut Butter & Co Inc
Place Vendome Holding Co.
Inc.dba R&F Marketing
Place Vendome Holding Co
Inc.dba R&F Marketing
A&N Design Studios Inc dba
Door3 Business Application
(#)
(#,^)
(#,^)
(#)
(#)
(#)
Cum Laude Enterprises, LLC (#)
Best Choice Meats, Inc,
ZUMI LLC dba Allstate
Insurance
Weeping Willow Kennel Inc
Coral Springs Family Wellness
LLC
Semplice Cafe LLC
The Rollin' Trapp LLC
Pen's Electric Company
Cobb Roofing LLC
Cable Management LLC
AMH Construction, Inc.
AMH Construction, Inc.
AD Learning Group, LLC dba
The Learning Experience &
AD Learning NH LL
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
101 San Patricio Ave, Ste 860,
Guaynabo, PR 00968
1969 Jericho Turnpike, East
Northport, NY 11731
119 West 57th St., Ste 300, New
York, NY 10019
308 Glenwood Rd, Swainsboro,
GA 30401
610 East Main St., Swainsboro,
GA 30401
22 Cortlandt St., New York, NY
10007
15218 Penn Hills Lane, Houston,
TX 77062
12646 S Springfield Ave, Alsip,
IL 60803
1537 W 79th St, Chicago, IL
60620
6041 Hammond School Rd,
Salisbury, MD 21804
2902 North University Drive,
Coral Springs, FL 33065
209 N Main St., Breckenridge,
CO 80424
1731 Prevatt Rd, Dothan, AL
36301
504 Fairfax Ave, Nashville, TN
37212
8101 NW 10th St, Oklahoma
City, OK 73127
Other Information Services
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 6.5%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
290 Pratt St., Meriden, CT 06450
30 South Ivey Lane, Orlando, FL
32811
30 South Ivey Lane, Orlando, FL
32811
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Construction of Buildings
Construction of Buildings
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
11/25/2029
11/22/2029
11/22/2029
11/22/2044
11/22/2029
11/22/2029
11/22/2029
11/22/2044
11/22/2029
11/21/2029
3/21/2030
11/21/2029
11/21/2029
11/21/2029
11/21/2029
11/20/2029
11/20/2029
11/20/2044
50.0
56.3
187.5
434.7
236.2
122.5
19.2
50.0
56.3
187.5
434.7
236.2
122.5
19.2
44.1
49.7
165.3
433.0
225.5
113.1
18.4
1,344.7
1,344.7
1,458.1
12.0
4.5
59.1
18.0
8.0
12.5
53.7
137.5
75.0
275.0
12.0
4.5
59.1
18.0
8.0
12.5
53.7
137.5
75.0
275.0
12.3
4.7
52.9
16.2
7.5
12.8
47.3
127.2
73.9
299.6
181 Shunpike Rd, Cromwell, CT
06416
Social Assistance
Term Loan
Prime plus 2.75%
11/18/2029
137.5
137.5
121.2
0.04%
F-15
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.01%
0.02%
0.05%
0.13%
0.07%
0.04%
0.01%
0.45%
—%
—%
0.02%
0.01%
—%
—%
0.01%
0.04%
0.02%
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
1836 Kathleen Rd, Lakeland, FL
33805
Social Assistance
Term Loan
Prime plus 2.75%
11/18/2044
445.5
445.5
477.1
0.15%
Ryan & Selena LLC dba Head
of the Class Learning Center
SSH Princeton LLC dba
Stumpy's Hatchet House of
Princeton
MToxins Venom Lab LLC
Champions Of Diversity Media
Inc dba Champions of
Diversity: Politics
Lindsley Excavating LLC
The Pinnacle Development
Group Inc dba The Goddard
School
Rockin Robin Music Lessons
LLC
Bucklin Sumner & Associates
LLC dba Bucklin Sumner &
Associates LLC
Winning Sales Plan Inc
Sean McNamara
Ninth Avenue, LLC
Adrienne's Gourmet Foods,
Imagine Baking, Inc
Two Roses Salon 1, Inc.dba
National Fluid Power Institute
and NFPI
Ameen Enterprises, LLC dba
Bargain Town
Adrienne's Gourmet Foods,
Imagine Baking Inc
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#)
(#,^)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Potomac Nail Spa Corporation (#,^)
Steven French dba French
Woodworking
(#,^)
SSD Designs LLC
(#,^)
745 Alexander Rd, Ste 1-3,
Princeton, NJ 08540
717 Oregon St., Oshkosh, WI
54902
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/15/2030
Term Loan
Prime plus 2.75%
11/15/2044
5100 Transamerica Drive,
Columbus, OH 43228
92 Town Line Rd, Fulton, NY
13069
105 Springside Drive, Akron, OH
44333
9029 Hwy 6 Ste 160, Missouri
City, TX 77459
650 NE Holladay St. Ste 1600,
Portland, OR 97232
17811 Fairhaven Gateway,
Cypress, TX 77433
5639 Wood Lane, Allentown, PA
18106
5000 W Empire Place, Rm 916,
Sioux Falls, SD 57106
1034 Hancock St., Sandusky, OH
44870
908 S Jefferson St., Amarillo, TX
79101
1111 E Washington St.,
Stephenville, TX 76401
1034 Hancock St., Sandusky, OH
44870
14901 Potomac Town Place,
Woodbridge, VA 22191
1101 Horizon Drive Ste 101,
Fairfield, CA 94533
486 Vance St, Forest City, NC
28043
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 6.5%
Educational Services
Term Loan
Prime plus 2.75%
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 6.5%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/15/2044
11/15/2029
11/14/2029
11/14/2029
11/14/2029
11/14/2029
11/14/2029
2/14/2030
91.0
101.3
72.5
192.5
12.5
9.3
12.5
50.0
12.5
62.5
91.0
101.3
72.5
192.5
12.5
9.3
12.5
50.0
12.5
62.5
80.4
106.3
79.4
186.3
12.8
8.2
12.8
52.5
12.8
56.6
Food Manufacturing
Term Loan
Prime plus 2.75%
11/12/2029
529.4
529.4
523.1
Educational Services
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
11/12/2029
11/12/2029
11/12/2044
11/12/2029
11/12/2044
1/12/2030
395.0
125.0
406.2
52.1
62.5
395.0
125.0
406.2
52.1
62.5
371.1
127.5
456.7
46.2
70.3
350.0
350.0
330.8
F-16
See accompanying notes to consolidated financial statements.
0.02%
0.03%
0.02%
0.06%
—%
—%
—%
0.02%
—%
0.02%
0.16%
0.12%
0.04%
0.14%
0.01%
0.02%
0.10%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
NJ Floats, Inc
James Richard Farkas Jr. dba
Lil Black Bear Inn
HH Wireless Connect LLC
Integrated Vascular Services
LLC
Airbar Inc
(#)
(#,^)
(#,^)
(#,^)
(#,^)
East River Plumbing, LLC
(#,^)
Link Rec of Minong, Inc
WE MAKE DIFFERENCES,
LLC
Link Rec of Minong, Inc
(#,^)
(#,^)
(#,^)
Dear Valley Sports Shop LLC (#)
Lake Pontchartrain Properties,
LLC
21 Air, LLC, 21 Cargo Inc, JW
Aviation LLC, Freighter 27044
LLC
(#,^)
(#,^)
C&P Trading and Sales Inc
(#,^)
Sunburst Trout Farm, LLC
(#,^)
11900 Marshfield Station Inc
D & H Construction Services,
Inc.
(#,^)
(#,^)
Automotive Solutions, LLC
(#,^)
Sunburst Trout Farm, LLC
(#,^)
Automotive Standard, LLC
(#,^)
Mariscos El Oceano, Inc.
(#,^)
327 Rte 202/206, Bedminster
Township, NJ 07921
8072 State Rd 46 E, Nashville,
TN 47448
48267 Deer Trail Drive, Canton,
MI 48187
1452 Franklin Ave, Salem, OR
44460
5 N Station Plaza, Great Neck,
NY 11021
997 E Loop, Priest River, ID
83856
304 Business Hwy 53, Minong,
WI 54859
1380 Main St., Waltham, MA
02451
304 Business Hwy 53, Minong,
WI 54859
507 Bamboo Rd, Boone, NC
28607
6001-6201 France Rd, New
Orleans, LA 70126
3650 NW 82 Ave, Doral, FL
33166
950 Peninsula Corporate Cir,
Boca Raton, FL 33487
314 Industrial Park Drive,
Waynesville, NC 28786
11900 S Marshfield Ave,
Calumet Park, IL 60827
711 Hospital St., Richmond, VA
23219
1910 W. Dupont Rd, Fort Wayne,
IN 46818
314 Industrial Park Dr,
Waynesville, NC 28786
4028 Coldwater Rd, Fort Wayne,
IN 46805
5960 S Archer Ave, Chicago, IL
60638
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Electronics and Appliance Stores Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Accommodation
Term Loan
Prime plus 2.75%
5/12/2045
11/12/2044
11/12/2029
11/8/2029
11/8/2029
11/8/2044
11/7/2044
11/7/2029
11/7/2029
11/7/2029
11/7/2044
26.3
109.3
8.3
80.0
21.6
50.0
393.8
6.3
856.3
12.5
26.3
109.3
8.3
80.0
21.6
50.0
393.8
6.3
856.3
12.5
29.5
115.5
7.3
71.0
19.1
54.4
431.5
6.3
764.8
12.8
Air Transportation
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
11/6/2029
1,025.0
1,025.0
Term Loan
Prime plus 2.75%
10/31/2029
Fishing, Hunting and Trapping
Term Loan
Prime plus 2.75%
10/31/2044
249.1
232.4
249.1
232.4
903.8
219.8
257.9
Gasoline Stations
Term Loan
Prime plus 2.75%
10/31/2044
1,250.0
1,250.0
1,370.0
Construction of Buildings
Term Loan
Prime plus 2.75%
10/31/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/31/2044
Fishing, Hunting and Trapping
Term Loan
Prime plus 2.75%
10/31/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/31/2044
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/31/2044
139.2
297.2
67.1
137.3
124.9
139.2
297.2
67.1
137.3
124.9
127.5
322.0
70.5
149.9
137.9
F-17
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.01%
0.04%
—%
0.02%
0.01%
0.02%
0.13%
—%
0.24%
—%
0.28%
0.07%
0.08%
0.43%
0.04%
0.10%
0.02%
0.05%
0.04%
1,150.0
1,150.0
1,292.8
0.40%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Maine Service Corp
Guru Kirpa, Inc
MJ Group, Inc
Dub Industries LLC
Fave Realty, Inc.
Kerzner Contracting Corp
Jessie's Radiator and
Automotive
The Committed Pig LLC
L& F Gullo Service Corp
ABC Sandblasting, LLC
Paul Wintner dba P & R Props
Blue Agave & Brothers, LLC
dba Blue Apachie Mexican
Restaurant and Blu
BGB Leasing Inc and BGB
Leasing Co.
BGB Leasing Co.
Plastic Depot, Inc
Lightning Strike Distributing,
LLC dba Jedidiah's Jerky &
Gournet Snac
OWL Inc,
Marnon Vending LLC dba
Naturals 2 Go San Antonio
Corple Enterprises, Inc
Proximo Consulting Services
Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
59-24 22nd St., Maspeth, NY
11378
3006 New Castle Ave, New
Castle, DE 19720
26691 Loma Verde, Mission
Viejo, CA 92691
4112 Veiled Falls Drive,
Pflugerville, TX 78660
217-84 Hempstead Ave, Jamaica,
NY 11429
1620 Ocean Ave, Bohemia, NY
11716
1777 N Ventura Ave, Ventura,
CA 93001
28 West Park Place, Morristown,
NJ 07090
520 Main St, Westbury, NY
11590
14029 56th St. NW, Williston,
ND 58801
23901 Calabasas Rd, Calabasas,
CA 91302
905 Savoy Rd, Youngsville, LA
70592
50 Industrial Park Rd, Princeton,
KY 42445
50 Industrial Park Rd, Princeton,
KY 42445
363 East Alondra Blvd, Gardena,
CA 90248
9912 Arizona Dr, Mohave Valley,
AZ 86440
5300 S Orange Blossom Trail,
Orlando, FL 32839
6713 Biscay Hbr, San Antonio,
TX 78249
17887 US-380, Ponder, TX
76259
2500 Plaza 5, Jersey City, NJ
07311
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
10/31/2029
Gasoline Stations
Term Loan
Prime plus 2.75%
10/31/2044
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/31/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
10/31/2029
Real Estate
Term Loan
Prime plus 2.75%
10/31/2044
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/31/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/31/2029
Food Services and Drinking
Places
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
10/31/2029
Term Loan
Prime plus 2.75%
10/31/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/31/2029
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
10/30/2029
124.3
195.3
21.2
70.6
116.9
111.9
15.7
277.2
174.0
243.6
55.9
124.3
195.3
21.2
70.6
116.9
111.9
15.7
277.2
174.0
243.6
55.9
130.6
206.0
18.8
68.0
131.4
98.7
15.0
291.3
153.4
219.8
49.3
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/30/2029
87.0
87.0
77.8
Truck Transportation
Term Loan
Prime plus 2.75%
10/30/2029
1,153.6
1,153.6
1,082.5
Truck Transportation
Term Loan
Prime plus 2.75%
10/30/2044
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
10/30/2029
Miscellaneous Store Retailers
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
10/30/2029
Term Loan
Prime plus 2.75%
10/28/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
10/28/2029
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/28/2029
Term Loan
Prime plus 2.75%
10/28/2029
89.9
157.4
64.6
211.3
7.9
155.9
74.6
89.9
157.4
64.6
211.3
7.9
155.9
74.6
101.1
138.9
57.9
186.3
7.5
156.5
65.8
% of Net
Assets
322,226
0.04%
0.06%
0.01%
0.02%
0.04%
0.03%
—%
0.09%
0.05%
0.07%
0.02%
0.02%
0.34%
0.03%
0.04%
0.02%
0.06%
—%
0.05%
0.02%
F-18
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Perisseia Physicians LLC
Diamond Solutions LLC
Four Ace Electrical Services
Corporation
(#,^)
(#,^)
(#,^)
(#,^)
Landmark Ventures USA, Inc
iLoka Inc. dba NewCloud
Networks
Exclusive Physicians PLLC
dba EPIC Primary Care,PLLC (#,^)
(#,^)
IV Purpose Inc
Jbang LLC, WM Bang LLC,
Bang Investments LLC
(#)
(#)
Sultan's Palace L.L.C.
Fimac Inc dba American
Educational Services
Pyle Garage Doors OKC, INC
dba Precision Door Service
OKC
James Clark and Company,
Inc.
Todd's Car Wash, LLC
UNIQUE PAVER
INSTALLATIONS, INC.
Owens Family and Cosmetic
Dentistry PLLC
Roughcut LLC
Pine Mountain Residential
LLC
Powerlift Dumbwaiters, Inc
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#)
Naroh Manufacturing, LLC
(#,^)
1644 Lebanon Rd,
Lawrenceville, GA 30043
8321 E Gelding Drive,
Scottsdale, AZ 85260
3723 Far Niente Way,
Sacramento, CA 95834
475 Park Ave S, 25th Fl, New
York, NY 10016
160 Inverness Drive W Ste 150,
Englewood, CO 80112
18463 Livernois Ave, Detroit, MI
48221
1489 Fulton St., Brooklyn, NY
11216
125 Westchester Ave, White
Plains, NY 10601
8125 West Sahara Ave, Ste 300,
Las Vegas, NV 89117
26300 La Alameda Ste 200,
Mission Viejo, CA 92691
8860 S Sunnylane Rd, Oklahoma
City, OK 73135
8885 Haven Ave, Ste 120,
Rancho Cucamonga, CA 91730
5505 Johnston St., Lafayette, LA
70506
4930 Mars Hill Rd, Bogart, GA
30622
403 E College St., Pulaski, TN
38478
41540 National Rd, Belmont, OH
43718
10240 Cosmopolitan Circle,
Parker, CO 80134
2444 Georgia Slide Rd,
Georgetown, CA 95634
185 Gus Hipp Blvd, Rockledge,
FL 32955
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/28/2044
399.4
399.4
419.2
0.13%
Machinery Manufacturing
Term Loan
Prime plus 2.75%
10/25/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/25/2029
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
10/25/2029
Term Loan
Prime plus 2.75%
10/25/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/25/2029
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/25/2029
Term Loan
Prime plus 2.75%
11/25/2029
Term Loan
Prime plus 2.75%
10/24/2029
Term Loan
Prime plus 2.75%
10/23/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/22/2029
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
10/22/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/18/2044
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/17/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/17/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/17/2029
Specialty Trade Contractors
Term Loan
Prime plus 6.5%
Machinery Manufacturing
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
10/15/2029
10/16/2029
10/16/2029
F-19
See accompanying notes to consolidated financial statements.
12.7
11.9
104.4
99.4
124.3
26.1
20.0
21.0
22.4
14.7
12.4
343.4
22.5
270.8
468.6
12.4
12.5
18.6
12.7
11.9
104.4
99.4
124.3
26.1
20.0
21.0
22.4
14.7
12.4
343.4
22.5
270.8
468.6
12.4
12.5
18.6
11.2
10.7
92.1
104.5
110.5
24.3
21.0
19.3
19.9
13.0
12.7
386.0
20.7
246.8
492.4
12.7
12.7
17.3
—%
—%
0.03%
0.03%
0.03%
0.01%
0.01%
0.01%
0.01%
—%
—%
0.12%
0.01%
0.08%
0.15%
—%
—%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Chavero's Auto Mart, LLC
The Cow Harbor Beer
Company LLC dba Sand City
Brewing Co.
Glenda D Brewer dba Bargain
Store
S&D Beauty Spa Inc dba Elite
Nails, dba Bella's Nails &dba
Onyx Nail b
Q2 Ventures, LLC
Paketo LLC dba West Loop
UPS Store
Joseph P Fusco DDS PC
International Protection Group,
LLC
A Child's Dream Educational
Center LLC
AV Strategy, Inc
In Power Motors, LLC, In-
Power Motors II LLC, In-
Power Motors III LLC
MVE, Inc dba Mid-Valley
Engineering
SPIRE Manufacturing
Solutions LLC
Meldi Maa, Inc dba The River
Complex
50 Taps, LLC dba Colorado
Taproom & Grill
Crown Waste Corp
Bev's Sweets LLC
DG Business Solutions, Inc
A Child's Dream Educational
Center LLC
Atlantic Pacific Hospitality
Solutions Inc dba North Beach
Bistro
(#)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1364 E Palma Vista Drive,
Palmview, TX 78572
19 Scudder Ave, Northport, NY
11768
107 Tabernacle Church Rd,
Candor, NC 27229
5604 Slide Rd, Lubbock, TX
79414
2805 W Arimo Rd, Arimo, ID
83214
623 W Lake St., Chicago, IL
60661
77 N Centre Ave, Rockville
Centre, NY 11570
481 8th Ave Ste 1130, New York,
NY 10001
4127 NW 34th St., Gainesville,
FL 32605
9402 American Eagle Way,
Orlando, FL 32837
2301 W. Buckeye Rd, Phoenix,
AZ 85009
1117 L St., Modesto, CA 95354
1440 Newport Rd, Colorado
Springs, CO 80916
74 S Main St., Woonsocket, RI
02895
19539 Hess Rd, Ste 101, Parker,
CO 80134
1 Plainview Rd, Bethpage, NY
11714
3778 Hwy 254, Cleveland, GA
30528
11008 Rene St., Lenexa, KS
66215
4127 NW 34th St., Gainsville, FL
32605
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 6.5%
10/11/2029
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
General Merchandise Stores
Term Loan
Prime plus 6.5%
7/11/2030
10/11/2029
Personal and Laundry Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
10/11/2029
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Waste Management and
Remediation Services
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
12.5
91.0
12.4
155.4
176.5
16.4
65.5
81.6
179.6
257.1
12.5
91.0
12.4
155.4
176.5
16.4
65.5
81.6
179.6
257.1
12.8
90.8
12.7
139.1
177.5
14.7
57.9
80.6
194.6
241.9
623.5
623.5
656.8
1,226.1
1,226.1
1,114.6
1,014.1
1,014.1
1,140.1
422.8
422.8
463.2
76.6
49.4
213.3
222.5
186.8
76.6
49.4
213.3
222.5
186.8
68.4
46.1
232.8
197.7
165.3
10/8/2029
10/4/2029
9/30/2029
9/30/2029
9/30/2044
9/30/2029
9/30/2044
9/30/2029
9/30/2044
9/30/2044
9/30/2029
9/30/2029
9/30/2044
9/30/2029
9/30/2029
% of Net
Assets
322,226
—%
0.03%
—%
0.04%
0.06%
—%
0.02%
0.03%
0.06%
0.08%
0.20%
0.35%
0.35%
0.14%
0.02%
0.01%
0.07%
0.06%
0.05%
725 Atlantic Blvd, Atlantic
Beach, FL 32233
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/30/2029
9.3
9.3
8.2
—%
F-20
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Heart and Vascular Associates
of Tampa, LLC
Universe Appliance Repairs
Inc.
Aztec Machine & Repair Inc,
Cranrd & Material
Wagner & Sons Inc
Zima Dining Inc. dba Country
Kitchen
Double H Services, LLC, C&T
Oil Field Services, LLC and
Brian S. Holma
Cherry and Candlewood Inc
dba Aamco
Universe Appliance Repairs
Inc.
Titan Laser Screed Concrete
Services, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Total Pallet Consolidation LLC (#,^)
Stiegelbauer Associates Inc.
Zmetra Clearspan Structures
LLC
Hoagie Barmichaels Inc
Santa Fe Flooring LLC
MeShare Inc.
Adam's Construction &
General Contracting LLC
Anderson's Outdoor
Adventures, LLC
Byler, Wolfe, Lutsch and
Kampfer CPAs, Inc
luv 2 Play Nor Cal, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Quality Machine of Iowa, Inc
(#,^)
Flamingo Bowl, Inc
(#,^)
17 David Boulevard, Tampa, FL
33606
3790 Merrick Rd, Seaford, NY
11783
1715 N 1st St, Bloomfield, NM
87413
22365 Alydar Drive, Lexington
Park, MO 20653
1497 N Mt. Vernon Ave, Colton,
CA 92324
3721 North 162nd St., Garber,
OK 73701
3029 South St., Long beach, CA
90805
3790 Merrick Rd, Seaford, NY
11783
8908 Wildlife Lane, Sanford, FL
32771
2800 Swanee Ave, Buford, GA
30618
63 Flushing Ave Unit 342,
Brooklyn, NY 11205
2 Old Worcester Rd, Webster,
MA 01571
1101 River Rd, New Windsor,
NY 12553
3711 Paseo Del Norte NE,
Albuquerque, NM 87113
1401 Interstate Drive,
Champaign, IL 61822
7808 N Custer Rd, Freesoil, MI
49411
4060 SW County Rd 232, Bell,
FL 32619
360 East State St., Salem, OH
44460
82 Clarksville Rd, Folsom, CA
95682
1040 4th Ave, Audubon, IA
50025
3301 N 23rd St., McAllen, TX
78501
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Support Activities for Mining
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Food Services and Drinking
Places
Furniture and Related Product
Manufacturing
Data Processing, Hosting, and
Related Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-21
See accompanying notes to consolidated financial statements.
9/30/2044
9/27/2044
9/27/2044
9/27/2029
9/27/2029
9/27/2029
9/27/2044
9/27/2029
9/27/2029
9/27/2029
9/27/2029
9/27/2044
9/27/2044
9/26/2029
9/26/2029
9/26/2029
9/25/2029
9/25/2044
9/25/2029
9/25/2029
9/24/2029
775.0
586.1
710.8
18.5
62.3
775.0
586.1
710.8
18.5
62.3
1,013.5
1,013.5
432.2
655.1
49.4
18.5
198.1
436.9
112.7
493.2
432.2
655.1
49.4
18.5
198.1
436.9
112.7
493.2
803.1
604.1
744.4
16.4
65.4
953.1
485.9
607.0
44.8
16.5
175.0
491.1
115.7
450.1
1,236.0
1,236.0
1,157.7
68.2
22.2
53.4
111.7
67.1
201.5
68.2
22.2
53.4
111.7
67.1
201.5
62.4
22.5
54.1
100.3
70.4
190.6
% of Net
Assets
322,226
0.25%
0.19%
0.23%
0.01%
0.02%
0.30%
0.15%
0.19%
0.01%
0.01%
0.05%
0.15%
0.04%
0.14%
0.36%
0.02%
0.01%
0.02%
0.03%
0.02%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Unified Utility Services LLC
Standard Real Estate Services
LLC
Host Marketing, LLC
Payne's Enviromental Service,
LLC dba Bamaco
Vancole Investments, Inc. dba
Smoothie King #913 &;Dream
Developmenf G
Win Health Institute
Natalie Hart LLC dba Lady of
Luxury &dba Country Sugar
Events, dba Que
Game Station, Inc.
Bay Bowl Inc dba Shasta
Lanes
Oak Park Social LLC
The Steel Method LLC dba
Sneeze It
New Flow Plumbing and
Rooter Inc.
ACSS CPA, LLC
Miami Squeeze Inc dba Miami
Squeeze, LLC
Covert Recordings LLC
Family Insight, P.C.
Prime Precision Machining,
LLC
Prime Precision Machining,
LLC
Softcare247, LLC
(#,^)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
206 Frankie Lane, Ladson, SC
29456
500 W Silver Spring Dr. #K 200,
Glendale, WI 53217
206 Bell Lane Ste B, West
Monroe, LA 71291
5617 Causeway Boulevard,
Tampa, FL 33619
876 Virginia Ave, Hapeville, GA
30354
711 E Valley Rd, Basalt, CO
81621
1702 Fawn Gate St, San Antonio,
TX 78248
2917 1st Ave SE, Cedar Rapids,
IA 52402
11093 Black Marble Way,
Redding, CA 96003
14691 W 11 Mile Rd, Oak Park,
MI 48237
250 Passaic Ave Ste 200,
Fairfield, NJ 07004
6718 Katherin Ave, Van Nuys,
CA 91405
1016 S Texas Blvd, Weslaco, TX
78599
18315 W Dixie Hwy, North
Miami Beach, FL 33160
31-65 138th St., Apt 3K,
Flushing, NY 11354
3433 Brambleton Ave, Ste 104A,
Roanoke, VA 24018
845 Mandoline Ave, Madison
Heights, MI 48071
845 Mandoline Ave, Madison
Heights, MI 48071
4191 Naco Perrin Blvd, San
Antonio, TX 78217
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 6.5%
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/20/2044
9/19/2029
9/18/2029
9/18/2044
9/17/2029
9/17/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/18/2029
Rental and Leasing Services
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
F-22
See accompanying notes to consolidated financial statements.
9/16/2029
9/13/2044
2/12/2045
9/12/2029
9/12/2029
9/12/2044
9/11/2029
9/11/2029
9/11/2029
9/11/2029
9/11/2044
9/11/2029
% of Net
Assets
322,226
157.6
157.6
177.0
0.05%
12.4
12.4
12.4
12.4
12.6
12.6
—%
—%
521.0
521.0
545.4
0.17%
11.9
7.4
33.4
20.0
536.2
96.9
166.9
49.4
39.9
114.2
11.8
245.4
206.9
267.9
12.4
11.9
7.4
33.4
20.0
536.2
96.9
166.9
49.4
39.9
114.2
11.8
245.4
206.9
267.9
12.4
10.5
6.8
33.7
18.9
602.3
105.5
147.4
43.9
42.6
106.2
12.0
247.6
190.5
284.9
12.6
—%
—%
0.01%
0.01%
0.19%
0.03%
0.05%
0.01%
0.01%
0.03%
—%
0.08%
0.06%
0.09%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Body on Cue Health and
Fitness LLC
Eco Electric LLC
SVT Masonry Limited
Liability Company
Smokin AZ, LLC dba Dickey's
Barbecue Pit AZ
Philly Games Inc.dba Queen &
Rock Game Cafe
Thawk LLC
No Push Backs, LLC
Dog House Sportfishing
Charters Inc
3C Consumer Network &
Designs LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#)
(#,^)
Camror LTD dba Jersey Mike's (#,^)
Esquire Mini Mart LLC &
Morgan Store Building LLC
Groton Bowling Center and
Entertainment Inc
Crown Heights Bunch O
Bagels & More Inc & 361
Bagel Holding LLC
(#,^)
(#,^)
(#,^)
Double Scoop Ice Cream, LLC (#,^)
The BMF Media Group LLC
(#,^)
DB Talak LLC
(#,^)
HRS2, LLC
Khari E. J. Myers dba Khari
Imagery & 190 Minerva LLC (#,^)
(#,^)
Linsey Schwertdfeger,, Inc.
Blue Eagle Transport
Inc.,Golden Eagle Tran and
Green Eagle Transpor
(#,^)
(#,^)
129 A Orpha Drive, Middlebury,
IN 46840
5380 Cameron St, Las Vegas, NV
89118
1208 Houghton Lane,
Bennington, VT 05201
1914 S Power Rd, Ste 101, Mesa,
AZ 85206
607-609 S 2nd St., Philadelphia,
PA 19147
1110 Willow Glen Drive, Yuba
City, CA 95991
2223 Dungan Ave, Bensalem, PA
19020
83413 Overseas Hwy,
Islamorada, FL 33036
7676 Hillmont St., Ste 109,
Houston, TX 77040
5946 Meijer Drive, Cincinnati,
OH 45150
12595 S Somerton Ave, Yuma,
AZ 85365
27 Kings Hwy, Groton, CT
06340
361 Troy Ave, Brooklyn, NY
11213
2970 Stonecrest Pass, Lithonia,
GA 30038
50 West 23rd St., 7th fl, New
York, NY 10010
2018 SE 6th Ave, Portland, OR
97214
5410 Pipers Creek Court, Sugar
Land, TX 77479
190 Minerva St., Tonawanda, NY
14150
740 Dennery Rd, San Diego, CA
92154
377 Boston Post Rd, Milford, CT
06460
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
Scenic and Sightseeing
Transportation
Term Loan
Prime plus 6.5%
Real Estate
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/6/2029
9/5/2029
9/5/2029
9/5/2029
9/5/2029
8/30/2029
8/30/2029
8/30/2029
8/29/2029
1/29/2030
8/29/2029
8/29/2044
8/29/2029
8/29/2044
8/29/2029
8/28/2029
8/28/2029
8/28/2044
8/28/2029
44.5
65.8
75.4
65.5
61.8
8.1
12.2
12.3
14.7
87.5
50.4
44.5
65.8
75.4
65.5
61.8
8.1
12.2
12.3
14.7
87.5
50.4
39.8
57.9
74.4
58.6
54.7
7.2
12.4
12.5
13.5
91.4
49.0
942.4
942.4
1,010.2
39.3
96.4
368.7
86.0
227.6
59.8
69.7
39.3
96.4
368.7
86.0
227.6
59.8
69.7
41.3
102.7
324.6
90.3
224.5
67.2
62.4
% of Net
Assets
322,226
0.01%
0.02%
0.02%
0.02%
0.02%
—%
—%
—%
—%
0.03%
0.02%
0.31%
0.01%
0.03%
0.10%
0.03%
0.07%
0.02%
0.02%
Couriers and Messengers
Term Loan
Prime plus 2.75%
8/28/2029
444.2
444.2
407.5
0.13%
F-23
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
The Hometown Welcome
Program, Inc & Fredric
Anthony Gushwa
(#,^)
Maryland Urgent Care, Inc.
(#,^)
ADA Internacional Inc
Crystal S. Prado dba Crystal
Clear Accounting
JLT Foods, LLC
PJT Logistics, Inc.
Elite Motors LLC
SRJ construction Corp
The Pet Stop, LLC
MS Integrated Psychotherapy
& Counseling, LLC
The Roux Southern Kitchen,
LLC
MB Nursery LLC dba The
Garden Center
Metro R Services Inc. and
Metal & Roof Supplies, Inc.
Auto Unique LLC
William Martinez dba Bad Ass
Coffee of Hawaii
Signature Rooms, Inc.
Accent Home Services LLC
dba Benjamin Franklin
Plumbing of Kansas City
American Healthy Vending,
Inc
AJN Innovations LLC dba
Burgerim
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#)
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
107 S Nottawa St, Sturgis, MI
49091
9831 Greenbelt Rd Ste 208 Unit
H-2, Lanham, MD 20706
10891 La Reina Rd, Ste 100,
Delray Beach, FL 33446
34099 Tuscan Creek Way,
Temecula, CA 92592
3294 Long Meadow Ct, West
Bloomfield Township, MI 48324 Food Manufacturing
2-4 Commerce Way, Auburn, NY
13021
1046-1050 Orange Ave, West
Haven, CT 06516
8358 W Oakland Park Blvd.
#203E, Sunrise, FL 33351
106 S Washington St.,
Pleasantville, IA 50225
Truck Transportation
Specialty Trade Contractors
Personal and Laundry Services
Motor Vehicle and Parts Dealers
252 FM 3162, Sandia, TX 78383
15562 HWY-South, Whitehouse,
TX 75791
20 Universal Place, Carlstadt, NJ
07072
305 W Main St., Mayo, FL
32066
14101 Main St., Ste 4101,
Hesperia, CA 92345
2066 Route 112, Medford, NY
11763
Food Services and Drinking
Places
Administrative and Support
Services
Repair and Maintenance
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
1157 Main St., Clifton, NJ 07011 Ambulatory Health Care Services Term Loan
Prime plus 2.75%
8/27/2029
8/27/2044
8/26/2029
8/26/2029
8/23/2029
8/23/2029
8/23/2029
8/23/2029
8/23/2029
8/22/2029
8/22/2029
8/21/2029
8/21/2029
8/20/2044
96.0
46.0
22.1
3.2
20.6
49.2
86.0
11.1
7.4
73.0
17.8
91.1
96.0
46.0
22.1
3.2
20.6
49.2
86.0
11.1
7.4
73.0
17.8
91.1
90.2
49.9
19.5
3.2
18.2
51.6
90.3
9.9
6.7
68.8
18.4
94.3
190.5
190.5
185.1
12.3
22.5
12.3
22.5
13.8
20.2
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Prime plus 2.75%
8/19/2029
165.9
165.9
174.1
7748 Troost Ave, Kansas City,
MO 64131
5951 NW 151 St., Hialeah, FL
33014
6704 Main St., Miami Lakes, FL
33014
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/15/2029
8/15/2029
2/15/2030
110.6
104.5
24.6
110.6
104.5
24.6
105.9
96.6
22.7
F-24
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.03%
0.02%
0.01%
—%
0.01%
0.02%
0.03%
—%
—%
0.02%
0.01%
0.03%
0.06%
—%
0.01%
0.05%
0.03%
0.03%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Accelerate Educational
Solutions, LLC dba Tutor My
Success
Ranson Excavating, Inc
(#,^)
(#,^)
KM Electrical Services, Inc
(#,^)
Love Playing LLC
Elixir Enterprises, LLC dba
Guilford Renee's
Suite Luxury, Inc
A & S Services LLC dba Kona
Ice of Troy
Accord Law, APC
Leader Engineering-
Fabrication, Inc.
Billy Auto Inc
East Coast Flight Services, Inc
and Aviation Consulting
Enterprise, LL
Healthcare Holdings of
America, LLC, Senior Market
Advisors, Inc, CHA
Living Spring Home Health
Inc.
Genecco Produce, Inc. & Leo
Genecco & Sons, Inc.
Joseph Centonze dba Off Kilter
Kilts
Canyon Lake Kids Academy,
LLC
Quick and Quality Services
dba Bella Roma Pasta & Pizza
& Farshad Fari
Humd, LLC dba La Rosa
Chicken and Grill
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
St. Francis Home Health Inc
(#,^)
La Mount Group LLC
(#,^)
135 Clove Branch Rd, Hopewell
Jct, NY 12533
8343 Kaula Drive, Fair Oaks, CA
95628
4348 Waialae Ave Unit 315,
Honolulu, HI 96816
2200 Eastridge Loop, San Jose,
CA 95122
637 Boston Post Rd, Guilford,
CT 06437
1410 Pine Ridge Rd, Ste 13,
Naples, FL 34108
3888 Lightner Rd, Vandalia, OH
45377
82555 Grass Flat Lane, Indio, CA
92203
695 Independence DrIive,
Napoleon, OH 43545
632 N Broadway, Amityville, NY
11701
Educational Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
8/14/2029
8/13/2029
8/12/2029
3/9/2030
8/8/2029
8/7/2029
8/7/2029
8/2/2029
8/2/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/31/2044
17.0
14.7
76.2
99.6
19.2
18.4
12.3
7.4
123.0
323.6
17.0
14.7
76.2
99.6
19.2
18.4
12.3
7.4
123.0
323.6
15.0
13.0
67.3
94.6
17.0
16.3
12.5
6.5
129.0
334.9
27603 Parkway Rd, Easton, MD
21601
Air Transportation
Term Loan
Prime plus 2.75%
7/31/2029
562.2
562.2
516.2
0.16%
6201 Centennial Blvd, Nashville,
TN 37209
18350 Kedzie Ave Ste 204,
Homewood, IL 60430
1850 Rochester Rd, Canadaigua,
NY 14424
27720 Ave Scott, Santa Clarita,
CA 91355
130 Charter Oak Drive, Canyon
Lake, TX 78133
28940 Golden Lantern, Laguna
Niguel, CA 92677
3111 N. University Drive, Coral
Springs, FL 33065
5246 SW 8th St 103B, Coral
Gables, FL 33134
3111 Princeton Rd, Hamilton,
OH 45011
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2029
7/31/2029
7/31/2029
7/31/2029
7/31/2044
7/31/2029
1/31/2030
7/31/2029
7/31/2029
433.9
132.2
753.2
8.0
97.8
11.1
134.3
73.3
249.3
433.9
132.2
753.2
8.0
97.8
11.1
134.3
73.3
249.3
426.3
124.4
729.4
7.1
0.13%
0.04%
0.23%
—%
105.3
0.03%
10.4
122.5
64.6
219.5
—%
0.04%
0.02%
0.07%
F-25
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
—%
—%
0.02%
0.03%
0.01%
0.01%
—%
—%
0.04%
0.10%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
448.8
448.8
437.8
Gray Rock Quarry, LLC and
William E Dailey III
Jbelis Stop N' Go, LLC dba
Planet Smoothie
Grad Street LLC
(#,^)
(#,^)
(#)
Dant A Sandras, D.D.S. LLC (#,^)
Roman Tint Inc.
Platt & Associates, LLC dba
Flag Staff Apparel, Platt &
Associates, LL
Aeromax Industries, Inc,
HITM, Inc and TMCB LLC
Hodges Family Entertainment
LLC dba Space Cadets Indoor
Playground
Micheal Birch and Tracy M.
Pierce
Moore Chiropractic Center,
P.A.
Sou's LLC
Power Associates Inc.
Dan Dahlin Inc.
Franklin Care Pharmacy
Incorporated
A&W ALF, LLC dba A & W
Assisted Living Facility
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Lawrence Adeyemo & Co LLC (#)
Hardrock Alpha Enterprises,
LLC
700 Services Inc.dba 700
Credit Repair
(#,^)
(#,^)
Bonfire Hot Yoga LLC
(#,^)
JDM2 Water Station LLC
(#,^)
54 West Milton Rd, Milton, VT
05468
2565 E 17th St, Ammons, ID
83406
2437 Corinth Ave Apt 130, Los
Angeles, CA 90064
13373 Hwy 3235, Larose, LA
70373
1436 Ayala Dr, Unit M, Rialto,
CA 92376
288 North Industrial Park Drive,
Liberty, MS 39645
9027 Canoga Ave, Canoga Park,
CA 91301
Mining (except Oil and Gas)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 6.5%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Apparel Manufacturing
Term Loan
Prime plus 2.75%
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
7/31/2044
7/30/2029
7/30/2029
7/30/2029
7/30/2029
7/30/2044
7/30/2044
611 Greenville Blvd SE,
Greenville, NC 27858
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
10/30/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Real Estate
E 2947 H-44, Traunik, MI 49891 Gasoline Stations
936 Roosevelt Trail Unit 1 & 2,
Windham, ME 04062
739 NE MLK Boulevard,
Portland, OR 97221
2766 West Good CT, Boise, ID
83702
16465 MN-65, Ham Lake, MN
55304
520 N Franklintown Rd,
Baltimore, MD 21223
6600 Liberty Rd, Gwynn Oak,
MD 21207
209-34 112 Ave, Queens Village,
NY 11429
5101 Stine Rd, Bakersfield, CA
93313
1201 N Goliad St., Rockwall, TX
75087
3665 SW Hall Blvd, Beaverton,
OR 97005
125 Chestnut Hill Drive, York,
PA 17408
Nonstore Retailers
Health and Personal Care Stores
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Credit Intermediation and
Related Activities
Educational Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
7/29/2044
7/26/2029
7/26/2029
7/26/2029
7/26/2044
7/25/2029
7/24/2044
7/19/2029
7/19/2029
7/19/2029
7/18/2029
7/18/2029
F-26
See accompanying notes to consolidated financial statements.
19.1
12.3
210.7
8.1
56.0
785.5
15.2
54.4
8.9
5.8
14.7
407.1
53.0
99.6
9.8
15.4
7.3
8.1
19.1
12.3
210.7
8.1
56.0
785.5
15.2
54.4
8.9
5.8
14.7
407.1
53.0
99.6
9.8
15.4
7.3
8.1
% of Net
Assets
322,226
0.14%
0.01%
—%
17.0
12.5
190.4
0.06%
7.4
—%
61.8
812.0
14.4
59.4
9.1
5.5
12.9
457.2
55.6
109.9
10.0
13.9
6.5
7.3
0.02%
0.25%
—%
0.02%
—%
—%
—%
0.14%
0.02%
0.03%
—%
—%
—%
—%
204.6
204.6
194.5
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Ameritube, LLC
The Bean Coffee Co. LLC
Baton Rouge Cargo Services
Inc
Garage Floor Coating of
MN.com,LLC
Bouquet Canyon Kennels
Adam Family Bowl Inc
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Beacon Metal Fabricators, Inc.
(#,^)
VGI Medical LLC
Last Touch, LLC
D DeGregoria LLC dba The
UPS Store 4235 Massapequa
Menskha Inc
Nash-Delphia LLC
Southern Specialties
Transportation LLC
Nevada Recycling and Salvage
LTD, AMCB LLC
Baobab Asset Management
LLC
Balboa Fashion LLC
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Crestview Ridge Farms LLC
(#,^)
Specialty Surgery Center, Inc.
(#,^)
K & K Restaurant LLC
Kim Howard Corp dba NPN
Machine Tools
(#,^)
(#,^)
1000 N Hwy 77, Hillsboro, TX
76645
112 South Main St., Spring Hill,
KS 66083
6013 McRaven Rd, Jackson, MS
39209
6701 West 23rd St., St. Louis
Park, MN 55426
29973 Bouquet Canyon Rd,
Santa Clarita, CA 91390
1504 Chestnut St., Mishawaka,
IN 46545
5425-D Hamilton Ave,
Cleveland, OH 44114
10401 S Belcher Rd, Largo, FL
33771
1612 Jackson St., Spirit Lake, IA
51360
4940 Merrick Rd, Massapequa
Park, NY 11762
88 High St., Mountclair, NJ
07042
2135 Gallatin Pike N, Store 4,
Madison, TN 37115
116 Toledo Drive, Lafayette, LA
70506
1085 Telegraph St, Reno, NV
89502
3 Greenwich Office Park Ste 102,
Greenwich, CT 06831
1016 S. Towne Ave, Unit 123,
Los Angeles, CA 90021
1172 Co Rd 956, Ashland, OH
44805
5505 Peachtree Dunwoody Rd
#640,645, Atlanta, GA 30342
6607 S Central Ave, Phoenix, AZ
85042
9130 Wayfarer Ln, Houston, TX
77075
Primary Metal Manufacturing
Food Services and Drinking
Places
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 6.5%
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Apparel Manufacturing
Term Loan
Prime plus 2.75%
Crop Production
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-27
See accompanying notes to consolidated financial statements.
7/18/2029
7/17/2029
7/17/2044
7/16/2044
7/16/2044
7/16/2044
7/12/2029
7/12/2044
7/11/2044
7/10/2029
7/10/2029
7/2/2029
6/28/2029
6/28/2044
6/28/2029
6/28/2029
6/28/2044
6/28/2029
6/28/2044
6/28/2029
116.1
12.3
291.2
993.7
299.9
132.4
68.4
324.8
101.1
77.5
12.3
14.5
116.1
12.3
291.2
993.7
299.9
132.4
68.4
324.8
101.1
77.5
12.3
14.5
121.8
12.5
308.2
1,036.1
308.9
142.7
65.6
364.8
105.8
69.6
12.5
12.8
166.5
166.5
163.8
1,245.5
1,245.5
1,278.8
48.7
7.3
48.7
7.3
42.3
6.3
536.1
536.1
570.2
1,241.9
1,241.9
1,149.5
134.3
206.6
134.3
206.6
146.6
215.5
% of Net
Assets
322,226
0.04%
—%
0.10%
0.32%
0.10%
0.04%
0.02%
0.11%
0.03%
0.02%
—%
—%
0.05%
0.40%
0.01%
—%
0.18%
0.36%
0.05%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Port Huron Ophthalmology,
PLLC dba Black River Optical (#,^)
Anderson Companies LLC
(#,^)
Richmond Street Partners, LLC (#,^)
Sundown Audio, LLC
NJ Floats Inc
Upul's Travel Service & Tours
Inc
Good News Cafe, LLC
H2O Mobile Group, Inc. dba
Fantasea Scuba
Upul's Travel Service & Tours
Inc
Big Picture Group LLC
5161 LLC
Jian Yang and Kanger House
LLC
Advance Transit LLC
BB Services, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Ailky Corporation & Wyspen
(#,^)
Boucherie US Inc
(#,^)
Pawfection Pet Services LLC (#,^)
Tim's Truck Capital & Auto
Sales, Inc
Moon Landscaping, Inc, Moon
Group, Inc moon Nursery, Inc,
Moon Site Ma
Crescent Event Productions,
Inc
(#,^)
(#,^)
(#,^)
1033 River St., Port Huron, MI
48060
3015 S White Horse Pike,
Hammonton, NJ 08037
200 E Chestnut St, Chicago, IL
60611
514 West 21St St., Newton, NC
28658
66 Twin Oaks Rd, Bridgewater,
NJ 08807
654 Shopping Lane, Covina, CA
91723
694 Main St. S, Woodbury, CT
06798
3781 Tamiami Trail, Port
Charlotte, FL 33952
654 Shoppers Lane, Covina, CA
91723
110 S Fairfax Ste 355, Fairfax,
CA 90036
1478 E Mountain Drive, Santa
Barbara, CA 93108
48 Horse Hill Rd, Cedar Knolls,
NJ 07927
574-614 Tonnelle Ave, Jersey
City, NJ 07307
580 39 Rd, Palisade, CO 81526
352 Bedford St., Lakeville, MA
02347
251 Little Falls Drive,
Wilmington, DE 19807
177 W Cottonwood Ln Ste 12,
Casa Grande, AZ 85122
904 Suncook Valley Hwy,
Epsom, NH 03234
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Administrative and Support
Services
Clothing and Clothing
Accessories Stores
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Nursing and Residential Care
Facilities
Transit and Ground Passenger
Transportation
Truck Transportation
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
145 Moon Rd, Chesapeake City,
MD 21915
1327 Wood Branch Drive,
Charlotte, NC 28273
Merchant Wholesalers,
Nondurable Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-28
See accompanying notes to consolidated financial statements.
6/28/2029
6/28/2044
6/28/2029
6/28/2044
6/28/2044
6/28/2044
6/28/2044
6/28/2029
6/28/2029
6/28/2029
6/28/2029
6/27/2029
6/28/2044
6/27/2029
6/27/2029
6/27/2029
6/27/2029
6/27/2029
6/27/2029
6/27/2029
% of Net
Assets
322,226
—%
0.07%
0.03%
0.29%
0.06%
0.11%
0.08%
0.01%
0.07%
0.04%
0.34%
0.03%
0.25%
0.03%
0.01%
0.31%
—%
14.6
203.1
93.0
903.8
175.0
348.1
248.6
45.9
267.4
146.1
14.6
203.1
93.0
903.8
175.0
348.1
248.6
45.9
267.4
146.1
12.7
215.2
81.6
933.7
195.2
345.9
256.7
40.5
232.4
127.0
1,154.3
1,154.3
1,090.0
116.9
757.5
110.1
47.4
116.9
757.5
110.1
47.4
1,144.7
1,144.7
10.2
206.6
10.2
206.6
102.0
814.0
98.8
41.2
994.9
8.9
215.4
0.07%
1,220.1
1,220.1
1,185.3
340.3
340.3
305.9
0.37%
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
S & T Hardware Inc
(#,^)
Shooter's Gun Club, LLC
Soft Touch Tissue & Paper
LLC
Soft Touch Tissue & Paper
LLC
Tekoa Enterpises, Inc
Kaz Ramen, L.L.C.
Selective Automotive &
Accessories Group, Inc
Child Care Ventures LLC dba
Childcare Adventures ELC
JFK Transportation Inc
Lynx Inspection Technologies
LLC
All-City Towing LLC, Jeffrey
James Piller
RWBB Enterprises, LLC
Perfect Water LLC
Paradise Towing & Recovery
Inc
Vanchoc Transport Inc
Spartan Technology Solutions,
Inc
Professional Tire Limited
Liability Company
Paradise Towing & Recovery
Inc
567 Logistics, LLC
Worldwide Capital
Management Inc.
(#)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Motor Vehicle and Parts Dealers
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
Social Assistance
Truck Transportation
Paper Manufacturing
Paper Manufacturing
Food Services and Drinking
Places
2300 Nooseneck Hill, Coventry,
RI 02816
2429 Iowa St. Ste B-D,
Lawrence, KS 66046
1491 Hammond, Bangor, MA
04401
1491 Hammond St., Bangor, ME
04401
1033 Cannon Bridge Rd,
Cordova, SC 29039
22413 Barton Rd, Grand Terrace,
CA 92313
2221 Pelham Parkway, Pelham,
AL 35124
3542 Glendale Ave, Toledo, OH
43614
4 Mechanic St., Natick, MA
01760
8101 Miller Rd 2, Houston, TX
77049
1213 W Mallory Ave,
Milwaukee, WI 53221
4120 7th Ave, Kenosha, WI
53140
183 Russ St., San Francisco, CA
94103
1115 S Homer Boulevard,
Sanford, NC 27330
137 3rd St, Brooklyn, NY 11231 Rental and Leasing Services
Professional, Scientific, and
125 Venture Blvd, Spartanburg,
SC 29306
Technical Services
6655 Country Rd 32, Norwich,
NY 13815
1115 S. Horner Boulevard,
Sanford, NC 27330
1924 Ruffin Mill Rd, Colonial
Heights, VA 23834
6 Venture Ste 305, Irvine, CA
92618
Repair and Maintenance
Support Activities for
Transportation
Professional, Scientific, and
Technical Services
Support Activities for
Transportation
Food Services and Drinking
Places
Repair and Maintenance
Repair and Maintenance
Nonstore Retailers
Support Activities for Mining
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
6/27/2044
2/27/2030
Term Loan
Prime plus 2.75%
12/26/2029
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
6/26/2044
6/26/2029
6/26/2029
6/26/2029
6/26/2044
6/26/2029
6/26/2044
6/26/2029
6/26/2044
6/26/2029
6/25/2029
6/25/2029
6/25/2044
6/25/2044
6/25/2044
6/25/2029
6/25/2029
200.3
131.6
113.3
233.8
53.0
21.9
243.2
146.7
105.2
574.0
393.5
75.6
70.5
103.5
42.4
485.8
138.7
73.1
48.6
200.3
131.6
113.3
233.8
53.0
21.9
243.2
146.7
105.2
574.0
393.5
75.6
70.5
103.5
42.4
485.8
138.7
73.1
48.6
223.8
118.7
118.5
261.2
48.7
19.1
225.7
148.2
95.0
641.2
376.0
81.4
66.1
99.8
39.6
500.2
145.1
81.7
44.0
141.0
141.0
122.5
% of Net
Assets
322,226
0.07%
0.04%
0.04%
0.08%
0.02%
0.01%
0.07%
0.05%
0.03%
0.20%
0.12%
0.03%
0.02%
0.03%
0.01%
0.16%
0.05%
0.03%
0.01%
0.04%
F-29
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Krsto, LLC dba Italian Butter
Breadsticks
Sweets By Karla LLC
Scissor Kids Inc
(#,^)
(#,^)
(#,^)
Elite Excavating Services LLC (#,^)
Peninsula Self Defense LLC
(#,^)
Port Diesel L.L.C.
Small Batch Creations Inc. dba
The Office Bar & Grill
LuLuBelle's Mountain Banana
Bread LLC
William Rose Inc
Campuscuts LLC
(#)
(#,^)
(#)
(#,^)
(#)
Gribben & Associates, Inc
(#,^)
AA Horseplay, LLC
(#)
Central Texas Hygiene, LLC
(#,^)
Beck's Pub & Grill LLC
(#,^)
Bader Furniture Company Inc.
(#,^)
Zion Motors Inc
Providence Management
Environmental, LLC, Tindol
Energy Group, LLC
International Institute for
Learning Inc.
(#,^)
(#,^)
(#,^)
Bonadi Inc. dba Polished Salon (#)
American Demolition, Inc
(#,^)
4241 E McNicols Rd, Detroit, MI
48213
3273 South John Young Pkwy,
Kissimmee, FL 34746
63 Hebron Ave, Ste F,
Glastonbury, CT 06033
11 Rolling Ridge Dr Drive,
Milton, PA 17847
2766 Bay Rd, Redwood City, CA
94063
3212 Alex Trask Drive, Castle
Hayne, NC 28429
295 E Washington Ave,
Sunnyvale, CA 94086
1063 Carousel Rd, Lake
Arrowhead, CA 92352
1 Grace Cove Rd, New
Shoreham, RI 02807
930 Robtrice Ct, Edmond, OK
73430
18201 Von Karman Ste 300,
Irvine, CA 92612
34565 Ranch Drive, Brownsville,
OR 97327
10201 McKalla Place, Austin,
TX 78758
N6630 WI-49, Weyauwega, WI
54983
704 N Liberty St., Shamokin, PA
17872
6949 Wall Triana Hwy, Madison,
AL 35757
6570 W Hwy 67, Cleburne, TX
76033
110 E 59th St ,31st floor, New
York, NY 10022
9858 W Sample Rd, Coral
Springs, FL 33065
401 N Kuner Rd, Brighton, CO
80601
Food Manufacturing
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 6.5%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
Truck Transportation
Term Loan
Prime plus 2.75%
Animal Production and
Aquaculture
Administrative and Support
Services
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
F-30
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
6/24/2044
6/24/2029
6/24/2029
6/21/2029
6/21/2029
6/21/2029
6/21/2029
4/21/2045
6/21/2044
6/21/2029
6/21/2029
6/20/2029
6/20/2029
6/19/2044
6/19/2029
6/19/2044
6/19/2029
6/19/2029
6/17/2029
6/17/2029
189.7
189.7
202.4
0.06%
12.5
15.8
18.8
5.1
12.3
58.2
76.9
87.0
7.3
12.5
15.8
18.8
5.1
12.3
58.2
76.9
87.0
7.3
10.9
13.9
17.6
4.6
12.2
50.6
85.8
82.5
7.3
—%
—%
0.01%
—%
—%
0.02%
0.03%
0.03%
—%
701.8
701.8
609.9
0.19%
12.2
85.6
69.6
7.3
60.4
263.4
291.7
12.2
182.3
12.2
85.6
69.6
7.3
60.4
263.4
291.7
12.2
182.3
12.1
74.4
75.0
7.6
62.9
265.0
253.5
12.2
190.1
—%
0.02%
0.02%
—%
0.02%
0.08%
0.08%
—%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
3981 E Dunrobin Dr.,
Springfield, MO 65809
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/17/2029
3830 Doctor M.L.K. Jr Blvd,
Anderson, IN 46013
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
6/14/2044
Food Manufacturing
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
11/14/2029
Term Loan
Prime plus 6.5%
JLM Consulting LP
3 Rusty Nails, LLC dba The
Gathering Place at 3 Rusty
Nails
Comarco Quality Pork
Products Inc, Comarco Pork
Products of FL LLC
A & S Services LLC dba Kona
Ice of Troy
Kego 2 LLC dba Jon Smith
Subs 80025
Law Office of Paula Padilla
Picon Motors LLC dba The
New Young's Motors
GT Performance Plus Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
Ivesters Transportation, Inc
(#,^)
GT Performance Plus Inc
Independent Transport, LLC
dba Independent Water
Archer Cleaners Inc
(#,^)
(#,^)
(#)
Smith and Son Plumbing, LLC (#,^)
Neely Motorsports, Inc dba
Earl's Store #1;Earl's
Performance Plumbing
(#,^)
J&A Elliott Company
Throop Family Holding Inc
dba Klamath Basin Metals and
Supply, dba Rog
Johnny's Boy LLC
Allison K. Chipak dba Still
Photography
Skin Beauty Bar Inc
(#,^)
(#,^)
(#,^)
(#)
(#,^)
501 Jackson St, Camden, NJ
08104
3888 Lightner Rd, Vandalia, OH
45377
2001 W. Southlake Blvd Ste 143,
Southlake, TX 76092
2211 E Highland Ave Ste 130,
Phoenix, AZ 85016
199-211 Central Ave, Orange, NJ
07080
4210 College St., Beaumont, TX
77707
4299 South 2675 West, Roy, UT
84067
4210 College St., Beaumont, TX
77707
3739 E Ridgeway Rd, Orange,
CA 92867
1514 W 33rd St., Chicago, IL
60608
15922 Eldorado Parkway Ste
500-1579, Frisco, TX 75035
15825-15827 Hawthorne Blve,
Lawndale, CA 90260
1118 Thornberry Dr, Clarksville,
TN 37043
7130 Crater Lake Hwy, White
City, OR 97503
127 East King St., Martinsburg,
WV 25401
195 Terrace Place, Apt. 2,
Brooklyn, NY 11218
749 8th St., Washington, DC
20003
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
F-31
See accompanying notes to consolidated financial statements.
19.2
87.0
301.6
44.8
104.1
4.9
218.8
98.8
243.5
74.5
198.6
12.2
80.2
240.6
10.2
38.9
100.7
12.2
5.1
19.2
87.0
301.6
44.8
104.1
4.9
218.8
98.8
243.5
74.5
198.6
12.2
80.2
240.6
10.2
38.9
100.7
12.2
5.1
16.7
0.01%
94.2
0.03%
281.3
48.0
93.5
4.9
218.9
106.3
218.7
65.7
187.4
12.1
72.8
255.7
10.5
35.8
106.2
12.1
4.4
0.09%
0.01%
0.03%
—%
0.07%
0.03%
0.07%
0.02%
0.06%
—%
0.02%
0.08%
—%
0.01%
0.03%
—%
—%
6/14/2029
6/14/2044
6/13/2029
6/12/2029
6/11/2044
6/11/2029
6/11/2029
6/10/2029
6/10/2029
6/10/2029
6/7/2044
6/7/2029
6/7/2029
6/7/2044
6/6/2029
6/6/2029
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Pura Water Vending LLC
Preferred Manufacturing
Services Inc
(#,^)
(#,^)
Jamestown Quick Stop LLC
(#,^)
Oasis Senior Advisors
Franchise Systems, LLC
Italian Heritage Tile and Stone
Inc
(#,^)
(#,^)
Evoke Growth Advisory LLC (#,^)
Morey Publishing LLC
G.S.A.T. Restoration Inc. dba
Paul Davis Restoration &
Remodeling of G
(#,^)
(#,^)
V & M Transportation LLC
Martin Inventory Management,
LLC
(#,^)
(#,^)
Dynamic Dental Corporation
Inside & Out Maintenance
LLC
Aspen Welding LLC
SSD Designs, LLC
AGR, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Brooklyn Breakfast Shop LLC (#,^)
Canela Media Inc
PD Financial LLC
SV Enterprise LLC dba
Haagen-Dazs
MCM Design LLC
(#,^)
(#,^)
(#,^)
(#)
4427 Mixedwood Drive, Ladson,
SC 29456
4261 Business Drive, Cameron
Park, CA 95682
3097 24th Ave, Hudsonville, MI
49426
24870 Burnt Pine Drive, Bonita
Springs, FL 34134
4748 Hopyard Rd, Pleasanton,
CA 94588
2600 Brookwood Way Dr. #311,
Rolling Meadows, IL 60008
6901 Jericho Turnpike, Syosset,
NY 11791
1450 Oakbrook Dr, Norcross, GA
30093
1307 27th St. Apt B, North
Bergen, NJ 07047
304 1/2 Main St., Edgefield, SC
29824
3760 NW 126th Ave, Coral
Springs, FL 33065
1698 SW Pancoast St., Port St
Lucie, FL 34987
28803 US-6, Rifle, CO 81650
486 Vance St., Forest City, NC
28043
2-255555 Kaumualii Hwy,
Kalaheo, HI 96741
7707 S IH 35 Frontage Rd,
Austin, TX 78744
2715 Palomino Circle, La Jolla,
CA 92037
364 Parsippany Rd, Unit 7-B,
Parsippany, NJ 07054
1885 Briargate Pkwy #D-413,
Colorado Springs, CO 80920
5926 Vinings Vintage Way,
Mableton, GA 30126
Nonstore Retailers
Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Food and Beverage Stores
Lessors of Nonfinancial
Intangible Assets (except
Copyrighted Works)
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
6/5/2029
6/5/2029
6/5/2044
6/4/2029
6/4/2029
6/3/2029
66.2
461.8
69.3
66.2
461.8
69.3
62.4
481.6
72.1
303.8
303.8
306.5
85.1
7.3
60.4
85.1
7.3
60.4
74.8
6.3
52.9
Term Loan
Prime plus 2.75%
5/31/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Chemical Manufacturing
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Credit Intermediation and
Related Activities
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
F-32
See accompanying notes to consolidated financial statements.
5/31/2029
5/31/2029
5/31/2029
5/31/2029
5/30/2029
5/30/2044
5/30/2044
5/29/2044
5/29/2029
5/29/2029
5/28/2044
8/24/2029
5/23/2029
113.6
113.6
101.3
0.03%
12.8
48.3
60.4
96.8
406.8
422.2
781.2
4.8
114.8
48.7
89.5
9.8
12.8
48.3
60.4
96.8
406.8
422.2
781.2
4.8
114.8
48.7
89.5
9.8
11.1
49.3
53.0
84.7
432.0
465.1
856.3
4.5
103.9
51.8
77.9
9.7
—%
0.02%
0.02%
0.03%
0.13%
0.14%
0.27%
—%
0.03%
0.02%
0.02%
—%
% of Net
Assets
322,226
0.02%
0.15%
0.02%
0.10%
0.02%
—%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Top Notch Roofing, Inc
2820 US HWY 98 N LLC dba
Total Package Car Wash
Clowers Trucking By Faith
LLC
McGuckin & Pyle Inc
ES&A, INC., A LAW
CORPORATION
Gratitude Training, LLC
Bloomquist Communications
Inc. dba FastSigns 42501
Anchor Up Fitness and
Nutrition, LLC
BD Branson Victorian LLC
dba Branson Surrey Inn
Covalent Holding LLC
FibAire Communications, LLC
Dba AireBeam
Kappa Investments LLC dba
Buddy's Home Furnishings
AMP Trucking Inc
CJNR LLC dba Chenney Bear
Cafe, Elma Lodge & Suites,
Parkhurst Motel,
Cut To The Chase 502 LLC
Aim High Leadership Center
Four Inc.
Zeb, LLC dba Papa John's
Two Pie Lovers LLC dba Pizza
Outpost
The Lobster Pot Inc
(#,^)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Truck Transportation
Repair and Maintenance
Machinery Manufacturing
Professional, Scientific, and
Technical Services
Administrative and Support
Services
46 Cherry St., Milton, VT 05468 Specialty Trade Contractors
2820 US Hwy 98 N, Lakeland,
FL 33805
705 E Brookwood PL, Valdosta,
GA 31601
120 Corporate Ln, New Bern, NC
28562
1003 Bishop St., Honolulu, HI
96813
1901 N Federal Hwy #212,
Pompano Beach, FL 33062
131 East Trinity Place, Decatur,
GA 30030
2464 US-29, Pensacola, FL
32505
430 a/k/a 450 S Hwy 165,
Branson, MO 65616
18 W Chestnut St. Unit 2F,
Chicago, IL 60610
13589 S. Sunland Gin Rd,
Arizona City, AZ 85123
365 Lowe's Drive Ste H,
Danville, VA 24540
1030 Gettysburg Ave, Clovis, CA
93161
Miscellaneous Manufacturing
Amusement, Gambling, and
Recreation Industries
Rental and Leasing Services
Truck Transportation
Telecommunications
Nonstore Retailers
Accommodation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
208 East Main St., Elma, WA
98541
6903 Lakegreen Ct, Louisville,
KY 40291
97-08 Rockaway Blvd, Jamaica,
NY 11417
10235 W Roosevelt Rd,
Westchester, IL 60154
302 E. Millitary Hwy U1122,
Brackettville, TX 78832
119 Hope St., Bristol, RI 02809
Accommodation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-33
See accompanying notes to consolidated financial statements.
5/23/2029
5/23/2029
5/23/2029
5/23/2044
5/22/2029
5/22/2029
5/22/2029
5/21/2029
5/17/2029
5/17/2029
5/17/2029
5/17/2029
5/16/2029
5/16/2029
5/16/2029
5/16/2029
5/16/2029
5/10/2044
5/10/2044
118.9
118.9
106.6
43.0
12.1
306.3
108.8
72.5
14.5
19.6
247.6
234.9
53.7
419.3
252.1
18.1
3.3
85.8
48.3
43.5
43.0
12.1
306.3
108.8
72.5
14.5
19.6
247.6
234.9
53.7
419.3
252.1
18.1
3.3
85.8
48.3
43.5
44.9
12.0
325.4
95.4
63.1
12.8
18.3
258.2
223.0
51.1
366.0
219.1
18.9
3.0
76.3
42.6
46.8
367.1
367.1
396.7
% of Net
Assets
322,226
0.03%
0.01%
—%
0.10%
0.03%
0.02%
—%
0.01%
0.08%
0.07%
0.02%
0.11%
0.07%
0.01%
—%
0.02%
0.01%
0.01%
0.12%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Crystal D. Walls dba Crystal's
Cleaning Service
(#)
Aloha To Go LLC
(#,^)
Blue Country Firearms LLC
(#,^)
Folklore Music Exchange LLC (#,^)
NYM Solutions Inc.dba NYM
Solutions, Inc
Global Enterprises LLC dba
Verdi Pizza
(#,^)
(#)
EPIFAB,LLC
Art Amore Studios, LLC
Mark Garvin dba Tipsy
Canyon Winery
Life View Prenatal Imagery,
LLC
Modern Trousseau, LLC
Disability Resolution P.A.
DeVega Juice Co, - East Cobb,
LLC dba Clean Juice Johnson
Ferry
Midlothian Hardware, Inc dba
Grills True Value
Pellegrin Marine
Transportation, LLC
Sona USA, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Benevolent International Inc
(#,^)
ASM Partners LLC
(#,^)
Jones Roger Sherman Inn, Inc.
(#,^)
10862 Nichols Blvd, Olive
Branch, MS 38654
5903 Seminole Boulevard,
Seminole, FL 33772
221 N Main St, Kingsfisher, OK
73750
617 Tennessee Ave, Charleston,
WV 25302
1250 NW 7th St. Ste 201, Miami,
FL 33125
3111 S Valley View Blvd, Las
Vegas, NV 89102
1341 Brooks St. Unit D, Ontario,
CA 91762
6507 Jester Blvd, Austin, TX
78750
150 Upper Joe Creek Rd,
Manson, WA 98831
312 79th Ave North, Myrtle
Beach, SC 29572
125 Bradley Rd, Woodbridge, CT
06525
1619 Malon Bay Drive, Orlando,
FL 32828
1205 Johnson Ferry Rd Ste 124,
Marietta, GA 30068
475 West 147th St, Midlothian,
IL 60445
117 Country Village Drive,
Raceland, LA 70394
15280 NW 79th Ct Ste 109,
Miami Lakes, FL 33016
2781 Saturn St. Ste F, Brea, CA
82821
1619 Roberts Drive SE,
Mableton, GA 30126
195 Oenoke Ridge, New Canaan,
CT 06840
Administrative and Support
Services
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Insurance Carriers and Related
Activities
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/9/2029
11/9/2029
5/8/2044
5/6/2029
5/6/2029
5/3/2029
5/3/2029
5/3/2029
5/3/2044
5/3/2029
5/1/2029
Clothing and Clothing
Accessories Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
4/30/2029
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Telecommunications
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
F-34
See accompanying notes to consolidated financial statements.
9/30/2029
4/29/2029
4/26/2029
4/26/2029
4/26/2029
4/26/2029
4/25/2029
9.9
14.9
20.9
5.0
12.2
20.2
20.6
5.4
105.6
5.9
302.1
4.3
61.8
38.4
121.6
158.6
75.7
234.7
140.6
9.9
14.9
20.9
5.0
12.2
20.2
20.6
5.4
105.6
5.9
302.1
4.3
61.8
38.4
121.6
158.6
75.7
234.7
140.6
% of Net
Assets
322,226
—%
—%
0.01%
—%
—%
0.01%
0.01%
—%
9.8
13.0
21.2
4.3
12.1
17.5
18.9
4.7
117.8
0.04%
5.3
—%
296.8
0.09%
4.3
—%
61.3
40.1
111.7
146.3
65.8
221.3
146.6
0.02%
0.01%
0.03%
0.05%
0.02%
0.07%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Alan Russell Moldof CPA dba
Al Russell Moldof CPA
(#)
La Dolce Vita LLC.
La Dolce Vita, LLC, La Dolce
Vita Watersports LLC, LDV
Golf Cart & Bil
Kenzington LLC
Quality Living Medical Alert,
LLC
ER & DC McPherson
Holdings, LLC
All My Best Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Expert Building Services LLC (#,^)
Rello, Inc. dba ID Salon
(#)
Bottles on Broadway, LLC
2Choice2Friends dba 2 N 1
Salad Bar and Grill
(#,^)
(#)
Modern Demo & Services LLC (#,^)
Pranamji Inc dba Ohara's
Beverage Spot
(#,^)
Cormac Enterprises, Inc
Bill Berger LLC
Southern Gulf Construction,
Inc.
J.T. ONeill Company, LLC
Gilpin Enterprises, LLC dba
Jon Smith Subs
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
CK Heating and Cooling LLC (#,^)
15105 John J Delaney Dr. #D
170, Charlotte, NC 28277
196 N. Holiday Rd, Miramar
Beach, FL 32550
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
196 N. Holiday Rd, Miramar
Beach, FL 32550
324 Main St South, Stillwater,
MN 55082
1882 Capital Circle NE, Ste 104,
Tallahassee, FL 32308
6957 W Broward Blvd.,
Plantation, FL 33317
4320 Anthony Court Ste 1,2,3,
Rocklin, CA 95677
74 Roosevelt St., Pequannock
Township, NJ 07440
8063 Jericho Turnpike,
Woodbury, NY 11797
1083 N Broadway, North
Massapequa, NY 11758
901 W Braker Lane, Austin, TX
78758
10161 W Park Run Drive, Las
Vegas, NV 89145
2300 Levit Rd, Lorain, OH
44052
1205 38th Ave North, Myrtle
Beach, SC 29577
8728 Tireman Ave, Detroit, MI
48204
367 Pine Island Rd, North Fort
Myers, FL 33903
19972 Willowin Farm Lane,
Purceville, VA 20132
17790 State Rd 54, Lutz, FL
33458
10017 Pebble Beach Drive, St.
Louis, MO 63114
Amusement, Gambling, and
Recreation Industries
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 6.5%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Fabricated Metal Product
Manufacturing
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
F-35
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
4/25/2029
4/25/2044
4/25/2029
4/24/2029
4/24/2029
9/19/2029
4/19/2029
4/17/2029
4/17/2029
4/17/2029
4/17/2029
4/17/2029
4/16/2044
4/16/2029
4/12/2029
4/12/2029
4/12/2029
9/12/2029
4/12/2029
4.8
467.7
4.8
467.7
4.8
—%
509.3
0.16%
480.5
480.5
440.7
0.14%
3.1
52.9
46.5
60.1
19.6
5.8
123.7
12.1
120.1
46.9
21.6
8.7
3.1
52.9
46.5
60.1
19.6
5.8
123.7
12.1
120.1
46.9
21.6
8.7
2.7
49.7
40.9
54.3
17.0
5.8
109.5
12.0
105.9
48.5
19.1
7.5
—%
0.02%
0.01%
0.02%
0.01%
—%
0.03%
—%
0.03%
0.02%
0.01%
—%
106.9
106.9
103.6
0.03%
9.4
76.0
19.7
9.4
76.0
19.7
8.1
67.9
17.2
—%
0.02%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Samco Food Corp dba C-Town
Supermarket
P. Moss Enterprises, LLC dba
Garage Experts-Mid Atlantic
Engineered Edibles, LLC
VC Media Partners LLC
Maxiflex LLC
VRGE Strategies LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Georgetown Milling Co, LLC (#,^)
FRAJOVI Urban Air, LLC dba
Urban Air Trampoline&
Adventure Park
(#,^)
Marnon Enterprise LLC
Bose and Avinder, Inc.and
Carmel and Preet Inc
Ren Investment Group Inc dba
True Positon Manufacturing
(#,^)
(#,^)
(#,^)
J Brothers Enterprises, LLC
(#,^)
La Favorita Radio Network
(#,^)
EJ & James Transport LLC
(#,^)
Royalty Freight Inc.
Reliable Power Group Inc. dba
Batteries + bulbs Pensacola
Key HR Associates, Inc dba
Parents Choice for Kids
(#,^)
(#,^)
(#,^)
Bright Freight Solution, LLC (#,^)
Hamsons Inc.
(#,^)
1761 Nostrand Ave, Brooklyn,
NY 11226
3563 South River Terrace,
Edgewater, MD 21037
7926 Santa Fe Drive, Overland
Park, KS 66204
22120 Clarendon St., Woodland
Hills, CA 91367
512 Verret St., New Orleans, LA
70114
1155 15th St NW, Washington,
DC 20005
9001 Wentworth Springs Rd,
Georgetown, CA 95634
1256 Indian Head Rd, Toms
River, NJ 08755
6713 Biscay Hbr, San Antonio,
TX 78249
28201 Date Palm Drive,
Cathedral City, CA 92234
40 Sandra Drive, South Windsor,
CT 06074
1101 NW 12TH Ave, Ava, MO
65608
4043 Geer Rd, Hughson, CA
95326
3100 Drewsky Lane Unit 108,
Fort Mills, SC 29715
3728 W McKinley Ave, Fresno,
CA 93772
6895 N. 9th Ave Ste B,
Pensacola, FL 32504
3150 West Park Drive,
Burnsville, MN 55306
1112 N Main St, Manteca, CA
95336
4900 Hopyard Rd, Pleasanton,
CA 94588
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Machinery Manufacturing
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Broadcasting (except Internet)
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Truck Transportation
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-36
See accompanying notes to consolidated financial statements.
4/12/2029
4/12/2029
4/12/2029
4/12/2029
4/11/2029
4/10/2029
4/9/2029
1/8/2030
4/5/2029
4/5/2029
3/29/2029
3/29/2044
3/29/2029
3/29/2029
3/29/2029
3/29/2029
3/29/2044
3/29/2029
3/29/2029
% of Net
Assets
322,226
0.03%
0.01%
—%
0.03%
0.02%
0.04%
—%
95.5
42.3
8.7
122.3
60.1
131.0
12.3
95.5
42.3
8.7
122.3
60.1
131.0
12.3
83.0
38.1
7.5
106.6
62.6
113.8
11.1
575.0
575.0
583.3
0.18%
4.6
55.3
829.1
639.5
358.9
9.0
413.5
95.5
449.9
4.6
55.3
829.1
639.5
358.9
9.0
413.5
95.5
449.9
4.0
57.6
732.4
650.0
323.0
8.4
385.0
83.1
463.0
1,158.3
1,158.3
1,058.5
179.1
179.1
155.4
—%
0.02%
0.23%
0.20%
0.10%
—%
0.12%
0.03%
0.14%
0.33%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Pizzaplex L3C
Bhatti LLC dba Auntie Ann's
& Bhatti LLC 1
NuBe Business Group LLC
StillBasi Holdings, Inc. dba
Buxton Auto Transport
Felipe Antonio Del Valle M.D.
P.A.
Raven's Place LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Stillwater Ventures, LLC
Iredell Oral & Facial Surgery,
P.C. dba Johnson Oral Surgery (#,^)
Outtasight Careers, LLC dba
Gecko Hospitality
(#,^)
Turtle Shirts, LLC
Bayco Enterprises, Inc
Peak Performance Associates
LLC dba Nova Hypnosis and
Wellnes
Knoxville Room Service
Complete Care IT LLC
Skaggs RV Outlet ,LLC
J.C. Pallet Company, Inc.
Cleland Pharmacy LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Four Seasons Laser Center Inc. (#,^)
Planet X Tobacco & Gift, LLC (#,^)
4458 West Vernor Hwy, Detroit,
MI 48209
7219 Silver Mist Ave, North
Chesterfield, VA 23237
2140 44th St SE, Ste 201, Grand
Rapids, MI 49508
9371 Jackson Rd, Sacramento,
CA 95826
7190 SW 87th Ave Ste 203,
Miami, FL 33173
13031 S Western Ave, Blue
Island, IL 60406
8272 W. Sunset Blvd, Los
Angeles, CA 90048
229 Medical Park Rd, Ste 310,
Mooresville, NC 28117
109 W Fern St., Tampa, FL
33604
10241 Metro Pkwy# 108, Ft
Myers, FL 33966
128 Cowesett Ave, West
Warwick, RI 02893
1485 Chain Bridge Rd #304-305,
McLean, VA 22101
10670 Parkside Drive, Knoxville,
TN 37922
4801 South University Drive Ste
125, Davie, FL 33328
301 Commerce Drive,
Elizabethtown, KY 42701
18427 New Kent Hwy,
Barhamsville, VA 23011
202 S First St., Wakeeney, KS
67672
4720 NW 2nd Ave Unit D104-
105, Boca Raton, FL 33498
900 W Northern Lights Blvd,
Anchorage, AK 99503
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Administrative and Support
Services
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
F-37
See accompanying notes to consolidated financial statements.
3/29/2029
3/29/2029
3/29/2044
3/29/2029
3/29/2029
3/29/2044
3/29/2029
3/29/2044
3/29/2029
3/29/2029
3/29/2044
3/29/2029
3/29/2029
3/29/2029
3/28/2029
3/28/2029
3/28/2029
3/28/2029
3/28/2044
% of Net
Assets
322,226
0.01%
0.04%
0.01%
0.08%
—%
0.22%
0.12%
0.26%
0.01%
0.01%
0.07%
0.02%
—%
0.01%
0.08%
0.13%
0.01%
—%
42.8
157.9
40.6
286.6
14.3
681.6
397.5
820.8
49.7
51.4
42.8
157.9
40.6
286.6
14.3
681.6
397.5
820.8
49.7
51.4
38.0
137.0
45.4
261.1
12.4
709.8
376.2
837.5
43.1
45.5
197.0
197.0
219.9
57.3
6.4
50.2
238.9
429.9
21.5
14.3
57.3
6.4
50.2
238.9
429.9
21.5
14.3
49.8
5.8
43.6
248.7
412.3
22.4
13.9
283.3
283.3
306.1
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Children First Home Health
Care, Inc. dba Health Calls
RG Productions LLC
GS Bath Inc
(#,^)
(#,^)
(#,^)
Custom Vinyl Products LLC
(#,^)
Cocomo Joe's LLC
PA Sobol Partners LLC dba
Sobal
Cinco Fit LLC dba Cinco Fit
Ocean Trans LLC and Dehal
Trucking LLC
Danielle Vance LPC, LLC dba
Danielle Vance MA, LPC
DC AG, LLC dba Big B Sales
Heritage Hills Athletics 1, LLC
and Heritage Hills Athletics 1,
LLC
District 5 Boutique LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
J & C May Properties, LLC
(#,^)
Virginia Industrial Plastics, Inc. (#,^)
Skyways, LTD
Gary Krause dba Gary Krause
Landscaping & Design
(#,^)
(#,^)
Virginia Industrial Plastics, Inc. (#,^)
The Karate Dojo LLC
Pitman Holding LLC
American Trails Transport,
LLC
(#,^)
(#,^)
(#,^)
1220 Broadcasting Rd Ste 202,
Wyomissing, PA 19610
2414 W Battlefield Ste H,
Springfield, MO 65807
5335 E. Kaviland Ave, Fresno,
CA 93725
260 Enterprise Drive, Newport
News, VA 23603
3949 New Rd, Youngstown, OH
44515
206 Rohrerstown Rd, Lancaster,
PA 17603
23010 Highland Knolls Blvd, Ste
G, Katy, TX 77494
1415 W Anderson St., Stockton,
CA 95206
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
2543 Eliot St., Denver, CO 80211 Ambulatory Health Care Services Term Loan
674 LA- 8, Sicily Island, LA
71368
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Prime plus 2.75%
2880 Carol Rd, East York, PA
17402
317 N Farview Ave, Paramus, NJ
07652
315 Sylamore Ave, Mountain
View, AR 72560
2454 NE Side Hwy, Elkton, VA
22827
350 15th St. NW, Huron, SD
57350
489 Hamilton Rd, Jacksonville,
OR 97530
2454 NE Side Hwy, Elkton, VA
22827
21 S Hope Chapel Rd, Jackson,
NJ 08527
1116 E Main St, Richmond, VA
23219
8704 Grand Ave, Billings, MT
59106
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Plastics and Rubber Products
Manufacturing
Support Activities for
Transportation
Administrative and Support
Services
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
F-38
See accompanying notes to consolidated financial statements.
3/28/2029
3/28/2029
3/28/2029
3/28/2044
3/28/2029
8/28/2029
3/27/2029
3/27/2029
3/27/2029
3/27/2044
3/26/2044
3/26/2029
3/22/2044
3/22/2044
3/22/2029
3/22/2029
3/22/2029
3/21/2029
3/21/2029
3/21/2029
% of Net
Assets
322,226
0.04%
0.04%
0.09%
0.33%
—%
0.01%
0.04%
0.02%
—%
0.40%
0.03%
0.34%
0.10%
0.21%
—%
131.7
148.8
298.6
131.7
148.8
298.6
114.2
138.2
276.4
1,003.8
1,003.8
1,056.1
3.3
48.9
3.3
48.9
3.1
43.9
157.6
157.6
136.8
71.1
5.4
71.1
5.4
74.1
4.7
1,239.3
1,239.3
1,301.4
119.4
119.4
103.6
1,124.0
1,124.0
1,105.0
582.8
582.8
602.4
0.19%
294.0
788.5
5.7
258.7
4.3
7.2
52.5
294.0
788.5
5.7
258.7
4.3
7.2
52.5
327.8
690.1
5.3
269.3
0.08%
3.7
6.5
—%
—%
48.3
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Dependable Lawn Care, Inc.
(#,^)
Dependable Lawn Care, Inc.
Mega Trucking LLC and
Olyimpian Industries LLC
Michigan Neurosurgical
Institute P.C.
Sound Manufacturing Inc
Michigan Neurosurgical
Institute, P.C.,,Optical
Spine,LLC, MNI Great L
Frontline Selling LLC
Game Station, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Marvellous Print & Ship LLC (#,^)
Panetcarne Inc.dba Jersey
Mike's Subs Greenfield
Stepping Stones Children's
Academy LLC
(#,^)
(#,^)
Vanchoc Transport Inc
B & W Towing LLC
Screening Services Group,
LLC
Space Express, LLC
Mill Creek Early Childhood
Program LLC
Precise Air Systems, Inc
Alpine Remediation, Inc, T &
M Holdings, LLC
Kalloren Provel LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
2320 138th St., Blue Island, IL
60406
2320 138th St., Blue Island, IL
60406
5979 NW 151st St, Miami Lakes,
FL 33014
9400 S Saginaw St., Unit 1,
Grand Blanc, MI 48439
1 Williams Lane, Old Saybrook,
CT 06475
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Social Assistance
Professional, Scientific, and
Technical Services
Rental and Leasing Services
Printing and Related Support
Activities
Food Services and Drinking
Places
9400 S Saginaw St., Unit 1,
Grand Blanc, MI 48439
6505 Shiloh Rd #300,310,320,
Alpharetta, GA 30005
2917 1st Ave SE, Cedar Rapids,
IA 52402
605 W Main St., Oxford, KS
67119
23077 Greenfield Rd, Southfield,
MI 48075
1655 E Warm Springs Rd, Las
Vegas, NV 89119
137 3rd St, Brooklyn, NY 11231 Rental and Leasing Services
Support Activities for
701 Addison Rd, Painted Post,
Transportation
NY 14870
Motion Picture and Sound
8670 Wilshire Blvd, Beverly
Recording Industries
Hills, CA 90211
2775 Burris Rd, Davie, FL 33314 Truck Transportation
510 South Batavia Ave, Batavia,
IL 60510
5467 W San Fernando Rd, Los
Angeles, CA 90039
14252 W 44th Ave Unit F,
Golden, CO 80403
6919 Oak Ridge Commerce Way,
Austell, GA 30168
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Social Assistance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-39
See accompanying notes to consolidated financial statements.
3/21/2029
3/21/2044
3/20/2029
3/20/2029
3/20/2029
3/20/2044
3/19/2029
3/19/2029
3/19/2029
7/15/2029
3/15/2044
3/15/2029
3/15/2029
3/14/2029
3/12/2029
8/11/2029
3/8/2029
3/8/2029
3/8/2044
500.2
189.1
383.0
173.2
47.8
352.0
298.6
250.8
3.2
88.9
371.8
83.7
54.9
268.9
143.4
60.9
251.2
83.7
281.3
500.2
189.1
383.0
173.2
47.8
352.0
298.6
250.8
3.2
88.9
371.8
83.7
54.9
268.9
143.4
60.9
251.2
83.7
281.3
459.0
207.4
360.6
150.9
41.4
361.5
310.6
230.4
2.8
78.9
393.9
72.7
56.7
240.0
127.6
53.0
220.9
78.1
298.0
% of Net
Assets
322,226
0.14%
0.06%
0.11%
0.05%
0.01%
0.11%
0.10%
0.07%
—%
0.02%
0.12%
0.02%
0.02%
0.07%
0.04%
0.02%
0.07%
0.02%
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
D & S Village Hardware LLC
dba Cedar Mountain Country
Store & Samantha
(#,^)
(#,^)
Wildflour Bakery & Cafe LLC (#,^)
SG Welch Inc dba Sparks Auto
Service
Seeds of Knowledge Creative
Learning Center LLC
Doble Rentals, L.L.C , Doble
Rentals 2, LLC, Doble Rentals
3, LLC
Midwest Expediated Carrier
Corporation
(#,^)
(#,^)
(#,^)
Monkey Bones LLC
Wooter Apparel, Inc
NY Scoops LLC dba Cool
Suppliers and Breakneck Road
LLC
KSW Agency Inc.
(#,^)
(#,^)
(#,^)
(#,^)
Woodard Electric Services, Inc. (#,^)
Shah Medical Center SC &
Heeena Shyamani
(#,^)
Legacy Roof Contractors LLC (#,^)
Matrix Z LLC
Merdad Dentistry PLLC dba
Easy Dental Care
Harbor Management Company
Inc dba Jamba Juice
EasyBooks, Inc.
Mia Restoration Inc dba
PuroClean and Puroclean of
Morristown NJ
(#)
(#,^)
(#,^)
(#,^)
(#,^)
3695 Movie Ranch Rd, Duck
Creek, UT 84762
5137 Clareton Dr #100,110,120,
Agoura Hills, CA 91301
19138 Molalla Ave, Oregon City,
OR 97045
15101 West McNichols Rd,
Detroit, MI 48235
487 Elizabeth Lake Rd,
Waterford, MI 48328
2200 N Stonington Ave #120,
Hoffman Estates, IL 60169
3361 Dayton Xenia Rd,
Beavercreek, OH 45432
727 Page Ave., Staten Island, NY
10307
20 Silver Fox Lane, Sussex, NJ
07461
330 Milltown Rd, Ste 22E, East
Brunswick, NJ 08816
1600 Carter Cove Rd, Hayesville,
NC 28904
484 Summit St, Elgin, IL 60120
32091 Broken Branch Circle,
Spanish Fort, AL 36527
800 SW 21st Terrace, Ft
Lauderdale, FL 33312
7522 Old Linton Hall Rd,
Gainesville, VA 20155
5501 Josh Birmingham Pkwy
Concourse A, Charlotte, NC
28208
949 Turquoise St., San Diego,
CA 92109
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Hospitals
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 6.5%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/8/2044
3/8/2029
3/8/2029
3/7/2044
3/4/2029
3/1/2029
2/28/2044
2/28/2029
2/28/2029
2/28/2029
2/28/2029
2/28/2044
2/28/2044
2/27/2029
2/26/2029
2/22/2029
2/22/2029
% of Net
Assets
322,226
0.07%
0.02%
0.02%
0.01%
200.0
200.0
215.9
83.6
59.7
22.3
83.6
59.7
22.3
72.5
52.9
24.0
150.5
150.5
130.6
0.04%
14.3
19.3
47.5
48.4
14.3
20.5
251.3
297.1
12.0
15.0
142.5
5.7
14.3
19.3
47.5
48.4
14.3
20.5
251.3
297.1
12.0
15.0
142.5
5.7
12.4
21.5
42.0
46.5
14.9
18.1
247.6
305.0
11.9
13.0
—%
0.01%
0.01%
0.01%
—%
0.01%
0.08%
0.09%
—%
—%
125.1
0.04%
4.9
—%
3633 B Hill Rd, Parsippany, NJ
07054
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
2/21/2029
39.2
39.2
35.1
0.01%
F-40
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Gomez Advanced Wellness
Center, Inc.
Citiline Cafe At Jacobs Plaza,
LLC dba Citiline Cafe
Bowl 360 Inc.
Bowl 360 Inc.
Rob Barletta's Hockey School,
Inc
Outler Transportation
Services,LLC
M & M Burgers Inc dba
Checkers
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Integris Roofing, Inc
Tony Herring & Associates,
Inc
Gateway Veterinary Services,
P.C. dba Liberty Animal Clinic (#,^)
Par-Man, Inc. dba Rockstar
Tattoo
(#,^)
(#,^)
KHSE Parks, Inc.
Precedence Enterprises LLC
dba Spartan Junk Removal
Pamletics LLC dba F45
Shepherd Fitness, LLC dba
Workout Anytime Ooltewah
EJGR Corp dba Brite Energy
Solutions
Creative Counseling Nashville
PLLC
Better Dayz PT, Inc. dba
Physical Therapy Now
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
D & G Elite Construction, Inc.
(#,^)
2418 Central Ave, Charlotte, NC
28205
12140 Wickchester Ln STE 130,
Houston, TX 77079
98-18 Rockaway Blvd, Ozone
Park, NY 11417
98-18 Rockaway Blvd, Far
Rockaway, NY 11417
2130 Providence Hwy, Walpole,
MA 02081
3775 Carriage Downs CT SW,
Snellville, GA 30039
530 Willis Ave, Bronx, NY
10455
1174 Yellostone Drive, Lake
Arrowhead, CA 92532
211 West Camellia Drive, Slidell,
LA 70458
9212 Liberty Ave, Ozone Park,
NY 11417
450 Fremont St #109 and 113,
Las Vegas, NV 89101
600 West Charles St., Matthews,
NC 28105
8101 Sandy Spring Rd Ste 250N,
Laurel, MD 20707
22015 IH 10 West, San Antonio,
TX 78249
9408 Apison Pike, Ste 11,
Ooltewah, TN 37363
87 Main St Upper Lvl, Hastings-
on-Hudson, NY 10706
4119 Gallatin Pike, Nashville,
TN 37216
2804 NE 8th St. #203-206,
Homestead, FL 33033
217 Goldenrod Ave, Franklin
Square, NY 11010
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Performing Arts, Spectator
Sports, and Related Industries
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Administrative and Support
Services
Waste Management and
Remediation Services
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Utilities
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
F-41
See accompanying notes to consolidated financial statements.
2/21/2044
2/20/2029
2/19/2029
2/19/2029
2/19/2029
2/19/2029
7/15/2029
2/15/2029
2/14/2029
2/14/2044
2/14/2029
2/14/2029
2/8/2029
2/8/2029
5/8/2029
2/8/2029
2/7/2029
3/7/2029
2/6/2029
148.6
46.6
154.5
132.5
103.3
42.7
109.4
21.4
14.2
148.6
46.6
154.5
132.5
103.3
42.7
109.4
21.4
14.2
156.5
40.4
144.3
115.5
107.6
37.8
97.0
18.5
14.8
137.0
137.0
152.8
59.5
78.4
15.6
3.6
59.5
78.4
15.6
3.6
52.2
68.0
14.3
3.4
160.2
160.2
147.0
59.4
2.1
21.4
59.4
2.1
21.4
51.7
1.8
18.7
123.6
123.6
128.7
% of Net
Assets
322,226
0.05%
0.01%
0.04%
0.04%
0.03%
0.01%
0.03%
0.01%
—%
0.05%
0.02%
0.02%
—%
—%
0.05%
0.02%
—%
0.01%
0.04%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
RIHAHN INC dba RDBL, INC.
Hernando Beach Motel Inc.,The
Purple Cow House of Pancake Inc
Jesus and Son's Landscape
Contractors, LLC
Employer Resource Services LLC
dba Data Pool
MYC Motors Inc
FNF LLC dba WineStyles
IGWT Coffee, LLC dba PJ's
Coffee of New Orleans
MMC Investors, LLC dba Clean
Juice
Hilco Athletics & Graphics Inc
CMLCLEARWATERBEACH.LLC
dba Cousins Maine Lobster
Fluid Connections LLC dba
BurgerIM
HSR Tacos LLC dba California
Tortilla
Rashed and Shabila LLC
Romain Tower Inc. David
Romaine, Sugar Land Crane and
Rigging, LLC
The Chop House Inc.
Capitol Fitness Inc. dba Anytime
Fitness Shelby
Omega Funeral and Cremation
Services,LLC
American Rewinding of NC Inc
dba MTS
Superior Concepts Acquisition
Corp
Superior Concepts Acquisition
Corp
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1397 McGuire Rd, Lamar, AR
72846
4291 Shoal Line Boulevard,
Hernando Beach, FL 34607
4371 Durham Court, Denver, CO
80239
500 Research Rd, Richmond, VA
23236
3808 Vegas Drive, Las Vegas,
NV 89108
11109 Old Seward Hwy,
Anchorage, AK 99515
414 Union St, Nashville, TN
37219
2879 W 95th St. Ste 195,
Naperville, IL 60564
55 Green Hill St., West Warwick,
RI 02816
309 Coronado Drive, Clearwater
Beach, FL 33767
174 El Cerrito Plaza, El Cerrito,
CA 94530
11694 Sudley Manor Drive,
Manassas, VA 20109
14865 Hwy 92, Woodstock, GA
30188
Forestry and Logging
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Apparel Manufacturing
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
2/5/2029
2/1/2029
2/1/2029
1/31/2029
1/30/2044
1/22/2029
1/18/2029
4/18/2029
1/16/2044
7/11/2029
1/11/2029
1/11/2029
1/4/2029
215 S Persimmon St., Tomball,
TX 77375
191 Old Tower Hill Rd., South
Kingstown, RI 02879
49045 Van Dyke Ave, Shelby
Charter Township, MI 48317
9503 Kenwood Rd, Cincinnati,
OH 45242
1825 N Rocky River Rd,
Monroe, NC 28110
1710 Tiles Court, Grand Haven,
MI 49417
1710 Tiles Ct, Grand Haven, MI
49417
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Personal and Laundry Services
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/31/2028
Term Loan
Prime plus 2.75%
12/31/2043
Term Loan
Prime plus 2.75%
12/28/2028
Term Loan
Prime plus 2.75%
12/28/2043
Term Loan
Prime plus 2.75%
12/28/2028
Term Loan
Prime plus 2.75%
12/28/2043
Term Loan
Prime plus 2.75%
12/28/2028
F-42
See accompanying notes to consolidated financial statements.
6.6
14.2
54.6
35.7
74.3
6.6
14.2
54.6
35.7
74.3
6.8
14.8
48.8
30.9
82.8
233.8
233.8
203.0
77.9
83.8
68.2
84.7
59.1
51.5
21.2
223.4
552.0
17.1
339.3
402.6
504.4
112.6
77.9
83.8
68.2
84.7
59.1
51.5
21.2
223.4
552.0
17.1
339.3
402.6
504.4
112.6
67.6
74.2
76.0
74.5
54.6
44.7
19.7
193.8
572.4
15.5
353.6
368.3
509.3
102.7
% of Net
Assets
322,226
—%
—%
0.02%
0.01%
0.03%
0.06%
0.02%
0.02%
0.02%
0.02%
0.02%
0.01%
0.01%
0.06%
0.18%
—%
0.11%
0.11%
0.16%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Galt Insurance Group of Bonita
Springs, LLC & Bonita Safety
Institut
Nix and Nix Funeral Home
North Inc,
Fave Realty Inc.
Medworxs Inc.
East Breeze LLC dba Historic
Springdale Pub and Eatery
Children First Home Health
Care Inc
Green Valley Landscape
Management Inc. dba Apopka
Mower and Equipment
Reservations Unlimited LLC
Timios Enterprises Corp dba
Palm Court
RM Hawkins LLC
BD Branson Victorian LLC
dba Branson Victorian Inn
Royalty Freight Inc
Kyle M Walker DDS, PC
The Law Office of Jared E.
Shapiro, P.A
Burgess and Dudley,
Incorporated
Diamond Estates LLC
Fifth Wheel Truck Stop 001,
Inc.
Sesolinc GRP, Inc.
ETS Tree Service Inc and
Eastern Tree Service, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
10911 Bonita Beach Rd SE
#104A & 104B, Bonita Springs,
FL 34135
1621 W. Dauphin St.,
Philadelphia, PA 19132
74 Larkfield Rd, East Northport,
NY 11731
6857 Timbers Drive, Evergreen,
CO 80439
32302 E Historic Columbia Riv
Hwy, Corbett, OR 97019
1220 Broadcasting Rd Ste 202,
Wyomissing, PA 19610
2975 W Orange Blossom Trail,
Apopka, FL 32712
312 W Main St., Red River, NM
87558
1912 N Arlington Hts Rd,
Arlington Heights, IL 60004
5141 Topaz Drive, Colorado
Springs, CO 80918
450 South Hwy 165, Branson,
MO 65616
3728 W McKinley Ave, Fresno,
CA 93722
1402 W Park Ave, Orange, TX
77630
7777 Glades Rd Ste 100, Boca
Raton, FL 33434
24462 NW 9th Place, Newberry,
FL 32669
110 Court St Ste 1, Cromwell,
CT 06416
3767 South Golden State Blvd,
Fresno, CA 93725
806 Randy Lowery Rd,
Statesboro, GA 30461
4813 Pinson Valley Parkway,
Birmingham, AL 35215
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
12/28/2043
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/28/2043
Real Estate
Term Loan
Prime plus 2.75%
12/27/2043
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/27/2028
Term Loan
Prime plus 2.75%
12/27/2043
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/27/2028
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2043
Real Estate
Term Loan
Prime plus 2.75%
12/26/2043
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/24/2043
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/24/2028
Accommodation
Term Loan
Prime plus 2.75%
12/24/2043
Truck Transportation
Term Loan
Prime plus 2.75%
12/21/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2028
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/21/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/21/2028
Construction of Buildings
Term Loan
Prime plus 2.75%
12/21/2028
Gasoline Stations
Term Loan
Prime plus 2.75%
12/21/2028
Fabricated Metal Product
Manufacturing
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
F-43
See accompanying notes to consolidated financial statements.
18.6
566.0
122.2
9.9
126.9
282.4
459.9
140.8
700.4
281.6
492.5
91.7
105.8
10.6
223.5
70.5
100.0
352.3
216.1
18.6
566.0
122.2
9.9
126.9
282.4
459.9
140.8
700.4
281.6
492.5
91.7
105.8
10.6
223.5
70.5
100.0
352.3
216.1
20.7
614.5
136.3
8.5
136.0
267.0
473.8
151.2
739.5
260.3
530.6
79.4
91.6
9.2
203.1
61.1
86.6
329.7
200.4
% of Net
Assets
322,226
0.01%
0.19%
0.04%
—%
0.04%
0.08%
0.15%
0.05%
0.23%
0.08%
0.16%
0.02%
0.03%
—%
0.06%
0.02%
0.03%
0.10%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
D.A.F.S Transport, LLC
Precision Bytes LLC dba
Tower Connect
Accel Compression Inc.,Accel
Workover Services Inc dba
Mica Tool & Tur
LP Industries, Inc and
Playground Packages, LLC
Cammarata Associates LLC
Baseline Health, LLC &
Baseline Health Management,
LLC
C&D Trucking & Equipment
Service, Inc.
Roots N Shoots, LLC &
Yardplus LLC
Healthy and Fresco LLC
Flashii App, Inc.
Graff Excavating, Inc
Alaska Motor Home Inc
Local Liberty Inc dba The
Wardsboro Country Store
Yellow Fin Marine Services
LLC, K Marine XI, LLC K
Marine VIII, LLC
Hotel Compete, LLC
CK Green Partners, LLC dba
Reis and Irvy"s Columbus
Marlin Lighting LLC
The Cromer Company
Sheldon T Banks and Sheldon
T Banks LLC dba Serenity
Funeral chapel ll
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
207 S. Teresa St., Monahans, TX
79756
607 West Magnolia Ave, Fort
Worth, TX 76104
4500 S Country Rd, Odessa, TX
79768
2040 Norwood, Lenoir, NC
28645
5 Greentree Center, Marlton, NJ
08053
1101 Stewart Ave Ste 104,
Garden City, NY 11530
4015 Jennings Rd, Cleveland,
OH 44109
86 Boston Rd, Chelmsford, MA
01824
1671 Belle Isle Ave, Ste 110 #C,
Mt Pleasant, SC 29464
75 E Santa Clara St, San Jose,
CA 95113
803 E State St., Toledo, IA 52342
6633 Brayton Drive, Anchorage,
AK 99507
23 Main St., Wardsboro, VT
05355
2043 Coteau Rd, Houma, LA
70364
223 W Jackson Blvd, Chicago, IL
60606
5010 Augusta Drive, Westerville,
OH 43082
7207 B Lockport Pl, Lorton, VA
22079
9800 NW 78th Ave, Hialeah
Gardens, FL 33016
G-2340 West Carpenter Rd, Flint,
MI 48505
Truck Transportation
Term Loan
Prime plus 2.75%
12/21/2028
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/21/2028
620.1
121.9
620.1
121.9
613.0
105.6
Rental and Leasing Services
Term Loan
Prime plus 2.75%
6/21/2044
169.0
169.0
188.7
Miscellaneous Manufacturing
Credit Intermediation and
Related Activities
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/21/2043
Administrative and Support
Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Rental and Leasing Services
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/20/2028
Term Loan
Prime plus 2.75%
2/20/2029
Term Loan
Prime plus 2.75%
12/20/2028
Term Loan
Prime plus 2.75%
12/20/2028
Term Loan
Prime plus 2.75%
12/20/2028
Term Loan
Prime plus 2.75%
12/20/2043
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/20/2028
Term Loan
Prime plus 2.75%
12/20/2028
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/20/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/19/2028
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
12/19/2028
88.6
70.4
111.6
116.0
50.7
43.2
58.7
183.7
281.8
153.7
543.4
58.7
178.3
95.6
469.7
88.6
70.4
111.6
116.0
50.7
43.2
58.7
183.7
281.8
153.7
543.4
58.7
178.3
95.6
469.7
77.0
61.0
98.8
129.3
45.0
38.8
60.2
161.8
264.0
164.8
537.8
50.8
168.3
82.8
408.5
% of Net
Assets
322,226
0.19%
0.03%
0.06%
0.02%
0.02%
0.03%
0.04%
0.01%
0.01%
0.02%
0.05%
0.08%
0.05%
0.17%
0.02%
0.05%
0.03%
0.13%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/19/2044
416.5
416.5
446.5
0.14%
F-44
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Goodson's Garden, LLC dba
Always Goldies Florist
JejoJesi Corp dba Dukunoo
Jamaican Kitchen, Dunkunoo
(#,^)
(#,^)
Accent Comfort Services, LLC (#,^)
Cordoba Foods LLC, Multi
Logistics Network Inc, Karina
Mena
(#,^)
Healthy Human, LLC
Sound Contracting LLC
Stony Creek Wellness Group,
LLC
Sound Contracting LLC
Alpha Omega Trucking LLC
YBL Restaurant Group LLC
dba Tropisueno
Alpha Landscape Contractors,
Inc
Ventures TBD LLC dba The
Bottle Tree
Mediterranean Tastes Inc dba
Mediterranean Tastes Since
1974
Peanut Butter & Co., Inc.
L&M Services, LLC
Aero Consulting and
Engineering Inc
Fitness Orlando LLC & Fitness
Orlando Oviedo, LLC
Tapia Auto Care, LLC dba
Shoreline Quick Lube and Car
Wash
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1812 Pulaski Hwy Ste A,
Edgewood, MD 21040
316 NW 24th St., Miami, FL
33180
5035 W. W.T. Harris Blvd Ste C,
Mecklenburg, NC 28269
4477 E 11th Ave, Hialeah, FL
33013
1007 Johnnie Dodds Blvd, Ste
123, Mt Pleasant, SC 29464
148 Holmgren Place, Girdwood,
AK 99587
264 Church St, Guilford, CT
06437
148 Holmgren Place, Girdwood,
AK 99587
14432-14452 Stateline Rd,
Brookings, OR 97415
75 Yerba Buena Lane, San
Francisco, CA 94103
2823 Fllintstone Rd, Millers, MD
21102
102 Davis St., Belmont, NC
28012
196-15 Northern Blvd, Flushing,
NY 11318
119 West 57th St., Ste 300, New
York, NY 10019
560 Main St., Milford, UT 84751
7941 NW 3rd St., Plantation, FL
33324
160 Tuskawilla Rd Ste 1214,
Winter Springs, FL 32708
Miscellaneous Store Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/19/2028
Term Loan
Prime plus 2.75%
3/19/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/19/2028
Food Manufacturing
Term Loan
Prime plus 2.75%
12/14/2028
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/14/2028
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
12/14/2043
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/14/2043
Construction of Buildings
Term Loan
Prime plus 2.75%
12/14/2028
Truck Transportation
Term Loan
Prime plus 2.75%
12/14/2028
Food Services and Drinking
Places
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/14/2029
1/14/2029
Term Loan
Prime plus 2.75%
12/14/2043
Food and Beverage Stores
Merchant Wholesalers,
Nondurable Goods
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2043
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2028
11.3
70.1
64.7
298.3
117.4
195.3
97.7
39.2
65.9
359.1
313.4
97.7
14.8
234.9
197.9
14.1
258.8
11.3
70.1
64.7
298.3
117.4
195.3
97.7
39.2
65.9
359.1
313.4
97.7
14.8
234.9
197.9
14.1
258.8
10.0
65.2
56.5
271.7
101.7
203.7
105.0
36.5
68.5
314.4
287.1
101.0
12.9
203.5
208.5
12.2
234.8
2 Center Rd, Old Saybrook, CT
06475
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/13/2043
967.3
967.3
992.6
0.31%
F-45
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
—%
0.02%
0.02%
0.08%
0.03%
0.06%
0.03%
0.01%
0.02%
0.10%
0.09%
0.03%
—%
0.06%
0.06%
—%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
D for Dream LLC dba Blo
Blow Dry Bar Inc
United States Plastic
Equipment LLC
Burton Realty Co., Inc dba
Anchor Realty, Northeast
The Miller Center for Esthetic
Excellence,
Plan B Burger LLC
OC Helicopters LLC
Tier1 Solutions LLC
Behind The Scenes Chicago,
LLC dba Paramount Events
Mateo Enterprise Inc dba El
Milagro Market
Mateo Enterprise Inc dba El
Milagro Market
Ashwood Food Services,
Incorporated dba Jake
Rooney's
Ashwood Food Services Inc.
dba Jake Rooney's
Airstrike Firefighters LLC
Anglin Cultured Stone
Products LLC dba Anglin
Construcion
Duck's Nuts Inc dba Pet Place
Market
Hilltop Wine Shop, Inc dba
Hiltop Wine Shop
TFE Resources ,LTD
Oregon Medical Training
Private Career School Inc.
Googlyoogly, LLC dba Bi-Rite
Supermarket
White Wilson & Associates
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
460 East 3rd Ave, New York, NY
10016
4447 OH-303, Mantua, OH
44255
2200 Michener St Ste 12,
Philadelphia, PA 19115
22 Old Short Hills Rd,
Livingston, NJ 07039
484 Farmington Ave, Hartford,
CT 06105
19711 Campus Drive Ste 260,
Santa Ana, CA 92707
1000 Essington Rd Ste 111,
Joliet, IL 60435
1750 W Lake St, Chicago, IL
60612
575 Panama Lane, Bakersfield,
CA 93307
575 Panama Lane, Bakerfield,
CA 93307
Personal and Laundry Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
5/13/2029
Term Loan
Prime plus 2.75%
12/13/2028
Real Estate
Term Loan
Prime plus 2.75%
12/13/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/13/2043
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/13/2029
Air Transportation
Term Loan
Prime plus 2.75%
12/13/2028
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
1/12/2029
1/12/2029
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/12/2043
Food and Beverage Stores
Term Loan
Prime plus 2.75%
1/12/2029
70.9
137.1
284.6
384.3
986.6
84.7
9.6
240.8
118.8
56.4
63.4
212.8
70.9
137.1
284.6
384.3
986.6
84.7
9.6
240.8
118.8
56.4
63.4
212.8
61.7
118.8
246.6
378.2
899.9
88.1
8.3
235.1
122.7
48.9
58.0
231.0
119 Brooks Rd, Harwich Port,
MA 02646
119 Brooks Rd, Harwich Port,
MA 02646
18115 62nd Ave NE, Kenmore,
WA 98028
Food Services and Drinking
Places
Food Services and Drinking
Places
Support Activities for Agriculture
and Forestry
Term Loan
Prime plus 2.75%
1/12/2029
Term Loan
Prime plus 2.75%
12/12/2043
Term Loan
Prime plus 2.75%
12/12/2028
1,174.3
1,174.3
1,112.0
877 Salem Church Rd, Newark,
DE 19702
212 Bendigo Blvd. N, North
Bend, WA 98045
7505 Highland Rd, White Lake,
MI 48383
11 Easter Court Ste G, Owings
Mills, MD 21117
1126 Gateway Loop Ste 108,
Springfield, OR 97702
10867 W Jefferson Ave, River
Rouge, MI 46218
16238 Louis Ave., South
Holland, IL 60473
1/12/2029
1/11/2029
Specialty Trade Contractors
Term Loan
8.25%
Miscellaneous Store Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/11/2043
Utilities
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/11/2029
1/11/2029
12/11/2043
12/11/2043
F-46
See accompanying notes to consolidated financial statements.
60.8
40.6
126.7
561.4
37.6
200.9
42.1
60.8
40.6
126.7
561.4
37.6
200.9
42.1
56.8
37.9
133.2
503.9
32.6
207.7
43.4
% of Net
Assets
322,226
0.02%
0.04%
0.08%
0.12%
0.28%
0.03%
—%
0.07%
0.04%
0.02%
0.02%
0.07%
0.35%
0.02%
0.01%
0.04%
0.16%
0.01%
0.06%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
EMES Supply, LLC
B&B Bodega of Delray LLC
Team Henry, LLC dba Kelly
Automotive of Deltona
ZLM Services LLC
Food Service Industry
Consultants Inc.
Shining Star Kids, Inc. dba
Brain Balance
3SIXO Motorsports LLC dba
3SIXO Motorsports Shop
CET Inc
Metro R Services Inc. and
Metal & Roof Supplies Inc.
Unique Home Solutions Inc.
and Unique Home Solutions of
Ohio
Levine Daycare Inc dba Kids R
Kids
Consulting Solutions, Inc and
Mark Luciani
Little West LLC, 340 Group
LLC, Retail West LLc, Andrew
W Walker, Cass
The Altitude Group LLC
Access Staffing, LLC
Jay Carlton's, LLC dba Jay
Birds Rotisserie & Grill
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Swantown Inn and Spa, LLC
(#,^)
York Concrete Corp
Hernando Beach Motel
LLC,The Purple Cow House o
APancake AInc.
(#,^)
(#,^)
35622 Vine St., EastLake, OH
44095
190 NE 2nd Ave, Delray Beach,
FL 33444
1290 Doyle Rd, Deltona, FL
32725
51343 Oro Rd, Shelby Township,
MI 33444
1465 Kelly Johnson Blvd,
Colorado Springs, CO 80920
17323 Ventura Blvd, Encino, CA
91316
217 W Main St., Centralia, WA
98531
4709 N El Capitan Ave Ste 205,
Fresno, CA 93722
20 Universal Place, Carlstadt, NJ
07072
5550 Progress Rd, Indianapolis,
IN 46241
415 Woodbury Rd, Orlando, FL
32828
3000 N Federal Hwy Ste 1, Fort
Lauderdale, FL 33306
342 South La Brea Ave, Los
Angeles, CA 90036
949 A Clint Moore Rd, Boca
Raton, FL 33487
360 Lexington Ave 8th Fl, New
York, NY 10017
24480 W 10 Mile RD,
Southfield, MI 48033
1431 11th Ave SE, Olympia, WA
98501
1 Plumb CT., Huntington Station,
NY 11746
4291 Shoal Line Boulevard,
Hernando Beach, FL 34607
General Merchandise Stores
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
1/11/2029
1/11/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/10/2043
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/10/2029
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Specialty Trade Contractors
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
117.8
14.5
387.2
37.6
67.2
82.3
94.6
117.8
14.5
387.2
37.6
67.2
82.3
94.6
104.7
12.7
398.6
32.6
58.5
71.9
82.6
1,154.6
1,154.6
1,045.1
195.0
195.0
203.0
234.9
253.7
54.4
82.4
130.9
182.5
37.2
12.7
234.9
253.7
54.4
82.4
130.9
182.5
37.2
12.7
244.6
233.7
47.2
72.4
114.3
158.4
34.8
13.2
1/7/2029
1/7/2029
1/6/2029
1/6/2029
1/6/2029
1/5/2029
1/5/2029
1/5/2029
1/5/2029
1/4/2029
1/4/2029
1/4/2029
1/3/2029
% of Net
Assets
322,226
0.03%
—%
0.12%
0.01%
0.02%
0.02%
0.03%
0.32%
0.06%
0.08%
0.07%
0.01%
0.02%
0.04%
0.05%
0.01%
—%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/3/2043
197.9
197.9
217.9
0.07%
Accommodation
Term Loan
Prime plus 2.75%
11/30/2043
222.4
222.4
247.8
0.08%
F-47
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Tammy's Place LLC
Microplex Co, Third Market
LLC
Luxury Furniture, Inc.dba
Venicasa & Luxe Home
Interiors
(#,^)
(#,^)
(#,^)
Cabrera's Auto Services LLC (#,^)
Water Station Holdings LLC
(#,^)
Albert M. Quashie, DDS, PC
(#,^)
JJB Production LLC
Albert M Quashie, DDS, PC
Sky Wonder Pyrotechnics,
LLC dba Sky Wonder Fire and
Safety Gear Up Te
Level Up Gaming, Inc
Extreme Granite Corp
True Love Christian Academy
LLC
BEK Holdings LLC, Veseli
Fine Art Galleries, LLC,
Trusted.com LLC, Exe
Best Global Alternative North,
LLC
M.A.W. Enterprises LLC
dbaY-Not Pizza
Thames Aquatic Club, LLC
On Call Electrical of Georgia
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Commonwealth Warehouse Inc (#,^)
High Desert Transport, Inc.
(#,^)
K & A Automotive Inc
(#,^)
235 North Mosby Ave, Littleton,
NC 27850
244 Spokane Ave, Whitefish, MT
59937
13762 W State Rd 84, Davie, FL
33325
2206 N Central Ave, Chicago, IL
60639
1104 N Keystone Ave,
Indianapolis, IN 46201
3331 Toledo Terrace Ste 308,
Hyattsville, MD 20782
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/30/2044
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/30/2028
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
12/30/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/30/2043
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/30/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
11/29/2043
458 N 7th St., Newark, NJ 07107
3331 Toledo Terrace Ste 308,
Hyattsville, MD 20782
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/29/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/29/2028
3626 CR 203, Liverpool, TX
77577
1132 Creighton Rd, Pensacola,
FL 32504
251 NW 1st St., Deerfield Beach,
FL 33441
466 E Raines Rd, Memphis, TN
38109
Amusement, Gambling, and
Recreation Industries
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
11/28/2043
11/28/2043
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/28/2043
Social Assistance
Term Loan
Prime plus 2.75%
12/28/2043
436.0
154.1
116.8
80.2
647.3
64.4
6.9
81.8
429.3
89.0
185.4
41.5
436.0
154.1
116.8
80.2
647.3
64.4
6.9
81.8
429.3
89.0
185.4
41.5
481.7
133.7
115.4
85.3
613.3
67.1
6.0
77.7
478.2
90.5
202.6
45.5
12930 Worldgate Drive,
Herndon, VA 20170
69 Lewis Ave, Atlantic Beach,
NY 11509
45 E Main St., New Palestine, IN
46163
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Educational Services
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
12/21/2028
10/21/2029
Term Loan
Prime plus 2.75%
12/21/2028
1,188.9
1,188.9
1,221.9
14 Iron St., Ledyard, CT 06339
2120 Plaster Bridge Rd NE,
Atlanta, GA 30324
11013 Kenwood Rd., Cincinnati,
OH 45242
2015 Woodspring Terrace,
Henderson, NV 89012
2070 Nooseneck Hill Rd,
Coventry, RI 02816
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/20/2043
Warehousing and Storage
Term Loan
Prime plus 2.75%
12/20/2028
Truck Transportation
Term Loan
Prime plus 2.75%
12/19/2028
Gasoline Stations
Term Loan
Prime plus 2.75%
11/19/2043
F-48
See accompanying notes to consolidated financial statements.
81.7
21.0
42.8
656.9
395.5
71.0
120.8
81.7
21.0
42.8
656.9
395.5
71.0
120.8
70.8
19.4
44.8
682.6
371.0
64.0
131.2
% of Net
Assets
322,226
0.15%
0.04%
0.04%
0.03%
0.19%
0.02%
—%
0.02%
0.15%
0.03%
0.06%
0.01%
0.38%
0.02%
0.01%
0.01%
0.21%
0.12%
0.02%
0.04%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Beau & HB Inc dba Beau's
Billiard, Bowling & Arcade
Cocomo Joe's LLC
Saunders Management LLC
dba Northern Light Espresso
Bar and Cafe
Beau & HB Inc dba Beau's
Billard, Bowling & Arcade
Cali Fit Meals
Allegro Assisted Living
Services of Texas LLC
Schafer Fisheries Inc.
Salon Femi LLC
US Dedicated LLC
Jinwoo Sushi Inc
McNeill Stokes
Vancole Investments, Inc. dba
Smoothie King #913
JN Thompson Ent,Inc.
JP Dhillon's Foods LLC
Modutech Marine Inc
Peter Thomas Roth Labs LLC
and June Jacobs Labs, LLC
Steele Security, LLC dba
Signal 88 Security of San
Antonio
Abington Caregivers, LLC
Organic Juice Bar Wexford
LLC dba The OJB "The
Organic Juice Bar"
C.A.T.I. Armor, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
100 Village Rd, Port Lavaca, TX
77979
3949 New Rd, Youngstown, OH
44515
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/16/2029
Term Loan
Prime plus 2.75%
12/16/2028
536 Spruce St, Scranton, PA
18503
100 Village Rd, Port Lavaca, TX
77979
3450 E Orangethrope Ave,
Anaheim, CA 92806
3400 Remington Dr, Plano, TX
75023
21985 Waller Rd, Fulton, IL
61252
1107 Broad St., Bloomfield, NJ
07003
13410 SE 26th Circle,
Vancouver, WA 98683
6590 Sugarloaf Pkwy, Duluth,
GA 30097
5372 Whitehall Pl SE, Mableton,
GA 30126
876 Virginia Ave, Hapeville, GA
30354
400 5th Ave S Ste 100, Naples,
FL 34102
840 El Paseo de Saratoga, San
Jose, CA 95130
2218 Marine View Drive,
Tacoma, WA 98422
460 Park Ave, Fl 16, New York,
NY 10022
11230 West Ave Ste 2210, San
Antonio, TX 78213
7804 Montgomery Ave Unit 3-6,
Elkins Park, PA 19027
1500 Village Run Rd, Wexford,
PA 15090
435 Packard Hwy, Charlotte, MI
48813
Term Loan
Prime plus 2.75%
11/16/2028
Term Loan
Prime plus 2.75%
12/16/2043
Term Loan
Prime plus 2.75%
12/16/2028
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Nursing and Residential Care
Facilities
Merchant Wholesalers,
Nondurable Goods
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Transportation Equipment
Manufacturing
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
10/31/2028
Social Assistance
Term Loan
Prime plus 2.75%
11/30/2043
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/30/2029
Apparel Manufacturing
Term Loan
Prime plus 2.75%
10/30/2043
F-49
See accompanying notes to consolidated financial statements.
11/15/2043
11/14/2028
12/9/2028
12/9/2028
12/9/2028
12/8/2028
5/7/2044
12/7/2028
6/1/2029
12/1/2028
12/1/2028
41.1
0.6
37.9
69.7
58.4
93.9
47.0
7.0
41.1
0.6
37.9
69.7
58.4
93.9
47.0
7.0
40.7
0.5
39.4
73.2
50.8
104.6
48.8
6.7
392.2
392.2
346.7
20.7
6.3
414.5
377.5
91.9
350.4
303.5
103.2
123.9
76.4
207.9
20.7
6.3
414.5
377.5
91.9
350.4
303.5
103.2
123.9
76.4
207.9
21.5
5.5
427.7
340.1
79.9
364.3
262.9
90.7
132.1
67.8
216.7
% of Net
Assets
322,226
0.01%
—%
0.01%
0.02%
0.02%
0.03%
0.02%
—%
0.11%
0.01%
—%
0.13%
0.11%
0.02%
0.11%
0.08%
0.03%
0.04%
0.02%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
UK, LLC dba Pita Pit
JAL Group, Inc. dba Brainy
Boulevard Daycare
Ohio Gold & Pawn LLC, Our
New Building LLC and Corey
Fischer
Reliant Trucking Inc.
The Face Place, LLC dba
Classic Aesthetics
Bellas Sports Pub, Inc dba
Brewmasters Tavern
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Shovels and Whiskey LLC
(#,^)
Hackstaff Restaurants LLC
TA Coleman, LLC dba Tom's
Truck Shop
Cater To You Agency, LLC,
dba Cater To You
Faydon, Inc
(#,^)
(#,^)
(#,^)
(#,^)
MB Click It Photography, LLC (#,^)
Wellfleet Consulting Inc.
Apps Inc and Market Share
Inc.
Moore Care LLC
(#,^)
(#,^)
(#,^)
JAM Media Solutions LLC
(#,^)
SwabCo Inc.
(#,^)
Rami Technology USA, LLC (#,^)
Mellow Sweets, Inc dba Jaafer
Sweets & Marwan Hamdan
(#,^)
Burd Brothers Inc.
(#,^)
20038 West Valley HWY, Kent,
WA 98032
3340-3342 West Bryn Mawr Ave,
Chicago, IL 60659
3970 Everhard Rd NW, Canton,
OH 44709
7197 Koamano St, Honolulu, HI
96825
4268 Cahaba Heights CT Ste
115, Vestavia, AL 35243
1152 Main St., Coventry, RI
02816
446 SE Washington St, Hillsboro,
OR 97123
248 W 1st St. Ste 201, Reno, NV
89501
2101 Route 610, Woodbine, NJ
08270
1319 Sherrick Rd SE, Canton,
OH 44707
1905 W Baker St., Ste A, Plant
City, FL 33567
100 Manchester Ranch Place,
Aynor, SC 29511
2275 Research Blvd Ste 500,
Rockville, MD 20850
80 Main St., Old Saybrook, CT
06475
8550 United Plaza Blvd., Baton
Rouge, LA 79809
11 Netherwood Terrace, East
Orange, NJ 07017
2341 East Ellis St., Leveland, TX
79336
10400 NW 33rd St., Miami, FL
33172
4825 North Kedzie Ave, Chicago,
IL 60625
4005 Borman Drive, Batavia, OH
45103
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/30/2029
Social Assistance
Term Loan
Prime plus 2.75%
10/29/2028
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
10/26/2028
Truck Transportation
Term Loan
Prime plus 2.75%
10/25/2028
Term Loan
Prime plus 2.75%
10/25/2028
Term Loan
Prime plus 2.75%
10/24/2043
Term Loan
Prime plus 2.75%
10/16/2043
Personal and Laundry Services
Food Services and Drinking
Places
Motion Picture and Sound
Recording Industries
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/12/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/11/2043
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/10/2028
Term Loan
Prime plus 2.75%
10/10/2043
Term Loan
Prime plus 2.75%
Telecommunications
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Support Activities for Mining
Term Loan
Prime plus 2.75%
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
F-50
See accompanying notes to consolidated financial statements.
10/9/2028
10/5/2028
10/4/2028
9/28/2028
9/28/2043
9/28/2028
9/28/2028
9/28/2028
% of Net
Assets
322,226
0.02%
0.01%
0.04%
0.04%
—%
0.02%
0.03%
0.04%
—%
0.01%
0.02%
0.01%
—%
0.02%
0.01%
0.23%
0.30%
0.05%
0.01%
0.15%
57.9
53.9
136.9
123.4
9.3
68.5
75.6
57.9
53.9
136.9
123.4
9.3
68.5
75.6
51.9
47.4
142.4
114.0
8.1
75.6
82.0
5.4
22.3
69.6
37.9
13.9
88.2
48.3
811.9
928.1
165.9
53.0
494.2
5.4
22.3
69.6
37.9
13.9
88.2
48.3
811.9
928.1
165.9
53.0
494.2
5.1
23.2
72.0
40.7
12.1
76.4
41.8
728.8
977.9
145.4
46.3
471.5
Term Loan
Prime plus 2.75%
7/15/2029
147.6
147.6
131.1
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
154 Sandy Creek Rd, Verona, PA
15147
7130 Crater Lake, White City,
OR 97603
Transit and Ground Passenger
Transportation
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
9/28/2028
9/28/2043
9/28/2043
9/27/2028
9/27/2028
9/27/2028
1/27/2029
9/27/2028
9/27/2043
97.7
635.0
325.9
13.8
735.8
93.5
55.5
286.5
128.4
97.7
635.0
325.9
13.8
735.8
93.5
55.5
286.5
128.4
95.3
661.2
348.9
12.4
656.9
89.3
50.4
274.7
131.7
% of Net
Assets
322,226
0.03%
0.21%
0.11%
—%
0.20%
0.03%
0.02%
0.09%
0.04%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Support Activities for Mining
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
A-1 Van Sevices, Inc.
Throop Family Holdings, Inc
La Venezia Corporation dba La
Venezia Ballroom & Robertos
Lounge
LG Law Center, Inc
Blackwater Diving, LLC
Quality Electric & Data
Blue Seven, LLC
Action Barricade Company,
LLC and Barricade Holding
LLC
Quality Electric & Data Inc.
Catherine Brandon, PSY.D.,
Inc dba Kenneth A Deluca,
PH.D., & Associat
TFR Transit Inc, The Free Ride
Inc, South Florida Free Ride
Inc.,Tag-A
Dentistry By Design, P.C
US Shipping Trans Inc, Esteem
Trucking Inc
Above and Beyond Preschool
LLC
LTS School, Inc.
Anglin Cultured Stone
Products LLC dba Anglin
Construction
Ace Auto Recovery, Inc.
Bhatti LLC, Bhatti 3 LLC, dba
Auntie Annes
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Newsome Mobile Notary LLC (#,^)
4646 SE 11th Place, Cape Coral,
FL 33904
15452 Amar Rd, La Puente, CA
91744
112 Forrest Rd, Morgan City, LA
70380
85 Franklin Rd Unit 9B, Dover,
NJ 07801
11111 San Jose Blvd, Ste 70,
Jacksonville, FL 32223
1802 N 27th Ave, Phoenix, AZ
85009
85 Franklin RD Unit 9B, Dover,
NJ 07801
35888 Center Ridge Rd #5-6,
North Ridgeville, OH 44039
777 S Flagler Dr. Ste 800W, West
Palm Beach, FL 33401
315 Walt Whitman Rd, #204/5,
South Huntington, NY 11746
16102 Sweetwater Court,
Lathrop, CA 95330
672-678 Camellia Drive, Royal
Palm Beach, FL 33411
3731 NW 9th Ave, Deerfield
Beach, FL 33064
877 Salem Church Rd, Newark,
DE 19702
1209 North Lane Ave,
Jacksonville, FL 32254
7219 Silver Mist Ave, North
Chesterfield, VA 23237
8153 12th Ave SW, Seattle, WA
98106
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/27/2028
109.2
109.2
95.1
0.03%
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
8.25%
Administrative and Support
Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-51
See accompanying notes to consolidated financial statements.
9/27/2028
9/26/2028
9/26/2028
9/26/2043
9/26/2043
9/26/2028
9/26/2043
9/25/2028
9/25/2028
115.0
13.8
777.1
544.7
99.6
95.5
157.7
115.3
4.8
115.0
13.8
777.1
544.7
99.6
95.5
157.7
115.3
4.8
107.7
12.3
760.7
587.1
111.0
81.1
168.5
103.9
4.2
0.03%
—%
0.24%
0.18%
0.03%
0.03%
0.05%
0.03%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Steadfast Support Services,
LLC
(#,^)
Phillip Ramos Upholstery Inc.
(#,^)
DC Lofty, LLC,
Southern Services and
Equipment, Inc
Southern Services and
Equipment, Inc.
MillClem Corporation &
Monticello Corporation
The Garden Club, LLC
D & D Optics Inc dba Sterling
Optical
Tables and Bars Services, Inc
and Tables and Bars Rentals,
LLC
Sommer Auto Sales, Inc
Super Station Inc
Dash Point Distributing LLC,
Dash Point Logistics LLC and
Sara Consal
Watearth Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Lewis River Golf Course, Inc.
(#,^)
C3 Capital, Inc
(#,^)
M&P RV LLC dba M&P RV (#,^)
DB Talak LLC
E & G Enterprises LLC dba
Comfort Keepers
Glendale Grill Inc, Roddy
Cameron, Jr & John K
Symasko
Pastel de Feira LLC dba
Original Pastel De Feira
(#,^)
(#,^)
(#,^)
(#,^)
Nursing and Residential Care
Facilities
Accommodation
1432 Crooked Stick Drive,
O'Fallon, MO 63366
3835 Elm St., Denver, CO 80207 Repair and Maintenance
301 I St. NW, Washington, DC
20001
321 Bayou Rd, Saint Bernard,
LA 70085
321 Bayou Rd, Saint Bernard,
LA 70085
16660 Oak St., Dillwyn, VA
22936
125 South DuBuque St., Iowa
City, IA 52240
1487 East LaSalle Drive,
Bismark, ND 58503
Fabricated Metal Product
Manufacturing
Fabricated Metal Product
Manufacturing
Merchant Wholesalers,
Nondurable Goods
Miscellaneous Store Retailers
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
9/25/2028
9/24/2028
9/21/2028
9/21/2028
9/21/2043
9/21/2043
9/21/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2028
5051 Peachtree Corners Cir #200,
Norcross, GA 30092
8670 E. Main St., Reynoldsburg,
OH 43068
8855 N Country Rd 25A, Pique,
OH 45356
35000 Pacific Hwy, Federal Way,
WA 98003
445 S Figuerora Ste 3128, Los
Angeles, CA 90071
3209 Lewis River Rd, Woodland,
WA 98674
10010 N. Hampton Cove Lane,
Indianapolis, IN 46236
10 Century Lane, Dillsburg, PA
17019
2018 SE 6th Ave, Portland, OR
97214
220 Middle St., Franklin, VA
23851
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
65 Glendale St., Easthampton,
MA 01027
4244 Pine Ridge CT, Weston, FL
33331
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
9/20/2028
9/20/2028
9/19/2043
9/19/2028
9/19/2028
9/19/2043
9/19/2028
9/19/2043
9/18/2043
9/18/2028
9/17/2043
9/17/2028
F-52
See accompanying notes to consolidated financial statements.
9.7
14.2
20.7
402.2
207.9
326.0
6.2
49.7
16.6
329.4
207.4
432.2
20.7
491.9
621.2
110.7
149.5
5.5
172.2
5.6
9.7
14.2
20.7
402.2
207.9
326.0
6.2
49.7
16.6
329.4
207.4
432.2
20.7
491.9
621.2
110.7
149.5
5.5
172.2
5.6
% of Net
Assets
322,226
—%
—%
0.01%
0.12%
0.07%
0.11%
—%
0.01%
—%
0.11%
0.07%
0.12%
0.01%
0.17%
0.19%
0.04%
0.05%
—%
8.4
12.3
18.1
381.0
211.6
362.8
5.4
43.9
15.4
341.5
230.8
374.0
17.9
547.5
598.5
122.3
157.4
4.8
182.3
0.06%
5.2
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Culmination Motorsports, Inc.
(#,^)
Baby's on Broadway LLC
(#,^)
L&M Equipment, Inc
Innovim LLC
J & C Garcia LLC
QBS, LLC dba Sterling Optical
Exton
Rihahn Inc. dba RDBL, Inc
Underground Productions LLC
dba 31 Escape
Brewster Marketplace
Pharmacy & Hardware, LLC
Innovative Network Solutions
Inc
TPE Midstream LLC, Dasahm
Company, S & S Ventures LLC
and TPE Supply L
Rancho Paving, Inc
Pool Guard of LA
Dr. G's Urgent Care LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Pelican Executives Suites, LLC (#,^)
NY Tent, LLC dba Tent
Company of New York LLC,
NY Tent Parent LLC, Dav
MurlinComputerCompany
LLC dba Murlin Computer,
Asheville Spine and Nerve
Institute PC
(#,^)
(#,^)
(#,^)
160 W 91st Ave Unit B,
Anchorage, AK 99515
47 E Broadway, Little Falls, MN
56345
Mile 2.5 Alaska Peninsula Hwy,
Naknek, AK 99633
6401 Golden Triangle Dr. #200,
Greenbelt, MD 20770
26 Broad St., Alexander City, AL
35010
211 W Lincoln Hwy, Exton, PA
19341
1397 McGuire Rd, Lamar, AR
72846
1731 Decatur Hwy, Fultandale,
AL 35068
811 Old Hwy 97, Brewster, WA
98812
31567 West 10 Mile Rd,
Farmington Hills, MI 48336
7799 South Regency Drive,
Tulsa, OK 74131
339 Cypress Lane, El Cajon, CA
92020
10866 Washington Blvd, Apt.
#24, Culver City, CA 90232
1425 S Congress Ave, Delray
Beach, FL 33445
2200 Colorado Ave Ste 131,
Santa Monica, CA 90404
140141 Lakeland Ave, Bohemia,
NY 11716
3000 Erika Ave, Sedalia, MO
65301
190 Broadway St., Ste 205,
Asheville, NC 28801
Repair and Maintenance
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Forestry and Logging
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
F-53
See accompanying notes to consolidated financial statements.
9/17/2043
9/14/2028
9/14/2043
9/14/2028
9/14/2028
9/14/2028
9/14/2028
9/13/2043
9/13/2028
9/13/2028
9/13/2028
9/10/2028
9/7/2028
9/7/2028
9/7/2028
9/7/2028
9/7/2028
9/7/2043
% of Net
Assets
322,226
0.19%
0.01%
0.41%
0.03%
0.02%
0.02%
0.04%
0.03%
0.02%
0.03%
0.07%
0.05%
0.01%
0.01%
0.08%
550.5
46.0
550.5
46.0
608.3
43.0
1,229.8
1,229.8
1,314.4
115.0
115.0
68.1
74.7
68.1
74.7
126.2
126.2
97.2
80.5
97.2
80.5
113.9
113.9
243.8
172.5
20.7
20.7
243.8
172.5
20.7
20.7
99.4
60.4
65.3
117.5
108.2
69.6
101.9
228.9
170.4
18.0
18.0
285.7
285.7
247.0
296.7
296.7
281.1
0.09%
14.3
89.6
14.3
89.6
12.8
98.7
—%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Trolley Express Philly, Inc dba
Shuttlebee &Honeybee
Transportation LL
LACCRB LLC dba PostNet
Living Centers Inc. dba
Veranda House Senior Living
National Stone LTD and NSI
Group Inc
XL Soccer World Orlando.
LLC, XL Soccer World Saco
LLC, XL Sports Worl
Stat Constructor L.P
Extreme Engineering, Inc.
Kotyark LLC dba Gibsonton
Motel
ARVAmethod LLC
Greenfield Hill Wines &
Spirits, LLC
Graphish Studio, Inc.
JFK Transportation Inc
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Atlas Geo-Constructors LLC
(#,^)
Montana Life Group, LLC
(#,^)
Finn & Emma LLC
Wearware Inc dba FlyWire
Cameras
Evans and Paul LLC, Evans &
Paul Unlimited Corp
Zash LLC dba Papa Murphy's
take 'N' Bake Pizza
Buffalo Biodiesel Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
3401 Market St. Ste 200,
Philadelphia, PA 19104
3250 Retail Dr Ste 120, Carson
City, NV 89706
5129 E 5th St, Katy, TX 77493
804-810 W Shady Grove Rd,
Grand Prairie, TX 75050
825 Courtland St., Orlando, FL
32804
9573 US Hwy 220, Stoneville,
NC 27048
598 Oliver Dr, Troy, MI 48084
11545 US Hwy 41S, Gibsonton,
FL 33534
516 N Ogden Ave #150, Chicago,
IL 60642
65 Hillside Rd, Fairfield, CT
06824
231 Main St., Stamford, CT
06901
4 Mechanic St, Natick, MA
01760
3466 Thomasville Rd, Winston-
Salem, NC 27107
8 N 9th Ave, Bozeman, MT
59715
1275 Bloomfield Ave Bldg 5
Unit 28B, Fairfield, NJ 07004
2204 Blackmoor Park Lane,
Lexington, KY 40509
140 Dupont St., Plainview, NY
11803
2303 White Bear Ave,
Maplewood, MN 55025
225 Sawyer Ave, Tonawanda,
NY 14150
% of Net
Assets
322,226
—%
—%
0.14%
0.09%
0.15%
0.03%
0.03%
0.03%
—%
0.02%
—%
0.04%
0.02%
—%
0.03%
0.01%
0.02%
0.01%
0.35%
11.7
14.0
414.4
270.0
442.1
95.2
114.7
81.1
2.2
84.1
6.9
11.7
14.0
414.4
270.0
442.1
95.2
114.7
81.1
2.2
84.1
6.9
10.7
12.3
461.2
301.7
492.1
98.8
100.2
90.2
1.9
73.6
5.9
147.9
147.9
130.7
68.5
6.9
68.5
6.9
113.4
113.4
20.6
79.9
38.6
20.6
79.9
38.6
68.2
5.9
98.1
18.2
71.5
35.6
1,134.1
1,134.1
1,125.0
8/31/2043
8/31/2044
8/30/2043
8/30/2028
8/29/2028
8/29/2043
8/29/2028
8/29/2028
8/28/2028
8/28/2028
8/24/2028
8/24/2028
8/24/2028
8/24/2028
8/24/2028
8/23/2028
8/21/2028
Support Activities for
Transportation
Printing and Related Support
Activities
Nursing and Residential Care
Facilities
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
9/6/2028
Term Loan
Prime plus 2.75%
11/30/2028
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Insurance Carriers and Related
Activities
Clothing and Clothing
Accessories Stores
Computer and Electronic Product
Manufacturing
Miscellaneous Manufacturing
Food Services and Drinking
Places
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-54
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Ginekis Enterprises, Inc dba
Locanda Veneta
Wilkie J. Stadeker DDS
Geo Tek Alaska, Inc
ATI Jet, Inc.
Lewins Law, P.C.
GS Bath Inc
Pamletics LLC dba F45
L.A. Insurance Agency GA 10
LLC
David D. Sullivan dba DMS
Construction
Crystal Shores Inc. dba
Shorewood Laundromat
Palanuk & Associates, Inc.dba
Wolfpk
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Mercedes Cab Company, Inc
(#,^)
(#,^)
(#,^)
(#,^)
CJNR, LLC
Ron's Pool and Spa Services
LLC
20th Century Lanes, Inc dba
West Seattle Bowl
Alma Jacobsen,ODD Family
Eye Care & Contact Lens LLC (#,^)
Millwork Unlimited,
Incorporated
Accel Compression Inc., Accel
Workover Services, Inc
Samy Optical LLC dba Site for
Sore Eyes
Accel Compression Inc., Accel
Workover Services Inc. dba
Mica Tool & T
(#,^)
(#,^)
(#,^)
(#,^)
8638 W Third St., Los Angeles,
CA 90048
123 Marble Mill Rd, Ste B,
Marietta, GA 30060
2756 Commercial Drive,
Anchorage, AK 99501
7007 Boeing Drive, El Paso, TX
79925
7920 Belt Line Rd Ste 650,
Dallas, TX 75254
5335 E Kaviland Ave, Fresno,
CA 93725
22015 IH 10 West, San Antonio,
TX 78257
6655 Tara Blvd Ste 401,
Jonesboro, GA 30236
6400 Charwood Place,
Bakersfield, CA 93306
700 West Jefferson St.,
Shorewood, IL 60404
28110 SE Fern Drive, Boring,
OR 97009
35 Alden St., Providence Town,
MA 02657
208 East Main St., Elma, WA
98541
1419 NE 30th St., Pompano, FL
33064
4505 39 Ave SW, Seattle, WA
98116
1700 Nottingham Way Ste 12A,
Hamilton, NJ 08619
8264 Pine Cay Rd, Wellington,
FL 33414
4500 S Country Rd, Odessa, TX
79765
1350 Travis Blvd Ste 1507A,
Fairfield, CA 94533
4500 S. Country Rd 1310,
Odessa, TX 79765
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Air Transportation
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
8/20/2028
8/17/2028
2/17/2044
8/16/2028
8/16/2028
8/15/2028
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
11/14/2028
Term Loan
Prime plus 2.75%
8/10/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Health and Personal Care Stores
Wholesale Electronic Markets
and Agents and Brokers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
8/9/2028
8/9/2028
8/8/2028
8/7/2028
8/7/2043
8/3/2028
8/3/2028
8/3/2028
8/2/2028
8/1/2043
8/1/2028
78.5
38.8
125.9
196.7
16.4
525.3
40.1
10.3
12.3
20.4
93.8
118.8
119.6
3.4
102.8
55.1
6.9
305.8
101.7
78.5
38.8
125.9
196.7
16.4
525.3
40.1
10.3
12.3
20.4
93.8
118.8
119.6
3.4
102.8
55.1
6.9
305.8
101.7
68.3
33.6
133.8
187.6
14.2
520.5
36.7
8.9
10.7
18.5
81.9
106.6
133.2
3.0
100.6
48.5
5.9
316.8
88.0
% of Net
Assets
322,226
0.02%
0.01%
0.04%
0.06%
—%
0.16%
0.01%
—%
—%
0.01%
0.03%
0.03%
0.04%
—%
0.03%
0.02%
—%
0.10%
0.03%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/1/2028
422.7
422.7
409.5
0.13%
F-55
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
CSL Services Inc
Nunez Enterprises Corporation
dba La Casa
Sandlot Sports Inc dba Play it
Again Sports
Summitsoft Corporation
Relevant Elephant ,LLC
Fitness Central, Inc dba Fitness
Central
HAVL Enterprises Inc dba
FedEx
Top Shelf Towing and Road
Service, LLC
TR Nails, LLC dba Simple
Nails
ZA Trucking LLC
674 Club LLC
Mother's Cantina LLC dba
Mother's Cantina
Smart-tel Communications
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
HQTRONICS LLC
Smoove Move Productions,
LLC dba Smoove Move
Productions
Talent Logistix, LLC, Pinpoint
Staffing LLC & ITC 2.0 LLC (#,^)
Vital Inspection Professionals,
Inc. dba VIP
(#,^)
(#,^)
Deal to Win Inc
(#,^)
7905 Browning Rd,
Ste.312,314,316, Pennsauken, NJ
08109
3330 Piedmont RD NE, Atlanta,
GA 30305
814 N Main St., Leominster, MA
01453
11105 Mockingbird Drive,
Omaha, NE 68137
ON320 Woodvale St, Winfield,
IL 60190
4335 PA Route 309,
Schnecksville, PA 18078
1447 Lake George Drive, Lake
Mary, FL 32746
25 Sycamore St., Carnegie, PA
15106
158 Great Rd, Bedford, MA
01730
5945 York Way, East Lansing,
MI 48823
674 N Orleans, Chicago, IL
60654
2810 Philadephia Ave Unit #10,
Ocean City, MD 21842
9720 W. Colfax Ave Ste 100,
Lakewood, CO 80215
10135 S Roberts Rd Ste 209,
Palos Hills, IL 60465
3932 North 16th St., Omaha, NE
68110
6350 Shadeland Ave, Indianpolis,
IN 46220
180 Airpark Industrial Rd,
Alabaster, AL 35007
575 Underhill Blvd Ste 216,
Syosset, NY 11791
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Publishing Industries (except
Internet)
Professional, Scientific, and
Technical Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Couriers and Messengers
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
7/27/2028
7/26/2028
7/26/2028
7/26/2028
7/25/2028
7/25/2028
7/24/2028
7/24/2028
7/20/2028
7/17/2028
7/17/2043
7/13/2028
7/13/2028
7/13/2028
Motion Picture and Sound
Recording Industries
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
7/12/2028
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
7/3/2028
7/3/2028
7/3/2028
Nonstore Retailers
Term Loan
Prime plus 2.75%
F-56
See accompanying notes to consolidated financial statements.
496.8
496.8
460.0
0.14%
7.5
17.0
7.5
17.0
6.5
14.7
—%
—%
117.4
117.4
102.0
0.03%
8.2
56.7
17.8
11.9
56.6
9.3
8.2
56.7
17.8
11.9
56.6
9.3
7.1
50.3
18.5
10.4
49.0
8.8
256.9
256.9
285.9
62.4
20.4
56.7
9.6
56.7
282.4
113.4
62.4
20.4
56.7
9.6
56.7
282.4
113.4
55.1
21.2
49.0
9.9
51.0
272.0
98.1
—%
0.02%
0.01%
—%
0.02%
—%
0.09%
0.02%
0.01%
0.02%
—%
0.02%
0.08%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
US Cargo Express, LLC
M J Losito Electrical
Contractor's, Inc
Bio-Haz Solutions, Inc
Bio-Haz Solutions, Inc.
Critter Cabana, LLC dba
Critter Cabana
Corptek Solutions LLC
Julie Cooper-Bierman dba
Forever Shopper
National Dredging Services of
North Florida, Inc.
Darnoc Enterprises Inc, Setira
Paul Inc dba Conrad's Famous
Bakery, In
InUSA Ventures, Inc
National Dredging Services of
North Florida, Inc.
RLW4 Builders LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Nick's Country Kitchen, LLC (#,^)
Bengals, Inc. dba Royal Liquor
Mart
Peter Thomas Roth Labs LLC,
& June Jacobs Labs, LLC,
(#,^)
(#,^)
Sun Pools, Inc
DPF Filters Inc.
Sun Pools, Inc dba Sun
Fiberglass Pools
Mr. Lube, Inc
Mr. Lube, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4735 22 Mile Rd, Utica, MI
48317
Support Activities for
Transportation
Waste Management and
Remediation Services
Waste Management and
Remediation Services
98 Wooster St., Bethel, CT 06801 Specialty Trade Contractors
23 Tonolli Rd, Nesquehoning, PA
18240
23 Tonoli Rd, Nesquehoning, PA
18240
516 East Main St., Newberg, OR
97132
2363 N Hwy 287 Ste 111,
Mansfield, TX 76063
7435 Piute Creek Dr, Corona, CA
92881
1537 Northwest Main Blvd.,
Lake City, FL 32055
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Repair and Maintenance
Nonstore Retailers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
7/2/2043
6/29/2028
3/29/2029
5/29/2044
6/28/2028
6/28/2028
6/27/2028
6/27/2028
86.9
46.7
236.8
365.2
75.5
42.8
14.5
48.2
86.9
46.7
236.8
365.2
75.5
42.8
14.5
48.2
96.8
43.6
239.9
382.2
69.2
39.2
13.2
50.5
299 Utica Ave, Brooklyn, NY
11203
508 Hyacinthus Court, San
Ramon, CA 94582
1537 Northwest Main Blvd.,
Lake City, FL 32055
152 Tuckahoe Lane,
Southhampton, NY 11968
3 Flanders RD, Building #1,
Bethlehem, CT 06751
3714 E State St., Rockford, IL
61108
460 Park Ave, Fl 16, New York,
NY 10022
130 Holiday LN, Albany, KY
42602
2832 Golden State Blvd.,
Madera, CA 93637
130 Holiday Lane, Albany, KY
42602
721 E Westpoint Drive., Wasilla,
AK 99654
721 E. West Point Drive, Wasilla,
AK 99654
Food Manufacturing
Term Loan
Prime plus 2.75%
6/27/2043
347.4
347.4
385.0
0.12%
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Plastics and Rubber Products
Manufacturing
Merchant Wholesalers, Durable
Goods
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
F-57
See accompanying notes to consolidated financial statements.
6/27/2028
6/27/2043
6/27/2043
6/27/2028
6/26/2043
6/26/2028
6/25/2043
6/25/2028
6/25/2028
6/22/2043
6/22/2028
45.1
28.3
980.0
20.3
104.1
833.7
299.9
62.0
704.2
654.6
542.6
45.1
28.3
980.0
20.3
104.1
833.7
299.9
62.0
704.2
654.6
542.6
41.2
32.1
1,112.0
18.8
113.1
783.0
308.5
58.0
665.2
698.2
534.1
0.01%
0.01%
0.35%
0.01%
0.04%
0.24%
0.10%
0.02%
0.21%
0.22%
0.17%
% of Net
Assets
322,226
0.03%
0.01%
0.07%
0.12%
0.02%
0.01%
—%
0.02%
% of Net
Assets
322,226
0.03%
0.07%
—%
0.05%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
The Desert House Assisted
Living ,LLC dba The Desert
House Assisted Li
Sushi Prime, LLC and Vasilia
Investments
Judy E. Moncrief C.P.A LLC
Martha Beauty Supply And
Braiding, Inc.
Independent Life LLC
York Woods Tree Service, LLC
dba York Woods Tree and
Products, LLC
York Woods Tree Service, LLC
dba York Woods Tree and
Products, LLC
Lilo Holdings LLC
Colovic Hackettstown Dairy
LLC
Mid America Motorworks, Inc
and Yager Holdings L.P
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Jones Roger Sherman Inn, Inc.
(#,^)
Schumacker Recreation, LLC (#,^)
Allen Theatre and Back Stage
Cafe LLC
Softrol Systems Inc dba Softrol
Systems
(#,^)
(#,^)
Oil Palace Inc.
Venzix Ventures Inc. dba
Venzix
Dianne Williams and Louis
Williams dba Sweetlips Store
Northway Exit 29
Campground, Inc dba
Adirondacks Jellystone Parks
& Pa
(#,^)
(#,^)
(#,^)
(#,^)
11055 E Grove St, Mesa, AZ
85208
32 SE 2nd Ave, Delray Beach,
FL 33444
910 Pierremont Rd, Ste311,
Shreveport, LA 71106
538 E Boughton Rd,
Bolingbrook, IL 60440
4955 S Durango Dr. #124, Las
Vegas, NV 89113
Nursing and Residential Care
Facilities
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/22/2043
6/22/2028
6/22/2028
6/22/2043
6/21/2028
77.1
248.3
8.3
138.8
112.9
77.1
248.3
8.3
138.8
112.9
85.5
238.5
7.6
157.3
103.4
300 Harold Dow Hwy, Elliot, ME
03903
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
6/21/2043
238.6
238.6
257.7
0.08%
300 Harold Dow Hwy, Eliot, ME
03903
933 Port Reading Ave, Port
Reading, NJ 07064
22 Route 57, Hackettstown, NJ
07840
2900 North 3rd St., Effingham,
IL 62401
195 Oenoke Ridge, New Canaan,
CT 06840
5325 S University Drive, Davie,
FL 33328
36 East. Main St., Annville, PA
17003
1100 Northpoint Pkwy SE,
Acworth, GA 30102
10408 Hwy 64 E, Tyler, TX
75707
750 Legend Oak Drive, Fountain,
CO 80817
3870 Sweet Lips Rd, Henderson,
TN 38340
4035 Blue Ridge Rd, North
Hudson, NY 12855
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Motion Picture and Sound
Recording Industries
Computer and Electronic Product
Manufacturing
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/21/2028
6/20/2028
6/19/2043
6/19/2043
6/19/2028
6/18/2028
6/18/2043
6/15/2028
9/15/2043
6/15/2028
6/15/2043
128.4
16.9
269.9
494.4
395.7
135.2
123.5
794.7
142.2
11.9
45.3
128.4
16.9
269.9
494.4
395.7
135.2
123.5
794.7
142.2
11.9
45.3
128.2
15.8
304.6
560.4
414.3
141.5
137.8
736.6
161.4
11.9
50.0
0.04%
—%
0.09%
0.17%
0.13%
0.04%
0.04%
0.23%
0.05%
—%
0.02%
Accommodation
Term Loan
Prime plus 2.75%
6/15/2043
211.9
211.9
240.2
0.07%
F-58
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Barrett Appliance Distributors
Inc. dba Barrett Appliance and
Home Pr
Barrett Appliance Distributors,
Inc dba Barrett Appliance and
Home Pr
E & J Sims Co. LLC
Tele Tax Express Inc
Team Sandy Blanton Realty,
Inc
Mastiff Studios LLC
Ciasom LLC dba Mosaic
Skyways LTD,Jet 60
LLC,Mendean Jonath, Inc,Jet
AOG, Inc & Jonathan Men
Beyond Grooming LLC and
Michelle McWatters
Camp K-9 Pet Resort & Spa,
Inc.
Icebox Cafe, L.C. and Icebox
Cafe at Doral,LLC
Applied Behavioral
Consulting, Inc
H S Corporation dba Lake
Anna Lodge
Anurag, LLC dba Oakwood
Package Store
Sowells Consulting Engineers,
LLC
Hardway Inc and A F C
Leasing, Inc
Funtime ,LLC dba Indoor
Playgrounds International
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
SSD Designs LLC
BTD Feed & Nutrition, LLC
dba Thomaston Feed Cheshire (#,^)
(#,^)
1760 Swan Lake Rd, Bossier
City, LA 71111
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/14/2043
614.2
614.2
641.2
0.20%
1760 Swan Lake Rd, Bossier
City, LA 71111
28 Broad St., Bloomfield, NJ
07003
166 Getty Ave, Paterson, NJ
07503
1225 West Gregory St,
Pensacola, FL 32502
2919 West Colorado Ave,
Colorado Springs, CO 80904
1040-1042 Richard Ave, Santa
Clara, CA 95050
426 15th St. NW, Huron, SD
57350
1200 Old Martindale Rd, San
Marcos, TX 78666
18501 Le Claire Ave, Tinley
Park, IL 60478
1855 Purdy Ave, Miami Beach,
FL 33139
422 Blooming Grove Tpke, New
Windsor, NY 12553
5152 Courthouse Rd,
Spotsylvania, VA 22551
191-195 Oakwood Ave, West
Hartford, CT 06107
13430 Northwest Freeway #260,
Houston, TX 77040
12533 S. 73rd East Place, Bixby,
OK 74008
13200 West Foxfire Drive Ste
144, Surprise, AZ 85378
10840 Bay Hill Club Drive,
Charlotte, NC 28277
943 South Main St., Cheshire,
CT 06410
Merchant Wholesalers, Durable
Goods
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Accommodation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
F-59
See accompanying notes to consolidated financial statements.
6/14/2028
6/14/2028
6/14/2028
6/14/2043
6/13/2043
6/11/2028
6/8/2043
6/8/2043
6/8/2028
6/8/2028
6/7/2043
6/7/2043
6/6/2043
6/6/2028
6/6/2028
6/5/2028
6/5/2028
6/1/2028
468.7
468.7
450.0
45.1
20.3
95.6
41.9
45.1
20.3
95.6
41.9
162.2
162.2
42.6
20.4
101.3
47.1
149.3
370.6
370.6
396.9
42.1
7.4
713.4
49.0
128.6
135.0
20.3
265.0
225.4
66.9
46.3
42.1
7.4
713.4
49.0
128.6
135.0
20.3
265.0
225.4
66.9
46.3
47.3
6.9
664.6
54.8
145.8
144.7
18.7
242.5
206.5
61.8
42.4
0.14%
0.01%
0.01%
0.03%
0.01%
0.05%
0.12%
0.01%
—%
0.21%
0.02%
0.05%
0.04%
0.01%
0.08%
0.06%
0.02%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Mastrocinque Restaurant
Management Company LLC
dba Santionii's Itali
Awan Business Management
Group LLC, Awan Sign
Company lLLC &Awan Promo (#,^)
(#,^)
Seraj Wireless, LLC
Brooks Seaplane Service Inc
and Lunt Enterprises LLC
SSMV LLC dba Burgerim
Eagle Aggregate
Transportation, LLC
Crowley Ventures, LLC
Iloka, Inc dba New Cloud
Networks
Dream Spa LLC and Dream
Spa Greenwich LLC
Broadalbin Properties LLC dba
Broadalbin Hotel & 1854 Pub
& Eatery
Adow Pools LLC
Ocean Breeze Holdings, LLC,
Ocean Beach Resort LLC &
Ocean Breeze LanC
Starship, LLC dba Tint World
Smyrna
DMA Equipment LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Seaside Acupuncture LLC
(#,^)
Chem-Flotronics, Inc.
Yakov Levy M.D., P.C.
Mark A Espinoza, DDS PLLC
dba Central Dental Care
(#,^)
(#,^)
(#,^)
3535 Hwy 17 Unit 14-15,
Fleming Island, FL 32003
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/1/2028
56.5
56.5
57.5
0.02%
14429 South Wallin Drive,
Plainfield, IL 60544
132 Madison Ave, Albany, NY
12202
105 Northern Blvd, Coeur
d'Alene, ID 83814
115 Pelham Rd, Ste 1,
Greenville, SC 29615
4401 N I-35 Ste 113, Denton, TX
76207
665 Worthington Rd, Westerville,
OH 43082
160 Inverness Drive W Ste 150,
Englewood, CO 80112
1220 Post Rd East, Westport, CT
06880
59 West Main St, Broadalbin, NY
12025
393 Glenbrook Rd, Stamford, CT
06906
3 Williams Ave, Mystic, CT
06355
2274 S Atlanta Rd SE, Smyrna,
GA 30080
700 Lee St., Elk Grove Village,
IL 60007
1041 Johnnie Dodds Blvd #2C,
Mt Pleasant, SC 29464
195 Paterson Ave, Little Falls, NJ
07424
70-31 108th St., Forest Hills, NY
11375
9315 N Central Ave, Phoenix,
AZ 85020
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Electronics and Appliance Stores Term Loan
Prime plus 2.75%
Scenic and Sightseeing
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/31/2043
5/31/2028
5/31/2028
5/30/2028
5/30/2028
5/29/2028
5/25/2028
5/25/2028
Accommodation
Term Loan
Prime plus 2.75%
10/25/2043
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/25/2028
270.8
111.9
132.3
59.6
78.5
66.8
223.7
89.5
199.4
156.6
270.8
111.9
132.3
59.6
78.5
66.8
223.7
89.5
199.4
156.6
298.3
117.1
121.1
58.7
74.9
62.0
215.7
82.8
226.5
146.5
Accommodation
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/25/2043
5/25/2043
5/24/2043
5/24/2043
5/22/2028
5/18/2028
5/18/2028
1,245.1
1,245.1
1,411.3
96.6
255.7
48.9
89.5
32.8
54.6
96.6
255.7
48.9
89.5
32.8
54.6
107.9
275.6
53.6
83.5
30.3
49.9
0.09%
0.04%
0.04%
0.02%
0.02%
0.02%
0.07%
0.03%
0.07%
0.05%
0.44%
0.03%
0.09%
0.02%
0.03%
0.01%
0.02%
F-60
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
JVLS LLC dba Vaccines 2 Go (#,^)
On Stage Enterprises LLC, On
Stage Theaters Branson, LLC,
On Stage Th
(#,^)
Clore Construction LLC
Joshua One Limited Liability
Company dba Genesis
Personal Fitness
James T. Hendel dba Autotexx
Mobile Auto Repair
Fireplace Outlet Inc
Galore Salon & Extension
Lounge Inc dba Pretty Chic
Hair & Lashes
Circle and Square, Inc dba
Stamford Kumon
Bote Virginia Beach, Inc. dba
Bote Virginia Beach
Daniel Woodward, DC PLLC
dba Doc's Body Shop
Adhara, LLC
Baby Gentry's Childcare &
Learning Academy
P & M Entertainment, LLC
dba Luv 2 Play
Buy Gitomer Inc., Gitgo
LLC.,GitGo Archives, LLC,
and Jeffrey Gitomer
Whitetail Nurseries Inc
Oculi Entertainment Inc
Schmaltz Operations LLC dba
Companion Camp
Container Shipping, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4060 Johns Creek Parkway Ste
H, Suwanee, GA 30024
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/17/2028
7.4
7.4
6.8
—%
4570 W Post Rd, Ste 100, Las
Vegas, NV 89118
21220 FM 1420, Harlingen, TX
78550
Performing Arts, Spectator
Sports, and Related Industries
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
28 North State St. Unit 100,
Newtown, PA 18940
5857 Hwy 101 N, Rockmart, GA
30153
8216 Main St., Williamsville, NY
14221
5714 Edmondson Pike Ste 24,
Nashville, TN 37211
50 Forest St. Ste 902, Stamford,
CT 06901
1080 Nimmo Pkwy Ste 104,
Virginia Beach, VA 23454
3084 N Goliad St., Ste 114,
Rockwall, TX 75087
18123 E Appleway Ave, Spokane
Valley, WA 99016
4203 Shenandoah Drive, Dayton,
OH 45417
35 Lafayette Rd, Ste 8, North
Hampton, NH 03862
310 Arlington Ave Unit 329,
Charlotte, NC 28203
2050 S. Beltline Rd, Mesquite,
TX 75181
2000 W. Magnolia Blvd, Ste 100,
Burbank, CA 91506
3408 Castle Rock Farm Rd,
Pittsboro, NC 27312
533 Nova Rd Ste 213B, Ormond
Beach, FL 32174
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Motion Picture and Sound
Recording Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
F-61
See accompanying notes to consolidated financial statements.
5/17/2028
5/16/2028
5/16/2043
5/15/2028
5/15/2028
5/14/2028
5/11/2028
5/11/2028
5/11/2028
5/11/2043
5/10/2028
5/10/2028
5/9/2043
5/9/2028
5/8/2028
5/7/2028
5/4/2028
223.7
134.1
223.7
134.1
204.8
128.8
0.06%
0.04%
314.4
314.4
336.4
0.10%
6.7
20.1
4.0
38.0
10.1
36.8
42.9
10.1
6.7
20.1
4.0
38.0
10.1
36.8
42.9
10.1
7.0
21.1
3.7
34.8
9.3
33.7
47.0
9.3
—%
0.01%
—%
0.01%
—%
0.01%
0.01%
—%
108.6
108.6
103.2
0.03%
711.1
239.4
19.9
53.7
44.7
711.1
239.4
19.9
53.7
44.7
806.0
236.0
18.3
53.0
41.0
0.25%
0.07%
0.01%
0.02%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Wilbur Standford Jr Trucking
and Excavating, LLC
McIntosh Trail Management
Service Organization, Inc.
Olmsted LLC and 626 Van
LLC dba Maison Yaki
Metropolitan Solutions Inc.
Brenden Kehren Development
LLC
Saltamontes Tire Company,
LLC
Corona Dance, LLC dba
Huracan Dance Studio
Sunlinc Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Rory James Contracting LLC (#,^)
Suraj Enterprises, Inc.
Little Angels Daycare and
Learning Center LLC
(#,^)
(#,^)
Kastoria Inc. dba Bantam Pizza (#,^)
RWT Corporation dba Welding
Works
(#,^)
Pledge 4 Hope LLC
Matrix Z, LLC
K&S Hardware LLC
LMH Optics LLC dba Sterling
Optical
RWT Corporation dba Welding
Works
Joe & Sons Service, Inc
Spitnale's Garage LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
7505 North Chases Lake Rd,
Watson, NY 13343
747 South Hill St., Griffin, GA
30223
659 Vanderbilt Ave, Brooklyn,
NY 11238
1420 Chestnut St., Portsmouth,
VA 23704
14689 Gemara Rd, Sparta, WI
54656
1955 Boston Ave, Brodgeport,
CT 06604
480 West Main St., Stamford, CT
06902
170 Canterbury Court, East
Windsor, NJ 08520
33 Bennett Place, Amityville, NY
11701
11720 W. Airport Rd, Meadows
Place, TX 77477
4551 Summit Boulevard, West
Palm Beach, FL 33415
768 Bantam Rd, Bantam, CT
06750
32 New Rd, Madison, CT 06443
53 Bayberry Loop South, Purvis,
MS 39475
800 SW 21st Terrace, Ft
Lauderdale, FL 33312
1865 W Wayzata Blvd, Long
Lake, MN 55356
1272 Smallwood Dr West,
Waldorf, MD 20603
32 New Rd, Madison, CT 06443
855 Atwood Ave, Cranston, RI
02920
3761 Mahoning Ave,
Youngstown, OH 44515
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Data Processing, Hosting, and
Related Services
Nonmetallic Mineral Product
Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Repair and Maintenance
Repair and Maintenance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-62
See accompanying notes to consolidated financial statements.
5/3/2028
5/1/2028
2/1/2029
4/30/2043
4/30/2028
4/30/2043
4/30/2028
4/30/2028
4/27/2028
4/27/2028
4/27/2043
4/27/2028
4/26/2028
4/26/2028
4/26/2028
4/26/2028
4/26/2028
4/26/2043
4/24/2028
4/20/2043
214.8
85.0
220.4
173.3
2.7
100.2
10.6
8.7
14.3
277.6
157.1
13.3
461.5
13.3
68.0
20.0
44.4
207.8
100.0
59.0
214.8
85.0
220.4
173.3
2.7
100.2
10.6
8.7
14.3
277.6
157.1
13.3
461.5
13.3
68.0
20.0
44.4
207.8
100.0
59.0
% of Net
Assets
322,226
0.07%
0.03%
0.06%
0.06%
—%
215.6
89.0
207.4
178.5
2.4
110.1
0.03%
9.7
7.9
13.1
271.3
178.0
12.3
439.2
12.2
69.2
18.3
40.7
215.1
104.6
64.3
—%
—%
—%
0.08%
0.06%
—%
0.14%
—%
0.02%
0.01%
0.01%
0.07%
0.03%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Just for Boats LLC
Nando LLC dba Tall Timbers
Banquet and Conference
Center
Rosemarie Products Company
LLC
James L Shoemaker APCC
A New Dawn Psychotherapy
Associates, LLC
Veterinary Preventive Care,
LLC
Means Enterprises LLC
Southern HVAC LLC
Southern Oaks Athletic Club,
LLC
Southern HVAC LLC
1301 Starks Inc.
Patricia A. Freeman & Samuel
C. Freeman dba Teenas Pizza
Precision Components Group
Inc
Sexy Nails Center LLC
Mark Baker
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Innovation Transport LLC
(#,^)
Newsome Mobile Notary LLC (#,^)
Shree Lakshminarayyn
Grocery Stores LLC
(#,^)
Bean City Bar and Grill LLC
(#,^)
Alaska Industrial Paint LLC
(#,^)
459 Dupre Rd, McClellanville,
SC 29458
13831 National Rd SW,
Reynoldsburg, OH 43068
5400 Crooked Tree Drive,
Mason, OH 45040
221 W Judge Perez Drive,
Chalmette, LA 70043
308 E Broad St., Bethlehem, PA
18018
945 Riverview Ct, Xenia, OH
45385
4150 Legacy Drive N Ste 412,
Frisco, TX 75034
119 Ouachita 212, Camden, AZ
71701
15253 Shenandoah Ave, Baton
Rouge, LA 70817
119 Ouachita 212, Camden, AR
71701
1301 West Atkinson Ave,
Milwaukee, WI 53206
35 E Main St., Pekin, IN 47165
190 Doty Circle, West
Springfield, MA 01089
57 Passaic St., Garfield, NJ
07026
1653 Evalie Dr, Fairfield, OH
45014
1 International Blvd, Ste 400,
Mahwah, NJ 07495
8153 12th Ave SW, Seattle, WA
98106
3307 Charles St., Rockford, IL
61108
N 2505 Bean City Rd, New
London, WI 54961
229 Whitney Rd, Unit B,
Anchorage, AK 99501
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2043
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/20/2028
4/18/2028
4/18/2028
4/18/2043
4/18/2028
4/18/2028
4/17/2043
4/17/2043
4/17/2028
4/16/2028
4/13/2043
4/11/2028
4/10/2043
4/9/2028
4/6/2028
4/5/2028
4/5/2043
4/4/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/30/2043
F-63
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
19.4
0.01%
17.2
18.0
13.3
14.3
85.5
41.5
6.7
22.0
17.2
18.0
13.3
14.3
85.5
41.5
6.7
22.0
16.9
12.2
13.1
91.3
39.3
6.2
23.3
358.7
358.7
400.5
35.2
20.0
42.5
20.0
35.2
20.0
42.5
20.0
34.4
20.7
46.5
19.7
197.9
197.9
221.7
10.7
45.5
4.7
117.3
80.8
217.7
10.7
45.5
4.7
117.3
80.8
217.7
10.1
44.9
4.3
129.2
90.5
239.1
0.01%
—%
—%
0.03%
0.01%
—%
0.01%
0.12%
0.01%
0.01%
0.01%
0.01%
0.07%
—%
0.01%
—%
0.04%
0.03%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Fifth Wheel Truck Stop 001
(#,^)
Alaska Industrial Paint LLC
Michael S Brown Physical
Therapy, P.C
Romancing the Stone
B&C Texas Leasing Inc.,M &
W Hot Oill, Inc
(#,^)
(#,^)
(#,^)
(#,^)
Master Roofing and Siding Inc. (#,^)
Boulevard Books Inc.
GQ Investments,LLC
B&C Texas Leasing Inc and
M&W Hot Oil, Inc.
Payne's Environmental
Services LLC
Technical Ordnance
Solutions,LLC
America's Little Leaders
Academy, Inc
Kaz Wellness, LLC dba
Grounded Wellness Center
Hot Shot Services, Inc and
TFB, Ltd Co
Lou & Choo Enterprises Inc.
Cartwright Termite & Pest
Control Inc. and Cartwright
Termite &Pest Co
Corning Lumber Company Inc
& Frank R Close & Son Inc
dba True Valley C
Clancy 15 LLC and Allied
Molded Products LLC
Clancy 15 LLC and Allied
Molded Products LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
3767 S Golden State Blvd,
Fresno, CA 93725
229 Whitney Rd, Unit B,
Anchorage, AK 99501
300 Hempstead Tpke Ste. 3 & 4,
Hempstead, NY 11552
140 Centre of New England
Blvd, Coventry, RI 02816
8124 Sprague Rd, Odessa, TX
79764
25 Robert Pitt Dr Ste 213,
Monsey, NY 10952
1195 Castleton Ave, Staten
Island, NY 10310
5772 Miami Lakes Drive East,
Miami, FL 33014
8124 Sprague Rd, Odessa, TX
73764
5617 Causeway Blvd, Tampa, FL
33619
9950 Business Cir. Ste 13,
Naples, FL 34112
2570 NW 152nd Terrace, Opa-
Locka, FL 33054
104 Clover Court, Bartlett, IL
60103
4111 Ellison St. NE,
Albuquerque, NM 87109
2101 W Hunting Park Ave,
Philadelphia, PA 19140
Gasoline Stations
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Publishing Industries (except
Internet)
Electrical Equipment, Appliance,
and Component Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/30/2043
3/30/2028
3/30/2028
3/30/2043
3/30/2043
3/30/2028
3/30/2043
3/30/2028
3/30/2028
3/30/2028
3/30/2028
3/30/2043
3/29/2028
3/29/2043
3/28/2044
1,126.5
1,126.5
1,188.2
110.1
89.4
340.3
263.5
233.8
87.1
185.7
864.6
200.0
110.1
89.4
340.3
263.5
233.8
87.1
185.7
864.6
200.0
112.5
81.9
369.3
281.3
214.0
98.8
173.4
854.1
196.1
1,138.5
1,138.5
1,049.3
22.0
14.0
390.4
105.8
22.0
14.0
390.4
105.8
24.4
13.4
442.5
113.1
1376 Broadway, El Cajon, CA
92021
Administrative and Support
Services
Term Loan
Prime plus 2.75%
3/28/2028
205.3
205.3
199.9
0.06%
111 E. Laurel St., Willows, CA
95988
1145 13th Ave East, Palmetto, FL
34221
1145 13th Ave E, Palmetto, FL
34221
Building Material and Garden
Equipment and Supplies Dealers
Plastics and Rubber Products
Manufacturing
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/28/2028
3/28/2043
3/28/2028
77.2
210.3
136.7
77.2
210.3
136.7
80.7
223.7
134.0
0.03%
0.07%
0.04%
F-64
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.37%
0.03%
0.03%
0.11%
0.09%
0.07%
0.03%
0.05%
0.27%
0.06%
0.33%
0.01%
—%
0.14%
0.04%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Amusement, Gambling, and
1000 Montage Mountain Rd,
Scranton, PA 18505
Recreation Industries
2715 Saturn St., Brea, CA 92821 Telecommunications
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/28/2043
3/27/2028
1,220.0
1,220.0
1,382.9
55.1
55.1
57.6
% of Net
Assets
322,226
0.43%
0.02%
Montage Mountain Resorts, LP (#,^)
K.C. Communications, Inc.
Towing Professionals of
Arizona Inc dba Shamrock
Towing, All Valley Im
Towing Professionals of
Arizona Inc dba Shamrock
Towing & All Valley I
Cable Management, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Aque Investment Group LLC (#,^)
All Regional Recyclers of
Wood LLC dba ARROW
Denton BioFuels LLC and
Amercian BioSource, LLC
Sunshine Tents and Event
Rentals LLC
Shweiki Media Inc dba Study
Breaks Magazine
(#,^)
(#,^)
(#,^)
New York Label & Box Corp
(#,^)
Sofasco, Inc
Kajun Martial Arts LLC
GeoTek Alaska, Inc
RTSP Union LLC
Rexco Foods LLC dba Papa
John's
Cest Chic Concepts, LLC dba
Salon Cest Chic
Petroleum Equipment &
Services, Inc
Camerabots Media, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
2801 W Osborn Rd, Phoenix, AZ
85017
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
3/26/2028
132.3
132.3
125.7
0.04%
2801 W Osborn Rd, Phoenix, AZ
85017
200 Pratt St., Meriden, CT 06450
3838 N Sam Houston Pkwy E,
Houston, TX 77032
104 Wooster St., Bethal, CT
06801
624 W University Dr. #359,
Denton, TX 76201
2322 SW 58th Terrace, West
Park, FL 33023
4954 Space Center Drive, San
Antonio, TX 78218
50 Oval Drive, Islandia, NY
11749
182 Garber Lane, Winchester, VA
22602
36546 Mission St., Prairieville,
LA 70769
2756 Commercial Drive,
Anchorage, AK 99501
2438 Route 22 East, Union, NJ
07083
18640 Fm 1488 Ste C, Magnolia,
TX 77354
15231 Hall Station Rd Unit 104,
Bowie, MD 20721
5631 Silverado Way Unit G,
Anchorage, AK 99518
4501 Ford Ave Ste 207,
Alexandria, VA 22302
Support Activities for
Transportation
Waste Management and
Remediation Services
Real Estate
Waste Management and
Remediation Services
Waste Management and
Remediation Services
Rental and Leasing Services
Publishing Industries (except
Internet)
Printing and Related Support
Activities
Merchant Wholesalers, Durable
Goods
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Food Services and Drinking
Places
Personal and Laundry Services
Support Activities for Mining
Motion Picture and Sound
Recording Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/26/2043
3/23/2028
3/23/2028
3/23/2028
3/23/2028
3/23/2028
3/23/2028
3/23/2043
3/23/2043
3/23/2028
3/21/2043
9/20/2028
3/20/2028
3/19/2028
3/16/2028
3/16/2028
525.8
87.3
234.2
115.8
86.0
53.2
66.2
525.8
87.3
234.2
115.8
86.0
53.2
66.2
543.3
86.0
244.8
113.9
82.9
55.6
68.7
1,220.0
1,220.0
1,330.7
97.6
19.9
97.6
19.9
829.6
829.6
103.1
18.5
906.9
1,107.2
1,107.2
1,071.5
37.5
9.9
220.6
13.3
37.5
9.9
220.6
13.3
34.3
9.3
230.5
12.4
0.17%
0.03%
0.08%
0.04%
0.03%
0.02%
0.02%
0.41%
0.03%
0.01%
0.28%
0.33%
0.01%
—%
0.07%
—%
F-65
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Bear Bones, Inc.
Rojenco II,Inc.
Rojenco, Inc. dba Buggy Bathe
Auto Wash Lube & Detail
Shoppe
CTD Operations Inc
Rojenco II, Inc.
Rojenco, Inc. dba The Buggy
Bathe Auto Wash Lube &
Detail Shoppe
Summit Insights Group LLC
Dante Ultimate Cleaning
Service LLC
SRG Waterfront LLC
2b Mom Inc dba Mom's the
Word Maternity
Bee Kidz Funzone Inc
Integrity Machinery Moving,
LLC
Treft Systems Inc
Play4Fun dba Luv 2 Play
Unpainted Arizona, LLC dba
Westside Bowl
Espinoza & Salinas Group Ltd
dba Credit 360 Consulting
BC Bishop Enterprises LLC
dba 9Round Pooler
Stepping Stones Childrens
Academy
Connie Engelbrecht
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
43 Libson St., Lewiston, ME
04240
4357 Shore Drive, Virginia
Beach, VA 23455
2217 Richmond Rd,
Williamsburg, VA 23188
219 Saint Nazaire Rd STE G,
Broussard, LA 70518
4357 Shore Drive, Virginia
Beach, VA 23455
2217 Richmond Rd,
Williamsburg, VA 23188
19 Briant Parkway, Summit, NJ
07901
16969 River Park Dr, Covington,
LA 70345
88 District Square SW,
Washington, DC 20005
3150 18th St., Ste 435, San
Francisco, CA 94110
10301 Southern Blvd, Royal
Palm Beach, FL 33411
9125 North Time Oil Rd,
Portland, OR 97203
1050 Kings Hwy N Ste 107,
Cherry HIll, NJ 08034
13722 Jamboree Rd, Irvine, CA
92602
2617 Mahoning Ave,
Youngstown, OH 44509
17806 IH 10 Ste 300, San
Antonio, TX 78257
105-107 Grand Central Blvd,
Pooler, GA 31322
720 Rancho Del Norte Drive, Las
Vegas, NV 89031
20640 Raven Drive, Eagle River,
AK 99577
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/15/2043
9/15/2043
3/15/2043
7/15/2028
3/15/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/15/2043
Term Loan
Prime plus 2.75%
3/14/2028
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Administrative and Support
Services
Food Services and Drinking
Places
Clothing and Clothing
Accessories Stores
Amusement, Gambling, and
Recreation Industries
Support Activities for
Transportation
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
2/28/2028
F-66
See accompanying notes to consolidated financial statements.
3/9/2028
3/9/2028
3/9/2028
3/9/2028
3/8/2028
3/8/2028
3/7/2028
8/7/2043
3/2/2028
3/2/2028
3/2/2043
22.0
75.3
506.5
58.7
392.8
75.3
40.0
9.0
264.7
85.9
177.5
19.9
13.2
158.4
102.3
4.4
7.4
248.4
2.6
22.0
75.3
506.5
58.7
392.8
75.3
40.0
9.0
264.7
85.9
177.5
19.9
13.2
158.4
102.3
4.4
7.4
248.4
2.6
% of Net
Assets
322,226
0.01%
0.03%
0.17%
0.02%
0.13%
24.5
83.2
559.2
54.6
433.6
83.2
0.03%
36.5
8.7
245.0
78.6
167.2
20.7
12.2
150.8
111.0
4.1
6.9
0.01%
—%
0.08%
0.02%
0.05%
0.01%
—%
0.05%
0.03%
—%
—%
276.1
0.09%
2.4
—%
% of Net
Assets
322,226
0.02%
0.06%
0.04%
0.02%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Merciful Heavenly Homes,
LLC
Urban Fitness Group LLC dba
Crunch Fitness Group LLC
The Law Offices of Samuel R
Miller LLC
(#,^)
(#,^)
(#,^)
Carey Collision Repairs Inc.
(#,^)
Purely Seed LLC
Betty's Catering Corp, Betty's
Decoration & Wedding Center
Inc.
Carries Cakes and Catering,
Inc dba Carrie's Cakes and
Confections
Jackpine Technologies
Corporation
Crossfit iQ LLC
Wellfleet Consulting Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
New View Media Group LLC (#,^)
Town & Country
Transportation Co.
Lulinjett LLC dba All
American Printing & Design
(#,^)
(#,^)
Margab Inc dba Smoothie King (#,^)
JumboMarkets, Inc.
Tony Herring & Associates,
Inc.
Quality Machine of Iowa, Inc
Start "UP "Dreams, Inc dba
SDC Concrete and Start"UP"
Dream Constructi
Apps Inc., Market Share, and
Singular Leaseholdings LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
401 Dillar's Mill Rd, Tyner, NC
27980
2800 S IH-35 Ste 220, Round
Rock, TX 78681
7405 Lake Worth Rd, Lake
Worth, FL 33467
295 D Bucheimer Rd, Fredrick,
MD 21701
11515 Lake Lane Ste 102,
Chisago, MN 55013
Nursing and Residential Care
Facilities
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
8%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
2/28/2043
2/28/2028
2/28/2043
2/27/2028
2/26/2028
62.9
196.2
116.0
65.7
109.5
62.9
196.2
116.0
65.7
109.5
59.7
205.0
131.3
61.5
100.0
94-33 Corona Ave, Corona, NY
11373
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/26/2043
348.4
348.4
394.5
0.12%
4308 Holland Rd, Virginia
Beach, VA 23452
Mill & Main Building 2 Ste 640,
Maynard, MA 01754
346 Pike Rd, Bay 8-9, West Palm
Beach, FL 33411
2275 Research Blvd Ste 500,
Rockville, MD 20850
1 Old Wolfe Rd Ste 205, Budd
Lake, NJ 07828
191-193 Arch St., New Britain,
CT 06051
4621 Bayshore Rd, Fort Myers,
FL 33917
14200 SW 8th St Unit #102,
Miami, FL 33184
15500 SW Trail Drive,
Indiantown, FL 34956
211 West Camellia Drive, Slidell,
LA 70458
1040 4th Ave, Audubon, IA
50025
30521 134th St SE, Sultan, WA
98294
800 Village Walk #159, Guilford,
CT 06437
Food Services and Drinking
Places
Publishing Industries (except
Internet)
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Publishing Industries (except
Internet)
Transit and Ground Passenger
Transportation
Printing and Related Support
Activities
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Telecommunications
Term Loan
Prime plus 2.75%
F-67
See accompanying notes to consolidated financial statements.
2/23/2028
2/22/2028
2/21/2028
2/21/2028
2/16/2028
2/16/2028
2/14/2043
2/13/2028
2/13/2028
2/9/2028
2/9/2028
2/9/2028
2/8/2028
4.3
56.9
37.2
13.1
72.3
58.4
103.7
11.2
181.7
7.2
4.3
56.9
37.2
13.1
72.3
58.4
103.7
11.2
181.7
7.2
4.0
57.5
34.9
12.0
75.5
61.0
117.4
10.5
171.5
7.5
—%
0.02%
0.01%
—%
0.02%
0.02%
0.04%
—%
0.05%
—%
1,144.4
1,144.4
1,129.6
0.35%
65.7
458.2
65.7
458.2
63.2
418.6
0.02%
0.13%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
De La Vega LLC dba De La
Vega Deland and De La Vega
Oviedo
Macrotech Integrated
Management Solutions dba
Extreme Lawn Care
Midlothian Hardware Inc dba
Grills True Value
M&R Wong LLC
Chace Building Supply of CT
Inc.,
Rocco'sLandscaping LLC
USA General Investment LLC
dba Braniff Paint and Body
Shop
WydeBodi, LLC dba Wyde
Bodi Auto Tags
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
New Phaze Packaging Inc
(#,^)
Parati USA Inc
Concrete Services LLC and
James Ward
Southside BBQ Corp
Flair Interiors, Inc dba Giant
Don's Flooring America
Tier1 Solutions LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Weeping Willow Kennels, Inc.
(#,^)
Lavish Specs Inc
Friend Contractors, LLC
MedWorxs Inc.
Lou & Choo Enterprises Inc
dba Lou & Choo Lounge
(#,^)
(#,^)
(#,^)
(#,^)
128 North Woodland Blvd,
Deland, FL 32720
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/7/2028
2425 Durrance LN, Ormond
Beach, FL 32174
4751 West 147th St., Midlothian,
IL 60445
1345 North Shepherd Dr,
Houston, TX 77008
90 Route 171, Woodstock, CT
06281
151 Kitts Lane, Newington, CT
06111
2290 NW 21st Terrace, Miami,
FL 33142
706 North 37th St., Philadelphia,
PA 19104
9533 Irondale Ave, Los Angeles,
CA 91311
1018 Wilt Ave, Ridgefield, NJ
07657
24 County Rd 901, Jemison, AL
35085
16032 South Hwy 16, Cherokee,
TX 76832
7725 Old Seward Hwy,
Anchorage, AK 99502
1000 Essington Rd, Juliet, IL
60435
6041 Hammond School Rd,
Salisbury, MD 21804
262 Glen St., Glen Cove, NY
11542
1950 Mill Bay Rd, Kodiak, AK
99615
6857 Timbers Dr., Evergreen, CO
80439
2101,2103,2105 W Hunting Park
Ave, Philadelphia, PA 19140
Repair and Maintenance
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Administrative and Support
Services
Building Material and Garden
Equipment and Supplies Dealers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Support Activities for
Transportation
Paper Manufacturing
Merchant Wholesalers,
Nondurable Goods
Specialty Trade Contractors
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Machinery Manufacturing
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-68
See accompanying notes to consolidated financial statements.
2/5/2028
2/2/2028
2/1/2028
1/31/2043
1/31/2043
1/31/2028
1/30/2043
1/26/2043
1/25/2028
1/25/2028
1/25/2028
1/24/2028
1/23/2028
1/19/2028
1/19/2028
1/19/2043
1/18/2028
1/18/2043
% of Net
Assets
322,226
65.3
0.02%
68.9
10.5
13.1
10.4
292.2
73.0
13.0
46.2
68.9
10.5
13.1
10.4
292.2
73.0
13.0
46.2
11.0
13.7
9.5
330.8
82.6
12.2
50.9
933.6
933.6
1,053.4
14.7
86.9
16.9
14.7
86.9
16.9
13.5
83.8
17.7
119.5
119.5
124.9
6.5
9.1
6.5
226.3
68.5
111.9
6.5
9.1
6.5
226.3
68.5
111.9
6.1
9.5
6.0
246.1
62.5
121.0
—%
—%
—%
0.10%
0.03%
—%
0.02%
0.33%
—%
0.03%
0.01%
0.04%
—%
—%
—%
0.08%
0.02%
0.04%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Specialized Dairy Processors
LLC and Nathaly Zapata
Human Resource Time
Manager LLC
Impress Therapeutic Massage
LLC
Sandfree Systems LLC
Crad Holding LLC dba
Neighborhood Laundry of
Bloomfield
Social Link LLC
Farec, Inc
Morrocco Method, Inc
Anglin Cultured Stone
Products LLC
Muckamuck Trucks, Inc.
O'Rourke's Diner, LLC
Dudeck Enterprise LLC dba
Detail Garage Las Vegas
Anderson Farms Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Medical Plaza of Boro Park PC (#,^)
2200 N Commerce Parkway,
Weston, FL 33326
2737 Humphrey St., East
Elmhurst, NY 11369
3145 Suntree Blvd Ste 102,
Rockledge, FL 32955
116 Cricket Ave Ste B, Ardmore,
PA 19003
60 Dodd St., Bloomfield, NJ
07003
41 Peabody St., Nashville, TN
37210
30250 W Nine Mile Rd,
Farmington, MI 48336
800 Farroll Rd, Grover Beach,
CA 93433
877 Salem Church Rd, Newark,
DE 19702
510 S Spring St., Ukiah, CA
95482
728 Main St., Middleton, CT
06457
2360 S Rainbow Blvd Ste 3, Las
Vegas, NV 89146
271 West Hwy 30, Burley, ID
83318
1266 51St 1st Floor, Brooklyn,
NY 11219
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/16/2028
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
1/8/2028
1/8/2043
1/5/2028
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
1/5/2028
Term Loan
Prime plus 2.75%
12/29/2027
Term Loan
7.5%
12/29/2042
Chemical Manufacturing
Term Loan
Prime plus 2.75%
12/27/2042
Construction of Buildings
Term Loan
Prime plus 2.75%
12/27/2042
Truck Transportation
Term Loan
Prime plus 2.75%
12/22/2027
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/22/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
12/22/2027
Landmark Ventures USA Inc
Salida Family Chiropractic-
PPLC dba Salida Sport and
Spine
Lab Partner, LLC and
Beechtree Diagnostics, LLP
and Cottonwood Diag
Jacliff Investments Inc dba
International Heal
Blue Lagoon Resort, LLC dba
Hill View Cottages
(#,^)
475 Park Ave S 25th Fl, New
York, NY 10016
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
12/22/2027
(#,^)
203 G St., Salida, CO 81201
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/22/2027
(#,^)
(#,^)
(#,^)
12351 Gateway Park Place,
Draper, UT 84020
2355 South 1070 West, Ste D,
Salt Lake City, UT 84119
3670 Lake Shore Drive, Lake
George, NY 12845
Professional, Scientific, and
Technical Services
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
12/22/2027
Term Loan
Prime plus 2.75%
12/22/2027
Accommodation
Term Loan
Prime plus 2.75%
12/21/2042
F-69
See accompanying notes to consolidated financial statements.
56.5
13.4
61.4
6.5
54.3
9.7
242.4
707.3
630.5
11.8
3.2
14.0
56.5
13.4
61.4
6.5
54.3
9.7
242.4
707.3
630.5
11.8
3.2
14.0
53.9
53.9
10.4
671.4
43.1
181.1
53.9
53.9
10.4
671.4
43.1
181.1
Truck Transportation
Term Loan
7.5%
12/22/2027
1,084.7
1,084.7
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/22/2027
% of Net
Assets
322,226
0.02%
—%
0.02%
—%
0.02%
—%
0.07%
0.24%
0.20%
—%
—%
—%
0.28%
0.02%
51.6
14.0
68.1
6.8
50.0
8.9
223.3
785.3
660.5
11.7
3.2
14.6
914.2
49.2
49.2
0.02%
9.4
—%
620.0
39.3
204.8
0.19%
0.01%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/21/2027
189.3
189.3
197.2
CT Auto Spa LLC
DHD Enterprise LLC dba
Edible Arrangements #1699
DBMS Consulting, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
Best Quality Home Care LLC (#,^)
Auto Excellance of Fort Myers
Inc.
Legion Bowl, Inc & Legion
Pub Inc
1-0 Granny's Helpful Hands,
LLC
Ocean Trans LLC & Dehal
Trucking LLC
(#,^)
(#,^)
(#,^)
JMD Aviation Holdings, LLC (#,^)
Capital Containers LLC
Peanut Butter & Co., Inc
(#,^)
(#,^)
Atlas Geo-Constructors, LLC (#,^)
KR Calvert & Co, LLC
Royalty Freight Inc
AADJ Empire Inc and AADJ
Galaxy Inc.
Heung Kyun Im
Hana Pastries Enterprises LLC
dba Hana Kitchens, Hana
Pastries, Inc. d
LP Industries Inc. dba
Childforms
Beale Street Blues Company
Inc.dba B.B. King's Club-
Memphis
Barcade Holdings, LLC
,Barcade LLC,& Barcade New
Haven LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
39 Albany Turnpike, West
Simsbury, CT 06092
828 Washington Ave, Miami
Beach, FL 33139
164 W 83rd St. #CF1 & CF2,
New York, NY 10024
317 S Berry St., Centralia, WA
98531
3105 Fowler St., Fort Myers, FL
33901
661 Park St., Cranston, RI 02910
705 East Lake St., Minneapolis,
MN 55407
1415 W. Anderson St., Stockton,
CA 95206
8050 NW 90th St., Medley, FL
33166
7610 Auburn Blvd #4B, Citrus
Heights, CA 95610
119 West 57th St., Ste 300, New
York, NY 10019
3466 Thomasville Rd, Winston
Salem, NC 27107
113 Seaboard Lane #C-270,
Franklin, TN 37067
3728 W Mckinley Ave, Fresno,
CA 93722
1599 Post Rd, Warwick, RI
02888
6235 Conlan Bay Drive,
Houston, TX 77041
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Nursing and Residential Care
Facilities
Truck Transportation
Rental and Leasing Services
Truck Transportation
Term Loan
Prime plus 2.75%
12/21/2027
Term Loan
Prime plus 2.75%
12/20/2027
Term Loan
Prime plus 2.75%
12/19/2027
Term Loan
Prime plus 2.75%
12/19/2042
Term Loan
Prime plus 2.75%
12/15/2042
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/15/2042
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/15/2027
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/15/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/14/2027
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
12/14/2027
Truck Transportation
Term Loan
Prime plus 2.75%
12/14/2027
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/14/2042
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/14/2027
34 35th St., Brooklyn, NY 11232 Food Manufacturing
2040 Norwood St. SW, Lenoir,
NC 28645
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
12/14/2027
Term Loan
Prime plus 2.75%
12/14/2027
19.7
64.7
6.2
103.3
324.6
19.4
598.7
431.3
19.4
194.1
262.3
435.9
587.9
176.1
13.3
83.2
64.9
19.7
64.7
6.2
103.3
324.6
19.4
598.7
431.3
19.4
194.1
262.3
435.9
587.9
176.1
13.3
83.2
64.9
18.7
63.8
5.7
116.8
367.1
17.9
628.5
447.5
18.1
177.0
261.2
399.0
536.2
187.8
12.2
84.8
65.1
149 Monroe Ave, Memphis, TN
38103
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/14/2027
869.2
869.2
798.7
0.25%
148 West 24th St., New York,
NY 10011
Management of Companies and
Enterprises
Term Loan
Prime plus 2.75%
12/14/2027
54.4
54.4
50.4
0.02%
F-70
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.06%
0.01%
0.02%
—%
0.04%
0.11%
0.01%
0.20%
0.14%
0.01%
0.05%
0.08%
0.12%
0.17%
0.06%
—%
0.03%
0.02%
% of Net
Assets
322,226
0.03%
0.22%
0.12%
0.19%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Nichols Fire and Security LLC (#,^)
Hardway Inc & AFC Leasing
Inc
(#,^)
Clore Construction LLC
A-1 Van Services Inc
Sky Way Enterprises, Inc, A-
Liner-8-Aviation, Inc,
Kissimmee Aviation
Jai Ganeshai LLC, Mahiveera
1 LLC, Mahiveera 2 LLC &
KSVP LLC
Big Picture Group LLC
The Ohio Valley Group Inc dba
Ohio Valley Landscapes &
Design
LPB LPB Property
Management Inc dba
Wilderness View Cabins &
Ellijay C
Clear Sound Communications,
Inc
AV Strategy Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
JVLS LLC dba Vaccines 2 Go (#,^)
Kim Howard Corp dba NPN
Machine Tools
(#,^)
IHC Hardware Inc.
ODS Inc
Oil Palace, Inc.
Healthcare Interventions, Inc
dba Brightstar Healthcare of &
Brightsta
(#,^)
(#,^)
(#,^)
(#,^)
1906 Vanderhorn Drive,
Memphis, TN 38134
12533 S. 73rd E. Place, Bixby,
OK 74008
21220 FM 1420, Harlingen, TX
78550
154 Sandy Creek Rd, Verona, PA
15147
Administrative and Support
Services
Rental and Leasing Services
Heavy and Civil Engineering
Construction
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
12/13/2042
Term Loan
Prime plus 2.75%
12/13/2027
Term Loan
Prime plus 2.75%
12/12/2027
Term Loan
Prime plus 2.75%
12/12/2027
85.0
778.6
398.5
620.7
85.0
778.6
398.5
620.7
92.2
710.1
393.7
618.2
3031 Patrick St, Kissimmee, FL
34741
Air Transportation
Term Loan
Prime plus 2.75%
12/12/2027
446.7
446.7
407.4
0.13%
1120 Wren School Rd, Piedmont,
SC 29673
110 S. Fairfax Ave, Los Angeles,
CA 90036
Gasoline Stations
Term Loan
Prime plus 2.75%
12/12/2027
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/12/2027
43.0
324.7
43.0
324.7
39.2
307.8
0.01%
0.10%
16965 Park Circle Drive, Chagrin
Falls, OH 44023
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/12/2027
12.9
12.9
12.2
—%
498 Wilderness View,
Chatsworth, GA 30705
680 Old Medford Ave, Medford,
NY 11763
9402 American Eagle Way Ste
100, Orlando, FL 32837
4060 Johns Creek Pkwy, Ste H,
Suwanee, GA 30024
9130 Wayfarer Lane, Houston,
TX 77075
614 Broad St., Story City, IA
50248
626 N Delsea Drive, Glassboro,
NJ 08028
10408 Hwy 64 E, Tyler, TX
75707
5300 W Atlantic Ave Ste 501,
Delray Beach, FL 33484
Real Estate
Term Loan
Prime plus 2.75%
12/12/2042
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/8/2027
12/8/2027
12/7/2027
12/7/2042
12/6/2042
12/6/2027
12/4/2042
97.2
3.2
381.7
12.9
562.5
97.2
42.3
97.2
3.2
381.7
12.9
562.5
97.2
42.3
109.7
0.03%
3.0
370.4
11.8
635.3
102.5
40.6
—%
0.11%
—%
0.20%
0.03%
0.01%
0.34%
961.7
961.7
1,087.7
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/4/2027
12.9
12.9
11.8
—%
F-71
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Linda Jean Howard Riley dba
The Rusty Bolt
Salud Bar & Grill LLC
Utara LLC
Square1 Partners, LLC
Fortress Verve Inc, Maurice R.
Margules and Antonie C.
Reinhard
WTI Distribution Inc
Create- A- Stitch, Inc
Frontier Sand LLC
Skin Beauty Bar Inc. and
Tameka J. Mathis
J. Venture Holdings, LLC
Clearwater Transportation LTD
dba Thrifty Car Rental, Dollar
Rent A Ca
OPH Lexington, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Our Playhouse Preschool, LLC (#,^)
Beacon Brewing LLC and C'
Sons, LLC
JMD Corporation dba Dart's
True Value
(#,^)
(#,^)
Webtez Inc dba Mod Vans
Step Up Academy of the Arts,
LLC
Cali Fit Meals
Grumpy's Restaurant
Company, LLC
PB Market LLC dba Pure
Barre
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
22345 W. Rt 66, Seligman, AZ
86337
1413 Bushwick Ave, Brooklyn,
NY 11207
214 Pine St, Sandpoint, ID 83864
1088 Greenbriar Lane,
Northbrook, IL 60062
Miscellaneous Store Retailers
Food Services and Drinking
Places
Food Services and Drinking
Places
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
1 Jackson St., Troy, NY 12180
14277 Ramona Ave, Chino, CA
91710
3585 SW 10th St., Pompano
Beach, FL 33069
305 Country Hwy AA, New
Auburn, WI 54757
749 8th St. SE 2nd Fl,
Washington, DC 20003
2285 St. Andrews Ave, Zachary,
LA 70791
8790 Crownhill Blvd, San
Antonio, TX 78209
235 Walton Ave, Lexington, KY
40502
3501 NC Hwy 54 W, Chapel hill,
NC 27516
700 Lincoln St., Lagrange, GA
30204
121 South Main St., Payette, ID
83661
1673 Donlon St., Ste 202,
Ventura, CA 93003
2258A Wigwam Parkway,
Henderson, NV 89074
3450 E Orangethrope Ave,
Anaheim, CA 92806
834 Kingsley Ave, Orange Park,
FL 32073
164-C Market St, Charleston, SC
29401
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Support Activities for
Transportation
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Mining (except Oil and Gas)
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
8.25%
Social Assistance
Social Assistance
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
F-72
See accompanying notes to consolidated financial statements.
12/1/2042
12/1/2027
12/1/2027
12/1/2027
11/30/2027
11/30/2027
11/30/2042
11/30/2027
11/30/2027
11/30/2027
11/29/2027
11/29/2042
11/29/2042
11/27/2042
11/22/2027
11/22/2027
11/22/2027
11/21/2027
11/21/2027
11/21/2027
20.4
48.5
20.1
54.3
20.4
48.5
20.1
54.3
23.1
44.5
19.3
49.5
112.3
112.3
115.4
34.2
84.9
34.2
84.9
33.5
95.1
463.6
463.6
468.2
7.7
10.7
153.7
188.3
231.7
123.2
16.0
59.9
13.5
19.3
60.9
92.9
7.7
10.7
153.7
188.3
231.7
123.2
16.0
59.9
13.5
19.3
60.9
92.9
7.2
11.1
130.9
212.9
262.0
139.3
15.7
54.9
12.3
18.9
55.7
84.9
% of Net
Assets
322,226
0.01%
0.01%
0.01%
0.02%
0.04%
0.01%
0.03%
0.15%
—%
—%
0.04%
0.07%
0.08%
0.04%
—%
0.02%
—%
0.01%
0.02%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/20/2042
175.9
175.9
195.3
0.06%
9419 Kenwood Rd, Cincinnati,
OH 45242
7799 South Regency Drive,
Tulsa, OK 74131
1701 Washington Ave, Waco, TX
76701
1001 E. Cooley Drive Ste 102,
Colton, CA 92324
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
11/17/2027
11/17/2042
11/17/2027
161.8
161.8
161.7
558 West Main St., Lebanon, OH
45036
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
11/17/2027
1990 Flippen Rd, Stockbridge,
GA 30281
3821 Pleasant Hill Rd, Store #B-
107, Kissimmee, FL 34746
5455 N. 51st Ave Ste 30,
Glendale, AZ 85301
822 Cameron Lane, Lugoff, SC
29078
91 & 95 Woodbury Rd,
Hicksville, NY 11801
124 Lincoln Ave, Colonie, NY
12205
112 N Krome Ave, Homestead,
FL 33033
4235 S Fort Apache Rd, Ste 250,
Las Vegas, NV 89147
1555 Lyell Ave, Rochester, NY
14606
400 S. McCaslin Blvd, Ste 201,
Louisville, CO 80027
4500 North Providence # 7,
Appleton, WI 54913
15020 Harrison St., Miami, FL
33176
5001 W. Clay St., Richmond, VA
23230
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
11/17/2027
11/16/2027
11/16/2027
11/15/2042
11/15/2042
11/15/2042
Educational Services
Term Loan
Prime plus 2.75%
10/14/2043
Food Services and Drinking
Places
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
11/10/2027
Term Loan
Prime plus 2.75%
11/9/2027
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/8/2027
11/7/2027
11/6/2042
11/3/2042
F-73
See accompanying notes to consolidated financial statements.
55.3
53.4
42.8
45.4
142.4
59.9
13.1
190.4
609.4
457.5
8.3
285.6
12.8
95.8
89.0
55.3
53.4
42.8
45.4
142.4
59.9
13.1
190.4
609.4
457.5
8.3
285.6
12.8
95.8
89.0
0.05%
0.02%
0.02%
62.6
49.8
40.7
0.01%
41.8
131.7
56.9
14.8
214.5
680.2
501.6
7.6
0.01%
0.04%
0.02%
—%
0.07%
0.21%
0.16%
—%
297.9
0.09%
11.7
92.7
98.9
—%
0.03%
0.03%
0.06%
160.1
160.1
180.0
B Lam LLC
TPE Midstream LLC, Dasham
Company dba Sahm Co & S &
S Ventures Inc.
Maya Motel, LLC dba Town
House Motel
SSI Refrigerated Express Inc.
and Robert M Stallone
Jacob's Towing, Inc.dba
Jacob's Automotive Locksmith
& Jacob's Auto Re
Southern Specialty Contractor,
LLC & Ronald David
Holbrook Jr.
Murf & Sons LLC
H & H Hotshot Services, Inc.
J R Wholesale Tires & Auto
Center, LLC
Auto Rx LLC,J&P Auto
Repair Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Marcaco LLC
Paramount Dance Studios Inc.
and Homestead Dance Supply (#,^)
(#,^)
Wing King at the Gardens LLC (#,^)
Linqserv Inc.
Hofgard & Co, Inc dba
Hofgard Benefits and James
Marsh
JNP Delivery Inc
His Loving Hands Christian
Academy, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
S & S Auto Body Shop Inc.
(#,^)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Sterling Campbell Insurance
Agency, Inc
(#,^)
Top Quality Dent Service LLC (#,^)
Edge Studios Inc Radiant
Yoga LLC
Rachael Reel dba Rachel Reel
Insurance Age
Berza TLG,LLC dba The Little
Gym of Lake Charles
(#,^)
(#,^)
(#,^)
Die Hard Used Car Sales
The Five Lakes LLC
Ashore Ventures Inc dba
PuroClean Professional
Restoration
Blue Eagle Transport Inc ,
Golden Eagle Transport, Inc &
Green Eagle T
Sage Oil LLC
Suzie LLC dba Tony D's
Restaurant
Grand Blanc Lanes, Inc.
Schafer Fisheries Inc
Action Physical Therapy Yoga
and Wellness Center Inc.
Looky Enterprises, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Island Refrigeration & AC Inc (#,^)
Blueridge Armor LLC
H and K Dry Cleaning LLC
,Quintero Shopping Center
LLC,Aqua Laundry, L
(#,^)
(#,^)
36359 N Gantzel Rd Ste 102, San
Tan Valley, AZ 85140
1541 Vapor Trail, Colorado
Springs, CO 80905
448 Howe Ave, Sacramento, CA
95825
208 Bank St., Lenoir, TN 37771
1301 E McNeese St., Ste 201,
Lake Charles, LA 70607
1668 West Grand Ave, Phoenix,
AZ 85007
13705 Holmes Rd, Kansas City,
MO 64154
909 SE Everett Mall Way Ste A-
140, Everett, WA 98208
377 Boston Post Rd Unit B,
Milford, CT 06460
8913 Egyptian Ave, Las Vegas,
NV 89143
92 Huntington St., New London,
CT 06320
5301 S. Saginaw Rd, Flint, MI
48507
21985 Waller Rd, Fulton, IL
61252
5811 S Westnedge Ave, Portage,
MI 49002
1175 Surlington Ave, Ste 101,
Leland, NC 28451
3201 Flagler Ave, Unit 510 &
511, Key West, FL 33040
1495 Hwy 74-A Bypass, Ste
150192, Spindale, NC 28160
1227 Burnside Ave, East
Hartford, CT 06108
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
10/31/2027
Term Loan
Prime plus 2.75%
10/31/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
10/30/2042
11/3/2027
11/2/2027
11/1/2027
6.4
5.2
56.6
6.4
36.0
54.6
6.4
5.2
56.6
6.4
36.0
54.6
5.9
4.8
52.8
5.8
33.5
61.8
Educational Services
Term Loan
Prime plus 2.75%
10/30/2042
460.3
460.3
520.6
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/27/2027
Couriers and Messengers
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
10/27/2027
Term Loan
Prime plus 2.75%
10/27/2027
Term Loan
Prime plus 2.75%
10/25/2042
Term Loan
Prime plus 2.75%
10/25/2027
Food Manufacturing
Term Loan
Prime plus 2.75%
10/25/2027
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/24/2027
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/18/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/18/2042
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
10/17/2027
12.4
31.8
8.5
84.8
12.7
29.7
19.2
56.5
130.0
7.0
12.4
31.8
8.5
84.8
12.7
29.7
19.2
56.5
130.0
7.0
11.6
29.8
7.9
94.9
13.3
31.0
19.4
52.8
142.4
6.8
% of Net
Assets
322,226
—%
—%
0.02%
—%
0.01%
0.02%
0.16%
—%
0.01%
—%
0.03%
—%
0.01%
0.01%
0.02%
0.04%
—%
Electronics and Appliance Stores Term Loan
7.9375%
10/17/2042
62.4
62.4
59.1
0.02%
F-74
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Albas Bar & Grill LLC
(#,^)
Cortez Landscaping, LLC
(#,^)
On Call Services LLC
Crawfordsville Fitness LLC
dba Planet Fitness
JD Ventures LLC and JD Roof
Co LLC
Pro Anderson, LLC
Sandbox Ventures LLC
Eye Optique Inc.
Ains Holding Company LLC
Becky Lou Corp dba Rent A
Center
Threads of Time LLC
Miechella Suzette Decker
Harco Metal Products Inc
Sashshel Corporation
Dan Cline Transport Inc.
Chicago American
Manufacturing LLC, Dockside
Steel ProcessingLLC and S
Nicholson Lumber Co Inc.
Rhode Island Tennis
Management LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
National Media Services, Inc
(#,^)
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Prime plus 2.75%
10/13/2042
Term Loan
Prime plus 2.75%
10/13/2027
Construction of Buildings
Term Loan
Prime plus 2.75%
10/13/2027
43.9
16.3
15.5
43.9
16.3
15.5
Term Loan
Prime plus 2.75%
10/13/2027
105.4
105.4
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
10/12/2027
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
10/11/2027
10/11/2027
221 Self Main St., Homer City,
PA 15748
4 Powder Rd, Norwalk, CT
06854
15060 281St Ave NW,
Zimmerman, MN 55398
1632 Bush Lane, Crawfordsville,
IN 47933
2101 Hillshire Circle, Memphis,
TN 38133
1092 Hampton Inn Way, Ste 400,
Jacksonville, NC 28546
1857 A Elmdale Ave, Glenview,
IL 60026
10800 Alpharetta Hwy, Ste 220,
Roswell, GA 30076
121 Fulton St., New York, NY
10038
3578 Route 611 Ste 210,
Bartonsville, PA 18321
207 S Buchanan St., Danville, IL
61832
3515 Main St., Exmore, VA
23350
7895 E Acoma Drive Ste 102,
Scottsdale, AZ 85260
676 Franklin Blvd, Somerset, NJ
08873
501 State Drive, Mount Vernon,
MO 65712
Health and Personal Care Stores
Management of Companies and
Enterprises
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Primary Metal Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
4500 W 47th St., Chicago, IL
60632
377 Main St., Nicholson, PA
18446
636 Centerville Rd, Warwick, RI
02886
5091 Lexington Blvd, Fort
Meyers, FL 33919
Fabricated Metal Product
Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-75
See accompanying notes to consolidated financial statements.
46.5
15.7
16.2
98.5
18.0
42.5
16.3
11.6
67.3
74.7
143.8
110.3
499.5
232.8
841.9
% of Net
Assets
322,226
0.01%
—%
0.01%
0.03%
0.01%
0.01%
0.01%
—%
0.02%
0.02%
0.04%
0.03%
0.16%
0.07%
0.26%
0.41%
0.06%
0.12%
—%
19.3
45.9
16.2
12.7
72.1
77.3
133.0
97.5
476.9
205.8
886.0
19.3
45.9
16.2
12.7
72.1
77.3
133.0
97.5
476.9
205.8
886.0
1,211.0
1,211.0
1,328.4
192.1
371.3
15.8
192.1
371.3
15.8
199.5
400.7
14.4
10/5/2027
10/2/2027
10/2/2027
9/29/2042
9/29/2042
9/29/2042
9/29/2042
9/29/2030
9/29/2042
9/28/2030
9/28/2042
9/28/2027
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Pets A Go Go LLC
Rhode Island Tennis
Management LLC
Complete Care IT LLC
Technologist Inc
Inspirations Food Design, Inc
Rollins Construction &
Trucking LLC
KB Waterjet Cutting LLC
JPS Arthur Kill Rd Bakery
Corp dba Aunt Butches of
Brooklyn
Sallee Pro-Custom Fabrication
Shop LLC
Sound Manufacturing, Inc. &
Monster Power Equipment,
Inc.
Insight Diagnostic
Technologist Services
Commonwealth Diagnostics
International, Inc
Imagine By Carleen, Inc.
NY Tent LLC & NY Tent
Parent, LLC dba Tent
Company of New York
CR Park Incorporated dba
Define Body and Mind
Alpha Preparatory Academy
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Montessori Community School (#,^)
Denek Contracting Inc and
Denek Leasing LLC
(#,^)
Max Home Deliveries, Inc
(#,^)
589 North State Rd, Briarcliff
Manor, NY 10510
636 Centerville Rd, Warwick, RI
02886
4801 South University Drive, Ste
125, Davie, FL 33328
1820 N Fort Myer Drive Ste 530,
Arlington, VA 22209
1338 Memorial Ave, West
Springfield, MA 01089
893 South 120 East, Milford, UT
84751
4330 Parker Lane, Addis, LA
70710
4864 Arthur Kill Rd
#102,103,104,105, Staten Island,
NY 10309
8865 North County Rd 600 W,
Scipio, IN 47273
51 Donnelley Rd, Old Saybrook,
CT 06475
2030 Forest Ave, Ste 110, San
Jose, CA 95128
1 Holyoke Sq., Salem, MA
01970
1404 Del Prado Blvd S Unit 100,
105, Cape Coral, FL 33904
1401 Lakeland Ave, Bohemia,
NY 11716
49 W. Allandale Ave, Allendale,
NJ 07401
4462 Mink Livsey Rd, Snellville,
GA 30039
123 South Navarra Drive, Scotts
Valley, CA 95066
451 E. Wilson Ave, Pontiac, MI
48341
77 Van Buren St., Port Jefferson
Station, NY 11776
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Construction of Buildings
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Amusement, Gambling, and
Recreation Industries
Social Assistance
Social Assistance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
F-76
See accompanying notes to consolidated financial statements.
9/28/2042
9/28/2042
9/27/2027
9/27/2027
9/26/2042
9/26/2027
9/22/2027
9/22/2027
9/21/2027
9/20/2027
9/20/2027
9/20/2027
9/20/2027
9/20/2027
9/20/2027
9/20/2042
9/20/2042
9/20/2042
9/20/2027
192.7
533.2
12.4
215.5
455.9
278.9
8.6
18.9
7.6
168.0
262.8
192.7
533.2
12.4
215.5
455.9
278.9
8.6
18.9
7.6
168.0
262.8
213.1
575.4
11.3
224.5
497.0
285.8
8.2
17.4
7.9
167.0
248.3
1,063.3
1,063.3
1,107.2
6.3
6.3
6.4
867.3
68.7
157.2
284.7
203.0
67.5
867.3
68.7
157.2
284.7
203.0
67.5
868.1
65.2
169.1
308.1
229.4
65.0
% of Net
Assets
322,226
0.07%
0.18%
—%
0.07%
0.15%
0.09%
—%
0.01%
—%
0.05%
0.08%
0.34%
—%
0.27%
0.02%
0.05%
0.10%
0.07%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
CIS BIG DOG, LLC
Stone's Construction and
Remodeling, LLC
Party By Design Inc.
Li Family Spokane LLC
Clinton Food Market LLC
Tarleton & Family
Landscaping, LLC
Alaska Motor Home Inc
Fox Valley Rentals &
Investments, LLC
Nails By Mercede LLC
Town & Country
Transportation Co. and Popco,
LLC.
Rajbai Maa Inc. dba Nara
Lounge
Health & Performance Center,
LLC
Morgan Lynn Kerstetter dba
Catherine School of Dance
Foxtail, LLC and Tottly New
Services Corp
Echelon Planning Group, LLC
dba Echelon Financial Services
and Echelon
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Crazy Beatz Productions LLC (#,^)
South Fulton Landscape &
Nursery, Inc.
Dreaming Big Learning Center
Inc
(#,^)
(#,^)
Big Coop's Trucking LLC
(#,^)
8920 US HWY, 62 WEST,
Cynthiana, KY 41031
5210 Kaylin Drive, Akron, OH
44319
61 Strafello Drive, Avon, MA
02322
21 E. Lincoln Rd, Spokane, WA
99208
196 East Main St., Clinton, CT
06413
125 E Center St., Midland Park,
NJ 07432
6633 Brayton Dr, Anchorage, AK
99507
2906 E. Newberry St., Appleton,
WI 54915
2994 and 2996 Edgewater Drive,
Orlando, FL 32804
191 Arch St., New Britain, CT
06051
244-252 Atwells Ave,
Providence, RI 02903
1862 Craigshire Rd, Saint Louis,
MO 63146
315 Mill St. 3rd Fl, Danville, PA
17821
1481 Highland Ave, Cheshire,
CT 06410
5 Greenleaf Drive, Unit 201,
Portsmouth, NH 03801
20014 NE 138th St., Kearney,
MO 64060
3415 Enon Rd, College Park, GA
30349
3301 W Oak St, Kissimmee, FL
34741
3066 Misty Creek Drive., Swartz,
MI 48473
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Rental and Leasing Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 3.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Insurance Carriers and Related
Activities
Motion Picture and Sound
Recording Industries
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 3.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
F-77
See accompanying notes to consolidated financial statements.
9/19/2027
9/19/2027
9/18/2042
9/15/2042
9/15/2042
9/15/2027
9/13/2027
9/13/2027
9/13/2027
9/12/2042
9/12/2042
9/11/2027
9/11/2027
9/8/2042
9/8/2027
9/7/2027
9/7/2042
9/5/2042
9/1/2027
% of Net
Assets
322,226
0.02%
—%
0.39%
0.13%
0.09%
0.02%
0.08%
—%
—%
0.06%
0.12%
—%
—%
54.7
4.4
54.7
4.4
56.9
4.0
1,185.5
1,185.5
1,271.0
372.0
253.8
70.2
279.3
6.4
12.0
163.7
377.5
17.2
6.3
372.0
253.8
70.2
279.3
6.4
12.0
163.7
377.5
17.2
6.3
413.2
275.1
66.0
254.3
6.6
11.8
185.0
399.0
15.6
6.6
281.8
281.8
306.3
0.10%
6.3
4.5
96.9
362.2
85.0
6.3
4.5
96.9
362.2
85.0
6.5
4.4
109.4
393.0
83.8
—%
—%
0.03%
0.12%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Blue EagleTransport Inc,
Greeneagle Transport Inc &
Golden Eagle Tran
Busby Outdoor LLC
Busby Outdoor LLC
Lake County Tow LLC
Parlay Disributors LLC
InUSA Ventures Inc dba
InUSA Services
Genuine Ventures LLC and
Seaweed Ventures LLC
R & R Strength &
Conditioning Corp dba Crossfit
Light House Point
Delicias de Minas Restaurant,
LLC
Damiano Global Corp
L&V Auto Sales, Inc.
Tier1 Solutions LLC
Tony Herring & Associates,
Inc
Chester's World Enterprise
LLC
D'Amato & Sons Construction,
Inc.
L & J Corporate Services Inc
Furniture Masters Limited
Liability Company
HMG Strategy LLC,
Hope Health Care, LLC
Raffi's Inc dba Atlantic Auto
Center
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
377 Boston Post Rd, Milford, CT
06460
1734 Wansley Rd, Laurel, MS
39440
1734 Wansley Rd, Laurel, MS
39440
15409 Country Rd 565A,
Clermont, FL 34711
20 Medford Ave, Ste 104,
Patchogue, NY 11772
3015 San Pablo Ave, Ste 511,
Berkeley, CA 94702
432 S Franklin St, Juneau, AK
99801
3701 NE 12th St., Pompano
Beach, FL 33064
168-170 McWhorter St., Newark,
NJ 07105
333 Birch Hills Drive, Rochester,
NY 14622
1504 West Franklin Blvd.,
Gastonia, NC 28052
1000 Essington Rd Ste. 109 &
111, Joliet, IL 60435
211 West Camellia Drive, Slidell,
LA 70458
140 W Alameda Drive, Ste 104,
Tempe, AZ 85282
117 Oak St., Amityville, NY
11701
866 NW 110th Ave, Coral
Springs, FL 33071
160 Mount Pleasant Ave,
Newark, NJ 07104
191 Post Rd W., Westport, CT
06880
2945 Main St., Stratford, CT
06614
1809 Roane St., Richmond, VA
23222
Couriers and Messengers
Term Loan
Prime plus 2.75%
Real Estate
Real Estate
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
F-78
See accompanying notes to consolidated financial statements.
8/31/2027
8/29/2042
8/29/2042
8/25/2042
8/25/2027
8/24/2027
8/24/2030
8/23/2042
8/22/2027
8/21/2027
8/21/2027
8/18/2027
8/17/2027
8/16/2027
8/11/2027
8/4/2027
8/3/2027
8/2/2027
7/31/2027
7/31/2027
321.1
684.7
537.9
84.5
93.1
20.9
495.8
79.8
172.0
18.8
15.0
15.7
6.3
18.8
6.9
6.1
7.5
41.3
8.7
11.8
321.1
684.7
537.9
84.5
93.1
20.9
495.8
79.8
172.0
18.8
15.0
15.7
6.3
18.8
6.9
6.1
7.5
41.3
8.7
11.8
300.6
684.2
537.5
91.3
86.0
19.0
491.3
90.1
176.3
18.6
15.7
14.8
5.7
17.9
6.6
5.6
6.8
37.6
7.9
12.3
% of Net
Assets
322,226
0.09%
0.21%
0.17%
0.03%
0.03%
0.01%
0.15%
0.03%
0.05%
0.01%
—%
—%
—%
0.01%
—%
—%
—%
0.01%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Royal Blue Investments, Inc.
and Cleland Pharmacy LLC
Sharon G McMillen, MA
Psychologist, Inc.
HQTRONIC LLC
Oberon IT, Inc.
Gilles Peress Studio LLC
Obok LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Lil Tots' Learning Center LLC (#,^)
Ocean Trans LLC
Matrix Z LLC
Aitheras Aviation Group,
LLC(OH) , Aitheras Aviation
Group, LLC(FL)
(#,^)
(#,^)
(#,^)
Wildflour Bakery & Cafe, LLC (#,^)
Koep Companies dba
Pipestone True value
(#,^)
Rocks Auto Exchange LLC
McCord Holdings, Inc. dba
Fast Signs 176101
Thrifty Market Inc dba Thrifty
Foods
New Chicago Wholesale
Bakery Inc.
The Country House Restaurant,
LLC and Pelton Real Estate,
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
J. T. O'Neill Company, L.L.C (#,^)
Hamilton & Associates Real
Estate and Investments Firm
LLC
(#,^)
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
202 S. 1st St., Wakeeny, KS
67672
216 West Main St, Kingwood,
WV 26537
10135 S. Roberts Rd Ste 209,
Palos Hills, IL 60465
1404 W. Walnut Hill Lane,
Irving, TX 75038
76 Lafayette Ave, Brooklyn, NY
11217
2720 S. Havana St., Unit H,
Aurora, CO 80014
3042 S 78th St, Tampa, FL 33619 Social Assistance
760 W. Charter Way, Stockton,
CA 95206
800 SW 21st Terrace, Fort
Lauderdale, FL 33312
Food Manufacturing
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Truck Transportation
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 3.75%
2301 N Marginal Rd, Cleveland,
OH 44114
5137 Clareton Dr. #100, 110,
120, Agoura Hills, CA 91301
207 East Main St., Pipestone,
MN 56164
518 East Main St., Westfield, IN
46074
7640 N. Wickham Rd,
Melbourne, FL 32940
702 10th St., Wheatland, WY
82201
795 Touhy Ave, Elk Grove
Village, IL 60007
677 US Route 7, Pittsford, VT
05763
19972 Willowin Farm Lane,
Purcellville, VA 20132
Air Transportation
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
6/30/2027
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
6/30/2042
6/30/2027
7/31/2042
7/28/2027
7/27/2027
7/26/2027
7/25/2027
7/21/2027
7/21/2042
7/21/2027
7/19/2027
7/18/2027
7/17/2027
7/14/2042
7/13/2027
7/7/2027
7/6/2027
% of Net
Assets
322,226
0.02%
—%
0.01%
0.05%
0.02%
—%
0.01%
0.01%
—%
0.19%
0.01%
0.10%
—%
—%
0.03%
—%
0.02%
—%
48.7
9.7
32.7
29.3
6.7
626.4
19.4
335.4
9.9
14.5
83.5
12.7
55.4
12.1
51.1
15.4
18.7
51.1
15.4
18.7
57.0
14.0
17.0
181.4
181.4
174.7
53.5
9.9
28.9
32.2
6.3
683.6
18.6
315.0
10.9
15.5
87.8
12.3
48.1
12.3
52.1
53.5
9.9
28.9
32.2
6.3
683.6
18.6
315.0
10.9
15.5
87.8
12.3
48.1
12.3
52.1
11776 West Sample Rd, Coral
Springs, FL 33065
Real Estate
Term Loan
Prime plus 2.75%
6/30/2042
F-79
See accompanying notes to consolidated financial statements.
59.3
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
JWH Designs, LLC
J&M Civil Construction
Services LLC
Best Bees Company
Stiegelbauer Associates Inc.
Ocean Trans LLC and Dehal
Trucking LLC
Intellixion LLC
Malhame & Company
Publishers & Importers Inc.
Greensboro Plastic Surgical
Associates, PA
Oakhill Farms, LLC
Akal Express Inc. dba Truck
Trailer Service Stop
Foxhop Fitness, LLC
Old Dominion Transportation
Group, Inc.
Citibin, Inc.
Auxiliary Systems
Inc.,Sharrick Company, LLC &
KMN, LLC
WB Cleaners Inc. DBA $2.75
Cleaners
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Ains Holding Company, LLC (#,^)
Four Seasons Laser Center Inc. (#,^)
Rustic LLC
(#,^)
Northern Industries, LLC
Vella Construction Enterprises,
Inc. dba Vella Construction
(#,^)
(#,^)
1111 Boston Post Rd, Rye, NY
10580
1221 County Rd 4371, Decatur,
TX 76234
839 Albany St., Boston, MA
02119
63 Flushing Ave, #101, Bldg 280,
Brooklyn, NY 11205
760 W. Charter Way, Stockton,
CA 95206
7447 Egan Dr, Ste 110 A,
Savage, MN 55378
180 Orville Rd, Bohemia, NY
11780
2716 Henry St., Greensboro, NC
27405
15 Carl St., Johnston, RI 02919
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Animal Production and
Aquaculture
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Term Loan
Specialty Trade Contractors
Prime plus 2.75%
Prime plus 2.75%
2901 I 40 West, Vega, TX 79092 Repair and Maintenance
4211 NW Federal Hwy, Jensen
Beach, FL 34957
1308 Devils Reach Rd,
Woodbridge, VA 22192
254 36th St., Unit 25, Brooklyn,
NY 11232
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
211 East 25th St., Norfolk, VA
23504
5101 University Park Way,
Winston-Salem, NC 27106
122 West 26th St., New York,
NY 10011
4720 NW 2nd Ave Units D-104 -
105, Boca Raton, FL 33498
4779 State Rd AA, Tebbetts, MO
65080
W 5585 Dehart Drive,
Tomahawk, WI 54484
318 28th Ave, San Mateo, CA
94403
Transportation Equipment
Manufacturing
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
F-80
See accompanying notes to consolidated financial statements.
6/30/2027
6/30/2027
6/29/2027
6/29/2027
6/29/2027
6/29/2027
6/29/2027
6/29/2042
6/29/2030
6/28/2042
6/28/2027
6/28/2027
6/27/2027
6/27/2030
6/27/2027
6/26/2027
6/26/2042
6/23/2042
6/23/2042
6/23/2027
87.3
79.7
18.5
253.9
514.4
3.1
73.9
557.7
87.9
57.8
76.5
831.8
102.8
215.7
13.5
887.7
211.4
15.7
55.6
18.5
87.3
79.7
18.5
253.9
514.4
3.1
73.9
557.7
87.9
57.8
76.5
831.8
102.8
215.7
13.5
887.7
211.4
15.7
55.6
18.5
85.4
77.9
18.1
267.5
502.2
3.0
72.2
630.0
94.9
66.5
75.2
823.0
100.4
230.7
14.2
878.3
239.4
16.9
64.4
18.1
% of Net
Assets
322,226
0.03%
0.02%
0.01%
0.08%
0.16%
—%
0.02%
0.20%
0.03%
0.02%
0.02%
0.26%
0.03%
0.07%
—%
0.27%
0.07%
0.01%
0.02%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Birches Group, LLC
Scarlet Spartan Inc.dba
FastSigns of Brighton
Don G. Timpton DDS &
Associates PA and Indsaad
Properties,LLC
JAM Media Solutions, LLC
All Regional Recyclers of
Wood LLC dba
ARROW,Superior
Carting,LLC dba
ESA 365 Corp and Lucathor
Realty LLC
Hull's Kitchen, LLC and HK
Too, LLC
Tele Tax Express Inc., El
Rancho Paiso, LLC and Nestor
Romero
Susan Hughes dba Aloha
Junction B and B
Yachting Solutions LLC
Refoleen Inc dba Spice and
Tea Exchange
SCW, LLC dba Arthur Murray
Dance Studio
Skydive California, LLC
Speaker City, Inc.and Speaker
Town, LLC dba Rollin
Thunder
Sage Oil LLC
Ricnet III, Inc. dba Edible
Arrangements
Funtime, LLC and Universal
Entertainment Group LLC
Impact Grounds Maintenance
and Design, Inc.dba Impact
Landscaping and
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
228 East 45th St. 12th FL South,
New York, NY 10017
533 W. Grand River Ave,
Brighton, MI 48116
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
11535 Carmel Cmns Blvd #200,
Charlotte, NC 28226
4744 Tackawanna St.,
Philadelphia, PA 19124
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
104 Wooster St., Bethel, CT
06801
2420 Grand Ave, Baldwin, NY
11520
19 Hull Shore Dr, Hull, MA
02045
Waste Management and
Remediation Services
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
577 Main Ave, Paterson, NJ
07055
19-4037 Olapalapa Rd, Volcano,
HI 96785
229 Commercial St., Rockport,
ME 04856
849 E Commerce St. Ste 121, San
Antonio, TX 78205
2383 Old Dixwell Ave, Hamden,
CT 06518
25001 S Kasson Rd, Tracy, CA
95301
246 East Belt Boulevard,
Richmond, VA 23224
8913 Egyptian Ave, Las Vegas,
NV 89143
716 Foxcroft Ave, Martinsburg,
WV 25401
13200 W. Foxfire Dr #144,
Surprise, AZ 85387
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/22/2027
6/19/2027
6/16/2042
6/15/2027
6/15/2042
6/14/2042
6/14/2042
6/14/2042
6/14/2042
6/12/2027
6/8/2027
6/2/2042
6/2/2027
6/1/2042
5/31/2027
5/31/2027
5/31/2027
6291 Chittenden Rd, Boston
Heights, OH 44236
Administrative and Support
Services
Term Loan
Prime plus 2.75%
5/31/2042
F-81
See accompanying notes to consolidated financial statements.
41.1
24.0
385.8
26.6
41.1
24.0
385.8
26.6
299.3
299.3
21.7
92.8
89.1
59.7
97.6
2.9
140.6
45.2
44.0
18.3
12.3
54.0
76.4
21.7
92.8
89.1
59.7
97.6
2.9
140.6
45.2
44.0
18.3
12.3
54.0
76.4
% of Net
Assets
322,226
0.01%
0.01%
0.13%
0.01%
0.10%
0.01%
0.03%
0.03%
0.02%
0.03%
—%
0.05%
0.01%
0.02%
0.01%
—%
0.02%
40.1
24.0
429.2
26.0
337.1
24.7
107.4
102.2
69.2
99.9
2.8
159.2
47.6
50.2
18.0
12.1
53.2
87.9
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Haroon Baig,Inc.dba US1
Petrol
Chet Lemon Enterprises LLC
dba All American Sports
Hurricane Group, Inc.
Eagle Wood Works LLC
Mitchell Auto Repair, LLC and
and C&M Mitchell, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Swantown Inn & Spa LLC
(#,^)
Jung Design Inc.
Beyond Waves A Unique
Salon LLC and Lori Ann
Carlson
Locavore LLC dba Paloma
Restaurant
Abdul Naushad MD PC dba
Advanced Pain Centers
Innovim, LLC
Gill Express Inc. and Gill
Express 2 LLC
Prestige Construction of
Florida, LLC
Iron Men Home Repair, Inc.
and Ironmen House Lifting
Inc.
Hayden Trucking LLC
Tres K Deli,Grocery,Fruit and
Meat Inc.
Waterford Plumbing Co, Inc.
Mr. B's Bicycles & Mopeds,
Inc.
Bay Car Wash LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1280-1290 Dixwell Ave,
Hamden, CT 06514
1544 Lane Park Cutoff, Tavares,
FL 32778
312 West Fourth St., Carson City,
NV 89703
1448 Horsehead Rd, Lugoff, SC
29078
8641 Ashwood Dr, Capital
Heights, MD 20743
1431 11th Ave SE, Olympia, WI
98501
10857 Pine Bluff Drive, Fisher,
IN 46037
2290 Foxon Rd Route 80, North
Branford, CT 06471
401 S. Guadalupe St., Santa Fe,
NM 87501
2865 James Boulevard, Poplar
Bluff, MO 63901
6401 Golden Triangle Dr. Ste
200, Greenbelt, MD 20770
2372 Walnut Ave, Livingston,
CA 95334
1404 Yorktown St. Ste E, Deland,
FL 34944
132 North Wellwood Ave,
Lindenhurst, NY 11757
11540 Eagle Vista Drive, Fort
Worth, TX 76179
125 West Tremont Ave, Bronx,
NY 10453
2425 W. Cuyler Ave, Chicago, IL
60618
1870 S. 4th Ave, Yuma, AZ
85364
952 S Commercial St & W
Magnolia, Aransas Pass, TX
78336
Gasoline Stations
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Other Information Services
Term Loan
Prime plus 2.75%
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
5/31/2042
5/26/2042
5/26/2027
5/26/2027
5/26/2042
5/26/2042
5/25/2027
5/25/2027
5/25/2027
5/25/2042
5/24/2027
5/23/2042
5/23/2042
5/19/2042
5/19/2027
5/19/2027
5/18/2027
5/18/2042
253.8
761.9
61.1
9.8
190.8
122.2
7.3
12.2
40.8
379.0
275.1
325.7
323.4
560.0
170.5
6.7
40.8
253.8
761.9
61.1
9.8
190.8
122.2
7.3
12.2
40.8
379.0
275.1
325.7
323.4
560.0
170.5
6.7
40.8
294.0
882.5
59.7
9.9
218.0
141.1
7.2
12.0
40.6
434.6
268.6
367.0
361.8
636.9
174.3
6.8
40.2
141.1
141.1
160.1
% of Net
Assets
322,226
0.09%
0.27%
0.02%
—%
0.07%
0.04%
—%
—%
0.01%
0.13%
0.08%
0.11%
0.11%
0.20%
0.05%
—%
0.01%
0.05%
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/18/2042
116.1
116.1
132.2
0.04%
F-82
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Computech Computers Inc.
(#,^)
5 Stars Learning Center Inc
Batter & Company,LLC dba
Batter Co. Dessert Collection
Arco Electrical Contractors
Inc. dba Arco Construction
Group
Band Sawn Lumber,LLC and
Nathan Ryan Adams
(#,^)
(#,^)
(#,^)
(#,^)
Sanderson Distribution Inc.
(#,^)
SG Linke LLC
B G F Bobby Q's Inc
Estelle Finkel Educational
Associates,LLC
Labmates,LLC
NHS, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Innovation Transport, LLC
(#,^)
NHS, LLC
(#,^)
Benchmark Building, Inc.
(#,^)
Cable Management LLC
Fine Arts Center of Easley, Inc.
dba Midtown Music
Love and Glory Learning
Center, Inc.
JMA Inc. dba Primecut and
Mezzo; Primecut at Marquee
Sneads Ferry Foods, Inc. dba
DQ Grill & Chill
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
40-24 76th St., Office #2B,
Elmhurst, NY 11373
14 Paine Ave, Irvington, NJ
07111
1741 N.W. 33rd St., Pompano
Beach, FL 33064
22-24 South Seventh St.,
Elizabeth, NJ 07202
1873 State Hwy 29, Johnstown,
NY 12095
100 Daniel Drive, Alamo, CA
94507
413 N Alfaya Trail P11, Orlando,
FL 32828
447 N. Main St., Freeport, NY
11520
125 West Mt. Pleasant Ave,
Livingston, NJ 07039
141 Watertown Rd, Thomaston,
CT 06787
212 N Douglas Ave, Ellsworth,
KS 67439
1 International Blvd, Mahwah,
NJ 07495
212 N Douglas Ave, Ellsworth,
KS 67439
1439 Stargazer Terrace, Sanford,
FL 32771
Educational Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
Truck Transportation
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
8.25%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
290 Pratt St., Meriden, CT 06450
117 S. Pendleton St., Easley, SC
29640
4911 N. 42nd St., Tampa, FL
33610
393 Charles St., Providence, RI
02904
920 Hwy 210, Sneads Ferry, NC
28460
Construction of Buildings
Waste Management and
Remediation Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Social Assistance
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-83
See accompanying notes to consolidated financial statements.
5/17/2027
5/16/2042
5/16/2027
5/16/2027
5/15/2042
5/12/2027
5/12/2027
5/11/2027
5/11/2027
5/10/2027
5/9/2042
5/9/2027
5/9/2027
5/5/2027
5/3/2027
5/2/2042
4/28/2042
4/27/2042
4/27/2042
40.8
59.4
43.8
291.2
110.8
8.6
67.9
6.1
99.4
81.5
21.1
63.6
72.1
18.3
46.7
113.5
74.9
213.2
611.4
40.8
59.4
43.8
291.2
110.8
8.6
67.9
6.1
99.4
81.5
21.1
63.6
72.1
18.3
46.7
113.5
74.9
213.2
611.4
39.8
67.4
43.3
294.6
124.6
8.4
65.9
6.4
97.0
84.2
23.2
65.6
72.1
17.9
47.9
131.5
84.5
246.9
689.0
% of Net
Assets
322,226
0.01%
0.02%
0.01%
0.09%
0.04%
—%
0.02%
—%
0.03%
0.03%
0.01%
0.02%
0.02%
0.01%
0.01%
0.04%
0.03%
0.08%
0.21%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Asheville's Fun Depot, LLC
(#,^)
Resident Research, LLC
Getting Even LLC dba The
Zoo Health Club
Ralph's Hair Salon, Inc.
Condron Brothers LLC DBA
Luv 2 Play
(#,^)
(#,^)
(#,^)
(#,^)
Butternuts Beer and Ale LLC (#,^)
Landmark Ventures USA, Inc.
(#,^)
Golden Hen Inc. dba Cafe
Applied Integrated
Technologies, Inc.
Bear Trail Lodge LLC
Citizens Lanes, LLC
The Altitude Group, LLC and
Core Home Security, LLC
Schafer Fisheries Inc.
KWG Industries LLC dba
Peterson & Marsh Metal
Industries
Sea Smoke Barbeque, Corp
and Danwen LLC
Gauri Hospitality Group LLC
dba Microtel Inns & Suites by
Wyndham
H and H Hotshot Services, Inc.
dba AA Hotshot & Logistics
Douglas K. Soderblom . dba
Loma Linda Optometry
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
7 Roberts Rd, Asheville, NC
28803
4400 Morris Park Drive Ste M,
Charlotte, NC 28277
377 South Willow St., Ste B 2-1,
Manchester, NH 03103
175 NW 14th St., Homestead, FL
33030
4790 La Sierra Ave, Riverside,
CA 92505
4021 Hwy 51, Garrattsville, NY
13342
475 Park Ave South 25th Fl, New
York, NY 10016
468 W. Cheltenham Ave,
Philadelphia, PA 19126
7120 Samuel Morse Drive #150,
Columbia, MD 21046
Mile 1 Bear Trail Rd, King
Salmon, AK 99613
5100 Goodson Connector Rd,
Union City, GA 30291
949 Clint Moore Rd, Unit 949A,
Boca Raton, FL 33487
21985 Waller Rd, Fulton, IL
61252
Amusement, Gambling, and
Recreation Industries
Other Information Services
Amusement, Gambling, and
Recreation Industries
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Beverage and Tobacco Product
Manufacturing
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
330 Roycefield Rd, Unit B,
Hillsborough, NJ 08844
20 Island Farm Rd, Oak Bluffs,
MA 02557
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
1221 Kentucky Mills Drive,
Louisville, KY 40299
5455 N 51st St., #30, Glendale,
AZ 85301
25815 Barton Rd, Unit C104,
Loma Linda, CA 92354
Accommodation
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
F-84
See accompanying notes to consolidated financial statements.
4/26/2027
4/24/2027
4/21/2027
4/21/2042
4/19/2027
4/12/2027
3/31/2027
3/31/2027
3/31/2027
3/31/2042
3/31/2042
3/31/2027
3/30/2042
3/30/2027
3/30/2042
3/29/2042
3/29/2030
3/29/2027
70.7
71.8
6.1
48.0
96.6
59.6
150.5
52.0
100.4
531.0
607.2
35.5
238.6
24.1
227.2
70.7
71.8
6.1
48.0
96.6
59.6
150.5
52.0
100.4
531.0
607.2
35.5
238.6
24.1
227.2
74.5
70.2
6.0
54.8
96.9
62.8
146.9
51.1
98.0
613.1
703.3
34.7
276.4
25.2
258.5
1,015.1
1,015.1
1,174.2
84.5
80.3
84.5
80.3
84.3
80.4
% of Net
Assets
322,226
0.02%
0.02%
—%
0.02%
0.03%
0.02%
0.05%
0.02%
0.03%
0.19%
0.22%
0.01%
0.09%
0.01%
0.08%
0.36%
0.03%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
(#,^)
2 Hill Rd, Franklin, NH 03235
Gasoline Stations
Term Loan
Prime plus 2.75%
3/29/2042
198.2
198.2
226.4
0.07%
Discount Price, LLC dba
Robert's Market
New England Country Day
School, Inc. and Thomas D.
Walker
Heil & Hornik LLC dba
Elysium Tennis
Pecos Entertainment LLC dba
State Theater and Pecos Inn
LLC
Robert Dixon PA dba Law
Offices of Robert Dixon
Denton Bio Fuels LLC and
American Bio Source LLC
Color Graphic Press, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
JBK Truck Trailer and Bus Inc. (#,^)
Executive Fitness & Nutrition
Inc.
Baton Rouge Cargo Services
Inc. and 6507 Westport, LLC
(#,^)
(#,^)
Vehicle Safety Supply LLC
(#,^)
J Sivilis LLC dba Pet Wants
(#,^)
Reservoir International LLC
The Purple Cow House of
Pancake Inc
Texcor, Inc.dba Texas
Corral,Texas Coral Restaurants
II, Inc. T.C.
1MTX LLC and Sunrise
Transportation and Logistics,
LLC and Mustafa
Dwayne Bernard Tate
Elegant Occasions, LLC dba E
Productions
E & P Holdings 1 LLC and
Evans & Paul Unlimited Corp.
and Evans
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
27 Kenosia Ave, Danbury, CT
06810
7637 C. Commerce Place, Plain
City, OH 43064
Social Assistance
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
421 S. Oak St., Pecos, TX 79772
4501 NW 2nd Ave, Miami, FL
33127
624 W. University Dr. Ste 359,
TX, TX 76201
42 Main St., Nyack, NY 10960
8669 South State Rd 67, Camby,
IN 46113
8610 Roosevelt Ave Ste 2,
Jackson Heights, NY 11372
6507 Westport Ave, Shreveport,
LA 71129
707 Femimore Rd, Mamaroneck,
NY 10543
3883 Catalina Dr, Cocoa, FL
32926
502 Parks McMillan Drive,
Raeford, NC 28376
6 & 10 Skowhegan Rd, Fairfield,
ME 04937
Motion Picture and Sound
Recording Industries
Professional, Scientific, and
Technical Services
Waste Management and
Remediation Services
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/28/2042
3/27/2042
3/27/2042
3/24/2042
3/23/2027
3/23/2027
3/23/2042
3/23/2027
3/22/2042
3/21/2027
3/17/2027
3/16/2027
3/16/2042
362.6
893.0
394.3
409.6
45.7
96.3
85.2
16.4
362.6
893.0
394.3
409.6
45.7
96.3
85.2
16.4
411.6
1,012.2
456.7
473.4
46.1
101.3
96.5
17.2
618.0
618.0
708.6
18.1
3.9
79.8
18.1
3.9
79.8
17.6
3.9
81.1
154.4
154.4
178.6
0.13%
0.31%
0.14%
0.15%
0.01%
0.03%
0.03%
0.01%
0.22%
0.01%
—%
0.03%
0.06%
5880 US Hwy6, Portage, IN
46368
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/16/2027
241.4
241.4
253.9
0.08%
6510 North Broadway, Saint
Louis, MO 63147
1238 Woodcliff Court SW,
Lilburn, GA 30047
3650 Coral Ridge Drive Units
103-104, Coral Springs, FL
33065
Truck Transportation
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
3/13/2027
3/10/2027
543.7
8.4
543.7
8.4
529.9
0.16%
8.5
—%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/10/2042
565.7
565.7
641.9
0.20%
140 Dupont St., Plainview, NY
11803
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
3/9/2027
100.2
100.2
98.9
0.03%
F-85
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Anthony LLC dba Star of
Woodward Market
Allegro Assisted Living Of
Texas
Podium Auto Sales Inc and
RRS Property, LLC
Getting Even LLC dba The
Zoo Health Club
SSI Refrigerated Express Inc.
and Robert M Stallone dba SSI
Express
Weeping Willow Kennels, Inc
and Aileen N Black
Teracore Inc.
McNally Enterprises Inc.
Total Document Solutions Inc
and,TDS Services, LLC
TMJ Pizza Mesa LLC dba
Rosati's Pizza Restaurant
3W Enterprises LLC
B & J Bicycle Shop Inc.
DER Services, LLC dba
A.K.A. Sports
Ameritube, LLC and Ravone
Properties, LLC
Baton Rouge Cargo Services
Inc. and 2808 Court Street,
LLC
Maximo Canot dba Wash and
Dry Laundrymat
Sushiya Inc.
Marvic Enterprises Inc dba
Jordan's Liquor
Harrison Logging Company
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
5730 Woodward Ave, Detroit, MI
48202
3400 Remington Drive, Plano,
TX 75023
246 S Dixie Hwy, Pompano
Beach, FL 33060
377 S Willow St. Unit B2-1,
Manchester, NH 03103
1001 E. Cooley Drive Ste 102,
Colton, CA 92324
6041 Hammond School Rd,
Salisbury, MD 21804
3300 Holcomb Bridge Rd Ste
226, Norcross, GA 30092
1010 N. Grove St., Anaheim, CA
92806
2515 North Shiloh Drive,
Fayetteville, AR 72704
2235 S. Power Rd Ste 118, Mesa,
AZ 85209
2727 Industrial Parkway, Elkhart,
IN 46516
1620 E. Sample Rd, Pompano
Beach, FL 33064
34904 W. B. Michigan Ave,
Wayne, MI 48184
1000 N State Hwy 77, Hillsboro,
TX 76645
2808 Court St., Port Allen, LA
70767
34 Morningside Ave, Yonkers,
NY 10703
72 S. Main St, Hanover, NH
03755
199 Taunton Ave, East
Providence, RI 02914
255 Ray Crain Rd, Indian
Mound, TN 37079
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
2/28/2027
3/9/2042
3/6/2027
3/3/2042
Truck Transportation
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Textile Product Mills
Term Loan
Prime plus 2.75%
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Forestry and Logging
Term Loan
Prime plus 2.75%
F-86
See accompanying notes to consolidated financial statements.
2/28/2027
2/28/2042
2/27/2027
2/27/2027
2/27/2030
2/24/2027
2/24/2042
2/24/2027
2/17/2042
2/14/2042
2/10/2042
2/10/2042
2/10/2027
2/10/2042
2/9/2027
110.9
110.9
128.3
77.0
87.2
76.6
182.3
134.4
130.2
51.2
268.7
59.8
62.8
5.3
38.4
77.0
87.2
76.6
182.3
134.4
130.2
51.2
268.7
59.8
62.8
5.3
38.4
81.0
98.6
76.3
177.6
153.4
126.9
51.0
276.3
62.1
72.1
5.6
44.5
177.8
177.8
205.7
237.5
132.1
14.9
210.2
84.5
237.5
132.1
14.9
210.2
84.5
272.3
151.7
14.8
240.3
84.8
% of Net
Assets
322,226
0.04%
0.03%
0.03%
0.02%
0.06%
0.05%
0.04%
0.02%
0.09%
0.02%
0.02%
—%
0.01%
0.06%
0.08%
0.05%
—%
0.07%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
8 Minute Oil Change Auto
Repair & Tire Center and
Jumir L.L.C.
DBMS Consulting, Inc.
(#,^)
(#,^)
Brandco, LLC
Chidlren's House Learning, Inc
and Tarps Investment Group
(#,^)
(#,^)
Fave Realty Inc.
SRC Publishing LLC
ZMKNY Tires Inc dba
Houston International Tires
House of Bread & Coffee Corp
dba Casa Do Pao
Fox Valley Rentals &
Investments LLC and Brian M
Tomaszewski
Jolibe LLC and Jolibe Atelier
LLC
Eickmann Management Group
LLC dba Jimmy Johns of
Dundee
Fullbro Trust dba Menemsha
Blues
Echelon Enterprises, Inc
Fort Smith Wings Inc. dba
Wing Stop
Jacliff Investments Inc. dba
International health
Technologies
Metropolitan Solutions Group
Inc.
Means Enterprises LLC dba
FastFrame Frisco
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
174-176 Mountain Ave,
Springfield, NJ 07081
164 W 83rd St. #CF1 & CF2,
New York, NY 10024
2151 Consulate Drive Ste 21,
Orlando, FL 32837
720 Wilbraham Rd, Springfield,
MA 01109
1875 Grand Ave, Baldwin, NY
11510
8690 Waterford Bend St., Las
Vegas, NV 89123
12444 Market ST, Houston, TX
77015
22829 State Rd 7, Boca Raton,
FL 33428
Repair and Maintenance
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
2906 E. Newberry St., Appleton,
WI 54915
325 West 38th St. Studio 1704-
1706, New York, NY 10018
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
568 Techumseh St., Dundee, MI
48131
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2 Basin Rd, Chilmark, MA 02535 Miscellaneous Store Retailers
16701 E. Iliff Ave, Aurora, CO
80013
8624 Rogers Ave, Fort Smith,
AR 72903
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Food Services and Drinking
Places
2355 South 1070 West, Salt Lake
City, UT 84119
1420 Chestnut St., Portsmouth,
VA 23704
4112-4150 Legacy Dr./5729
Leabanon Rd #412, Frisco, TX
75034
Publishing Industries (except
Internet)
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/28/2026
Term Loan
Prime plus 2.75%
12/23/2026
Term Loan
Prime plus 2.75%
12/19/2041
F-87
See accompanying notes to consolidated financial statements.
2/7/2042
2/1/2042
1/31/2027
1/31/2042
1/30/2042
1/27/2027
1/27/2042
1/27/2042
1/20/2042
1/18/2027
1/17/2027
1/13/2027
1/10/2027
315.7
177.5
34.5
308.0
52.2
17.7
103.2
167.2
40.7
8.3
78.5
17.8
38.6
15.2
97.6
262.8
315.7
177.5
34.5
308.0
52.2
17.7
103.2
167.2
40.7
8.3
78.5
17.8
38.6
15.2
97.6
262.8
355.0
199.7
33.6
349.3
59.5
17.3
119.4
185.7
46.1
8.2
82.3
18.7
40.6
15.2
95.0
292.4
Term Loan
Prime plus 2.75%
12/16/2026
17.6
17.6
17.2
0.01%
% of Net
Assets
322,226
0.11%
0.06%
0.01%
0.11%
0.02%
0.01%
0.04%
0.06%
0.01%
—%
0.03%
0.01%
0.01%
—%
0.03%
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Soon Im. Chin dba Stan C-
Store
Elita 7, LLC
Techni-Pro Institute LLC
New Chicago Wholesale
Bakery, Inc.
Sempco, Inc.
HMG Strategy, LLC
Trison Enterprises Inc.dba
Lee's Automotive
AGG Management Team LLC
dba Chevron
Wayfarer Bicycle LLC
Success Advertising Inc. dba
Success Communivstion
Roast Beef Levittown LLC dba
Arby's
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Myndshft Technologies LLC
(#,^)
Recycling Revolution,LLC
Mack Team Enterprises
Inc.dba The UPS Store #6815
Imagine By Carleen Inc.
Hanson's Greeks LLC
New Life Hospital LLC
Yachting Solutions LLC
Lilo Holdings LLC
Noso Development LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4014 E Stan Schlueter Loop,
Killeen, TX 76542
16 Marble St., Worcester, MA
01603
414 NW 35th St., Boca Raton,
FL 33431
795 Touhy Ave, Elk Grove
Village, IL 60007
51-55 Lake St. Unit #2-6,
Nashua, NH 03060
191 Post Rd West, Westport, CT
06880
13281 Aurora Ave N, Seattle,
WA 98311
2615 S Dixie Hwy, West Palm
Beach, FL 33401
118-120 Ocean Ave, New
London, CT 06320
26 Eastmans Rd, Parsippany, NJ
07054
2080 Hempstead Turnpike, East
Meadow, NY 11554
3440 Gannett Ave, Des Moines,
IA 50321
4190 Collins Rd, Unadilla, GA
31091
38200 Ave of the States, Fort
Gordon, GA 30905
1404 Del Prado Blvd. #100, 105,
Cape Coral, FL 33990
8132 N. 87th Place, Ste A,
Scottsdale, AZ 85258
17400 Red Oak Drive, Houston,
TX 77090
229 Commercial St., Rockport,
ME 04856
933 Port Reading Ave, Port
Reading, NJ 07064
4 Walker Way, Albany, NY
12205
Gasoline Stations
Term Loan
Prime plus 2.75%
12/15/2041
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
12/15/2041
Educational Services
Term Loan
Prime plus 2.75%
12/15/2026
Food Manufacturing
Term Loan
Prime plus 2.75%
12/15/2041
Miscellaneous Manufacturing
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/15/2041
Term Loan
Prime plus 2.75%
12/14/2026
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/14/2041
Gasoline Stations
Term Loan
Prime plus 2.75%
12/14/2041
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
12/13/2041
Term Loan
Prime plus 2.75%
12/13/2041
Term Loan
Prime plus 2.75%
12/13/2026
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Hospitals
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
F-88
See accompanying notes to consolidated financial statements.
12/9/2026
12/9/2041
12/9/2026
12/8/2041
12/8/2026
12/8/2041
12/7/2029
12/5/2026
12/1/2026
203.1
680.9
148.3
433.2
40.1
38.6
389.4
274.8
88.4
445.8
165.9
605.4
88.7
15.9
50.2
8.8
203.1
680.9
148.3
433.2
40.1
38.6
389.4
274.8
88.4
445.8
165.9
605.4
88.7
15.9
50.2
8.8
233.4
777.5
146.6
487.7
46.4
37.5
443.0
317.4
98.9
512.9
174.1
602.3
100.1
15.9
56.9
9.2
1,166.4
1,166.4
1,347.6
60.7
12.6
58.6
60.7
12.6
58.6
63.2
12.7
57.0
% of Net
Assets
322,226
0.07%
0.24%
0.05%
0.15%
0.01%
0.01%
0.14%
0.10%
0.03%
0.16%
0.05%
0.19%
0.03%
—%
0.02%
—%
0.42%
0.02%
—%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Quick Ship, LLC
Sharaz Shah DBA Thomas
Jewelers
(#,^)
(#,^)
Studio Find It Georgia, Inc.
(#,^)
RD Management, LLC
Imaginarium Foods LLC,
Pebble Wood Lane, LLC and
Good Sam's Assisted Living
Resiidence,LLC
Usman Jalil, LLC dba Food
Mart
Access Staffing, LLC
CRK Mens, LLC dba Spiff for
Men
Hafa Adai Signs and Graphics
LLC dba Fastsigns of Auburn -
#281901
WPN Recycling Company
LLC
Merchant Coterie, Inc.
Bouquet Restaurant LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
JBK Truck Trailer and Bus Inc. (#,^)
6E Technologies LLC
(#,^)
Broms Asset Management
LLC
Skaggs RV Outlet LLC
Catherine Christine Morin dba
Purr-Fect Pets
Stratmar Systems Inc dba
Stratmar Retail Services
(#,^)
(#,^)
(#,^)
(#,^)
448 W. 19th St, Houston, TX
77008
714 Greenville Blvd, Ste 0043,
Greenville, NC 27858
1415 Constitution Rd SE,
Atlanta, GA 30316
2302 N. Kings Hwy, Myrtle
Beach, SC 29572
751 N. Cable Rd, Lima, OH
45805
Couriers and Messengers
Clothing and Clothing
Accessories Stores
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
1 Pebble Wood Lane, Palm
Coast, FL 32164
147 N Washington St., Plainville,
CT 06062
360 Lexington Ave 8th Fl, New
York, NY 10017
750 Third Ave, New York, NY
10017
1835 Auburn Way N Ste B,
Auburn, WA 98002
5101 Andard Ave, Baltimore,
MD 21226
400 East 52nd St. Apt 14F, New
York, NY 10022
519 Main St., Covington, KY
41011
8669 S State Rd 67, Camby, IN
46113
11001 West 120th Ave, Ste 400,
Broomfield, CO 80020
215 East 79th St. Apt 9E, New
York, NY 10075
301 Commerce Drive,
Elizabethtown, KY 42701
1915 North Austin Ave,
Georgetown, TX 78626
109 Willett Ave, Port Chester,
NY 10573
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-89
See accompanying notes to consolidated financial statements.
11/30/2026
11/30/2026
11/30/2026
11/30/2026
2/28/2042
11/30/2041
11/29/2041
11/29/2026
11/23/2026
11/23/2026
11/23/2026
11/23/2026
11/22/2041
11/22/2041
11/22/2026
11/22/2026
11/21/2026
11/17/2026
11/16/2026
8.1
6.3
5.8
165.4
358.5
64.7
223.9
914.3
84.6
46.4
17.4
96.7
92.8
396.2
122.4
96.6
77.4
14.5
53.0
8.1
6.3
5.8
165.4
358.5
64.7
223.9
914.3
84.6
46.4
17.4
96.7
92.8
396.2
122.4
96.6
77.4
14.5
53.0
7.9
6.1
5.7
161.9
409.0
74.8
250.0
889.1
83.2
45.5
18.3
94.1
107.0
449.0
124.5
93.9
81.2
14.1
55.6
% of Net
Assets
322,226
—%
—%
—%
0.05%
0.13%
0.02%
0.08%
0.28%
0.03%
0.01%
0.01%
0.03%
0.03%
0.14%
0.04%
0.03%
0.03%
—%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Hoosier Health Plus, LLC
J. A. Kohlhepp Sons, Inc. dba
Kohlhepp's True Value
J. A. Kohlhepp Sons, Inc. dba
Kohlhepp's True Value
Panther Ironworks and Rigging
Solutions LLC
Hackensack Steel Corporation
and Luzerne Ironworks Inc
Big Apple Entertainment
Partners LLC
Dyer Properties, LLC and
Bayview Pharmacy, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
MIK LLC dba Firehouse Subs
(#,^)
Fine Line Interiors, Inc.
131 Miles LLC and Ohm
Shubh Laxmi, LLC. dba Mr
Hero
Veracruz Shabo, LLC,
Waterfalls Quick Lube LLC
Glocecol LLC
Bloomquist Communications
Inc.
Moolchan Enterprises LLC dba
Staying Green
Woodstock Enterprises Corp
dba True Scent Candle Co
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
FibAire Communications, LLC (#,^)
Elite Structures Inc
Blakeslee Arpaia Chapman Inc
and Chapman Construction
Services LLC
(#,^)
(#,^)
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
520 East 8th St., Anderson, IN
46012
640 Dubois St., Du Bois, PA
15801
640 Dubois St., Dubois, PA
15801
1028 Washburn Switch Rd,
Shelby, NC 28150
300 Sly St., Swoyersville, PA
18709
1221 Brickell Ave, Ste 2660,
Miami, FL 33131
3844 Post Rd, Warwick, RI
02886
17250 Royalton Rd, Strongsville,
OH 44136
2530 SW 30th Ave, Hallandale
Beach, FL 33009
13215 Miles Ave, Cleveland, OH
44105
1325 Broad St., Central Falls, RI
02863
10302 NW S River Drive, Bay
#18, Miami, FL 33178
131 East Trinity Place, Decatur,
GA 30030
5370 State Rd 84 Bay 3, Davie,
FL 33314
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
10/31/2026
Term Loan
Prime plus 2.75%
10/31/2026
Term Loan
Prime plus 2.75%
10/31/2041
Term Loan
Prime plus 2.75%
10/27/2026
191 2nd Ave, Warwick, RI 02888 Miscellaneous Manufacturing
13590 S Sunland Gin Rd, #E,
Arizona City, AZ 85123
401 Old Quitman Rd, Abel, GA
31620
Fabricated Metal Product
Manufacturing
Telecommunications
Term Loan
Prime plus 2.75%
10/27/2029
191.3
191.3
202.5
200 North Branford Rd,
Branford, CT 06405
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
10/24/2026
325.7
325.7
341.8
0.11%
F-90
See accompanying notes to consolidated financial statements.
11/15/2026
11/10/2026
11/10/2041
11/10/2026
11/10/2026
11/9/2026
11/9/2041
11/9/2026
11/4/2041
11/3/2041
11/1/2041
11/1/2026
91.7
170.5
438.5
123.0
191.0
135.4
229.1
168.8
63.5
120.6
115.6
58.0
46.0
8.4
84.6
82.6
91.7
170.5
438.5
123.0
191.0
135.4
229.1
168.8
63.5
120.6
115.6
58.0
46.0
8.4
84.6
82.6
94.3
177.7
500.8
124.1
200.4
131.7
258.0
165.2
73.4
137.9
132.0
60.9
44.7
8.8
94.7
83.5
% of Net
Assets
322,226
0.03%
0.06%
0.16%
0.04%
0.06%
0.04%
0.08%
0.05%
0.02%
0.04%
0.04%
0.02%
0.01%
—%
0.03%
0.03%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Worldwide Estate, Inc. dba
Washington Heights Manor
Gold Wind Logistics LLC
Speaker City, Inc. dba Rollin
Thunder
Maine Service Corp
Justin Partlow
Reliable Recovery Services
LLC
Wyspen Corporation dba
Charlestown Ace
Ailky Corporation
Adelwerth Bus Corp.
JJA Transportation
Management Inc.
Seaway LLC and Reklaw LLC
dba Allure Lounge
Adelwerth Bus Corporation,
Transportation Leasing Corp.
Graphics,Type and Color
Enterprises Inc dba
Clubflyers.com
Beadon Inc
CD Game Exchange Inc.
Kyle M Walker DDS, PC
Reynolds Fence & Guardrail
Inc.
Luv 2 Play Nor Cal, LLC dba
Luv 2 Play
Sarah S Olelewe MD Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
10620 W. Greenwood Ter,
Milwaukee, WI 53224
2830 Beech Daly Rd, Inkster, MI
48141
246 East Belt Boulevard,
Richmond, VA 23224
59-22 55th St., Maspeth, NY
11378
100 Independence Place, Ste 414,
Tyler, TX 75703
2401 West Mcdowell Rd,
Phoenix, AZ 85009
5 Austin St., Charlestown, MA
02129
352 Beford St., Lakeville, MA
02347
423 Montauk Hwy, Eastport, NY
11941
15 Church St., Upland, PA 19015
415 -417 Halsey Drive, Newark,
NJ 07102
423 Montauk Hwy, Eastport, NY
11941
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
10/21/2041
Truck Transportation
Term Loan
Prime plus 2.75%
10/20/2041
Electronics and Appliance Stores Term Loan
Prime plus 2.75%
10/14/2041
Term Loan
Prime plus 2.75%
10/13/2026
Term Loan
Prime plus 2.75%
10/13/2026
Merchant Wholesalers, Durable
Goods
Insurance Carriers and Related
Activities
Support Activities for
Transportation
Building Material and Garden
Equipment and Supplies Dealers
Building Material and Garden
Equipment and Supplies Dealers
Transit and Ground Passenger
Transportation
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
2300 NW 7th Ave, Miami, FL
33127
2601 Old Ocean City Rd,
Salisbury, MD 21804
3719 N Mississippi, Portland, OR
97227
1402 West Park Ave, Orange, TX
77630
9320 Machado Drive, Indian
Trail, NC 28079
82 Clarksville Rd, Folsom, CA
95630
11704 &11712 Hawthorne Blvd,
Hawthorne, CA 90250
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Heavy and Civil Engineering
Construction
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
F-91
See accompanying notes to consolidated financial statements.
213.9
167.2
119.2
126.1
14.9
86.2
27.6
181.6
230.3
39.8
130.4
545.1
213.9
167.2
119.2
126.1
14.9
86.2
27.6
181.6
230.3
39.8
130.4
545.1
247.1
193.2
136.0
130.6
14.5
86.8
26.8
179.3
259.7
38.7
150.6
574.0
821.5
821.5
949.1
17.0
17.5
175.0
476.8
39.9
277.5
17.0
17.5
175.0
476.8
39.9
277.5
17.8
17.0
172.6
491.8
39.7
314.8
10/7/2026
10/3/2026
10/3/2026
9/30/2041
9/30/2026
9/30/2041
9/30/2029
9/28/2041
9/28/2026
9/28/2026
9/27/2026
9/27/2026
9/27/2026
9/26/2041
% of Net
Assets
322,226
0.08%
0.06%
0.04%
0.04%
—%
0.03%
0.01%
0.06%
0.08%
0.01%
0.05%
0.18%
0.29%
0.01%
0.01%
0.05%
0.15%
0.01%
0.10%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
TPFC,LLC dbaThe Picture
Frame Company
Ridge Road Equestrian LLC
dba Ricochet Ridge Ranch
PeopleBest Inc.
(#,^)
(#,^)
(#,^)
Wrecking Crew Media LLC
(#,^)
Cuppiecakes LLC
Consulting Solutions Inc. and
Mark Luciani
Benoit's Towing and Recovery
LLC
Atlantic Alarm Systems and
Services LLC
Marquis Cattle Company
Metropet Dog Center, Inc
Bingham Enterprises, Inc and
Full Belli Deli and Sausage
Company
SRA Mechanicial Inc
Sandia Enterprises Inc dba
Massage Envy Spa
Animal Intrusion Prevention
Systems Holding Company,
LLC
Raem Corporation dba
Dryclean Express
Warren Dale Warrington dba
Custom Paint and Body
Albert Basse Associates Inc
Avery Management Inc. dba
Whetstone Upholstery
Tabadesa Associates Inc.
TR Companies LLC dba
Liberty Rental 4 U
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
5957 Glenway Ave, Cincinnati,
OH 45238
24201 N Hwy 1, Fort Bragg, CA
95437
19442 Mesa Drive, Villa Park,
CA 92861
229 Commercial Ave, Pittsburgh,
PA 15212
313 S Main St., McGregor, TX
76557
3000 N Federal Hwy 1-1A, Fort
Lauderdale, FL 33306
301 Tabor Rd, Swanton, VT
05488
165 Amboy Rd, Bldg G, Ste 703,
Morganville, NJ 07734
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Support Activities for Agriculture
and Forestry
Administrative and Support
Services
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Support Activities for
Transportation
Administrative and Support
Services
Animal Production and
Aquaculture
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
805 US Hwy 87, Belt, MT 59412
2057 West Shore Rd, Warwick,
RI 02889
Personal and Laundry Services
9/26/2041
9/26/2026
9/26/2026
9/21/2026
9/21/2041
9/20/2026
9/20/2026
9/14/2026
9/13/2026
9/13/2041
55.7
6.8
11.4
37.9
21.3
17.1
9.1
11.7
38.2
55.7
6.8
11.4
37.9
21.3
17.1
9.1
11.7
38.2
63.3
7.1
11.0
36.8
24.1
17.5
8.9
11.6
40.1
103.6
103.6
118.0
209 South Front St., Townsend,
MT 59644
1186 Ocean Ave, Bayshore, NY
11706
9139 W Stockton Blvd Ste 100,
Elk Grove, CA 95758
1362-1366 W Carrier Pkwy,
Grand Prairie, TX 75050
557 West Whitney Rd, Fairport,
NY 14450
705 S Market Ave, Fort Pierce,
FL 34982
175 Campanelli Parkway,
Stoughton, MA 02072
1122 N Bloulevard, Richmond,
VA 23230
419 W 49th St. Ste 111, Hialeah,
FL 33012
410 N Church Rd, Liberty, MO
64068
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/12/2041
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Term Loan
Prime plus 2.75%
F-92
See accompanying notes to consolidated financial statements.
9/6/2041
9/6/2026
8/30/2026
8/29/2041
8/26/2041
8/25/2026
8/25/2026
8/25/2026
8/25/2026
78.2
41.3
32.2
98.7
68.6
95.8
46.3
7.7
16.9
67.5
78.2
41.3
32.2
98.7
68.6
95.8
46.3
7.7
16.9
67.5
87.7
47.7
31.2
97.2
79.0
109.5
48.5
7.4
16.4
65.5
% of Net
Assets
322,226
0.02%
—%
—%
0.01%
0.01%
0.01%
—%
—%
0.01%
0.04%
0.03%
0.01%
0.01%
0.03%
0.02%
0.03%
0.02%
—%
0.01%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/25/2026
16.9
16.9
16.6
0.01%
Term Loan
Prime plus 2.75%
12/24/2041
492.0
492.0
566.5
Rosmel Pools Inc
Sambella Holdings, LLC and
Strike Zone Entertainment
Center LLC
Luv 2 Play Temecula, LLC
2 Cool Beans LLC dba
Menchies's Frozen Yogurt
Grayson O Company
Paul Belanger dba Paul
Belanger Landscaping
The Hungry Rhino LLC
USA General Investment LLC
dba Braniff Paint and Body
Shop
303 Tower Drive LLC
Little Tree Huggers Child Care
LLC
Big Apple Entertainment
Partners LLC dba Ripley's
Believe It or Not
676 Club LP dba The Green
Door Tavern/The Drifter
Intrepid Trinity LLC
Apple Tree NC Inc dba
Williams Farm & Garden
Center
EPEC Juice LLC dba Jamba
Juice
Pinco Pizza LLC dba Jet's
Pizza
JAG Unit 1, LLC dba Arooga's
Grille House and Sports Bar
The Grasso Companies, LLC
and Grasso Pavement
Maintenance, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
My Sainath Inc dba Motel 6
(#,^)
9300 NW 25th St. Ste 103,
Miami, FL 33172
726-740 South Fleming St.,
Sebastian, FL 32958
26469 Ynez Rd, Temecula, CA
92591
11331 Thienes Ave, South El
Monte, CA 91733
6509 Newell Ave, Kannapolis,
NC 28082
2595 Military Ave, Los Angeles,
CA 90064
47 South Main St., Windsor
Locks, CT 06096
2290 NW 21st Terrace, Miami,
FL 33142
303 Tower Drive, Ste A,
Middletown, NY 10941
38620 9 Mile Rd, Farmington
Hills, MI 48335
1221 Brickell Ave, Ste 2660,
Miami, FL 33131
676 and 678 North Orleans ST,
Chicago, IL 60654
680 Douglas Ave, Providence, RI
02908
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
1309 Old Cherry Point Rd, New
Bern, NC 28560
810 Ninth St., Ste 128, Durham,
NC 27705
10845 N. Tatum Blvd Ste A 100,
Phoenix, AZ 85028
1 West Main St., Patchogue, NY
11772
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
485 Pepper St., Norwalk, CT
06468
1008 E Crest Drive, Waco, TX
76705
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
F-93
See accompanying notes to consolidated financial statements.
8/15/2026
8/11/2026
8/10/2041
8/9/2026
7/29/2041
7/29/2026
7/29/2041
7/29/2041
7/28/2026
7/28/2041
7/28/2041
7/28/2041
7/27/2026
7/27/2026
7/27/2026
7/26/2026
7/22/2041
45.0
61.9
45.0
61.9
43.7
60.0
591.7
591.7
682.2
11.2
72.1
16.7
378.2
132.3
222.8
633.1
59.1
11.2
72.1
16.7
378.2
132.3
222.8
633.1
59.1
10.9
81.5
16.5
433.2
152.6
216.2
728.1
67.3
321.7
321.7
362.4
62.0
54.7
92.8
67.3
288.6
62.0
54.7
92.8
67.3
288.6
60.2
57.3
90.1
67.8
330.9
0.18%
0.01%
0.02%
0.21%
—%
0.03%
0.01%
0.13%
0.05%
0.07%
0.23%
0.02%
0.11%
0.02%
0.02%
0.03%
0.02%
0.10%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
(#,^)
(#,^)
(#,^)
Robert G Larson State Farm
Insurance
J and D Resources LLC dba
Aqua Science
Robert P Daniels dba Ginger
and Friend's Peppermint
Village Gift Shop
Franklin Firm LLC dba Luv 2
Play
Jacob Rugs LLC dba Rugs
Outlet
RM Hawkins LLC dba Pure
Water Tech West
Nevey's LLC dba Stark Food
III
Corning Lumber Company Inc
and Frank R Close and Son Inc (#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Desert Tacos LLC
VMA Technologies LLC
P L H Pharmaco Inc dba
Farmacia San Jose
Martin Inventory Management
LLC
WGI, LLC dba Williams Grant
Inn
O.D.S. Inc dba Four Seasons
Health & Racquet and Step 'N'
Motion, Inc
KWG Industries, LLC dba
Peterson & Marsh Metal
Industries
E & P Holdings 1 LLC and
Evans & Paul LLC
MaidPro Marin dba MaidPro
JumboMarkets Inc dba Rines
Jumbomarkets
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
7922 Jamaica Ave, Woodhaven,
NY 11421
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
1923 E 5th St, Tempe, AZ 85281 Specialty Trade Contractors
Term Loan
Prime plus 2.75%
1502 Hwy 157, Mansfield, TX
76063
1310 East Stan Schleuter Loop,
Killeen, TX 76542
32879 US Hwy 27, Haines City,
FL 33844
5140 Topaz Drive, Colorado
Springs, CO 80918
6315 W. Fond Du Lac Ave,
Milwaukee, WI 53218
1314 Sixth St., Orland, CA
95963
245 East Bell Rd, Ste A-2,
Phoenix, AZ 85022
120 S Serenata Dr. #332, Ponte
Vedra Beach, FL 32082
149 48th St., Union City, NJ
07087
304 1/2 Main St., Edgefield, SC
29824
Miscellaneous Store Retailers
Amusement, Gambling, and
Recreation Industries
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
154 High St., Bristol, RI 02809
Accommodation
Term Loan
Prime plus 2.75%
7/22/2026
7/19/2026
7/18/2026
7/15/2041
7/13/2026
7/7/2026
6/30/2041
6/30/2029
6/30/2026
6/30/2026
6/30/2026
6/30/2026
6/29/2041
16.7
87.6
11.7
152.1
48.7
37.0
278.2
160.2
74.5
16.5
124.2
18.2
115.8
16.7
87.6
11.7
152.1
48.7
37.0
278.2
160.2
74.5
16.5
124.2
18.2
115.8
16.2
85.6
11.3
173.2
51.0
38.3
326.2
173.5
78.0
16.8
131.3
19.2
135.2
626 Delsea Drive N, Glassboro,
NJ 08028
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
6/29/2026
102.9
102.9
105.4
0.03%
330 Roycefield Rd, Unit B,
Hillsborough, NJ 08844
140 Dupont St, Plainview, NY
11803
98 Jewell St., San Rafael, CA
94901
15500 SW Trail Drive,
Indiantown, FL 34956
Fabricated Metal Product
Manufacturing
Nonmetallic Mineral Product
Manufacturing
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/29/2041
6/28/2026
6/28/2026
6/24/2026
287.4
287.4
99.2
12.9
36.7
99.2
12.9
36.7
336.2
101.7
13.1
37.4
0.10%
0.03%
—%
0.01%
F-94
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.01%
0.03%
—%
0.05%
0.02%
0.01%
0.10%
0.05%
0.02%
0.01%
0.04%
0.01%
0.04%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Island Time Investments, LLC
dba Swantown Inn Bed &
Breakfast
Shooting Sports Academy LLC
and Jetaa LLC
Long Island Comedy LLC dba
Governors and New York
Comedy, LLC
Visual Advantage LLC dba
Signs Now Perryberg
Bagelicious, LLC
Blue Eagle Transport Inc,
Greeneagle Transport Inc and
Golden Eagle
NKJ Lusby Donuts LLC
Winegirl Wines LLC
Jai-Alexia Consulting, Inc.
Pumpkin Patch Child Care of
Southington, LLC and
Giuseppe Pugliares
Refoleen Inc dba Spice and
Tea Exchange
Luv 2 Play AZ LLC
ScimTech Industries Inc dba
Archer Aerospace
Larry H. Patterson and
Rainbow Movers, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Solvit Inc and Solvit North Inc (#,^)
AP5 LLC dba Krauser's Food
Store
(#,^)
ATI Jet Inc
Premier Athletic Center of
Ohio, Inc
Angelo Faia dba AVF
Construction
(#,^)
(#,^)
(#,^)
1431 11th Ave SE, Olympia, WA
98501
Accommodation
Term Loan
Prime plus 2.75%
27 Main St., Monroe, CT 06468
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
90 A Division Ave, Levittown,
NY 11756
23248 Dunbridge Rd, Perrysburg,
OH 43443
945 S Main St, Cheshire, CT
06410
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
377 Boston Post Rd, Milford, CT
06460
174 Village Center Drive, Lusby,
MD 20657
222 E Wapato Way, Manson, WA
98831
14660 Paddock Drive,
Wellington, FL 33414
1137 West St., Southington, CT
06489
849 East Commerce St., Ste 121,
San Antonio, TX 78205
15495 Bell Rd, Surprise, AZ
85374
1021 Linden Ave, Chester
Springs, PA 19425
2325 Hollers Ave, Bronx, NY
10475
65 Farmington Valley Drive,
Plainville, CT 06062
5 Pond Point Rd, Milford, CT
06460
7007 Boeing Drive, El Paso, TX
79925
8957 Kingsridge Drive,
Centerville, OH 45459
55 Arbour Lane, Sewell, NJ
08080
Couriers and Messengers
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Air Transportation
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
F-95
See accompanying notes to consolidated financial statements.
6/24/2041
6/23/2041
6/23/2041
6/23/2041
6/17/2026
6/16/2026
6/16/2026
6/16/2026
6/15/2026
6/15/2041
6/10/2026
6/10/2026
6/6/2026
6/6/2026
6/3/2026
6/2/2041
5/31/2026
5/27/2026
5/27/2041
95.5
470.0
95.5
470.0
176.9
176.9
86.1
40.1
396.4
16.5
8.3
8.7
86.1
40.1
396.4
16.5
8.3
8.7
112.1
544.0
206.0
100.0
40.8
403.1
16.8
8.7
8.8
483.0
483.0
533.5
63.6
45.9
8.8
16.5
182.8
182.8
404.9
63.6
93.8
63.6
45.9
8.8
16.5
182.8
182.8
404.9
63.6
93.8
64.7
48.4
9.0
16.8
188.4
214.4
416.7
67.1
109.1
% of Net
Assets
322,226
0.03%
0.17%
0.06%
0.03%
0.01%
0.13%
0.01%
—%
—%
0.17%
0.02%
0.02%
—%
0.01%
0.06%
0.07%
0.13%
0.02%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Jack Frost Firewood Inc. and
David Dubinsky
Mersada Holdings LLC
Southwest Division Inc
International Kitchen Supply
LLC
Groth Lumber Co. Inc. dba
True Value
Island Life Graphics Inc dba
FASTSIGNS #576
Powerspec Inc
Horseshoe Barbecue, LLC
Pro Auto Repair LLC
National Air Cargo Holdings
Inc
Elderfriend Inc dba Granny
Nannies dba GN Live Scan
J&A Laundromat Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Dedicated Incorporated
HBA LLC dba Palmetto Twist-
Vista
(#,^)
(#,^)
Studio Find It Georgia Inc
(#,^)
FJN Catering Inc
Pumpkin Patch Inc and
Christine Feliciano and
Antonio Feliciano
Sabir Inc. dba Bear Diner
Gator D'Lites LLC dba D'Lites
Emporium
(#,^)
(#,^)
(#,^)
(#,^)
Building Material and Garden
Equipment and Supplies Dealers
Heavy and Civil Engineering
Construction
Merchant Wholesalers, Durable
Goods
Building Material and Garden
Equipment and Supplies Dealers
Miscellaneous Manufacturing
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Nonstore Retailers
3168 Holland Rd, Virginia
Beach, VA 23453
933 Louise Ave Ste 10122,
Charlotte, NC 28204
2103 NE 3rd Terrace, Cape
Coral, FL 33909
3466 North Hwy 11, West Union,
SC 29696
6747 Pacific Ave, Wright, MN
55798
1925 S 14th St. No. 7, Amelia
Island, FL 32034
1 Linsley Place, Metuchen, NJ
08840
6555,6565,6575 N Sandario Rd,
Tucson, AZ 85743
204 F St. SW, Quincy, WA 98848 Repair and Maintenance
5955 TG Lee Blvd., Ste 500,
Orlando, FL 32822
1499 W. Palmetto Park Rd, Ste
#115, Boca Raton, FL 33486
225 East Park Ave, Long Beach,
NY 11561
2916 North 39th St., Phoenix, AZ
85019
1225-1229 Lincoln St.,
Columbia, SC 29201
3399 Peachtree Rd NE, Ste 400,
Atlanta, GA 30326
106 Main St., Mineola, NY
11951
Repair and Maintenance
Air Transportation
Social Assistance
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Personal and Laundry Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
11 Kirby Rd, Cromwell, CT
06419
603 Pulaski Hwy, Bear, DE
19701
4216 NW 16th Blvd, Gainsville,
FL 32605
Social Assistance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
F-96
See accompanying notes to consolidated financial statements.
5/26/2041
5/26/2026
5/26/2026
5/25/2026
5/25/2026
5/24/2026
5/24/2026
5/23/2029
5/20/2026
5/20/2026
5/20/2026
5/18/2026
5/18/2041
5/18/2026
5/13/2026
5/13/2041
5/12/2041
5/11/2041
5/5/2026
% of Net
Assets
322,226
0.07%
0.08%
—%
0.04%
0.01%
0.01%
0.02%
—%
—%
194.2
245.5
6.0
135.8
16.4
16.4
63.4
8.7
5.4
194.2
245.5
6.0
135.8
16.4
16.4
63.4
8.7
5.4
225.6
259.0
6.2
140.2
17.3
16.7
64.4
9.4
5.7
909.2
909.2
959.3
0.30%
9.3
49.1
43.8
14.1
16.4
9.3
49.1
43.8
14.1
16.4
9.4
50.3
51.1
14.4
16.8
247.3
247.3
290.1
124.8
116.6
16.4
124.8
116.6
16.4
145.1
136.4
16.6
—%
0.02%
0.02%
—%
0.01%
0.09%
0.05%
0.04%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Keller, Fishback & Jackson
LLP
Marc S. Rosenberg P.C. dba
Mammuth and Rosenberg
Hard Exercise Works Winter
Park LLC
Loriet LLC
May-Craft Fiberglass Products
Inc
Alpha Omega Trucking LLC
Warner Home Comfort, LLC
dba Smith Piping
Empowerschool LLC and
Empower Autism Academy,
LLC
Costume World Inc
Pecos Inn LLC dba Econo
Lodge
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Accent Comfort Services, LLC (#,^)
Automotive Core Recycling,
LLC and 828 Old Colony
Road, LLC
McIntosh Trail Management
Services Organization Inc
AAA Mill Direct, Inc. dba
Carpet Mill Outlets
(#,^)
(#,^)
(#,^)
Sushiya Inc
KNS Early Learning Academy
LLC
Waterfalls Quick Lube LLC
and Veracruz Shabo LLC
Christian Soderquist dba
Soderquist Plumbing and
Heating LLC
Cameo Carter, MD A
Professional Corporation dba
The Garden Pediatric
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
28720 Canwood St., Agoura
Hills, CA 91301
401 East City Ave Ste 122, Bala
Cynwyd, PA 19004
11551 University Blvd #4C Bldg
1, Orlando, FL 32817
5001 Vivienda Way, Sarasota, FL
34235
96 Hillsboro Rd, Four Oaks, NC
27524
14432-52 State Line Rd,
Brookings, OR 97415
1571 Canton Rd., NW,
Carrollton, OH 44615
1825 Fort View Rd, Austin, TX
78754
950 S Federal Hwy, Deerfield
Beach, FL 33441
2207 W Third St., Pecos, TX
79772
5035-C West W. T. Harris Blvd,
Charlotte, NC 28269
27-29 Cooper St., Meriden, CT
06053
747 South Hill St., Griffin, GA
30224
1 North Armistead Ave,
Hampton, VA 23669
72 South Main St., Hanover, NH
03755
57 Merritt St. SE, Marietta, GA
30060
1325 Broad St., Central Falls, RI
02863
7 Oak Drive, Sandy Hook, CT
06482
101 East Redlands Blvd, Ste 106,
Redlands, CA 92373
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers,
Nondurable Goods
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Social Assistance
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/29/2026
4/29/2026
4/29/2026
4/29/2026
4/29/2041
4/29/2041
4/29/2041
4/29/2041
4/28/2041
4/28/2041
4/26/2026
4/22/2041
4/22/2041
4/21/2026
4/12/2026
4/6/2041
4/6/2041
91.9
16.2
29.3
5.4
232.8
165.1
77.5
91.9
16.2
29.3
5.4
232.8
165.1
77.5
96.9
16.5
29.8
5.5
273.2
193.7
90.2
142.8
142.8
167.5
1,175.8
1,175.8
1,379.6
634.1
64.8
235.0
399.8
5.7
63.0
48.0
634.1
64.8
235.0
399.8
5.7
63.0
48.0
741.8
65.9
271.1
469.1
6.0
64.8
55.7
261.6
261.6
305.4
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2041
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/31/2026
53.2
53.4
53.2
53.4
62.5
0.02%
54.3
0.02%
F-97
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.03%
0.01%
0.01%
—%
0.08%
0.06%
0.03%
0.05%
0.43%
0.23%
0.02%
0.08%
0.15%
—%
0.02%
0.02%
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Gill Express Inc and Blue
Speed LLC
Dana A. Farley dba
Independent Cabinets
Vehicle Safety Supply LLC
Men of Steel Enterprises LLC
and Vogelbacher Properties
LLC
Wyldewood Cellars, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
NOSO Development, LLC
(#,^)
MTS Car Service LLC
Beale Street Blues Company-
West Palm Beach, LLC dba
Lafayette’s-West
Tom Sawyer Country
Restaurant LLC and AM 3208
LLC
Gordon Rogers and Heidi
Rogers dba Stone House Motor
Inn
Barrocas Gym LLC dba Snap
Fitness
Vinmar Inc. dba Locanda
Portofino
Marathon Engineering
Corporation
PHCDC1 LLC dba Quarter +
Glory and Public House
Collective, Corp.
Revolution Physical Therapy
LLC dba Apex Network
Physical Therapy
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
International Construction Inc
(#,^)
ActKnowledge, Inc.
Precious Care LLC and
Precious Care Management
LLC
(#,^)
(#,^)
2372 Walnut Ave, Livingston,
CA 95334
5805 NE Minder Rd, Poulsbo,
WA 98370
15 East 72nd St., Ste 14-H, New
York, NY 10021
2039 US Route 130, Burlington,
NJ 08016
951 East 119th St, Mulvane, KS
67120
4 Walker Way, Albany, NY
12205
30 Taylor Ave, Norwalk, CT
06850
Repair and Maintenance
Term Loan
Prime plus 2.75%
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Fabricated Metal Product
Manufacturing
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Construction of Buildings
Term Loan
Prime plus 2.75%
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
3/31/2041
3/31/2041
3/31/2026
3/31/2041
3/30/2041
3/30/2026
3/30/2026
485.9
485.9
565.6
61.8
16.0
369.1
960.1
133.5
7.5
61.8
16.0
369.1
960.1
133.5
7.5
72.6
16.3
424.6
1,108.3
135.5
7.6
550 Rosemary Ave, Ste 236,
West Palm Beach, FL 33410
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
3/30/2026
66.8
66.8
68.2
0.02%
3208 Forest Hills Boulevard,
Palm Springs, FL 33406
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/30/2041
243.0
243.0
284.5
0.09%
162 Danielson Pike, Foster, RI
02825
260 West Main St., Avon, CT
06001
1110 Montana Ave, Santa
Monica, CA 90403
5615 2nd St. W, Lehigh Acres,
FL 33971
Accommodation
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/30/2026
3/29/2026
3/29/2026
3/28/2041
2017 14th St. NW, Washington,
DC 20009
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/28/2026
2705 Dougherty Ferry Rd #104,
St. Louis, MO 63122
53955 Gratiot Ave, Chesterfield,
MI 48051
365 5th Ave, New York, NY
10016
186-06 Union Turnpike, Fresh
Meadows, NY 11364
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/25/2026
3/24/2041
3/24/2026
16.2
13.8
57.9
42.2
35.6
16.2
45.6
89.0
16.2
13.8
57.9
42.2
35.6
16.2
45.6
89.0
17.1
14.3
58.7
49.3
0.01%
—%
0.02%
0.02%
36.7
0.01%
16.6
53.0
93.7
0.01%
0.02%
0.03%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/21/2026
396.1
396.1
402.7
0.12%
F-98
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.18%
0.02%
0.01%
0.13%
0.34%
0.04%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Media Capital Partners, Inc
Kekoa Enterprises Inc dba
Signarama Sandy
ERT Group Inc and Curt's
Tools Inspection Inc
Taylors Zinn Enterprises Inc
dba Eons Auto Care Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Brian T Rice dba BD Logging (#,^)
K Soles Corp dba Max
Collections
R & D Enterprises Inc dba My
Pool Man
HEWZ, LLC dba Hard
Exercise Works
Accuair Control Systems LLC
dba Accuair Suspension
ABCs & 123s Infant and Child
Care Center LP
Dupre Capital LLC dba
Fastsigns
Step Up Academy of the Arts
LLC
Faith Summit Supply Inc dba
Summit Supply and Summit
True Value
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Swerve Salon LLC
(#,^)
J & W Hardwood Flooring Inc (#,^)
Labmates LLC and POV
Holdings LLC
Hueston and Company CPA
LLC
(#,^)
(#,^)
Almost Home Daycare LLC
(#,^)
Miles of Smiles Inc
The River Beas, LLC dba
Subway and Punam Singh
(#,^)
(#,^)
809 Cedar Rd, Southport, CT
06890
8942 South 700 East, Sandy, UT
84070
5229 142nd Dr. NW, Williston,
ND 58801
330 West Harden St., Graham,
NC 27253
800 3rd St Apt B, St Marys, WV
26170
3208 Oakcliff Industrial St.,
Doraville, GA 30340
291 North Texas Ave., Orlando,
FL 32805
5684 West Sample Rd, Coral
Springs, FL 33071
831 Buckley Rd, San Luis
Obispo, CA 93401
13419 Hwy 290E., Bldg 5,
Manor, TX 78653
215 Quartermaster Court,
Jeffersonville, IN 47130
2558 Wigwam Pkwy Ste A,
Henderson, NV 89074
8584 US Business Hwy 277,
Haskell, TX 79521
1419 N Wells St., Chicago, IL
60610
14967 Madison St, Brighton, CO
80602
141 Watertown Rd, Thomaston,
CT 06787
8792 East State Rd 70, Ste B,
Bradenton, FL 34202
35 Copps Hill Rd, Ridgefield, CT
06877
1408 Molalla Ave, Oregon City,
OR 97045
5516 Baltimore Ave, Hyattsville,
MD 20781
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Support Activities for Mining
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Forestry and Logging
Merchant Wholesalers,
Nondurable Goods
Administrative and Support
Services
Amusement, Gambling, and
Recreation Industries
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Food Services and Drinking
Places
3/21/2026
3/18/2026
3/18/2041
3/18/2041
3/17/2026
3/16/2026
3/15/2026
3/14/2026
3/11/2026
3/11/2026
3/11/2026
3/9/2026
3/9/2026
3/8/2026
3/7/2026
3/4/2041
3/4/2026
3/3/2026
3/2/2026
16.0
35.2
16.0
35.2
16.2
35.8
1,186.2
1,186.2
1,377.1
75.7
1.3
16.0
35.6
16.0
75.7
1.3
16.0
35.6
16.0
88.7
1.4
16.3
36.1
16.2
106.8
106.8
109.1
8.0
41.6
5.7
16.0
56.3
5.3
8.0
41.6
5.7
16.0
56.3
5.3
8.1
42.2
5.8
16.6
57.1
5.4
5.8
38.4
67.8
5.8
38.4
67.8
5.9
40.4
69.2
102.5
102.5
120.1
0.04%
% of Net
Assets
322,226
0.01%
0.01%
0.43%
0.03%
—%
0.01%
0.01%
0.01%
0.03%
—%
0.01%
—%
0.01%
0.02%
—%
—%
0.01%
0.02%
0.05%
Term Loan
Prime plus 2.75%
2/28/2041
127.6
127.6
149.3
F-99
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
(#,^)
Living Essentials HVAC Corp (#,^)
Consulting Solutions, Inc. and
Mark Luciani
Powerpits CS1, LLC dba Pita
Pit
Drug Detection Laboratories,
Inc. and Minh Tran
Aaradhya LLC dba Market
Square Laundry
(#,^)
(#,^)
(#,^)
Blackstones Hairdressing LLC (#,^)
R & K Contracting Inc
Ei3 Corporation
B for Blonde, LLC dba Blo
Blow Dry Bar
Gilmore Heights Dental
Holdings, LTD and Chas Rob
LLC
Jersey Shore Marina & Boat
Sales, Inc.
Base USA, Inc.
Zouk Ltd dba Palma
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
SuzyQue's LLC dba SuzyQue's (#,^)
Wildflour Bakery & Cafe LLC (#,^)
(#,^)
Tammy Lavertue
Gendron Funeral and
Cremation Services, Inc.
Dolarian Realty LLC and OV's
Restaurant Inc
Lemonberry Food Stores Inc
dba Lemonberry Frozen Yogurt (#,^)
(#,^)
(#,^)
42 West St., Apt 24, Randolph,
MA 02368
3000 N Federal Hwy Ste 1, Fort
Lauderdale, FL 33306
2008 S Texas Ave, College
Station, TX 77840
9700 Business Park Drive,
Sacramento, CA 95827
7727 Crittenden St., Philadelphia,
PA 19118
2 Ave of the Americas, New
York, NY 10013
3605 NW 31st Ave, Fort
Lauderdale, FL 33309
136 Summit Ave, Montvale, NJ
07645
142 East 49th St., New York, NY
10017
2250 Warrensville Center Rd,
University Heights, OH 44118
841 Route 70 East, Brick, NJ
08724
2215 NW 2nd Ave, Miami, FL
33127
28 Cornelia St., New York, NY
10014
34 South Valley Rd, West
Orange, NJ 07052
5137 Clareton Dr., Ste 100,
Agoura Hills, CA 91301
24 Wakefield St., Rochester, NH
03867
135 North Lime Ave, Sarasota,
FL 34237
34 Old Colony Ave, East
Taunton, MA 02718
1196 Inverness Lane, Stow, OH
44224
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
2/28/2026
2/28/2026
2/28/2026
2/28/2026
2/23/2026
2/23/2026
2/18/2026
2/12/2026
2/12/2026
2/12/2029
2/12/2041
2/2/2026
1/29/2026
1/28/2026
1/28/2026
1/28/2026
1/11/2041
1/5/2041
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/29/2025
F-100
See accompanying notes to consolidated financial statements.
10.6
7.9
13.2
13.9
55.4
36.9
11.1
230.2
44.2
248.0
586.3
35.3
15.7
15.6
43.5
7.8
103.7
63.3
77.5
10.6
7.9
13.2
13.9
55.4
36.9
11.1
230.2
44.2
248.0
586.3
35.3
15.7
15.6
43.5
7.8
103.7
63.3
77.5
10.8
8.3
13.6
14.2
56.2
37.5
11.7
242.4
44.9
262.7
687.0
37.1
16.5
16.4
45.8
8.2
121.5
74.2
79.4
% of Net
Assets
322,226
—%
—%
—%
—%
0.02%
0.01%
—%
0.08%
0.01%
0.08%
0.21%
0.01%
0.01%
0.01%
0.01%
—%
0.04%
0.02%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
(#,^)
(#,^)
MCF Forte LLC
Panditos LLC dba White Lotus
Home
Ridge Road Equestrian LLC
dba Ricochet Ridge Ranch Inc (#,^)
800 on the Trax LLC and
Matrix Z LLC
Premier Athletic Center of
Ohio Inc. and Gates
Investments and Wade
Joyce Outdoor Advertising
Chicago LLC
Hattingh Incorporated dba
Prosthetic Care Facility
(#,^)
(#,^)
(#,^)
(#,^)
Labmates LLC
Accent Tag and Label Inc
Abbondanza Market LLC dba
Hampton Falls Village Market
Trip Consultants U.S.A. Inc.
Abitino's JFK LLC dba
Abitino's
JAG Unit 1, LLC
Swalm Street LLC and New
York Home Health Care
Equipment LLC
New York Home Health Care
Equipment, LLC
Moments to Remember USA
LLC dba Retain Loyalty
Evans & Paul LLC and E&P
Holdings I LLC
Basista Family Limited
Partnership and UPE, Inc.
DC Enterprises Ltd. dba
Lakeview True Value
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1245 W Baseline Rd Unit 105,
Mesa, AZ 85202
431 Raritan Ave, Highland Park,
NJ 08904
24201 North Hwy 1, Fort Bragg,
CA 95437
800 SW 21st Terrace, Fort
Lauderdale, FL 33312
Food Services and Drinking
Places
Miscellaneous Manufacturing
Amusement, Gambling, and
Recreation Industries
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
12/29/2025
Term Loan
Prime plus 2.75%
12/28/2025
Term Loan
Prime plus 2.75%
12/23/2040
12.9
11.0
95.6
12.9
11.0
95.6
Term Loan
Prime plus 2.75%
12/23/2040
228.7
228.7
8957 Kingsridge Drive,
Centerville, OH 45459
2443 West 16th St., Chicago, IL
60608
4415 Woodridge Pkwy, Ste 180,
Leesburg, VA 20176
141 Watertown Rd, Thomaston,
CT 06787
2201 Rittenhouse St, Des
Moines, IA 50321
82 Lafayette Rd, Hampton Falls,
NH 03844
311 85th St., Brooklyn, NY
11209
Terminal 8 JFK ExpressWay
Airport, Jamaica, NY 11430
1 West Main St., Patchogue, NY
11772
30 Hopper St., Westbury, NY
11590
30 Hopper St., Westbury, NY
11590
1250 Sanders Ave SW,
Massillon, OH 44646
140 Dupont St., Plainview, NY
11803
3401 Brecksville Rd, Richfield,
OH 44286
318 North F St., Lakeview, OR
97630
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/22/2028
Term Loan
Prime plus 2.75%
12/22/2040
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2025
Miscellaneous Store Retailers
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
12/18/2040
Term Loan
Prime plus 2.75%
12/18/2040
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/18/2025
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/18/2025
Term Loan
Prime plus 2.75%
12/16/2022
Term Loan
Prime plus 2.75%
12/16/2025
Ambulatory Health Care Services Term Loan
7.5%
12/16/2040
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/16/2025
Professional, Scientific, and
Technical Services
Nonmetallic Mineral Product
Manufacturing
Merchant Wholesalers, Durable
Goods
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
12/16/2025
Term Loan
Prime plus 2.75%
12/15/2025
Term Loan
Prime plus 2.75%
12/14/2040
Term Loan
Prime plus 2.75%
12/14/2025
694.6
281.7
12.4
151.5
618.2
41.0
120.6
64.0
172.3
330.9
725.1
56.5
93.5
319.3
15.5
694.6
281.7
12.4
151.5
618.2
41.0
120.6
64.0
172.3
330.9
725.1
56.5
93.5
319.3
15.5
13.1
11.1
111.2
265.6
748.0
326.9
12.8
177.3
718.8
41.9
122.1
64.1
174.4
315.8
761.0
58.8
95.5
370.9
16.2
F-101
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
—%
—%
0.03%
0.08%
0.23%
0.10%
—%
0.06%
0.22%
0.01%
0.04%
0.02%
0.05%
0.10%
0.24%
0.02%
0.03%
0.12%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Alexandra Afentoulides dba
Vi's Pizza Restaurant
AGR Foodmart Inc dba
Nashua Road Mobil
Cares, Inc dba Dumpling
Grounds Day Care Center
Custom Exteriors, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
Sushiya, Inc.
LC Blvd Holdings LLC and Mt
Pleasant Wash & Wax LLC
Japp Business Inc dba Pick and
Eat and Japp Drink Corp.
(#,^)
(#,^)
(#,^)
DWeb Studio, Inc.
Play and Learn Child Care and
School Inc
Sambella Holdings, LLC and
Strike Zone Entertainment
Center LLC
Ronny Ramirez RX Corp dba
Naturxheal Family Pharmacy
S.B.B. Enterprises Inc dba
Williamston Hardware
Key Pix Productions Inc. dba
Air Bud Entertainment
E.S.F.P. LLC dba Volusia Van
and Storage
Green Life Lawnscapes LLC
dba Green Life Lawn Care
JumboMarkets Inc dba Rines
Jumbomarkets
Financial Network Recovery
Inc
ADMO Inc dba Mid States
Equipment
Recycling Consultants, Inc.
and Prairie State Salvage and
Recycling In
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1068 Old Colony Rd, Meriden,
CT 06450
11 Nashua Rd, Londonderry, NH
03053
4508 Blakiston St., Philadelphia,
PA 19136
2142 Rheem Drive, Ste E,
Pleasanton, CA 94588
72-74 South Main St., Hanover,
NH 03755
880 Lowcountry Blvd, Mount
Pleasant, SC 29464
4179 Broadway, New York, NY
10033
10800 E. Bethany Drive, Ste 275,
Aurora, CO 80014
403 S Dillard St, Winter Garden,
FL 34787
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Gasoline Stations
Social Assistance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/10/2025
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
726-740 S Fleming St.,
Sebastian, FL 32958
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Building Material and Garden
Equipment and Supplies Dealers
Performing Arts, Spectator
Sports, and Related Industries
3105 107th Ave, Doral, FL 33178 Health and Personal Care Stores
139 S Putnam St., Williamston,
MI 48895
22525 Pacific Coast Hwy,
Malibu, CA 90265
916 South Nova Rd, Ormond
Beach, FL 32174
1820 NE Jensen Beach Blvd,
Jensen Beach, FL 34957
15500 SW Trail Drive,
Indiantown, FL 34956
250 E Easy St. Ste 1, Simi Valley,
CA 93065
16180 Westwoods Business Park,
Ellisville, MO 63021
Food and Beverage Stores
Administrative and Support
Services
Plastics and Rubber Products
Manufacturing
Administrative and Support
Services
Truck Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
10/26/2025
Term Loan
Prime plus 2.75%
10/8/2025
12/11/2040
12/11/2025
12/9/2025
12/8/2025
12/4/2040
11/30/2025
11/25/2025
11/23/2025
11/23/2040
11/20/2025
11/19/2040
11/18/2040
11/11/2025
11/6/2025
11/4/2025
43.8
15.5
5.2
68.9
74.9
468.9
85.8
7.7
7.6
712.8
62.5
101.0
512.1
60.9
97.3
43.8
15.5
5.2
68.9
74.9
468.9
85.8
7.7
7.6
712.8
62.5
101.0
512.1
60.9
97.3
208.6
208.6
27.0
15.1
27.0
15.1
51.3
16.2
5.4
70.5
76.7
546.5
88.2
7.8
7.9
679.7
63.7
116.0
599.2
62.1
102.2
219.1
27.3
15.4
PO Box 468, Wood River, IL
62095
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/30/2027
447.9
447.9
470.7
0.15%
F-102
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.02%
0.01%
—%
0.02%
0.02%
0.17%
0.03%
—%
—%
0.21%
0.02%
0.04%
0.19%
0.02%
0.03%
0.07%
0.01%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Accent Homes Services LLC
dba Benjamin Franklin
Plumbing of Kansas City
SCJEN Management Inc dba
Bowl of Heaven
Barub Realty LLC and Barub
LLC dba Woodlawn Cabinets
Binky's Vapes LLC
R.H. Hummer Jr., Inc.
Greensward of Marco Inc.
RIM Investments LLC and
RIM Architects LLC
The Grasso Companies LLC
and Grasso Pavement
Maintenance LLC Veranda
Prestigious LifeCare for
Seniors LLC
Daniel W. Stark dba Mountain
Valley Lodge and RV Park
Sandlot Ventures LLC and
Sandbox Ventures LLC
Yachting Solutions LLC
St Lawrence Hotel Corp and
Oheka Catering Inc dba
Quality Inn
Rutledge Enterprises Inc dba
BLC Property Management
Finish Strong Inc dba
FASTSIGNS St Peters
Sound Manufacturing Inc
IIoka Inc dba New Cloud
Networks
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Vanderhoof LLC dba Soxfords (#,^)
MiJoy Inc dba Imo's Pizza
(#,^)
7748 Troost Ave, Kansas City,
MO 64131
43958 Pacific Common Blvd,
Fremont, CA 94538
1838 Adee Ave, Baychester, NY
10469
10539 Greenbelt Rd, Ste 102,
Lanham, MD 20706
2141 P Ave, Williamsburg, IA
52361
54 Marco Lake Drive, Marco
Island, FL 34146
645 G St. Ste 400, Anchorage,
AK 99501
485 Pepper St., Monroe, CT
06468
5701 North Pine Island Rd,
Tamarac, FL 33321
223 Hwy 80, Rodeo, NM 88056
1857A Elmdale Ave, Glenview,
IL 60025
229 Commercial St, Rockport,
ME 04856
10 West Orvis St., Massena, NY
13662
149 S. 400 East, Greenfield, IN
46140
98 North Hillview Drive, St
Peters, MO 63376
51 Donnelley Rd, Old Saybrook,
CT 06475
160 Inverness Drive W Ste 150,
Englewood, CO 80112
11 Sellecks Walk, Pound Ridge,
NY 10576
215 South Kirkwood Rd,
Kirkwood, MO 63122
Specialty Trade Contractors
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Apparel Manufacturing
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
F-103
See accompanying notes to consolidated financial statements.
9/30/2028
9/30/2025
9/30/2040
9/30/2025
9/30/2025
9/28/2040
9/28/2040
9/28/2025
9/25/2025
9/25/2040
9/25/2040
9/25/2040
9/24/2040
9/23/2040
9/23/2025
9/21/2025
9/21/2025
9/18/2025
9/18/2025
% of Net
Assets
322,226
0.02%
0.02%
0.05%
—%
0.08%
0.03%
0.13%
51.3
47.9
132.4
15.0
260.2
81.2
369.8
51.3
47.9
132.4
15.0
260.2
81.2
369.8
55.0
48.5
154.9
15.2
273.0
94.3
428.7
340.4
340.4
356.7
0.11%
6.5
12.5
413.4
892.1
6.5
12.5
413.4
892.1
6.8
14.6
477.6
1,030.4
579.3
579.3
672.5
57.5
33.3
33.1
57.5
33.3
33.1
66.7
33.6
33.9
444.6
444.6
449.1
10.4
5.5
10.4
5.5
10.5
5.5
—%
—%
0.15%
0.32%
0.21%
0.02%
0.01%
0.01%
0.14%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Naeem Khan LTD
FirstVitals Health and Wellness
Inc
(#,^)
(#,^)
Almost Home Daycare LLC
Gardner's Wharf Holdings
LLC and Gardner's Wharf
Seafood Inc
Empower Autism Academy
Higher Grounds Community
Coffeehouse, LLC
Elite Institute LLC dba
Huntington Learning Center
God Be Glorified Inc dba GBG
Inc
3000 CSI Property LLC and
Consulting Solutions Inc
GDP Gourmet LLC dba Joe
and John's Pizza Restaurant
Gold Jet Corp.
SKJ Inc dba Subway
LP Industries Inc dba
Childforms
Beale Street Blues Company-
West Palm Beach LLC
Smart Artists Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Free Ion Advisors LLC
Murrayville Donuts, Inc dba
Dunkin' Donuts
Union 2 LLC dba The
Standard
Jonathan E Nichols and
Nichols Fire and Security LLC (#,^)
(#,^)
(#,^)
260 West 36h St., New York, NY
10018
1288 Ala Moana Blvd Ste 27E,
Honolulu, HI 96814
35 Copps Hill Rd, Ridgefield, CT
06877
170 Main St., North Kingstown,
RI 02852
11316 Wet Season Drive, Austin,
TX 78754
39 Kingstown Rd, Wyoming, RI
02898
13526 Village Park Drive Ste
214, Orlando, FL 32837
40 West. 162nd St, South
Holland, IL 60473
3000 N Federal Hwy Ste 1, Fort
Lauderdale, FL 33306
136 New Jersey Ave, Absecon,
NJ 08201
2472 Broadway, New York, NY
10025
401 S Woodlawn Ave,
Bloomington, IN 47401
110 Charleston Drive,
Mooresville, NC 28117
550 Rosemary Ave, Ste 236,
West Palm Beach, FL 33401
450 West 24th St. Ste 1C, New
York, NY 10011
322 Evandale Rd, Scarsdale, NY
10583
2304 N College Rd, Wilmington,
NC 28405
1520 Broadway, Fort Myers, FL
33901
1906 Vanderhorn Drive,
Memphis, TN 38134
Apparel Manufacturing
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Insurance Carriers and Related
Activities
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Couriers and Messengers
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Plastics and Rubber Products
Manufacturing
Performing Arts, Spectator
Sports, and Related Industries
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-104
See accompanying notes to consolidated financial statements.
9/17/2025
9/15/2025
9/11/2025
9/8/2040
9/4/2040
9/2/2025
8/28/2025
8/20/2025
8/20/2040
8/19/2040
8/14/2025
8/13/2025
7/29/2025
7/24/2025
7/23/2025
7/21/2025
7/15/2040
7/10/2025
6/30/2025
83.2
100.3
7.3
130.0
634.9
5.5
10.0
34.8
127.8
134.8
47.1
55.4
81.1
43.0
14.6
41.7
83.2
100.3
7.3
130.0
634.9
5.5
10.0
34.8
127.8
134.8
47.1
55.4
81.1
43.0
14.6
41.7
84.0
101.3
7.6
151.9
741.7
5.6
10.1
35.2
149.1
156.3
48.6
56.2
84.5
44.0
14.8
42.1
330.7
330.7
381.5
69.3
48.1
69.3
48.1
71.7
50.7
% of Net
Assets
322,226
0.03%
0.03%
—%
0.05%
0.23%
—%
—%
0.01%
0.05%
0.05%
0.02%
0.02%
0.03%
0.01%
—%
0.01%
0.12%
0.02%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Anglin Cultured Stone
Products LLC dba Anglin
Construction
Thrifty Market, Inc. dba
Thrifty Foods
Myclean Inc.
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Summit Beverage Group LLC (#,^)
SofRep, Inc dba Force 12
Media
Jihan Inc dba ARCO AM/PM
and Diana Inc dba Diana's
Recycling
TJU-DGT Inc dba The Lorenz
Cafe
E & G Enterprises LLC dba
Comfort Keepers
CEM Autobody LLC dba
Dawn's Autobody
Ohs Auto Body, Inc. dba Ohs
Body Shop
Wolf Enviro Interests, LLC and
Enviromax Services Inc
Evinger PA One, Inc. dba
Postal Annex, Falcon
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
RJI Services, Inc.
Real Help LLC dba Real Help
Decorative Concrete
KRN Logistics, LLC and
Newsome Trucking, Inc
PM Cassidy Enterprises, Inc.
dba Junk King
Inverted Healthcare Staffing of
Florida LLC dba Interim
Healthcare
AM PM Properties, LLC and
AM PM Willington, LLC
Mirage Plastering Inc and
Mpire LLC and Mpire II LLC (#,^)
(#,^)
(#,^)
(#,^)
877 Salem Church Rd, Newark,
DE 19702
702 10th St, Wheatland, WY
82201
247 West 36th St. 9th Fl, New
York, NY 10018
211 Washington Ave, Marion, VA
24354
930 Tahoe Blvd Ste 802-543,
Incline Village, NV 89451
13886 Campo Rd, Jamul, CA
91935
714-718 Lorenz Ave, Pittsburgh,
PA 15220
220 Middle St., Franklin, VA
23851
Specialty Trade Contractors
Term Loan
8.25%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Other Information Services
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Repair and Maintenance
Administrative and Support
Services
7 Division St, Keyport, NJ 07735 Repair and Maintenance
3560 Hwy 93 S, Kalispell, MT
59901
18002 Mueschke Rd, Cypress,
TX 77433
7661 McLaughlin Rd, Falcon,
CO 80831
353 E Angeleno Ste G, Burbank,
CA 91502
2221 Broadway St., Buffalo, NY
14212
2262 Hwy 53 W, Jasper, GA
30143
960 Matley Lane, Ste 20-21,
Bldg B, Reno, NV 89502
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Waste Management and
Remediation Services
Truck Transportation
Term Loan
Prime plus 2.75%
Term Loan
7.6525%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
111 N Pompano Beach Blvd.,
Pompano Beach, FL 33062
1308 Stafford Rd, Storrs
Mansfield, CT 06268
1802 W Grant Rd Ste 114,
Tucson, AZ 85745
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
F-105
See accompanying notes to consolidated financial statements.
6/30/2025
6/30/2030
6/29/2025
8/29/2030
6/26/2025
6/26/2040
6/26/2029
6/26/2025
6/26/2040
6/25/2040
6/25/2040
6/24/2025
6/23/2025
6/22/2025
6/19/2025
6/19/2025
6/18/2025
6/17/2040
6/12/2040
193.3
222.7
10.2
235.4
42.5
193.3
222.7
10.2
235.4
42.5
187.2
242.3
10.5
256.9
43.9
350.1
350.1
413.0
16.1
14.4
16.1
14.4
17.5
14.9
124.9
124.9
147.2
1,123.2
1,123.2
1,066.2
227.8
227.8
266.7
14.4
14.2
34.1
343.7
9.5
29.9
80.0
14.4
14.2
34.1
343.7
9.5
29.9
80.0
15.1
14.7
35.8
359.2
9.9
30.9
94.5
127.8
127.8
149.2
% of Net
Assets
322,226
0.06%
0.08%
—%
0.08%
0.01%
0.13%
0.01%
—%
0.05%
0.33%
0.08%
—%
—%
0.01%
0.11%
—%
0.01%
0.03%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Eldredge Tavern LLC dba
Gonyea's Tavern
Chitalian Fratelli LLC dba
Francesca Brick Oven Pizza
and Pasta
ViAr Visual Communications,
Inc. dba Fastsigns 281701
Video Vault & Tanning LLC
and Mosaic Salon LLC
(#,^)
(#,^)
(#,^)
(#)
Medworxs LLC
XCESSIVE THROTTLE, INC
dba Jake's Roadhouse
(#,^)
(#,^)
Villela CPA PL
Douglas Posey and Sally
Watkinson dba Audrey's
Farmhouse
15 McArdle LLC and No
Other Impressions Inc
Guard Dogs MFS LLC
George S Cochran DDS Inc
South Park Properties LLC and
Midlothian Hardware LLC
Matthew Taylor and Landon
Farm LLC
Cares Inc dba Dumpling
Grounds Day Care Center
Orchid Enterprises Inc dba
Assisting Hands of Sussex
County
Ragazza Restaurant Group,
Inc. dba Bambolina
Diamond Solutions LLC
Giacchino Maritime
Consultants Inc
Sound Coaching Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
150 Main St., Pascoag, RI 02859
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/8/2040
234 Rock Rd, Glen Rock, NJ
07452
4721 University Way NE, Seattle,
WA 98105
W7003 Parkview Dr, Ste A-B,
Greenville, WI 54942
10901 W. Toller Drive, Littleton,
CO 80127
5980 Lamar St., Arvada, CO
80003
777 Brickell Ave, Ste 500,
Miami, FL 33131
2188 Brunswyck Rd, Wallkill,
NY 12589
15 McArdle St., Rochester, NY
14611
9460 Mistwater Close, Roswell,
GA 30076
1066 Chelsea Ave, Napoleon, OH
43545
4751 147th St., Midlothian, IL
60445
6103 N Church St, Greensboro,
NC 27455
4508 Blakiston St., Philadelphia,
PA 19136
274 Spring St., Newton, NJ
07860
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
288 Derby St., Salem, MA 01970
7655 E Gelding Drive, Ste B2,
Scottsdale, AZ 85260
5219 Tamiami Court, Cape Coral,
FL 33904
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
6/5/2025
6/5/2025
6/4/2040
6/3/2025
5/29/2025
5/27/2025
5/20/2040
5/15/2040
5/8/2025
5/7/2025
5/6/2040
5/4/2040
5/1/2040
4/24/2025
4/21/2025
4/21/2025
4/17/2025
4749 Main St. Ste 3, Bridgeport,
CT 06606
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
4/14/2025
F-106
See accompanying notes to consolidated financial statements.
51.8
10.1
39.8
84.8
80.2
5.2
5.7
160.1
169.4
39.7
90.8
44.0
92.5
74.5
9.4
11.3
12.1
14.1
27.8
51.8
10.1
39.8
84.8
80.2
5.2
5.7
160.1
169.4
39.7
90.8
44.0
92.5
74.5
9.4
11.3
12.1
14.1
27.8
61.3
0.02%
10.4
41.2
100.3
82.9
5.4
5.9
189.0
199.6
41.1
93.8
52.0
108.0
88.1
9.7
11.7
12.5
14.6
—%
0.01%
0.03%
0.03%
—%
—%
0.06%
0.06%
0.01%
0.03%
0.02%
0.03%
0.03%
—%
—%
—%
—%
28.7
0.01%
% of Net
Assets
322,226
0.02%
0.14%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Faramarz Nikourazm dba Car
Clinic Center
Mid-South Lumber Co. of
Northwest Florida, Inc.
Copper Beech Financial Group
LLC
Sunset Marine Resort LLC and
GoXpeditions LLC and Lavon
Gomes
Shorr Enterprises Inc dba New
Design Furniture
Manufacturers
Shellhorn and Hill Inc dba
Total Fleet Service
Foresite Realty Partners LLC
and Foresite Real Estate
Holdings LLC
Joyce Outdoor Advertising NJ
LLC and Joyce Outdoor
Advertising LLC
Zero-In Media Inc
Loriet LLC
Jaymie Hazard dba Indigo Hair
Studio and Day Spa
Shelton Incorporated dba Mrs.
Winners
R & R Security and
Investigations Inc dba Pardners
Lake Buchanan
MMS Realty, LLC and
Molecular MS Diagnostics
LLC
Royal Crest Motors LLC
Luigi's on Main LLC and
Luigi's Main Street Pizza Inc
Baystate Firearms and
Training, LLC
Pace Motor Lines, Inc.
Kingseal LLC dba Desoto
Health and Rehab Center
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
10707 Shady Trail, Dallas, TX
75220
717 W 11th St., Panama City, FL
32402
1223 North Church St.,
Moorestown, NJ 08057
Repair and Maintenance
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable
Goods
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
4/3/2040
3/31/2040
3/30/2025
67.5
392.6
77.1
67.5
392.6
77.1
79.4
460.0
80.5
40 Buzzard Ridge Rd, Sequim,
WA 98382
Accommodation
Term Loan
Prime plus 2.75%
3/27/2040
276.3
276.3
326.7
0.10%
3033 NW 28 St., Lauderdale
Lakes, FL 33311
501 South Market St,
Wilmington, DE 19801
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/27/2025
3/27/2040
65.7
948.7
65.7
948.7
68.7
1,111.7
0.02%
0.35%
5600 N River Rd #925,
Rosemont, IL 60018
Real Estate
Term Loan
Prime plus 2.75%
3/27/2025
763.9
763.9
787.5
0.24%
800 James Ave, Scranton, PA
18510
1123 Broadway Ste 704, New
York, NY 10010
5001 Vivienda Way, Sarasota, FL
34235
2016 Warwick Ave, Warwick, RI
02889
4509 N. Henry Blvd.,
Stockbridge, GA 30281
Professional, Scientific, and
Technical Services
Data Processing, Hosting, and
Related Services
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/26/2040
3/25/2025
3/24/2025
3/20/2040
3/20/2040
49.4
13.9
7.4
39.2
49.4
13.9
7.4
39.2
58.3
14.3
7.6
46.1
103.0
103.0
121.6
0.02%
—%
—%
0.01%
0.04%
15615 State Route 29, Buchanan
Dam, TX 78609
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/19/2040
78.1
78.1
92.2
0.03%
1224 Greenwich Ave, Warwick,
RI 02886
769 Amesbury Rd, Haverhill,
MA 01830
491 Montauk Hwy, Eastport, NY
11941
215 Newbury St., Peabody, MA
01960
1425 Honeyspot Rd Extension,
Stratford, CT 06615
475 Nursing Home Drive,
Arcadia, FL 34266
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
3/18/2040
3/16/2040
3/4/2025
2/27/2025
2/26/2025
2/26/2040
147.2
147.2
172.8
83.5
6.9
36.3
40.0
83.5
6.9
36.3
40.0
98.3
7.3
37.5
41.9
1,168.5
1,168.5
1,379.3
0.05%
0.03%
—%
0.01%
0.01%
0.43%
F-107
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Nelson Financial Services LLC (#,^)
Kiddie Steps 4 You Inc.
Triangle Trash LLC dba Bin
There Dump That
Dean 1021 LLC dba Pure Pita
Limameno LLC dba Sal's
Italian Ristorante
(#,^)
(#,^)
(#,^)
(#,^)
Palmabak Inc dba Mami Nora's (#,^)
Jung Design Inc
Grand Blanc Lanes, Inc. and H,
H and H, LLC
Evans and Paul LLC
First Prevention and Dialysis
Center, LLC
Bowlerama Inc
The Lodin Group LLC and
Lodin Health Imaging Inc
Thermoplastic Services Inc and
Paragon Plastic Sheet, Inc
Beale Street Blues Company-
West Palm Beach, LLC
B.S. Ventures LLC dba Dink's
Market
The Jewelers Inc. dba The
Jewelers of Las Vegas
Will Zac Management LLC
dba Papa John's
MM and M Management Inc
dba Pizza Artista
B & W Towing, LLC and
Boychucks Fuel LLC
Kemmer LLC and Apples Tree
Top Liquors LLC
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#)
20015 N 83rd Place, Scottsdale,
AZ 85255
1700 West 63rd St., Chicago, IL
60636
188 Northbend Drive,
Youngsville, NC 27596
106 Central Ave, Westfield, NJ
07090
861 Yamato Rd, Bay #2, Boca
Raton, FL 33431
4614 Capital Blvd, Raleigh, NC
27604
10857 Pine Bluff Drive, Fishers,
IN 46037
5301 S Saginaw Rd, Flint, MI
48507
140 Dupont St., Plainview, NY
11803
17940 NW 27th Ave, Miami
Gardens, FL 33056
3031 New Castle Ave, New
Castle, DE 19720
114-115 Medical Center Ave,
Sebring, FL 33870
1700 W 4th St., Dequincy, LA
70633
550 S Rosemary Ave #236, West
Palm Beach, FL 33401
48649 Hwy 58, Oakridge, OR
97463
2400 Western Ave, Las Vegas,
NV 89102
2410 West Jefferson St., Ste B,
Joliet, IL 60435
5409 Johnston St., Lafayette, LA
70503
701 Addison Rd, Painted Post,
NY 14870
1300 S Jackson St., Salem, IN
47167
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Waste Management and
Remediation Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/31/2039
Term Loan
Prime plus 2.75%
12/30/2024
2/24/2025
2/19/2040
2/18/2025
4/29/2025
1/23/2025
1/22/2025
1/20/2022
7.6
56.6
45.2
53.7
50.0
4.6
3.0
121.0
145.0
176.1
7.6
56.6
45.2
53.7
50.0
4.6
3.0
121.0
145.0
176.1
7.8
66.5
47.1
55.7
51.8
4.8
3.0
142.8
152.1
184.6
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/30/2024
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/24/2039
1,095.8
1,095.8
1,291.5
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/23/2039
Plastics and Rubber Products
Manufacturing
Performing Arts, Spectator
Sports, and Related Industries
Merchant Wholesalers,
Nondurable Goods
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/23/2039
Term Loan
Prime plus 2.75%
12/22/2024
Term Loan
Prime plus 2.75%
12/19/2039
Term Loan
Prime plus 2.75%
12/19/2024
Term Loan
6.25%
12/19/2024
Term Loan
Prime plus 2.75%
4/19/2025
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/17/2039
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/4/2039
482.5
455.0
111.0
48.9
735.5
88.5
28.7
149.7
129.0
482.5
455.0
111.0
48.9
735.5
88.5
28.7
149.7
129.0
563.8
536.2
115.1
57.6
757.6
86.9
29.8
175.4
150.9
F-108
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
—%
0.02%
0.01%
0.02%
0.02%
—%
—%
0.04%
0.05%
0.06%
0.40%
0.17%
0.17%
0.04%
0.02%
0.24%
0.03%
0.01%
0.05%
0.05%
% of Net
Assets
322,226
0.04%
0.04%
0.01%
0.14%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Teamnewman Enterprises LLC
dba Newmans at 988 and John
H. Newman
Modern Manhattan LLC
Legacy Estate Planning Inc dba
American Casket Enterprises
J&D Resources, LLC dba
Aqua Science
DC Real LLC and DC
Enterprises LTD dba Lakeview
True Value
Heartland American Properties
LLC and Skaggs RV Outlet
LLC
One Hour Jewelry Repair Inc
DNT Storage and Properties
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Sound Manufacturing Inc
Doctors Express Management
of Central Texas LLC
Smith Spinal Care Center P.C.
and James C. Smith
Michael Rey Jr. and Lynn J.
Williams and GIG Petcare dba
Hickory
Sumad LLC dba BrightStar
Care of Encinitas
Roccos LLC and Sullo
Pantalone Inc dba Rocco's
Gordon E Rogers dba
Stonehouse Motor Inn
Andrene's LLC dba Andrene's
Caribbean Soul Food Carry
Out
Ryan Crick and Pamela J.
Crick and Crick Enterprises Inc (#,^)
Modern Leather Goods Repair
Shop Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
988 Hemlock St., Cannon Beach,
OR 97110
250 Park Ave South, New York,
NY 10003
2176 Route 119 North,
Greensburg, PA 15601
1923 E. 5th St., Tempe, AZ
85281
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/25/2039
11/25/2024
11/21/2024
11/21/2024
108.2
128.4
24.5
440.8
108.2
128.4
24.5
440.8
127.2
132.4
25.2
454.8
318 North F St., Lakeview, OR
97630
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
11/20/2039
108.9
108.9
128.1
0.04%
301 Commerce Drive,
Elizabethtown, KY 42701
6544 Springfield Mall,
Springfield, VA 22150
38 Old National Pike, West
Alexander, PA 15376
51 Donnelley Rd, Old Saybrook,
CT 06475
3614 SW HK Dodgen Loop, Ste
F, Temple, TX 76504
1103 Russell Parkway, Warner
Robins, GA 31088
900 Alpine Rd, Bridgeville, PA
15017
680 Fletcher Pkwy, Ste 206, El
Cajon, CA 92020
79 Beach Rd Unit B13-B14,
Vineyard Haven, MA 02568
162 Danielson Pike, Foster, RI
02825
308 Kennedy St. NW,
Washington, DC 20011
3390 W. Andrew Johnson Hwy,
Greeneville, TN 37743
2 West 32nd St., Ste 401, New
York, NY 10001
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
10/31/2039
434.0
434.0
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/14/2024
Real Estate
Term Loan
Prime plus 2.75%
10/10/2039
11.8
92.2
11.8
92.2
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
10/10/2024
107.0
107.0
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Personal and Laundry Services
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
F-109
See accompanying notes to consolidated financial statements.
10/8/2024
10/8/2039
10/3/2039
10/2/2024
9/30/2039
9/26/2039
9/23/2024
9/17/2039
9/17/2024
3.7
26.0
110.5
30.6
231.2
52.0
16.0
131.9
32.3
3.7
26.0
110.5
30.6
231.2
52.0
16.0
131.9
32.3
510.4
12.2
108.6
110.9
3.9
30.7
130.1
32.0
270.9
61.3
16.4
155.2
33.1
0.16%
—%
0.03%
0.03%
—%
0.01%
0.04%
0.01%
0.08%
0.02%
0.01%
0.05%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Animal Intrusion Prevention
Systems Holding Company,
LLC
Tavern Properties LLC and
Wildwood Tavern LLC
Indy East Smiles Youth
Dentistry LLC dba Prime
Smile East
B&P Diners LLC dba Engine
House Restaurant
Lamjam LLC, Goldsmith
Lambros Inc
Atlas Auto Body Inc dba Atlas
Auto Sales
Katie Senior Care LLC dba
Home Instead Senior Care
Alpha Preparatory Academy
LLC
Hamer Road Auto Salvage,
LLC and Scott T. Cook and
Nikki J. Cook
Almost Home Property LLC
and Almost Home Daycare
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
iFood, Inc. dba Steak N Shake (#,^)
575 Columbus Avenue
Holding Company, LLC and
LA-ZE LLC
Honeyspot Investors LLP and
Pace Motor Lines Inc
Miss Cranston Diner II, LLC
and Miss Cranston II Realty
LLC
Honeyspot Investors LLP and
Pace Motor Lines Inc
(#,^)
(#,^)
(#,^)
iFood, Inc. dba Steak N Shake (#,^)
Lisle Lincoln II Limited
Partnership dba Lisle Lanes LP (#,^)
AMG Holding, LLC and
Stetson Automotive, Inc
(#,^)
3330 N Beach St., Fort Worth,
TX 76111
6480 West Touhy Ave, Niles, IL
60714
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
5430 E. Washington St.,
Indianapolis, IN 46219
71 Lafayette St., Unit 1, Salem,
MA 01970
7137 Little River Turnpike,
Annandale, VA 22003
20 Providence St., West
Warwick, RI 02893
222E Eufaula St Ste 220,
Norman, OK 73069
4462 Mink Livsey Rd, Snellville,
GA 30039
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Social Assistance
Social Assistance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
10463 Hamer Rd, Georgetown,
OH 45121
Motor Vehicle and Parts Dealers
Term Loan
6%
35 Copps Hill Rd, Ridgefield, CT
06877
5900 Duraleigh Rd, Raleigh, NC
27612
575 Columbus Ave, New Haven,
CT 06519
1425 Honeyspot Rd Ext.,
Stratford, CT 06615
15 Stonebridge, Cranston, RI
02921
1425 Honeyspot Rd Ext.,
Stratford, CT 06615
2840 E Millbrook Rd, Raleigh,
NC 27604
4920 Lincoln Ave Rte 53, Lisle,
IL 60532
309 Route 9, Waretown, NJ
08758
Social Assistance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
F-110
See accompanying notes to consolidated financial statements.
9/15/2024
9/15/2039
9/11/2024
9/10/2024
8/27/2024
8/22/2039
8/15/2024
8/15/2039
8/8/2039
8/7/2039
7/31/2024
7/30/2039
7/24/2039
7/17/2039
6/30/2039
6/30/2039
6/30/2024
6/30/2039
% of Net
Assets
322,226
0.05%
0.14%
0.11%
0.01%
0.03%
0.02%
0.02%
0.05%
166.7
387.5
166.7
387.5
172.5
455.0
357.3
357.3
366.9
45.4
80.4
46.5
59.6
45.4
80.4
46.5
59.6
46.5
84.0
54.5
61.2
131.5
131.5
154.8
128.7
128.7
123.1
0.04%
674.2
216.6
18.5
134.9
88.2
786.8
566.8
53.7
187.0
674.2
216.6
18.5
134.9
88.2
786.8
566.8
53.7
187.0
792.5
225.0
21.8
158.7
103.6
932.7
669.7
56.3
221.7
0.25%
0.07%
0.01%
0.05%
0.03%
0.29%
0.21%
0.02%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
(#)
JPM Investments LLC and
Carolina Family Foot Care P.A. (#)
Zinger Hardware and General
Merchant Inc
Nikobella Properties LLC and
JPO Inc dba Village Car Wash (#)
Big Sky Plaza LLC and
Strickland, Incorporated
Sico & Walsh Insurance
Agency Inc and The AMS
Trust
Sujata Inc dba Stop N Save
Food Mart and Dhruvesh Patel
Long Island Barber Institute
Inc
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Pocono Coated Products, LLC (#,^)
Jonesboro Health Food Center
LLC
Hae M. and Jin S. Park dba
Buford Car Wash
The River Beas LLC and
Punam Singh
AS Boyals LLC dba Towne
Liquors
Gerami Realty, LC, Sherrill
Universal City Corral, LP
(#,^)
(#,^)
(#,^)
(#,^)
Complete Body & Paint, Inc.
Island Wide Realty LLC and
Long Island Partners, Inc.
(#,^)
(#,^)
Wilshire Media Systems Inc
1899 Tavern & Tap LLC and
Ale House Tavern & Tap LLC (#,^)
(#,^)
Dantanna's Tavern LLC
(#,^)
122 N. Main St., Fuquay Varina,
NC 27526
4001 N Lamar Blvd Ste 300,
Austin, TX 78756
1372 South US Route 12, Fox
Lake, IL 60020
1313 West Park St. #1,
Livingston, MT 59047
106 Concord Ave, Belmont, MA
02478
15637 St Clair Ave, Cleveland,
OH 44110
266 Greenwich St., Hempstead,
NY 11550
100 Sweetree St., Cherryville,
NC 28021
1321 Stone St., Jonesboro, AR
72401
1163 Buford Hwy, Sugar Hill,
GA 30518
11704 Centurion Way, Potomac,
MD 20854
117 South Broad St., Woodbury
City, NJ 08096
2301 Pat Booker Rd, Universal
City, TX 78148
32220 Michigan Ave, Wayne, MI
48184
201-203-205 West Merrick Rd,
Valley Stream, NY 11580
2649 Townsgate Rd #500,
Westlake Village, CA 91361
1899 State Route 35, South
Amboy, NJ 08879
6615 Roswell Rd NE #30, Sandy
Springs, GA 30328
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
7.25%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Real Estate
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-111
See accompanying notes to consolidated financial statements.
6/26/2039
6/26/2024
6/25/2039
6/20/2039
6/6/2039
6/3/2024
6/2/2039
5/30/2024
5/27/2024
5/15/2039
5/8/2039
4/29/2039
4/23/2027
4/23/2039
4/22/2039
4/17/2024
4/9/2039
6/30/2024
128.4
41.1
444.1
209.6
84.9
9.0
49.8
12.0
34.0
128.4
41.1
444.1
209.6
84.9
9.0
49.8
12.0
34.0
148.4
148.4
81.0
97.3
53.0
18.6
92.8
96.9
100.2
87.4
81.0
97.3
53.0
18.6
92.8
96.9
100.2
87.4
% of Net
Assets
322,226
0.05%
0.01%
0.16%
0.08%
151.8
40.5
525.1
247.9
100.5
0.03%
9.3
58.9
12.5
35.3
175.3
95.8
115.2
57.0
22.0
109.8
100.8
118.6
91.3
—%
0.02%
—%
0.01%
0.05%
0.03%
0.04%
0.02%
0.01%
0.03%
0.03%
0.04%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Social Assistance
Term Loan
Prime plus 2.75%
3/31/2039
82.6
82.6
97.5
0.03%
Little People's Village II LLC
and Iliopoulos Realty LLC
Eagle Aggregate
Transportation, LLC and Eagle
Pneumatic Transport LLC
Little People's Village II LLC
and Iliopoulos Realty LLC
Kemmer, LLC and Pitts
Package Store, Inc.
Hodges Properties LLC and
Echelon Enterprises Inc dba
Treads Bicycle
636 South Center Holdings,
LLC and New Mansfield Brass
and Aluminum
Cormac Enterprises and
Wyoming Valley Beverage
Incorporated
Kinisi, Inc. dba The River
North UPS Store
Tortilla King, Inc.
Tortilla King Inc.
R & R Boyal LLC dba Cap N
Cat Clam Bar and Little Ease
Tavern
Faith Memorial Chapel LLC
952 Boston Post Road Realty,
LLC and HNA LLC dba Styles
International
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Summit Beverage Group LLC (#,^)
96 Mill Street LLC, Central
Pizza LLC and Jason Bikakis
George Bikaki
JWB Industries, Inc. dba
Carteret Die Casting
986 Dixwell Avenue Holding
Company, LLC and Mughali
Foods, LLC
(#,^)
(#,^)
(#,^)
6522 Haverford Ave,
Philadelphia, PA 19151
4401 N I-35 #113, Denton, TX
76207
6522 Haverford Ave,
Philadelphia, PA 19151
636 South Center St., New
Washington, OH 44854
63 S Wyoming Ave,
Edwardsville, PA 18704
301 West Grand Ave, Chicago, IL
60654
249 23rd Ave, Moundridge, KS
67107
249 23rd Ave, Moundridge, KS
67107
3111 & 3135 Delsea Drive,
Franklinville, NJ 08322
600 9th Ave North, Bessemer,
AL 35020
Truck Transportation
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
201 S. Main St., Salem, IN 47167 Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/31/2024
3/31/2039
3/31/2039
365.0
91.1
105.3
365.0
91.1
105.3
381.5
107.6
124.2
0.12%
0.03%
0.04%
16701 E. Iliff Ave, Aurora, CO
80013
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
3/31/2039
400.6
400.6
473.9
0.15%
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
3/20/2039
Food and Beverage Stores
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
71.8
98.9
5.8
770.6
41.3
371.8
190.8
184.2
177.7
126.8
141.9
71.8
98.9
5.8
770.6
41.3
371.8
190.8
184.2
177.7
126.8
141.9
84.8
0.03%
116.8
0.04%
6.0
840.4
48.8
438.7
225.0
217.3
185.2
149.8
147.3
—%
0.26%
0.02%
0.14%
0.07%
0.07%
0.06%
0.05%
0.05%
3/20/2039
3/18/2024
3/14/2029
3/14/2039
2/28/2039
2/28/2039
2/28/2039
2/28/2024
2/12/2039
2/11/2024
952 Boston Post Rd, Milford, CT
06460
211 Washington Ave, Marion, VA
24354
Personal and Laundry Services
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
96 Mill St., Berlin, CT 06037
74 Veronica Ave, Somerset, NJ
08875
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
986 Dixwell Ave, Hamden, CT
06510
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/7/2039
88.6
88.6
104.6
0.03%
F-112
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Sarah Sibadan dba Sibadan
Agency
Icore Enterprises Inc dba Air
Flow Filters Inc
Nutmeg North Associates
LLC, Steeltech Building
Products Inc
KK International Trading
Corporation
Kurtis Sniezek dba Wolfe's
Foreign Auto
TAK Properties LLC and
Kinderland Inc
TOL LLC dba Wild Birds
Unlimited
920 CHR Realty LLC, V.
Garofalo Carting Inc
DKB Transport Corp
Firm Foundations Inc David S
Gaitan Jr and Christopher K
Daigle
Spectrum Development LLC
and Solvit Inc & Solvit North,
Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
BVIP Limousine Service LTD (#,^)
AcuCall LLC
Kids in Motion of Springfield
LLC dba The Little Gym of
Springfield IL
Yousef Khatib dba Y&M
Enterprises
Howell Gun Works LLC
Polpo Realty, LLC, Polpo
Restaurant, LLC
1 North Restaurant Corp dba 1
North Steakhouse
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
102-05 101st Ave, Ozone Park,
NY 11416
151 W 24th St, Hialeah, FL
33010
636 Nutmeg Rd North, South
Windsor, CT 06074
219 Lafayette Drive, Syosset, NY
11791
712 5th St., New Brighton, PA
15066
1157 Commerce Ave, Longview,
WA 98632
320 W. Main St., Avon, CT
06001
920 Crooked Hill, Brentwood,
NY 11717
555 Water Works Rd, Old Bridge,
NJ 08857
1455 S Richland Creek Rd, Sugar
HIll, GA 30518
65 Farmington Valley Drive,
Plainville, CT 06062
887 W Liberty, Medina, OH
44256
824 U.S Hwy 1, Ste 335, North
Palm Beach, FL 33408
3039-3043 Hedley, Springfield,
IL 62704
671 E. Cooley Drive, Unit 114,
Colton, CA 92324
2446 Route 9, Howell, NJ 07731
554 Old Post Rd #3, Greenwich,
CT 06830
322 W. Montauk Hwy, Hampton
Bays, NY 11946
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
1/27/2039
1/15/2024
Construction of Buildings
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/31/2038
Term Loan
Prime plus 2.75%
12/23/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/20/2038
Social Assistance
Term Loan
Prime plus 2.75%
12/18/2038
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
12/13/2023
Term Loan
Prime plus 2.75%
12/10/2038
Truck Transportation
Term Loan
Prime plus 2.75%
12/5/2038
114.9
10.8
812.1
136.4
78.7
359.0
9.1
370.3
123.0
114.9
10.8
812.1
136.4
78.7
359.0
9.1
370.3
123.0
135.7
11.3
957.6
148.7
92.9
422.8
9.4
436.8
145.0
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/3/2038
92.4
92.4
108.6
0.03%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Transit and Ground Passenger
Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Wholesale Electronic Markets
and Agents and Brokers
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-113
See accompanying notes to consolidated financial statements.
12/2/2023
11/27/2038
11/21/2023
11/18/2023
11/15/2023
11/14/2023
11/6/2038
190.0
190.0
196.9
67.6
7.4
22.3
36.0
2.2
55.6
67.6
7.4
22.3
36.0
2.2
55.6
79.7
7.6
23.1
37.3
2.3
65.6
Term Loan
Prime plus 2.75%
10/31/2038
187.7
187.7
221.4
% of Net
Assets
322,226
0.04%
—%
0.30%
0.05%
0.03%
0.13%
—%
0.14%
0.04%
0.06%
0.02%
—%
0.01%
0.01%
—%
0.02%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
11825 29 Mile Rd, Washington,
MI 48095
2817 Lomb Ave, Birmingham,
AL 35208
125 E Fesler St., Santa Maria,
CA 93454
407 E. Edgar Ave, Ronceverte,
WV 24970
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/31/2038
Social Assistance
Term Loan
Prime plus 2.75%
10/31/2023
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/31/2038
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/24/2023
526.2
20.5
121.4
97.2
526.2
20.5
121.4
97.2
619.0
21.3
143.1
101.0
% of Net
Assets
322,226
0.19%
0.01%
0.04%
0.03%
(#,^)
77 Mill Rd, Freeport, NY 11520
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/24/2038
130.7
130.7
154.1
0.05%
Social Assistance
Term Loan
Prime plus 2.75%
9/30/2038
85.8
85.8
101.0
0.03%
104 McCoy St., Milford, DE
19963
37 Commons Court, Waterbury,
CT 06704
1202 S Park Drive, Broken Bow,
OK 74728
Warehousing and Storage
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
2040 Norwood, Lenoir, NC
28645
110 Charleston Dr. Ste 105,
Morresville, NC 28117
Plastics and Rubber Products
Manufacturing
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12150 Annapolis Rd, Ste 301,
Glenn Dale, MD 20769
242 Sheep Davis Rd, Concord,
NH 03301
11919 S Ave O, Chicago, IL
60617
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
17 Pearl St., Mystic, CT 06355
10232 S Ave N, Chicago, IL
60617
1700 West 63rd St., Chicago, IL
60636
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
800 Broad St., Clifton, NJ 07013
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11585 Jones Bridge Rd, Ste 4G,
Johns Creek, GA 30022
Educational Services
Term Loan
Prime plus 2.75%
9/20/2023
F-114
See accompanying notes to consolidated financial statements.
9/30/2038
9/30/2038
9/30/2038
9/30/2038
9/27/2038
9/27/2038
9/26/2038
9/26/2038
9/26/2038
9/25/2038
9/25/2023
303.4
196.7
260.1
106.0
294.6
666.2
407.8
87.9
45.0
80.0
2.7
21.5
303.4
196.7
260.1
106.0
294.6
666.2
407.8
87.9
45.0
80.0
2.7
21.5
357.9
231.7
306.6
125.0
347.2
784.2
481.0
103.7
53.1
93.9
2.8
0.11%
0.07%
0.10%
0.04%
0.11%
0.24%
0.15%
0.03%
0.02%
0.03%
—%
22.2
0.01%
Master CNC Inc & Master
Properties LLC
Janice B. McShan and The
Metropolitan Day School, LLC (#,^)
(#,^)
Mid-Land Sheet Metal Inc
Greenbrier Technical Services,
Inc
Clairvoyant Realty Corp. and
Napoli Marble & Granite
Design, Ltd
First Steps Real Estate
Company, LLC and First Steps
Preschool
Cencon Properties LLC and
Central Connecticut
Warehousing Company
Discount Wheel and Tire of
Broken Bow Inc
Lenoir Business Partners LLC
LP Industries, Inc dba
Childforms
LP Industries, Inc dba
Childforms
Mitchellville Family Dentistry,
Dr. Octavia Simkins-Wiseman
DDS PC
Gabrielle Realty, LLC
Eastside Soccer Dome, Inc .
Anthony C Dinoto and Susan S
P Dinoto and Anthony C
Dinoto Funeral
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Southeast Chicago Soccer, Inc. (#,^)
Kiddie Steps 4 You Inc.
Diamond Memorials
Incorporated
Serious-Fun in Alpharetta,
LLC dba The Little Gym of
Alpharetta
(#,^)
(#,^)
(#,^)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Faith Memorial Chapel LLC
Maynard Enterprises Inc dba
Fastsigns of Texarkana
Grafio Inc dba Omega
Learning Center-Acworth
The Berlerro Group, LLC dba
Sky Zone
Sound Manufacturing Inc
Prospect Kids Academy Inc
Alma J. and William R. Walton
and Almas Child Day Care
Center
B for Brunette dba Blo
Schmaltz Holdings, LLC and
Schmaltz Operations, LLC
IlOKA Inc dba Microtech Tel
and NewCloud Networks
ACI Northwest Inc.
Gulfport Academy Child Care
and Learning Center, Inc. and
Jennifer
Ramard Inc and Advanced
Health Sciences Inc
RM Hawkins LLC dba Pure
Water Tech West and Robert M
Hawkins
JSIL LLC dba Blackstones
Hairdressing
Caribbean Concepts, Inc. dba
Quick Bleach
Daniel W and Erin H Gordon
and Silver Lining Stables CT,
LLC
Angkor Restaurant Inc
Tri County Heating and
Cooling Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
600 9th Ave N, Bessemer, AL
35020
3735 Mall Drive, Texarkana, TX
75501
5330 Brookstone Drive, Ste 320,
Acworth, GA 30101
111 Rodeo Drive, Edgewood, NY
11717
51 Donnelley Rd, Old Saybrook,
CT 06475
532 St Johns Place, Brooklyn,
NY 11238
2909 W 63rd St., Chicago, IL
60629
50 Glen Cove Rd, Greenvale, NY
11548
3408 Castle Rock Farm Rd,
Pittsboro, NC 27312
160 Inverness Dr W Ste 100,
Englewood, CO 80112
6600 N Government Way, Coeur
D Alene, ID 83815
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
Social Assistance
Term Loan
8%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
15150 Evans St., Gulfport, MS
39503
4561 Ironworks Pike, Ste 161,
Lexington, KY 40511
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
1815 De Paul St., Colorado
Springs, CO 80909
19 East 7th St., New York, NY
10003
120 East 56th St., Ste 730, New
York, NY 10022
38 Carmen Lane, Monroe, CT
06468
10 Traverse St., Providence, RI
02903
509 East Park St., Livingston,
MT 59047
Nonstore Retailers
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
F-115
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
9/20/2038
9/18/2023
9/13/2023
9/12/2023
9/12/2028
9/11/2038
9/11/2038
9/10/2023
9/4/2038
8/30/2023
8/30/2023
8/30/2023
8/28/2023
8/26/2023
8/16/2023
8/12/2023
7/24/2023
7/19/2038
7/19/2023
236.1
236.1
277.5
0.09%
7.5
76.7
199.3
38.4
109.3
35.1
25.0
195.9
294.8
245.8
19.6
85.1
36.4
8.7
10.1
5.3
81.4
39.1
7.5
76.7
199.3
38.4
109.3
35.1
25.0
195.9
294.8
245.8
19.6
85.1
36.4
8.7
10.1
5.3
81.4
39.1
7.8
79.3
206.0
41.7
128.6
33.6
25.8
230.0
304.8
254.9
20.3
87.7
37.7
9.0
10.5
5.5
95.9
40.5
—%
0.02%
0.06%
0.01%
0.04%
0.01%
0.01%
0.07%
0.09%
0.08%
0.01%
0.03%
0.01%
—%
—%
—%
0.03%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
509 East Park St., Livingston,
MT 59047
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2038
1 Poppy Ave, Neptune, NJ 07753 Truck Transportation
512 Verret St., New Orleans, LA
70114
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
2.1
23.9
19.5
85.0
398.3
2.1
23.9
19.5
85.0
398.3
2.4
—%
24.6
20.2
100.5
425.4
0.01%
0.01%
0.03%
0.13%
7/17/2023
6/28/2023
6/28/2038
6/19/2026
Harbor Ventilation Inc and
Estes Investment, LLC
Morning Star Trucking LLC
and Morning Star Equipment
and Leasing LLC
Maxiflex LLC
GIA Realty LLC and VRAJ
GIA LLC dba Lakeview
Laundromat
2161 Highway 6 Trail, LLC, R.
H. Hummer JR., Inc.
Blakeslee Arpaia Chapman,
Inc. dba Blakeslee Industrial
Services
KDP LLC and KDP
Investment Advisors, Inc and
KDP Asset Management, Inc
Elite Structures Inc
Absolute Desire LLC and
Mark H. Szierer Sophisticated
Smile
Gregory P Jellenek OD and
Associates PC dba Gregory P
Jellenek OD
Ryan D. Thornton and
Thornton & Associates LLC
Peanut Butter & Co., Inc.
1258 Hartford TPKE, LLC and
Phelps and Sons, Inc
A & M Commerce, Inc. dba
Cranberry Sunoco
Xela Pack, Inc. and Aliseo and
Catherine Gentile
American Diagnostic Imaging,
Inc. dba St. Joseph Imaging
Center
Michael A.and HeatherR.
Welsch dba Art & FrameEtc.
Truth Technologies Inc dba
Truth Technologies Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
411 Sharp St., Millville, NJ
08332
2141 P Ave, Williamsburg, IA
52361
200 North Branford Rd,
Branford, CT 06405
24 Elm St., Montpelier, VT
05602
401 Old Quitman Rd, Adel, GA
31620
85 Reaville Ave, Flemington, NJ
08822
4640 Monticello Ave, Ste 8A,
Williamsburg, VA 23188
800 Bethel St., Ste 200,
Honolulu, HI 96813
250 West 54th St., New York,
NY 10019
1258 Hartford Turnpike, Vernon,
CT 06066
398 Baltimore Blvd,
Westminster, MD 21157
8300 Boettner Rd, Saline, MI
48176
3937 Sherman Ave, Saint Joseph,
MO 64506
2819 West T C Jester Blvd.,
Houston, TX 77018
2341 Cheshire Lane, Naples, FL
34109
Heavy and Civil Engineering
Construction
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
6/18/2028
601.8
601.8
654.9
0.20%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
6/14/2023
6/12/2038
149.7
777.1
149.7
777.1
155.0
916.8
0.05%
0.28%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/5/2038
164.7
164.7
194.3
0.06%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
Paper Manufacturing
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-116
See accompanying notes to consolidated financial statements.
5/28/2023
5/24/2023
4/30/2023
3/29/2038
3/27/2038
3/27/2028
3/25/2038
3/22/2038
3/21/2023
26.7
21.3
41.5
108.0
286.1
187.9
26.7
21.3
41.5
108.0
286.1
187.9
27.7
22.1
42.9
127.4
337.0
204.1
465.9
465.9
548.7
58.5
35.2
58.5
35.2
68.9
36.3
0.01%
0.01%
0.01%
0.04%
0.10%
0.06%
0.17%
0.02%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Sound Manufacturing, Inc. and
Monster Power Equipment Inc. (#,^)
Golden Gate Lodging LLC
Bakhtar Group LLC dba
Malmaison
Osceola River Mill, LLC,
Ironman Machine, Inc.
Java Warung, LLC
Retain Loyalty LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
North Country Transport, LLC (#,^)
Sherill Universal City dba
Golden Corral LP
Macho LLC, Madelaine
Chocolate Novelties Inc
Babie Bunnie Enterprises Inc
dba Triangle Mothercare
Polpo Realty LLC & Polpo
Restaurant LLC
Martin L Hopp, MD PHD A
Medical Corp dba Tower ENT (#,^)
Cheryle A Baptiste and
Cheryle Baptiste DDS PLLC
Daniel Gordon and Erin
Gordon and Silver Lining
Stables CT, LLC
Richmond Hill Mini Market,
LLC
D&L Rescources, Inc. dba The
UPS Store
DRV Enterprise, Inc. dba Cici's
Pizza # 339
U & A Food and Fuel, Inc. dba
Express Gas & Food Mart
Pioneer Windows
Manufacturing Corp, Pioneer
Windows
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
51 Donnelley Rd, Old Saybrook,
CT 06475
432 Margaret St.,, Plattsburgh,
NY 12901
3401 K St. NW, Washington, DC
20007
27 Hungerford St., Pittsfield, MA
01201
1915 N Richmond St., Appleton,
WI 54911
1250 Sanders Ave SW,
Massillon, OH 44647
10 LaCrosse St., Ste 14, Hudson
Falls, NY 12839
2301 Pat Booker Rd, Universal
City, TX 78148
96-03 Beach Channel Drive,
Rockaway Beach, NY 11693
8516 Swarthmore Drive, Raleigh,
NC 27615
554 Old Post Rd #3, Greenwich,
CT 06830
8631 West Third St, 440 E &,
Los Angeles, CA 90048
4839 Wisconsin Ave NW Ste 2,
Washington, DC 20016
38 Carmen Lane, Monroe, CT
06468
101 Richmond Hill Ave,
Stamford, CT 06902
8930 State Rd # 84, Davie, FL
33324
5771 East Fowler Ave, Temple
Terrace, FL 33617
1345 Wampanoag Trail, East
Providence, RI 02915
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Machinery Manufacturing
Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Printing and Related Support
Activities
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/15/2023
3/12/2038
2/28/2023
2/20/2038
2/19/2038
2/15/2038
2/6/2023
1/28/2038
Food Manufacturing
Term Loan
Prime plus 2.75%
12/31/2037
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/28/2027
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/27/2037
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2022
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
11/30/2037
Support Activities for Agriculture
and Forestry
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Miscellaneous Store Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Gasoline Stations
Term Loan
Prime plus 2.75%
11/28/2037
11/27/2037
11/27/2022
11/26/2022
11/21/2037
199.4
199.4
99.7
38.2
74.6
44.2
93.7
6.1
381.4
432.4
27.5
450.8
25.1
251.6
196.5
158.9
3.6
22.5
82.6
99.7
38.2
74.6
44.2
93.7
6.1
381.4
432.4
27.5
450.8
25.1
251.6
196.5
158.9
3.6
22.5
82.6
206.1
117.5
39.4
87.8
52.0
110.4
6.3
449.4
509.5
29.8
531.2
25.9
295.9
231.1
186.8
3.7
23.1
97.2
15 Frederick Place, Hicksville,
NY 11801
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
11/21/2022
100.5
100.5
103.5
0.03%
F-117
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.06%
0.04%
0.01%
0.03%
0.02%
0.03%
—%
0.14%
0.16%
0.01%
0.16%
0.01%
0.09%
0.07%
0.06%
—%
0.01%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
305 Quincy Shore Drive, Quincy,
MA 02107
7712 Fourth Ave, Brooklyn, NY
11209
3580 Progress Drive, Unit Q,
Bensalem, PA 19020
175 Industrial Lane, Torrington,
CT 06790
Gasoline Stations
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
Machinery Manufacturing
Term Loan
Prime plus 2.75%
11/20/2037
11/19/2022
11/9/2022
11/2/2037
154.4
154.4
181.6
0.06%
7.7
8.2
7.7
8.2
7.9
8.5
—%
—%
228.3
228.3
268.3
0.08%
Term Loan
Prime plus 2.75%
10/26/2022
Furniture and Related Product
Manufacturing
Insurance Carriers and Related
Activities
Amusement, Gambling, and
Recreation Industries
Personal and Laundry Services
Food Services and Drinking
Places
Truck Transportation
234 West 42nd St., New York,
NY 10036
5275 University Parkway # 110,
Bradenton, FL 34201
728 Main St., Middletown, CT
06457
1901 Naylor Rd, SE,
Washington, DC 20020
6291 Thomas Rd, Fort Myers, FL
33912
400 S McCaslin Blvd Ste 201,
Louisville, CO 80027
1740 Wheatstone Drive,
Grayson, GA 30017
1111 S Tillotson Ave, Muncie, IN
47304
30 Maple St., Summit, NJ 07901 Educational Services
231 Main St., Stanford, CT
06901
1985 B St., Colorado Springs,
CO 80906
4181 9th Ave West, Bradenton,
FL 34025
305 Shirley Ave, Douglas, GA
31533
360 Lexington Ave, 8th Fl, New
York, NY 10017
6187 NW 167th St. Unit H3,
Miami, FL 33015
340 Tom Reeve Drive, Carrolton,
GA 30117
Administrative and Support
Services
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Motor Vehicle and Parts Dealers
Performing Arts, Spectator
Sports, and Related Industries
Specialty Trade Contractors
Repair and Maintenance
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
6.25%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
F-118
See accompanying notes to consolidated financial statements.
9/27/2022
9/19/2037
8/27/2022
8/17/2037
7/27/2022
7/27/2022
6/29/2037
6/15/2022
6/14/2022
5/31/2037
5/10/2022
4/27/2022
3/30/2022
3/23/2028
3/23/2022
66.6
26.7
55.9
5.5
66.6
26.7
55.9
5.5
68.6
27.5
65.6
5.6
306.7
306.7
360.1
35.7
4.9
244.1
16.0
6.4
53.1
7.1
2.4
59.1
66.7
35.7
4.9
244.1
16.0
6.4
53.1
7.1
2.4
59.1
66.7
36.6
5.1
286.9
16.4
6.6
62.2
7.2
2.5
60.5
72.4
449.7
449.7
445.3
0.02%
0.01%
0.02%
—%
0.11%
0.01%
—%
0.09%
0.01%
—%
0.02%
—%
—%
0.02%
0.02%
0.14%
R & J Petroleum LLC, Manar
USA, Inc.
(#,^)
(#,^)
(#,^)
St Judes Physical Therapy P.C. (#,^)
Hi-Def Imaging, Inc. dba
SpeedPro Imaging
Reidville Hydraulics Mfg Inc
dba Summit
Big Apple Entertainment
Partners, LLC d/b/a Ripley's
Believe It or Not
University Park Retreat, LLC
dba Massage Heights
O'Rourkes Diner LLC dba
O'Rourke's Diner
AJK Enterprise LLC dba AJK
Enterprise LLC
Suncoast Aluminum Furniture,
Inc
Hofgard & Co., Inc. dba
HofgardBenefits
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Georgia Safe Sidewalks LLC (#,^)
Central Tire, Inc. dba Cooper
Tire & Auto Services
(#,^)
(#,^)
KIND-ER-ZZ Inc dba Kidville (#,^)
Graphish Studio, Inc. and Scott
Fishoff
ALF, LLC, Mulit-Service
Eagle Tires
Tracey Vita-Morris dba Tracey
Vita's School of Dance
Tanner Optical, Inc. dba
Murphy Eye Care
(#,^)
(#,^)
(#,^)
Access Staffing, LLC
Manuel P. Barrera and Accura
Electrical Contractor, Inc.
DC Realty, LLC dba FOGO
Data Centers
(#,^)
(#,^)
(#)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
DC Realty, LLC dba FOGO
Data Centers
Shweiki Media, Inc. dba Study
Breaks Magazine
ATI Jet, Inc.
J. Kinderman & Sons, Inc. dba
Brite Star Manufacturing
Company
(#)
(#,^)
(#)
(#,^)
K's Salon, LLC d/b/a K's Salon (#,^)
15 Frederick Place LLC &
Pioneer Windows Holdings Inc
& Subs
(#,^)
(#)
(#,^)
(#,^)
Taylor Transport, Inc
K9 Bytes, Inc & Epazz, Inc
dba K9 Bytes, Inc
28 Cornelia Street Properties,
LLC and Zouk, Ltd.dba Palma (#,^)
39581 Garfield, LLC and Tri
County Neurological
Associates, P.C.
Robert E. Caves, Sr. and
American Plank dba Caves
Enterprises
39581 Garfield, LLC and
Tricounty Neurological
Associates, P.C.
Big Apple Entertainment
Partners, LLC dba Ripley's
Believe it or Not
Michael S. Decker & Janet
Decker dba The Hen House
Cafe
Trademark Equipment
Company Inc and David A.
Daniel
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Valiev Ballet Academy, Inc
LaHoBa, LLC d/b/a Papa
John's
(#,^)
(#,^)
% of Net
Assets
322,226
0.78%
0.24%
0.18%
0.12%
0.01%
0.02%
0.02%
0.01%
—%
780.1
572.0
401.9
19.9
65.0
65.6
17.5
5.4
79.8
0.02%
70.5
0.02%
27.1
0.01%
2,623.4
2,623.4
2,519.4
340 Tom Reeve Drive, Carrolton,
GA 30117
4954 Space Center Drive, San
Antonio, TX 78218
7007 Boeing Drive, El Paso, TX
79925
2900 South 20th St.,
Philadelphia, PA 19145
162 West 84th St., New York,
NY 10024
15 Frederick Place, Hicksville,
NY 11801
1708 HWY 113 SW,
CARTERSVILLE, GA 30120
325 N. Milwaukee Ave, Ste G1,
Wheeling, IL 60090
28-28 1/2 Cornelia St., New
York, NY 10014
39581 Garfield Rd, Clinton
Township, MI 48038
Professional, Scientific, and
Technical Services
Publishing Industries (except
Internet)
Term Loan
6%
Term Loan
Prime plus 2.75%
3/23/2037
3/22/2027
Air Transportation
Term Loan
Prime plus 2.75%
12/28/2026
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
12/22/2036
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/20/2021
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
12/16/2021
Truck Transportation
Term Loan
Prime plus 2.75%
12/8/2021
Publishing Industries (except
Internet)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/26/2021
Term Loan
Prime plus 2.75%
10/25/2021
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/30/2036
40515 Pumpkin Center Rd,
Hammond, LA 70403
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/30/2021
39581 Garfield Rd, Clinton
Township, MI 48038
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/30/2036
724.9
532.8
343.8
19.5
63.7
64.2
17.1
5.3
68.3
69.0
23.2
724.9
532.8
343.8
19.5
63.7
64.2
17.1
5.3
68.3
69.0
23.2
234 West 42nd St., New York,
NY 10036
Amusement, Gambling, and
Recreation Industries
401 Caribou St., Simla, CO
80835
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/28/2021
239.7
239.7
244.1
0.08%
Term Loan
Prime plus 2.75%
8/30/2036
13.8
13.8
16.2
0.01%
5690 Pine Lane Circle, Bessemer,
AL 35022
635 - 637 Londonderry Lane,
Denton, TX 76205
3001 Pontchartrain Drive, Slidell,
LA 70458
Miscellaneous Store Retailers
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
8/19/2036
8/12/2036
8/3/2036
109.9
109.9
128.3
34.9
63.3
34.9
63.3
40.7
73.9
0.04%
0.01%
0.02%
F-119
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Lavertue Properties LLP dba
Lavertue Properties
Lisle Lincoln II Limited
Partnership dba Lisle Lanes LP (#,^)
Peanut Butter & Co., Inc. d/b/a
Peanut Butter & Co.
Modern on the Mile, LLC dba
Ligne Roset
Profile Performance, Inc. and
Eidak Real Estate, L.L.C.
Northwind Outdoor
Recreation, Inc. dba Red Rock
Wilderness Store
Michael S. Korfe dba North
Valley Auto Repair
Actknowledge,Inc dba
Actknowledge
Stephen Frank, Patricia Frank
and Suds Express LLC
SuzyQue’s LLC dba Suzy
Que’s
Little People’s Village, LLC
dba Little People’s Village
Seagate Group Holdings, Inc.
dba Seagate Logistics, Inc.
Shree OM Lodging, LLC dba
Royal Inn
Lodin Medical Imaging, LLC
dba Watson Imaging Center
Robert F. Schuler and Lori A.
Schuler dba Bob’s Service
Center
Elan Realty, LLC and Albert
Basse Asociates, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
K9 Bytes, Inc & Epazz, Inc
(#)
24 Wakefield St., Rochester, NH
13867
4920 Lincoln Ave Rte 53, Lisle,
IL 60532
1790 Broadway Ste 716, New
York, NY 10019
162 N. 3rd St., Philadelphia, PA
19106
44600 Michigan Ave, Canton, MI
48188
2267 Fernberg Trail, Ely, MN
55731
7516 B 2nd St., NW,
Albuquerque, NM 87107
365 Fifth Ave, New York, NY
10016
520 E. 8th St., Anderson, IN
46012
34 South Valley Rd, West
Orange, NJ 07052
904 North 66th St., Philadelphia,
PA 19151
64-68 North Central Ave, Valley
Stream, NY 11580
2030 W Northwest Hwy, Dallas,
TX 75220
3915 Watson Rd, St. Louis, MO
63109
2879 Limekiln Pike, Glenside,
PA 19038
175 Campanelli Park Way,
Stroughton, MA 02072
325 N. Milwaukee Ave, Ste G1,
Wheeling, IL 60090
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers,
Nondurable Goods
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Nonstore Retailers
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Social Assistance
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
6/29/2036
6/29/2036
6/3/2021
5/25/2021
4/20/2036
4/18/2036
3/24/2036
3/21/2021
2/25/2023
2/11/2036
1/31/2036
1/28/2036
Accommodation
Term Loan
Prime plus 2.75%
12/17/2035
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/1/2020
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/30/2035
Printing and Related Support
Activities
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
9/30/2035
9/30/2020
F-120
See accompanying notes to consolidated financial statements.
% of Net
Assets
322,226
0.01%
0.10%
—%
0.01%
0.04%
36.7
287.3
8.9
39.0
36.7
287.3
8.9
39.0
42.9
335.4
9.0
39.7
103.5
103.5
120.7
113.8
113.8
132.7
0.04%
12.5
9.9
20.6
49.4
25.0
91.3
22.2
9.2
27.2
180.6
2.8
12.5
9.9
20.6
49.4
25.0
91.3
22.2
9.2
27.2
180.6
2.8
14.6
10.1
21.3
57.4
29.1
106.2
25.8
9.3
31.6
209.6
2.8
—%
—%
0.01%
0.02%
0.01%
0.03%
0.01%
—%
0.01%
0.07%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Success Express,Inc. dba
Success Express
Modern Manhattan, LLC
Dirk's Trucking, L.L.C. dba
Dirk's Trucking
Rudy & Louise Chavez dba
Clyde's Auto and Furniture
Upholstery
Newsome Trucking Inc and
Kevin Newsome
Members Only Software, Inc
ActKnowledge,Inc dba
ActKnowledge
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
I-90 RV & Auto Supercenter
(#,^)
Zouk, Ltd. dba Palma
Tanner Optical Inc. dba
Murphy Eye Care
ValleyStar, Inc. dba BrightStar
Healthcare
New Economic Methods LLC
dba Rita's
Lahoba,LLC dba Papa John's
Pizza
Animal Intrusion Prevention
Systems Holding Company,
LLC
KMC RE, LLC & B&B
Kennels
ROVER REPAIRS
(#,^)
(#,^)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
The Alba Financial Group, Inc. (#,^)
D & D's Divine Beauty School
of Esther, LLC
Bliss Coffee and Wine Bar,
LLC
(#,^)
(#)
550 Eighth Ave, New York, NY
10018
162 N 3rd St., Philadelphia, PA
19106
1041 John D Hebert Rd, Breaux
Bridge, LA 70517
2320 2nd St., Albuquerque, NM
87107
2262 HWY 53W, Jasper, GA
30143
1250 Connecticut Ave NW 200,
Washington, DC 20036
365 Fifth Ave, New York, NY
10016
4505 South I-90 Service Rd,
Rapid City, SD 57703
28 Cornelia St., New York, NY
10014
305 Shirley Ave, Douglas, GA
31533
5900 Sepulveda Blvd, Van Nuys,
CA 91411
1014 H St. NE, Washington, DC
20002
620 W. Judge Perez Drive,
Chalmette, LA 70163
3330 North Beach St., Haltom
City, TX 76111
6004 City Park Rd, Austin, TX
78730
301 Macdade Blvd,
COLLINGDALE, PA 19023
1420 Spring Hill Rd, McLain,
VA 22102
5524 Germantown Ave,
Philadelphia, PA 19144
1402-A Handlir Drive, Bel Air,
MD 21015
Couriers and Messengers
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
Prime plus 2.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/29/2020
9/20/2020
9/17/2020
9/2/2035
9/2/2035
8/30/2020
6/30/2020
6/29/2035
8/25/2020
6/22/2035
6/28/2020
7/15/2020
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/30/2034
Administrative and Support
Services
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.5%
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Educational Services
Food Services and Drinking
Places
Term Loan
Term Loan
Term Loan
6%
6%
6%
3/29/2024
11/19/2034
11/28/2029
3/10/2021
8/1/2031
11/30/2022
F-121
See accompanying notes to consolidated financial statements.
8.4
22.4
2.3
39.8
197.5
3.6
3.9
58.9
2.4
74.7
0.4
0.2
33.0
20.7
45.0
45.5
3.8
44.0
64.1
8.4
22.4
2.3
39.8
197.5
3.6
3.9
58.9
2.4
74.7
0.4
0.2
33.0
20.7
45.0
45.5
3.8
44.0
64.1
% of Net
Assets
322,226
—%
0.01%
—%
0.01%
0.07%
—%
—%
0.02%
—%
0.03%
—%
—%
8.5
22.6
2.4
46.1
228.9
3.6
3.9
68.3
2.5
86.3
0.4
0.2
38.1
0.01%
21.6
51.9
49.7
3.8
42.6
63.3
0.01%
0.02%
0.02%
—%
0.01%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
Zog Inc.
Connect Litigation Technology,
Inc.
1911 East Main Street
Holdings, Corp
Water Works Laundromat,
LLC
Dave Kris, and MDK Ram
Corp.
Gill Express Inc. dba American
Eagle Truck Wash
Head To Toe Personalized
Pampering, Inc.
Christopher F. Bohon &
Pamela D. Bohon
Mogas Limited
Shree Om Lodging, LLC dba
Royal Inn
Moonlight Multi Media
Production, Inc.
David M. Goens dba Superior
Auto Paint & Body, Inc.
McCallister Venture Group,
LLC and Maw's Vittles, Inc.
Chong Hun Im dba Kim's
Market
Whirlwind Car Wash, Inc.
Shuttle Car Wash, Inc. dba
Shuttle Car Wash
Min Hui Lin
Delta Partners, LLC dba Delta
Carwash
Auto Sales, Inc.
Taste of Inverness, Inc. dba
China Garden
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Personal and Laundry Services
Personal and Laundry Services
Food and Beverage Stores
Repair and Maintenance
Other Information Services
Professional, Scientific, and
Technical Services
Repair and Maintenance
595 Bethlehem Pike #404,
Montgomeryville, PA 18936
1101 Ivy Hill Rd, #4,
Philadelphia, PA 19150
1911 East Main St., Endicott, NY
13760
968-970 Bergen St., Newark, NJ
07104
15 Elm Park, Groveland, MA
01930
12200 N. Holland, Oklahoma
City, OK 73131
2331 North State Rd 7,
Lauderhill, FL 33313
11600 County Rd 71, Lexington,
Social Assistance
AL 35648
47 Chestnut St., Elmer, NJ 08318 Gasoline Stations
2030 W. Northwest Hwy, Dallas,
TX 75220
2700 W Cypress Creek Rd, Fort
Lauderdale, FL 33309
1912 Manhattan Ave, Harvey, LA
70058
511 South Broad St., Brooksville,
FL 34601
730 East 28th St., Ogden, UT
84403
1370 Le Anne Marie Circle,
Columbus, OH 43026
745 Cheney Hwy, Ttitusville, FL
32780
1916 Broad St., Lanett, AL
36863
5640 Indian Crest Lane,
Olympia, WA 98516
1925 State St., Hamden, CT
06417
1314 US Hwy 41 N, Inverness,
FL 34450
Accommodation
Other Information Services
Repair and Maintenance
Food Services and Drinking
Places
Food and Beverage Stores
Repair and Maintenance
Repair and Maintenance
Food Services and Drinking
Places
Repair and Maintenance
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/30/2020
Term Loan
Prime plus 2%
10/18/2025
Term Loan
Prime plus 2.75%
5/18/2032
Term Loan
Prime plus 2.25%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
9/7/2027
2/5/2026
1/5/2027
Term Loan
Prime plus 2.75%
1/27/2031
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
5.3%
Term Loan
6%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.5%
Term Loan
Prime plus 2%
10/28/2026
5/31/2030
5/2/2030
2/1/2025
8/26/2024
7/30/2029
2/27/2024
4/9/2029
Term Loan
Prime plus 2.25%
11/10/2028
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.5%
Term Loan
6%
Term Loan
Prime plus 2%
1/30/2028
4/5/2029
8/17/2023
6/29/2025
13.6
20.0
10.9
146.4
23.9
145.6
7.7
2.5
62.1
55.1
1.6
11.9
9.8
6.0
12.9
14.1
14.1
35.2
4.8
6.2
13.6
20.0
10.9
146.4
23.9
145.6
7.7
2.5
62.1
55.1
1.6
11.9
9.8
6.0
12.9
14.1
14.1
35.2
4.8
6.2
13.7
20.8
12.3
155.6
25.5
156.8
8.6
2.7
68.9
61.1
1.6
11.7
10.8
6.2
13.7
15.1
15.3
38.3
4.7
6.4
% of Net
Assets
322,226
—%
0.01%
—%
0.05%
0.01%
0.05%
—%
—%
0.02%
0.02%
—%
—%
—%
—%
—%
—%
—%
0.01%
—%
—%
F-122
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Accrual Investments (1) (22)
% of Net
Assets
322,226
Ralph Werner dba Werner
Transmission Inc
Robin C. & Charles E. Taylor
& Brigantine Aquatic Center
LLC
OrthoQuest, P.C.
Track Side Collision & Tire,
Inc.
Deesha Corporation, Inc. dba
Best Inn & Suites
Maruti, Inc
Randall D. & Patricia D.
Casaburi dba Pat's Pizzazz
Gain Laxmi, Inc. dba Super 8
Motel
Naseeb Corporation
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Stillwell Ave Prep School
(#,^)
Alyssa Corp dba Knights Inn
Bhailal Patel dba New Falls
Motel
Pegasus Automotive, Inc.
P. Agrino, Inc. dba Andover
Diner
(#,^)
(#,^)
(#,^)
(#,^)
259 East Central Ave, Bangor, PA
18013
Gasoline Stations
Term Loan
Prime plus 2.75%
12/29/2021
3118 Bayshore Ave, Brigantine,
NJ 08203
2336 Wisteria Drive, Ste 430,
Snellville, GA 30078
98-16 160 Ave, Ozone Park, NY
11414
9225 Parkway East, Birmingham,
AL 35206
1506 280 By-Pass, Phenix City,
AL 36867
386 Winsted Rd, Torrington, CT
06790
14341 US Hwy 431 S,
Gunterville, AL 35976
1696 North Broad St., Meriden,
CT 06450
1990 Stillwell Ave, Brooklyn,
NY 11214
1105 Columbus Parkway,
Opelika, AL 36801
201 Lincoln Hwy, Fairless Hills,
PA 19030
3981 Hylan Blvd., Staten Island,
NY 10308
Amusement, Gambling, and
Recreation Industries
Term Loan
6%
Ambulatory Health Care Services Term Loan
Prime plus 2%
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
Accommodation
Accommodation
Term Loan
Prime plus 2.25%
Term Loan
Prime plus 2.25%
11/25/2024
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
Accommodation
Accommodation
Term Loan
Prime plus 2.25%
Term Loan
Prime plus 2.25%
Social Assistance
Term Loan
Prime plus 2.75%
Accommodation
Accommodation
Term Loan
Prime plus 2.25%
Term Loan
Prime plus 2.75%
3/27/2023 $
Gasoline Stations
Term Loan
Prime plus 2.75%
12/23/2022 $
9/14/2023
3/12/2022
6/16/2025
2/14/2025
3/13/2023
5/31/2023
3/31/2024
1/14/2023
9/30/2023
1.0
25.5
1.6
3.5
19.0
14.6
4.1
11.9
19.2
3.6
33.2
1.6
4.9
$
$
1.0
25.5
1.6
3.5
19.0
14.6
4.1
11.9
19.2
3.6
33.2
1.6
4.9
$
$
1.6
3.7
19.8
15.2
4.2
12.2
19.9
3.7
34.3
1.7
5.1
193 Main St., Andover, NJ 07860
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/18/2021 $
2.4
$ 370,612.2
$
2.4
$ 370,612.2
$
2.5
$ 382,986.3
1.1
—%
25.2
0.01%
Total SBA Unguaranteed Accrual Investments
SBA Unguaranteed Non-Accrual Investments (3) (22)
200 North 8th Street
Associates LLC and Enchanted
Acres
Amboy Group, LLC dba
Tommy Moloney's
CLU Amboy, LLC and Amboy
Group, LLC dba Tommy
Moloney's
(#)
(#)
(#)
200 North 8th St., Reading, PA
19601
1 Amboy Ave, Woodbridge, NJ
07095
1 Amboy Ave, Woodbridge, NJ
07095
Food Manufacturing
Term Loan
6.25%
Food Manufacturing
Term Loan
7%
Food Manufacturing
Term Loan
7%
5/4/2028
6/24/2025
12/27/2023
F-123
See accompanying notes to consolidated financial statements.
445.6
364.5
445.6
364.5
352.6
355.2
455.7
455.7
414.2
0.13%
—%
—%
0.01%
—%
—%
—%
0.01%
—%
0.01%
—%
—%
—%
118.86%
322226
0.11%
0.11%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
% of Net
Assets
322226
Custom Software, Inc. a
Colorado Corporation dba M-
33 Access
(#)
(#)
(#,^)
(#,^)
Event Mecca LLC
Hartford Cardiology Group
LLC and Ideal Nutrition of
Connecticut LLC
Kids at Heart,LLC dba
Monster Mini Golf
Matchless Transportation LLC
dba First Class Limo
Morris Glass and Construction
Inc
Sourceco Limited Liability
Company
TX Superior Communications,
LLC
6 Price Avenue, LLC and
Pauley Tree & Lawn Care, Inc (*,#)
(#,^)
(#,^)
(#)
(#)
Pauley Tree and Lawn Care Inc (*,#)
Acton Hardware LLC & Mark
Allgood & Jamie Allgood
(*,#,^)
Advance Case Parts Inc
Advance Case Parts RE
Holdings LLC and Advance
Case Parts Inc
Alive Design, LLC
All About Kids and Families
Medical Center, Inc.
All Printing Solutions, Inc. dba
Pryntcomm
Allied Welding Inc.
American Pharmaceutical
Innovation Company, LLC
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
American Reclamation LLC
(*,#,^)
380 E. Borden Rd, Rose City, MI
48654
141 South Waldron Lane,
Wynantskill, NY 12198
345 North Main St., West
Hartford, CT 06117
10 Newbury St., Danvers, MA
01923
31525 Aurora Rd # 5, Solon, OH
44139
40058 Hwy 30, Astoria, OR
97103
17 Palmer Ave, West Long
Branch, NJ 07764
6223 Krempen Ave, San Antonio,
TX 78233
6 Price Ave, Norwalk, CT 06840
6 Price Ave, Norwalk, CT 06854
31814 Crown Valley Rd, Acton,
CA 93510
12489 NW 44th St., Coral
Springs, FL 33065
Professional, Scientific, and
Technical Services
Term Loan
6.25%
Other Information Services
Term Loan
6%
Ambulatory Health Care Services Term Loan
0%
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
Term Loan
6.75%
Term Loan
6.25%
Specialty Trade Contractors
Merchant Wholesalers,
Nondurable Goods
Specialty Trade Contractors
Administrative and Support
Services
Administrative and Support
Services
Building Material and Garden
Equipment and Supplies Dealers
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
15%
6.5%
8%
8%
Term Loan
8.25%
Term Loan
8%
Term Loan
7.75%
12485-12489 NW 44th St., Coral
Springs, FL 33071
234 Middle St., Middletown, CT
06457
12086 FT Caroline Rd #102/3,
401-403, 501/2, Jacksonville, FL
32225
303 E. Sioux Ave., Pierre, SD
57501
1820 N. Santa Fe Ave,
Chillicothe, IL 61523
1425 Centre Circle, Downers
Grove, IL 60515
3600 Wetzel St., Wheeling, WV
26003
Repair and Maintenance
Term Loan
7.75%
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
8.25%
Printing and Related Support
Activities
Fabricated Metal Product
Manufacturing
Term Loan
7.75%
Term Loan
8.25%
Chemical Manufacturing
Term Loan
Prime plus 2.75%
Furniture and Related Product
Manufacturing
Term Loan
8%
F-124
See accompanying notes to consolidated financial statements.
6/17/2021
4/10/2023
5/15/2024
9/22/2026
5/31/2020
10/1/2023
12/17/2025
3/19/2028
9/24/2039
7/28/2025
3/24/2041
12/22/2027
3/31/2040
3/13/2027
1/13/2029
6/27/2041
12/15/2041
3/28/2027
11/1/2027
233.3
11.0
452.3
19.6
119.6
405.2
37.0
85.5
237.3
46.6
478.2
45.4
321.3
15.0
364.9
491.9
727.3
6.9
0.8
233.3
11.0
452.3
19.6
119.6
405.2
37.0
85.5
237.3
46.6
478.2
45.4
321.3
15.0
364.9
491.9
727.3
6.9
0.8
114.4
0.04%
1.2
—%
71.6
7.3
12.2
222.8
32.5
47.4
225.1
44.2
364.9
—
230.5
11.9
256.6
215.9
560.8
6.5
0.7
0.02%
—%
—%
0.07%
0.01%
0.01%
0.07%
0.01%
0.11%
—%
0.07%
—%
0.08%
0.07%
0.17%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
Arclay, LLC
Arrow Freight Inc
Auto Shine Carwash Inc and
AKM R. Hossain and Jessica F.
Masud
AWA Fabrication &
Construction, L.L.C.
B and J Catering Inc dba
Culinary Solutions
B&B Fitness and Barbell, Inc.
dba Elevations Health Club
B4 Fitness LLC dba The Zoo
Health Club
B4 Fitness LLC dba The Zoo
Health Club
Baker Sales, Inc. d/b/a Baker
Sales, Inc.
Fieldstone Quick Stop LLC,
Barber Investments LLC,
Thadius M B
Barber Investments LLC and
Fieldstone Quickstop LLC and
Maine Dollar
Bear Creek Entertainment LLC
dba The Woods at Bear Creek
Bear Creek Entertainment,
LLC dba The Woods at Bear
Creek
Bebos Inc dba Pizza Hut &
Sunoco
Bone Bar & Grill LLC
Bowl Mor LLC dba Bowl Mor
Lanes
Bowl Mor, LLC dba Bowl Mor
Lanes/Spare Lounge, Inc.
BQRS, Inc. DBA Gresham
Meineke Car Care Center
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
49 Geyser Rd, Ste 100, Saratoga
Springs, NY 12866
1000 Jorie Blvd Ste 250, Oak
Brook, IL 60523
2646 South Rd, Poughkeepsie,
NY 12601
811 Country Rd #99, Headland,
AL 36345
2201 S Federal Hwy, Boynton
Beach, FL 33435
Route 611 North, Scotrun, PA
18355
4 Beehive Dr, Epping, NH 03042
4 Beehive Dr, Epping, NH 03042
60207 Camp Villere Rd, Slidell,
LA 70460
Nonmetallic Mineral Product
Manufacturing
Term Loan
8%
Truck Transportation
Term Loan
8.25%
Gasoline Stations
Term Loan
7.75%
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Nonstore Retailers
Term Loan
Term Loan
Term Loan
6%
7%
6%
Term Loan
8.25%
Term Loan
8.25%
Term Loan
6%
190 Route 3, South China, ME
04358
Gasoline Stations
Term Loan
6%
190 Rt 3, South China, ME
04358
3510 Bear Creek Rd,
Franklinville, NY 14737
3510 Bear Creek Rd,
Franklinville, NY 14737
2003 West 5th St., Clifton, TX
76634
3547&3551 Philipsburg Bigler
Hwy, West Decatur, PA 16878
600 West Manlius St., East
Syracuse, NY 13057
201 Highland Ave, East
Syracuse, NY 13057
18081 SE Division St., Portland,
OR 97236
Gasoline Stations
Accommodation
Accommodation
Gasoline Stations
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
6.25%
Term Loan
Prime plus 2.75%
Term Loan
7.25%
Term Loan
7.75%
Term Loan
7%
Term Loan
8.25%
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
F-125
See accompanying notes to consolidated financial statements.
5/5/2030
3/30/2028
9/26/2024
4/30/2025
8/27/2040
6/22/2035
9/23/2026
11/30/2026
3/29/2036
9/30/2038
8/15/2039
8/12/2041
12/30/2024
3/28/2028
6/30/2042
7/31/2027
3/13/2039
6/30/2027
% of Net
Assets
322226
0.01%
0.12%
—%
—%
0.04%
0.05%
0.02%
—%
137.1
658.6
15.7
34.4
208.9
198.9
70.1
18.5
137.1
658.6
15.7
34.4
208.9
198.9
70.1
18.5
39.5
379.4
15.3
1.4
139.2
168.2
48.5
—
177.4
177.4
59.4
0.02%
400.4
400.4
36.4
0.01%
146.3
146.3
—
—%
1,608.1
1,670.3
565.6
0.18%
85.4
214.1
73.4
6.4
201.2
54.2
85.4
214.1
73.4
6.4
201.2
54.2
81.0
52.6
54.7
—
154.0
53.5
0.03%
0.02%
0.02%
—%
0.05%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
Brandywine Picnic Park, Inc.
and B.Ross Capps & Linda
Capps
(*,#)
(*,#,^)
Cagwin Trucking LLC
Calhoun Satellite
Communications Inc and
Transmission Solutions Group (*,#)
Calhoun Satellite
Communications, Inc.
Capstone Pediatrics PLLC and
Capstone Healthcare
Consulting LLC
Cardinal Homes Inc, Alouette
Holdings Inc., Bret Berneche
& Dorothy
Cardinal Homes Inc. and Bret
A Berneche
(*,#)
(*,#)
(*,#,^)
(*,#,^)
Cardinal Homes, Inc
Carl R. Bieber, Inc. dba Bieber
Tourways/Bieber
Transportation
Central Medical Clinic, PLLC-
Clinica Central
Chickamauga Properties, Inc.,
MSW Enterprises, LLP
Chickamauga Properties, Inc.
& MSW Enterprises, LLP
Clark Realty LLC
Clark Realty LLC
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
CNC Precision Machine, Inc.
CNYP 717 Irondequoit LLC
and CNYP 2002 Ontario LLC (*,#,^)
Colts V LLC and Nowatzke
Service Center, Inc dba
Nowatzke Truck & Trai
(*,#)
690 South Creek Rd, West
Chester, PA 19382
332 35th Ave, Fairbanks, AK
99701
1914 Tigertail Blvd, Dania, FL
33004
1914 Tigertail Blvd, Dania
Beach, FL 33004
310 25th Ave N. St. Ste 201,
Nashville, TN 37203
525 Barnsville Hwy, Wylliesburg,
VA 23976
525 Barnesville Hwy,
Wylliesburg, VA 23976
525 Barnsville Hwy, Wylliesburg,
VA 23976
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Truck Transportation
Term Loan
8.25%
Broadcasting (except Internet)
Term Loan
6.75%
Telecommunications
Term Loan
7%
Ambulatory Health Care Services Term Loan
7.75%
Wood Product Manufacturing
Term Loan
Wood Product Manufacturing
Term Loan
8%
8%
3/30/2031
9/29/2042
2/27/2025
12/2/2026
5/15/2025
12/14/2026
12/14/2041
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
10/27/2027
Transit and Ground Passenger
Transportation
Term Loan
7.5%
179.3
305.0
724.2
189.1
179.3
305.0
724.2
189.1
556.4
556.4
322.9
0.10%
868.8
116.7
95.7
868.8
116.7
95.7
824.0
110.7
90.8
0.26%
0.03%
0.03%
572.9
572.9
546.8
0.17%
Ambulatory Health Care Services Term Loan
8.25%
307.2
307.2
303.2
320 Fair St., Kutztown, PA 19530
393 N Dunlap St.
#LL26,LL34,LL38, St Paul, MN
55104
214 Sutherland Way, Rocky Face,
GA 30740
214 Sutherland Way, Rocky Face,
GA 30740
4 Walker Way, Albany, NY
12205
15 Old Loudon Rd, Colonie, NY
12110
18360 Industrial Circle, Burton,
OH 44021
717 Titus Ave, Rochester, NY
14617
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Real Estate
Real Estate
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
6.25%
Term Loan
6.25%
Term Loan
Term Loan
8%
8%
Term Loan
Prime plus 2.75%
9/30/2027
6/7/2029
12/22/2035
10/19/2022
8/29/2041
9/15/2027
9/28/2041
59.0
43.5
73.3
58.6
59.0
43.5
73.3
58.6
1,226.4
1,226.4
Term Loan
8.25%
11/20/2040
232.4
232.4
6900 Whitmore Lake Rd,
Whitmore Lake, MI 48189
Repair and Maintenance
Term Loan
6.75%
9/26/2039
553.3
553.3
484.0
0.15%
F-126
See accompanying notes to consolidated financial statements.
% of Net
Assets
322226
0.05%
0.07%
176.9
224.9
—
—%
30.9
0.01%
0.09%
0.02%
0.01%
0.01%
—%
0.20%
0.04%
56.0
41.2
18.9
—
651.8
118.9
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/20/2028
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
% of Net
Assets
322226
4802 West Van Buren St.,
Phoenix, AZ 85007
Administrative and Support
Services
Term Loan
8%
Conference Services
International ETC LLC
Custom Software, Inc. a
Colorado Corporation dba M-
33 Access
CZAR Industries, Inc.
D&G Capital LLC dba Miami
Grill 277
Darian L Hampton DDS PA
and Darian L. Hampton
Dixie Transport, Inc. & Johnny
D. Brown & Jimmy Brown &
Maudain Brown
Douglas Printy Motorsports,
Inc. dba Blackburn Trike
Doxa Deo Inc dba Luv 2 Play
Dr. Richard Rolle JR, PLLC
dba Rolle Oral & Facial
Surgery PLLC
Dr. Richard R. Rolle, Jr., PLLC
dba Rolle Oral & Facial
Surgery
Driven Warehouse/Distribution
LLC
Driven Warehouse/Distribution
LLC
DTM Parts Supply Inc.
DuCharme Realty LLC and
DuCharme Enterprises LLC
dba Specialty
E & I Holdings, LP & PA Farm
Products, LLC
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
Earth First Recycling LLC
Earth First Recycling, LLC and
191 Clark Road, LLC
Elegant Fireplace Mantels, Inc.
dba Elegant Fireplace Mantels
(*,#,^)
(*,#,^)
(*,#,^)
Ericon Inc. dba Quik Pik
(*,#,^)
1515 Shopton Rd, Charlotte, NC
28217
Ambulatory Health Care Services Term Loan
7.5%
380 E. Borden Rd, Rose City, MI
48654
1424 Heath Ave, Ewing, NJ
08638
2521 N Federal Hwy Unit C,
Boca Raton, FL 33431
3610 N Josey Lane Ste 104,
Carrollton, TX 75007
2685 US Hwy 41, Calhoun, GA
30701
1410 Medina Rd, Medina, OH
44256
1600 Village Market Blvd,
Leesburg, VA 20175
9615 Caldwell Commons Cir, Ste
B, Cornelius, NC 28031
271 East North Ave, Glendale, IL
60139
271 East North Ave, Glendale, IL
60139
31 Sageman St, Mount Vernon,
NY 10550
1717 Hwy 200, Noxon, MT
59853
1095 Mt Airy Rd, Stevens, PA
17578
400 Island Park Rd, Easton, PA
18040
400 Island Park Rd, Easton, PA
18040
11949 Borden Ave, San
Fernando, CA 91340
740 Davenport Ave, Freemont,
NE 68025
Broadcasting (except Internet)
Term Loan
6.25%
Machinery Manufacturing
Term Loan
8.25%
Food Services and Drinking
Places
Term Loan
6.5%
Support Activities for
Transportation
Term Loan
5.25%
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Term Loan
8.25%
Ambulatory Health Care Services Term Loan
7.5%
Truck Transportation
Truck Transportation
Merchant Wholesalers, Durable
Goods
Term Loan
Term Loan
Term Loan
Wood Product Manufacturing
Term Loan
Food Manufacturing
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Term Loan
Term Loan
Term Loan
8%
8%
7%
8%
6%
8%
8%
8/14/2028
4/30/2022
12/19/2027
12/16/2025
12/28/2035
3/9/2040
2/28/2026
9/29/2042
12/18/2027
12/22/2027
1/18/2028
6/2/2025
2/2/2040
4/30/2030
12/6/2027
6/5/2027
600.7
600.7
592.9
0.18%
94.3
219.9
45.4
292.6
94.3
219.9
45.4
292.6
—
80.6
23.9
24.0
1,316.8
1,316.8
702.5
155.9
81.3
155.9
81.3
95.1
80.2
—%
0.03%
0.01%
0.01%
0.22%
0.03%
0.02%
869.9
869.9
596.4
0.19%
122.3
726.2
129.0
53.4
122.3
726.2
129.0
53.4
—
—%
453.1
0.14%
—
—%
38.2
0.01%
210.1
210.1
131.2
4,705.2
4,815.4
2,773.9
72.8
338.0
43.9
54.2
72.8
338.0
43.9
54.2
71.9
333.6
42.8
—
0.04%
0.86%
0.02%
0.10%
0.01%
—%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/31/2022
Gasoline Stations
Term Loan
Prime plus 2.75%
3/24/2027
F-127
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
% of Net
Assets
322226
Ericon, Inc.
(*,#,^)
Ericon, Inc. dba Quik Pik
(*,#,^)
Europlast Ltd
Europlast Ltd
Evergreen Pallet LLC and
Evergreen Recycle LLC
(*,#)
(*,#)
(*,#,^)
Evernook Valley Milk LLC
(*,#,^)
Excel RP Inc
Excel RP Inc
Excel RP, Inc./Kevin and Joann
Foley
Excel, RP Inc.
Ezzo Properties, LLC and
Great Lakes Cleaning, Inc.
New Image Building Services,
Inc. dba New Image Repair
Services
New Image Building Services
Inc. dba New Image Repair
Services
New Image Building Services,
Inc. dba The Maids serving
Oakland
New Image Building Services,
Inc.dba The Maids Servicing
Oakland &Maco
New Image Building Services,
Inc.
Flooring Liquidators Inc and
Flooring Liquidators of Mt
Kisco LLC
Flooring Liquidators Inc &
Premier Flooring Yonkers Inc
& Flooring
Florida Apnea Diagnostics
LLC
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
740 Davenport Ave, Fremont, NE
68025
740 Davenport Ave, Freemont,
NE 68025
100 Industrial Lane, Endeavor,
WI 53930
100 Industrial Lane, Endeavor,
WI 53930
302 W 53rd St N., Wichita, KS
67204
7448 Emmerson Rd, Everson,
WA 98247
6531 Park Ave, Allen Park, MI
48101
6531 Park Ave, Allen Park, MI
48101
6531 Park Ave, Allen Park, MI
48101
6531 Park Ave, Allen Park, MI
48101
1405 Combermere Dr., Troy, MI
48083
Gasoline Stations
Gasoline Stations
Term Loan
8.25%
Term Loan
8.25%
Plastics and Rubber Products
Manufacturing
Plastics and Rubber Products
Manufacturing
Term Loan
Term Loan
6%
6%
Wood Product Manufacturing
Term Loan
8.25%
Animal Production and
Aquaculture
Term Loan
7.5%
Machinery Manufacturing
Term Loan
8.25%
Machinery Manufacturing
Term Loan
8.25%
Machinery Manufacturing
Term Loan
8.25%
Machinery Manufacturing
Administrative and Support
Services
Term Loan
8.25%
Term Loan
7.75%
1405 Combermere Dr., Troy, MI
48083
Repair and Maintenance
Term Loan
7.75%
12/1/2041
12/15/2041
9/26/2022
5/31/2023
3/16/2026
8/31/2042
8/30/2023
3/25/2026
7/8/2028
9/20/2027
12/20/2027
8/23/2037
705.6
322.8
312.9
73.4
912.8
637.5
66.8
95.2
32.4
88.8
705.6
322.8
312.9
73.4
912.8
637.5
66.8
95.2
32.4
88.8
658.6
0.20%
—
—%
55.5
0.02%
—
514.6
468.2
52.8
—
—%
0.16%
0.15%
0.02%
—%
31.0
0.01%
—
—%
286.5
286.5
40.0
0.01%
251.5
251.5
162.3
0.05%
1405 Combermer Dr., Troy, MI
48083
Repair and Maintenance
Term Loan
7.75%
10/29/2023
197.1
197.1
320 Church St., Mount Clemens,
MI 48043
Administrative and Support
Services
Term Loan
7.75%
1/19/2026
67.8
67.8
1405 Combermere Drive, Troy,
MI 48083
1405 Combermere Drive, Troy,
MI 48083
Administrative and Support
Services
Administrative and Support
Services
Term Loan
7.75%
Term Loan
7.75%
39.0
138.9
39.0
138.9
12/21/2026
5/18/2027
6/17/2025
267 Saw Mill River Rd,
Elmsford, NY 10523
267 Saw Mill River Rd,
Elmsford, NY 10523
2664 Cypress Rdg Blvd Ste
101&102A, Wesley Chapel, FL
33544
Specialty Trade Contractors
Term Loan
6.75%
299.5
299.5
194.8
0.06%
Specialty Trade Contractors
Term Loan
8.25%
3/24/2026
39.1
39.1
—
—%
Ambulatory Health Care Services Term Loan
8.25%
10/20/2027
145.7
145.7
73.4
0.02%
F-128
See accompanying notes to consolidated financial statements.
—
—
—
—
—%
—%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
Florida Apnea Diagnostics,
LLC
Galaforo Construction and
Companies LLC
Galaforo Construction LLC
and Paul M Galaforo, Jr.
GEM2K, LLC
GEM2K, LLC dba Precision
Precast Group
Grand Manor Realty, Inc. &
Kevin LaRoe
Green Country Filter
Manufacturing LLC
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
Groundworks Unlimited LLC (*,#,^)
H.M.C, Incorporated
Hagerstown Muffler, Inc. and
JMS Muffler, Inc
Harrelson Materials
Management,Inc
Hascher Gabelstapler Inc
HDD Solutions, LLC
HG Ventures, Inc.
HG Ventures, Inc. dba
Diamond Head Trucking
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
Home Again Restaurant LLC (*,#)
Hurshell Leon Dutton dba
High Jump Party Rentals
Insight Vision Care, PC,
CRMOD Lubbock, P.C.,Vielm
Vision Eyecare Inc
J And G Group Services LLC
and United Vending of Florida
Inc and John
(*,#,^)
(*,#,^)
2664 Cypress Ridge Blvd Ste
101&102, Wesley Chapel, FL
33624
1770 Stumpf Boulevard,
Terrytown, LA 70056
1770 Stumpf Boulevard,
Terrytown, LA 70056
4150 E Magnolia ST., Phoeniz,
AZ 85034
4150 E Magnolia St., Phoenix,
AZ 85034
318 S. Halsted St., Chicago, IL
60661
1415 S. 70th E Ave, Tulsa, OK
74112
50 Telfair Place, Garden City,
GA 31415
7190 Oakland Mills Rd Ste 10,
Columbia, MD 21046
1390 Dual Hwy, Hagerstown,
MD 21740
1101 Russell Rd, Shreveport, LA
71107
80 Cole Ave, Akron, OH 44301
6550 Progress Parkway, Cedar
Hill, MO 63016
100 Phoenix Drive, Finleyville,
PA 15332
100 Phoenix Drive, Finleyville,
PA 15332
9524 Camp Lake Rd, Salem, WI
53168
157 East Concho Ave, San
Angelo, TX 76903
4899 Griggs Rd, Houston, TX
77021
Ambulatory Health Care Services Term Loan
8.25%
Construction of Buildings
Term Loan
Construction of Buildings
Term Loan
7.5%
7.5%
Nonmetallic Mineral Product
Manufacturing
Term Loan
8.25%
Miscellaneous Manufacturing
Term Loan
8.25%
Real Estate
Term Loan
Miscellaneous Manufacturing
Term Loan
Specialty Trade Contractors
Term Loan
6%
8%
6%
Furniture and Related Product
Manufacturing
Term Loan
8.25%
Repair and Maintenance
Waste Management and
Remediation Services
Repair and Maintenance
Term Loan
Term Loan
Term Loan
8%
6%
7%
Heavy and Civil Engineering
Construction
Term Loan
8.25%
Truck Transportation
Truck Transportation
Term Loan
Term Loan
7.5%
7.5%
Food Services and Drinking
Places
Term Loan
6.25%
Rental and Leasing Services
Term Loan
8%
7/24/2028
12/15/2042
12/15/2027
12/15/2043
5/19/2027
2/20/2023
4/27/2026
12/17/2023
7/3/2028
9/24/2040
6/24/2021
3/26/2024
12/31/2028
3/9/2028
6/29/2030
6/30/2040
11/30/2025
20.1
33.6
329.0
381.3
140.4
19.0
59.4
8.0
183.8
311.5
465.2
49.0
552.8
120.9
882.7
0.4
13.6
20.1
33.6
329.0
381.3
140.4
19.0
59.4
8.0
183.8
311.5
465.2
49.0
552.8
120.9
882.7
0.4
13.6
—
31.9
23.6
366.4
42.6
18.0
13.7
7.8
181.4
270.8
4.6
—
339.6
34.5
312.5
0.3
13.3
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/27/2043
1,132.3
1,132.3
643.5
0.20%
14240 Palmetto Frontage Rd,
Miami Lakes, FL 33016
Merchant Wholesalers,
Nondurable Goods
Term Loan
7.25%
7/28/2026
29.6
29.6
29.2
0.01%
F-129
See accompanying notes to consolidated financial statements.
% of Net
Assets
322226
—%
0.01%
0.01%
0.11%
0.01%
0.01%
—%
—%
0.06%
0.08%
—%
—%
0.11%
0.01%
0.10%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
J and K Fitness L.L.C. dba
Physiques Womens Fitness
Center
J&K Fitness, LLC dba
Physiques Womens Fitness
Center
J Harris Trucking LLC
J Harris Trucking, LLC
J Olson Enterprises LLC and
Olson Trucking Direct, Inc.
Jenny's Wunderland, Inc.
Kantz LLC and Kantz Auto
LLC dba Kantz's Hometown
Auto
Kidtastic LLC dba The Little
Gym of Audubon
Kneading Dough LLC dba NY
Bagel Cafe & Deli,NY Bagle,
New York Bagle
Knowledge First Inc dba
Magic Years of Learning and
Kimberly Knox
Kostekos Inc dba New York
Style Pizza
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
Krishna of Orangeburg, Inc.
(*,#)
Kup's Auto Spa Inc
Kup’s Auto Spa, Inc.
LA Diner Inc dba Loukas L A
Diner
LAN Doctors Inc
LAN Doctors Inc
Lan Doctors, Inc.
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
Lowgap Grocery & Grill LLC (*,#,^)
2505 Verot School RD, Lafayette,
LA 70508
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
2505 Verot School Rd, Lafayette,
LA 70508
2040 5 1/2 Mile Rd, Racine, WI
53402
2040 5 1/2 Mile Rd, Racine, WI
53402
Amusement, Gambling, and
Recreation Industries
Term Loan
8%
Truck Transportation
Term Loan
7.25%
Truck Transportation
Term Loan
7.25%
311 Ryan St, Holmen, WI 54636 Truck Transportation
3666 East 116th, Cleveland, OH
44105
Social Assistance
Term Loan
Term Loan
6%
6%
200 West Adams St, Cochranton,
PA 16314
2850 Audubon Drive, Audubon,
PA 19403
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
6.25%
Term Loan
8.25%
2/28/2041
6/8/2036
5/19/2027
5/13/2026
6/28/2025
6/29/2036
10/29/2039
7/27/2026
10287 Okeechobee Blvd #13,
Royal Palm Beach, FL 33411
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/23/2029
575 North Harris St, Athens, GA
30601
10 South King St., Gloucester, NJ
08030
826 John C. Calhoun Drive,
Orangeburg, SC 29115
121 Marktree Rd, Centereach,
NY 11720
121 Marktree Rd, Centereach,
NY 11720
3205 Route 22 East, Branchburg,
NJ 08876
14 Pierson Court, Mahwah, NJ
07430
14 Pierson Court, Mahwah, NJ
07430
14 Pierson Court, Mahwah, NJ
07430
8773 West Pine St., Lowgap, NC
27024
Social Assistance
Food Services and Drinking
Places
Accommodation
Term Loan
Term Loan
Term Loan
8%
8%
6%
Repair and Maintenance
Term Loan
6.25%
Repair and Maintenance
Term Loan
6.25%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
7.25%
Term Loan
8.25%
Term Loan
8.25%
Term Loan
8.25%
General Merchandise Stores
Term Loan
7.25%
3/21/2039
2/6/2040
2/20/2032
11/15/2038
10/23/2025
9/28/2037
8/28/2025
3/16/2026
12/7/2026
3/24/2041
F-130
See accompanying notes to consolidated financial statements.
90.1
14.6
18.7
29.6
628.4
98.8
11.1
44.9
18.1
11.4
61.9
10.3
70.5
54.7
92.8
59.8
43.4
90.1
14.6
18.7
29.6
628.4
98.8
11.1
44.9
18.1
11.4
61.9
10.3
70.5
54.7
92.8
59.8
43.4
203.3
48.0
203.3
48.0
—
11.0
—
4.5
47.1
1.2
5.2
25.8
11.4
10.7
14.9
9.2
33.3
—
90.4
58.3
42.3
197.9
26.7
% of Net
Assets
322226
—%
—%
—%
—%
0.01%
—%
—%
0.01%
—%
—%
—%
—%
0.01%
—%
0.03%
0.02%
0.01%
0.06%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
M & H Pine Straw Inc and
Harris L. Maloy
M & H Pine Straw, Inc and
Harris L. Maloy
M & H Pine Straw, Inc.and
Harris Maloy
M & H Pinestraw, Inc. and
Harris L. Maloy
M and C Renovations Inc
Magill Truck Line LLC and
Jeff J. Ralls
Mariam Diner Inc dba Country
Kitchen Restaurant
MB Xpress Inc
Medeiros Holdings Inc dba
Outdoor Lighting Perspectives
of the Triad
MIT LLC
Mojo Brands Media, LLC
MTV Bowl, Inc. dba Legend
Lanes
Mustafa Inc dba Adiba
Grocery
Mustafa Inc and Raouf
Properties LLC
N Transport LLC
N Transport LLC
Neville Galvanizing, Inc
Nowatzke Service Center Inc
dba Nowatzke Truck & Trailer
Olsen Bros. Transportation,
Inc. & Golden Spike Leasing,
LLC
Paragon Fabricators Inc,
Paragon Field Services, Inc
and Paragon Global
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
526 Perry House Rd, Fitzgerald,
GA 31750
526 Perry House Rd, Fitzgerald,
GA 31750
526 Perry House Rd, Fitzgerald,
GA 31750
526 Perry House Rd, Fitzgerald,
GA 31750
3951 Lorna Rd, Birmingham, AL
35244
211 West 53rd St. N., Park City,
KS 67204
17393 Main St., Hesperia, CA
92345
159 D'Arcy Parkway, Lathrop,
CA 95330
780 S Peace Haven Rd, Winston
Salem, NC 27103
11 North Peach ST., Medford,
OR 97504
3260 University Blvd., Ste 100,
Winter Park, FL 32792
4190 State Rd, Cuyahoga Falls,
OH 44223
5712 Wurzbach Rd, San Antonio,
TX 78238
3538 Pin Oak Dr, San Antonio,
TX 78229
5348 W Brown Ave, Fresno, CA
93722
294 N. Fruit Ave, Fresno, CA
93706
2983 Grand Ave, Pittsburgh, PA
15225
6900 Whitmore Lake Rd,
Whitmore Lake, MI 48189
Merchant Wholesalers,
Nondurable Goods
Support Activities for Agriculture
and Forestry
Support Activities for Agriculture
and Forestry
Merchant Wholesalers,
Nondurable Goods
Term Loan
7.5%
Term Loan
6%
Term Loan
Term Loan
7.5%
7.5%
Construction of Buildings
Term Loan
6.25%
Truck Transportation
Food Services and Drinking
Places
Term Loan
Term Loan
8%
8%
Truck Transportation
Term Loan
8.25%
Electrical Equipment, Appliance,
and Component Manufacturing
Publishing Industries (except
Internet)
Term Loan
7%
Term Loan
Prime plus 2.75%
Broadcasting (except Internet)
Amusement, Gambling, and
Recreation Industries
Term Loan
6%
Term Loan
8.25%
3/21/2023
4/30/2020
7/10/2020
12/15/2021
10/31/2024
3/11/2029
3/18/2026
9/19/2028
11/25/2025
3/31/2042
8/28/2023
6/30/2036
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/17/2025
Food and Beverage Stores
Term Loan
Prime plus 2.75%
Truck Transportation
Term Loan
8%
Truck Transportation
Term Loan
8.25%
3/14/2041
11/20/2027
11/20/2042
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
12/15/2042
Repair and Maintenance
Term Loan
7%
197.4
197.4
54.2
27.4
133.8
11.5
186.2
42.8
54.2
27.4
133.8
11.5
186.2
42.8
59.9
53.5
20.3
49.9
9.0
85.9
18.0
1,168.6
1,168.6
1,017.8
10.5
84.9
725.0
197.3
78.7
71.3
385.5
175.3
625.0
96.9
10.5
84.9
725.0
197.3
78.7
71.3
385.5
175.3
625.0
96.9
1.8
63.2
289.7
208.6
74.6
67.7
86.9
147.2
444.2
—
2520 Pennsylvania Ave, Ogden,
UT 84401
Truck Transportation
Term Loan
8.25%
412 and 500 Main St., La
Marque, TX 77568
Heavy and Civil Engineering
Construction
Term Loan
7%
F-131
See accompanying notes to consolidated financial statements.
1/29/2026
6/20/2028
9/28/2026
547.8
547.8
71.3
0.02%
570.7
570.7
27.3
0.01%
% of Net
Assets
322226
0.02%
0.02%
0.01%
0.02%
—%
0.03%
0.01%
0.32%
—%
0.02%
0.09%
0.06%
0.02%
0.02%
0.03%
0.05%
0.14%
—%
% of Net
Assets
322226
0.02%
0.26%
0.11%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
Paragon Global, LLC and
Paragon Fabricators Inc and
Paragon Field
Peter K Lee MD, PC dba
Atlanta Primary Care
Peter K Lee MD, PC dba
Atlanta Primary Care LLC
PLES Investements, LLC and
John Redder, Pappy Sand &
Gravel, Inc.
Top Cat Ready Mix, LLC &
Ples Investments LLC, Pappy's
Sand & Gravel
Top Cat Ready Mix, LLC, Ples
Investments LLC, and Pappy's
Sand
Pooh's Corner Realty LLC and
Pooh's Corner Inc
PS Camping Inc.
PS Camping, Inc. dba
Prospectors RV Resort
Ramjay Inc.
Randall Miller Company, Inc
and Boyz Transportation
Services, LLC
RDT Enterprises LLC
RDT Enterprises, L.L.C.
RDT Enterprises, LLC
Recovery Boot Camp, LLC,
Rule 62, Inc. and Healing
Properties, LLC
Return to Excellence Inc
Return to Excellence, Inc. dba
The Waynesville Inn Golf &
Spa
Rhone Wolf Vineyard LLC,
Goldline Brands Inc. and Myka
Cellars, Inc.
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
412 and 500 Main St., La
Marque, TX 77568
211 Roberson Mill Rd,
Milledgeville, GA 31061
5 Ashford Way, Hawkinsville,
GA 31061
2040 Dowdy Ferry, Dallas, TX
75218
2040 Dowdy Ferry Rd, Dallas,
TX 75217
13851 S State HWY 34, Scurry,
TX 75158
40 West Avon Rd, Avon, CT
06001
43595 US Hwy 50, Canon City,
CO 81212
43659&43595 US Hwy 50,
Canon City, CO 81212
85 S. Bragg St. Ste 303,
Alexandria, VA 22312
256 Blackley Rd, Bristole, TN
37620
2134 Helton Dr, Florence, AL
35630
2134 Helton Drive, Florence, AL
35630
2134 Helton Drive, Florence, AL
35630
85 SW 5th Ave, Delray Beach,
FL 33444
176 Country Club Drive,
Waynesville, NC 28786
Heavy and Civil Engineering
Construction
Term Loan
7%
Ambulatory Health Care Services Term Loan
8.25%
Ambulatory Health Care Services Term Loan
8.25%
9/28/2041
9/13/2043
9/13/2028
110.1
859.6
381.0
110.1
859.6
381.0
77.2
826.1
366.2
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/19/2038
499.0
499.0
367.0
0.11%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/14/2028
147.5
147.5
—
—%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/28/2025
499.1
499.1
212.6
0.07%
Social Assistance
Term Loan
7%
Accommodation
Accommodation
Term Loan
Prime plus 2.75%
Term Loan
8.25%
Transit and Ground Passenger
Transportation
Term Loan
8.25%
Truck Transportation
Term Loan
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Specialty Trade Contractors
Term Loan
Specialty Trade Contractors
Term Loan
7%
7%
7%
7/23/2040
12/1/2027
5/19/2042
1/13/2027
7/31/2029
9/15/2027
11/12/2025
12/31/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/28/2028
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
176 Country Club Drive,
Waynesville, NC 28786
Amusement, Gambling, and
Recreation Industries
Term Loan
8%
5245 Bucks Bar Rd, Placerville,
CA 95667
Beverage and Tobacco Product
Manufacturing
Term Loan
8.25%
F-132
See accompanying notes to consolidated financial statements.
1/27/2027
10/10/2039
1/19/2030
11.2
18.5
250.1
381.9
921.9
136.9
19.5
111.5
119.1
15.6
11.2
18.5
250.1
381.9
921.9
136.9
19.5
111.5
119.1
15.6
7.3
17.7
240.4
83.6
611.1
60.8
—
—%
0.01%
0.07%
0.03%
0.19%
0.02%
—%
52.7
0.02%
9.4
14.8
—%
—%
1,154.0
1,154.0
1,094.5
0.34%
230.9
230.9
219.0
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
(*,#,^)
(*,#,^)
(*,#,^)
Roundhay Partners LLC and
Roundhay Farming LLC
Rich's Food Stores LLC dba
Hwy 55 of Wallace
Rich's Food Stores LLC dba
Hwy 55 of Wallace
Route 130 SCPI Holdings
LLC, Route 130 SCPI
Operations LLC
Sanabi Investment, LLC dba
Oscar's Moving and Storage
Sand Hill Associates, Ltd. dba
Charlie O's Tavern on the Point (*,#,^)
SDA Holdings LLC and Les
Cheveux Salon Inc
(*,#,^)
(*,#,^)
(*,#)
Sektor Solutions Inc.
Select Propane & Fuel Inc. and
Select Fuel & Convenience
LLC
Shaffer Automotive Repair,
LLC
Shane M. Howell and Buck
Hardware and Garden Center,
LLC
Siman Trio Trading
Simkar LLC, Neo Lights
Holding Inc, Kalco Lighting,
LLC
Soregard Inc
Sovereign Communications
LLC
STK Ventures Inc dba JP Dock
Service & Supply
Stormrider Inc dba Shirley's
Stormrider Inc
Stormrider Inc dba Shirley's
Stormrider, Inc
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
Street Magic Enterprise LLC
(*,#,^)
6160 Granite Spring Rd,
Somerset, CA 95684
611 East Southerland St.,
Wallace, NC 28466
611 E Southerland St, Wallace,
NC 28466
423-429 Route 156, Trenton, NJ
08620
11421 N W 107th St., #13,
Miami, FL 33178
2 Sand Hill Cove Rd,
Narragansett, RI 02882
306 McClanahan St., Roanoke,
VA 24014
9841 Washingtonian Blvd #200,
Gaithersberg, MD 20878
3822 State Route 3, Red Bud, IL
62278
1485 North McQueen Rd #1,
Gilbert, AZ 85233
Crop Production
Term Loan
8.25%
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
8.25%
Food Services and Drinking
Places
Term Loan
6.25%
Truck Transportation
Term Loan
7.5%
Food Services and Drinking
Places
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
8.25%
Term Loan
7.5%
Term Loan
8.25%
Merchant Wholesalers,
Nondurable Goods
Term Loan
7.5%
Repair and Maintenance
Term Loan
7%
1007 Lancaster Pike, Quarryville,
PA 17566
2100 Ponce De Leon Blvd #1290,
Coral Gables, FL 33134
Building Material and Garden
Equipment and Supplies Dealers
Merchant Wholesalers, Durable
Goods
Term Loan
7.5%
Term Loan
8.25%
8/8/2042
9/14/2026
11/9/2026
9/30/2039
6/20/2027
12/27/2041
12/15/2040
11/16/2028
2/10/2030
5/24/2030
12/27/2038
12/21/2028
Electrical Equipment, Appliance,
and Component Manufacturing
Furniture and Related Product
Manufacturing
Term Loan
7.5%
Term Loan
Prime plus 2.75%
12/26/2043
Broadcasting (except Internet)
Term Loan
6.75%
Specialty Trade Contractors
Term Loan
6%
Truck Transportation
Term Loan
7.25%
Truck Transportation
Term Loan
7.75%
Gasoline Stations
Term Loan
7.75%
F-133
See accompanying notes to consolidated financial statements.
6/30/2041
2/7/2024
5/9/2037
9/23/2025
11/25/2024
12/21/2027
700 Ramona Ave, Philadelphia,
PA 19120
605 Birch Drive, Maquoketa, IA
52060
26 E 3 Mile Rd, Sault Sainte
Marie, MI 49783
12548 N State Hwy 7, Climax
Springs, MO 65324
1335 N. Gable Rd, St. Hedwig,
TX 78152
1335 N Gable Rd, St Hedwig, TX
78152
1700 E Bridge St., New Lisbon,
WI 93950
902.1
121.8
37.1
279.5
106.2
413.0
108.5
157.8
524.2
132.8
113.4
146.4
499.6
152.8
627.4
31.6
53.1
102.9
86.3
902.1
121.8
37.1
279.5
106.2
413.0
108.5
157.8
524.2
132.8
113.4
146.4
499.6
152.8
627.4
31.6
53.1
102.9
86.3
663.8
25.9
—
34.5
41.3
242.1
67.0
153.6
26.8
45.2
10.5
22.0
493.0
41.9
132.6
7.0
—
13.1
—
% of Net
Assets
322226
0.21%
0.01%
—%
0.01%
0.01%
0.08%
0.02%
0.05%
0.01%
0.01%
—%
0.01%
0.15%
0.01%
0.04%
—%
—%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Term Loan
Prime plus 2.75%
10/24/2042
SBA Unguaranteed Non-Accrual Investments (3) (22)
Street Magic Enterprise LLC
dba New Lisbon Travel Mart
(*,#,^)
Suncrest Stone Products LLC (*,#,^)
(*,#)
Suncrest Stone Products LLC (*,#,^)
T and B Boots Inc dba
Takken's Shoes
T and B Boots Inc dba
Takken's Shoes
T and B Boots Inc dba
Takken's Shoes
Tarver-Henley Inc. and Tar-
Hen LLC
(*,#,^)
(*,#,^)
(*,#)
The Jig, LLC
The Lake Shore Hospitality Inc
dba Dowagiac Baymont Inn &
Suites
The Woods at Bear Creek LLC
and Bear Creek Entertainment
LLC
Transmission Solutions Group,
Inc. and Calhoun Satellite
Communication
Victorian Restaurant and
Tavern, LLC
Vision Automotive LLC dba
Vision Chrysler Jeep Dodge
Ram of Defiance
Vision Collision Center LLC
dba Integrity Auto Body &
Vision
Warner Family Restaurant LLC
dba Burgerim
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
Webb Eye Associates, PA
(*,#,^)
White Hawk Inc.
Wilban LLC
Wilban LLC
(*,#,^)
(*,#,^)
(*,#)
1700 East Bridge St., New
Lisbon, WI 53950
341 County Farm Rd, Ashburn,
GA 31714
341 County Farm Rd, Ashburn,
GA 31714
670 Marsh St., San Luis Obispo,
CA 93401
72 South Main St., Templeton,
CA 93465
72 South Main St., Templeton,
CA 93465
2125 College Ave, Jackson, AL
36545
3115 Camp Phillips Rd, Wausau,
WI 54403
29291 Amerihost Drive,
Dowagiac, MI 49047
3510 Bear Creek Rd,
Franklinville, NY 14737
Gasoline Stations
Term Loan
7.5%
Nonmetallic Mineral Product
Manufacturing
Nonmetallic Mineral Product
Manufacturing
Clothing and Clothing
Accessories Stores
Clothing and Clothing
Accessories Stores
Clothing and Clothing
Accessories Stores
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Term Loan
7.25%
Term Loan
7.5%
Term Loan
7%
Term Loan
7.25%
Term Loan
7.25%
Term Loan
7.75%
Accommodation
Term Loan
8.25%
Accommodation
Term Loan
7%
1007 &1009 Old Route 119,
Hunker, PA 15639
226 Maple Ave, Cheshire, CT
06410
Telecommunications
Term Loan
7%
Food Services and Drinking
Places
Term Loan
8.25%
20390 County RD 424, Defiance,
OH 43512
Motor Vehicle and Parts Dealers
Term Loan
7.5%
20502 County Rd 424, Defiance,
OH 43512
250 North Nova Rd, Ormond
Beach, FL 32174
1720 S W W White Rd, San
Antonio, TX 78220
2101 Dr. Martin Luther King Jr.
Blvd, Stockton, CA 95205
454 US Hwy 22, Whitehouse
Station, NJ 08889
454 US Hwy 22, Whitehouse
Station, NJ 08889
Repair and Maintenance
Term Loan
7.5%
Food Services and Drinking
Places
Term Loan
8%
Ambulatory Health Care Services Term Loan
7.25%
Truck Transportation
Term Loan
8.25%
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
7.5%
Term Loan
7.25%
F-134
See accompanying notes to consolidated financial statements.
11/7/2042
8/29/2041
8/29/2026
3/31/2025
6/17/2026
12/7/2026
6/21/2042
419.0
620.8
536.6
23.0
204.5
95.2
97.8
74.8
419.0
620.8
536.6
23.0
204.5
95.2
97.8
74.8
322226
0.07%
0.18%
0.14%
—%
—%
0.03%
0.03%
0.02%
239.9
564.7
459.9
—
—
93.9
82.5
71.0
12/5/2041
9/29/2039
12/2/2041
2/22/2042
9/29/2029
11/21/2027
5/3/2028
7/19/2027
12/15/2026
3/11/2026
3/28/2039
335.1
335.1
322.1
0.10%
489.6
489.6
464.4
0.14%
64.7
104.4
64.7
104.4
—
—%
88.5
0.03%
289.3
289.3
125.8
0.04%
349.2
349.2
—
20.1
71.2
937.3
93.2
402.7
20.1
71.2
937.3
93.2
402.7
2.8
36.1
912.8
90.8
265.5
—%
—%
0.01%
0.28%
0.03%
0.08%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Unguaranteed Non-Accrual Investments (3) (22)
1000 Merdian Blvd, Ste 112,
Franklin, TN 37067
1000 Merdian Blvd, Ste 112,
Franklin, TN 37067
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
7.5%
7.5%
1/10/2028
7/28/2027
5.2
47.1
5.2
47.1
5.1
45.9
% of Net
Assets
322226
—%
0.01%
3200 Wilshire Blvd Ste 1000,
Los Angeles, CA 90010
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
9/27/2028
677.3
677.3
607.5
0.19%
Work of Heart Inc dba Little
Nest Portraits
Work of Heart Inc dba Little
Nest Portraits
Zeeba Company, Inc dba
Zeeba Rent-A-Van & 5 Star
Rent- A-Van
Zahmel Restaurant Suppliers
Corp dba Cash & Carry;
Zahners Hardware
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
33-51 11th St., Astoria, NY
11106
Merchant Wholesalers,
Nondurable Goods
Term Loan
8.25%
Total Unguaranteed Non-Accrual SBA Investments
Total Unguaranteed SBA Investments
SBA Guaranteed Accrual Investments (4a)
Matrix Z LLC
Rello Inc.
2Choice2Friends LLC
Al Russell Moldof's CPA
Disability Resolution
NYM Solutions Inc.
Crystal Cleaning Service
Clowers Trucking by Faith
LLC
MCM Design LLC
Still Photography
Archer Cleaners Inc.
Law Office of Paula Padilla
PLLC
Bonadi Inc.
800 SW 21st Terrace, Ft
Lauderdale, FL 33312
8063 Jericho Turnpike,
Woodbury, NY 11797
901 W Braker Lane, Austin, TX
78758
15105 John J Delaney Dr. #D
170, Charlotte, NC 28277
1619 Malon Bay Drive, Orlando,
FL 32828
1250 NW 7th St. Ste 201, Miami,
FL 33125
10862 Nichols Blvd, Olive
Branch, MS 38654
705 E Brookwood PL, Valdosta,
GA 31601
5926 Vinings Vintage Way,
Mableton, GA 30126
195 Terrace Place, Apt. 2,
Brooklyn, NY 11218
1514 W 33rd St., Chicago, IL
60608
2211 E Highland Ave Ste 130,
Phoenix, AZ 85016
9858 W Sample Rd, Coral
Springs, FL 33065
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 6.5%
Personal and Laundry Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Insurance Carriers and Related
Activities
Administrative and Support
Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Truck Transportation
Term Loan
Prime plus 6.5%
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
F-135
See accompanying notes to consolidated financial statements.
4/28/2027
75.8
$ 58,912.6
75.8
$ 59,085.0
65.9
$ 34,236.8
0.02%
10.63%
$ 429,524.8
$ 429,697.2
$ 417,223.1
129.48%
2/27/2029
4/17/2029
4/17/2029
4/25/2029
4/30/2029
5/6/2029
5/9/2029
5/23/2029
5/23/2029
6/6/2029
6/10/2029
6/13/2029
6/17/2029
12.0
5.8
12.1
4.8
4.3
12.2
9.9
12.1
9.8
12.2
12.2
4.9
12.2
12.0
5.8
12.1
4.8
4.3
12.2
9.9
12.1
9.8
12.2
12.2
4.9
12.2
322,226
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
12.0
5.8
12.1
4.8
4.3
12.2
9.9
12.1
9.8
12.2
12.2
4.9
12.2
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Guaranteed Accrual Investments (4a)
AA Horseplay, LLC
Campuscuts LLC
Port Diesel LLC
Menshka Inc.
The Bean Coffee Company,
LLC
Lawrence Adeyemo & Co LLC
Gradstreet LLC
A&S Services LLC
Crystal Clear Accounting
Doghouse Sport Fishing
Charters Inc.
No Push Back LLC
Softcare247 LLC
Host Marketing LLC
Standard Real Estate Services
LLC
Chavero's Auto Mart LLC
Bargain Store
Powerlift Dumbwaiters Inc.
Pine Mountain Residential
LLC
James Clark and Company Inc.
Deer Valley Sport Shop LLC
34565 Ranch Drive, Brownsville,
OR 97327
930 Robtrice Ct, Edmond, OK
73430
3212 Alex Trask Drive, Castle
Hayne, NC 28429
88 High St., Mountclair, NJ
07042
112 South Main St., Spring Hill,
KS 66083
209-34 112 Ave, Queens Village,
NY 11429
2437 Corinth Ave Apt 130, Los
Angeles, CA 90064
3888 Lightner Rd, Vandalia, OH
45377
34099 Tuscan Creek Way,
Temecula, CA 92592
83413 Overseas Hwy,
Islamorada, FL 33036
2223 Dungan Ave, Bensalem, PA
19020
4191 Naco Perrin Blvd, San
Antonio, TX 78217
206 Bell Lane Ste B, West
Monroe, LA 71291
500 W Silver Spring Dr. #K 200,
Glendale, WI 53217
1364 E Palma Vista Drive,
Palmview, TX 78572
107 Tabernacle Church Rd,
Candor, NC 27229
2444 Georgia Slide Rd,
Georgetown, CA 95634
10240 Cosmopolitan Circle,
Parker, CO 80134
8885 Haven Ave, Ste 120,
Rancho Cucamonga, CA 91730
507 Bamboo Rd, Boone, NC
28607
Animal Production and
Aquaculture
Term Loan
Prime plus 6.5%
Personal and Laundry Services
Term Loan
Prime plus 6.5%
Repair and Maintenance
Term Loan
Prime plus 6.5%
Ambulatory Health Care Services Term Loan
Prime plus 6.5%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Nonstore Retailers
Term Loan
Prime plus 6.5%
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Scenic and Sightseeing
Transportation
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Real Estate
Term Loan
Prime plus 6.5%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 6.5%
General Merchandise Stores
Term Loan
Prime plus 6.5%
Machinery Manufacturing
Term Loan
Prime plus 6.5%
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
F-136
See accompanying notes to consolidated financial statements.
6/20/2029
6/21/2029
6/21/2029
7/10/2029
7/17/2029
7/19/2029
7/30/2029
8/7/2029
8/26/2029
8/30/2029
8/30/2029
9/11/2029
9/18/2029
9/19/2029
10/11/2029
10/11/2029
10/16/2029
10/16/2029
10/22/2029
11/7/2029
12.2
7.3
12.3
12.3
12.3
9.8
12.3
12.3
3.2
12.3
12.2
12.4
12.4
12.4
12.5
12.4
12.5
12.4
12.4
12.5
12.2
7.3
12.3
12.3
12.3
9.8
12.3
12.3
3.2
12.3
12.2
12.4
12.4
12.4
12.5
12.4
12.5
12.4
12.4
12.5
12.2
7.3
12.3
12.3
12.3
9.8
12.3
12.3
3.2
12.3
12.2
12.4
12.4
12.4
12.5
12.4
12.5
12.4
12.4
12.5
% of Net
Assets
322,226
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Guaranteed Accrual Investments (4a)
Sean McNamara
5639 Wood Lane, Allentown, PA
18106
Nonstore Retailers
Term Loan
Prime plus 6.5%
11/14/2029
Bucklin Sumner & Associates
The Pinnacle Group
Pen’s Electric Company, Inc
Standard Capital Corp.
Scott’s Hardware Inc
HADD Corp
La Tradicion Cubana Inc.
Moon Group, Inc.
Beau & HB Inc. dba Beau’s
Billard, Bowling & Arcade
Hackstaff Restaurants
MVE, Inc.
American Landscaping
Company
Home Décor Liquidators LLC
National Stone Management
2820 US Hwy 98N LLC
LuluBelle's Mountain Banana
Bread LLC
Shooter's Gun Club LLC
Love Playing LLC
AJN Innocations LLC
650 NE Holladay St. Ste 1600,
Portland, OR 97232
105 Springside Drive, Akron, OH
44333
504 Fairfax Ave, Nashville, TN
37212
2377 Wessington Drive, Virginia
Beach, VA 23456
200 Tuckerton Rd, Medford, NJ
08055
364 Rugby Rd, Cedarhurst, NY
11516
1336 SW 8th St., Miami, FL
33135
145 Moon Rd, Chesapeake City,
MD 21915
100 Village Rd, Port Lavaca, TX
77979
248 W 1st St. Ste 201, Reno, NV
89501
1117 L St., Modesto, CA 95354
6151 A St., Anchorage, AK
99518
4187 Pleasant Hill Rd, Duluth,
GA 30096
804-810 W Shady Grove Rd,
Grand Prairie, TX 75050
2820 US Hwy 98 N, Lakeland,
FL 33805
1063 Carousel Rd, Lake
Arrowhead, CA 92352
2429 Iowa St. Ste B-D,
Lawrence, KS 66046
2200 Eastridge Loop, San Jose,
CA 95122
6704 Main St., Miami Lakes, FL
33014
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 6.5%
Social Assistance
Term Loan
Prime plus 6.5%
Specialty Trade Contractors
Term Loan
Prime plus 6.5%
Insurance Carriers and Related
Activities
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
Miscellaneous Store Retailers
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Merchant Wholesalers,
Nondurable Goods
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Furniture and Home Furnishings
Stores
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Food Manufacturing
Term Loan
Prime plus 2.75%
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-137
See accompanying notes to consolidated financial statements.
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
3,660.2
3,660.2
4,057.4
123.3
442.9
123.3
442.9
132.7
479.4
3,678.2
3,678.2
4,082.8
11/14/2029
11/14/2029
11/21/2029
12/5/2029
12/6/2029
12/17/2029
12/20/2029
6/27/2029
3/16/2029
7/15/2029
9/30/2029
8/31/2044
5/23/2029
4/21/2045
2/27/2030
3/9/2030
2/15/2030
810.1
129.1
230.6
394.7
298.8
73.9
810.1
129.1
230.6
394.7
298.8
73.9
895.2
141.5
257.6
434.7
329.2
81.4
% of Net
Assets
322,226
—%
—%
—%
—%
—%
—%
—%
—%
1.26%
0.04%
0.15%
1.27%
0.33%
1.00%
0.28%
0.04%
0.08%
0.13%
0.10%
0.03%
Term Loan
Prime plus 2.75%
12/27/2029
978.8
978.8
1,078.7
Term Loan
Prime plus 2.75%
12/30/2029
2,962.5
2,962.5
3,227.1
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
SBA Guaranteed Accrual Investments (4a)
Oak Park Social
Natalie Hart LLC
The Cow Harbor Beer
Company
IV Purpose Inc.
Jbang LLC
NJ Floats
Coral Springs Family Wellness
LLC
Ohanyan LLC
Kuros LLC dba Alexander
Lake Lodge
Richwood Enterprises LLC
Icebox Café
Total SBA Guaranteed Accrual Investments
14691 W 11 Mile Rd, Oak Park,
MI 48237
1702 Fawn Gate St, San Antonio,
TX 78248
19 Scudder Ave, Northport, NY
11768
1489 Fulton St., Brooklyn, NY
11216
125 Westchester Ave, White
Plains, NY 10601
327 Rte 202/206, Bedminster
Township, NJ 07921
2902 North University Drive,
Coral Springs, FL 33065
14006 Riverside Dr. #9270,
Sherman Oaks, CA 91423
21221 Baron Lake Drive,
Cedaredge, CO 81413
2564 Branch St., Middleton, WI
53562
219 NE 3rd St., Hallendale
Beach, FL 33009
Food Services and Drinking
Places
Personal and Laundry Services
Beverage and Tobacco Product
Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
2/12/2045
Term Loan
Prime plus 2.75%
12/18/2029
Term Loan
Prime plus 2.75%
7/11/2030
Term Loan
Prime plus 2.75%
12/25/2029
Term Loan
Prime plus 2.75%
11/25/2029
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
5/12/2045
3/21/2030
12/6/2029
3/19/2045
290.6
100.1
272.9
78.2
60.0
78.8
290.6
100.1
272.9
78.2
60.0
78.8
177.4
177.4
99.8
27.9
99.8
27.9
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/24/2029
402.5
402.5
Term Loan
Prime plus 2.75%
4/26/2030
728.8
$ 16,555.0
728.8
$ 16,555.0
802.8
$ 18,213.1
325.7
110.4
300.7
86.2
66.1
88.4
195.5
109.9
31.4
443.4
SBA Guaranteed Non-Accrual Investments (4b)
American Pharmaceutical
Innovation Company, LLC
(*)
MIT LLC
Neville Galvanizing, Inc
Kneading Dough LLC dba NY
Bagel Cafe & Deli,NY Bagle
Simkar LLC, Neo Lights
Holding Inc, Kalco Lighting,
LLC
(*)
(*)
(*)
(*)
Total SBA Guaranteed Non-Accrual Investments
Total SBA Guaranteed Investments
1425 Centre Circle, Downers
Grove, IL 60515
11 North Peach ST., Medford,
OR 97504
2983 Grand Ave, Pittsburgh, PA
15225
10287 Okeechobee Blvd #13,
Royal Palm Beach, FL 33411
Publishing Industries (except
Internet)
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Chemical Manufacturing
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
3/28/2027
3/31/2042
62.1
254.7
62.1
254.7
62.1
254.7
Term Loan
Prime plus 2.75%
12/15/2042
1,875.0
1,875.0
1,875.0
Term Loan
Prime plus 2.75%
8/23/2029
102.5
102.5
102.5
700 Ramona Ave, Philadelphia,
PA 19120
Electrical Equipment, Appliance,
and Component Manufacturing
Term Loan
Prime plus 2.75%
12/26/2043
4,496.2
6,790.5
4,496.2
$
6,790.5
$
4,496.2
6,790.5
$
F-138
See accompanying notes to consolidated financial statements.
$ 23,345.5
$ 23,345.5
$ 25,003.6
% of Net
Assets
322,226
0.10%
0.03%
0.09%
0.03%
0.02%
0.03%
0.06%
0.03%
0.01%
0.14%
0.25%
5.65%
0.02%
0.08%
0.58%
0.03%
1.40%
2.11%
7.76%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
322,226
SBA Guaranteed Accrual Investments (4a)
Total SBA Unguaranteed and Guaranteed Investments
F-139
See accompanying notes to consolidated financial statements.
$ 452,870.3
$ 453,042.7
$ 442,226.7
137.24%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
Controlled Investments (5) (22)
Advanced Cyber Security
Systems, LLC
(*,#) (6) (21)
3880 Veterans Memorial Hwy.
Suite 201, Bohemia, NY 11716
Data processing, Hosting, and
Related Services
Automated Merchant Services,
Inc.
(*,#) (7) (21)
12230 Forest Hill Blvd.,
Wellington, FL 33414
CDS Business Services, Inc.
(*,#) (8)
1985 Marcus Ave., Lake Success,
NY 11042
Data processing, Hosting, and
Related Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Newtek Technology Solutions,
Inc.
(*,#) (11)
1904 W. Parkside Lane Phoenix,
AZ 85027
Data processing, Hosting, and
Related Services
Newtek Insurance Agency,
LLC
(*,#) (13)
1981 Marcus Ave., Lake Success,
NY 11042
Insurance Carriers and Related
Activities
PMTWorks Payroll, LLC
(*,#) (9)
1981 Marcus Ave., Lake Success,
NY 11042
Data processing, Hosting, and
Related Services
Small Business Lending, LLC
(*,#) (12)
(21)
1981 Marcus Ave., Lake Success,
NY 11042
ADR Partners, LLC dba banc-
serv Partners, LLC
International Professional
Marketing, Inc.
(*,#) (12)
(#) (16)
8777 Purdue Rd, Indianapolis, IN
46268
151 W. 30th St., New York, NY
10001
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Professional, Scientific, and
Technical Services
50%
Membership
Interest
Term Loan
100% Common
Stock
100% Common
Stock
Line of Credit
Term Loan
100% Common
Stock
Line of Credit
100%
Membership
Interest
100%
Membership
Interest
Term Loan
Term Loan
Term Loan
Term Loan
100%
Membership
Interest
Term Loan
100%
Membership
Interest
100% Common
Stock
Line of Credit
—%
3%
—%
—%
10%
10%
—%
10%
—%
—%
10%
10%
12%
10%
—%
10%
—%
—%
Prime plus 0.5%
F-140
See accompanying notes to consolidated financial statements.
—
—
—
Dec 2014
381.0
381.0
—
—
—
—
—
—
Dec 2020
April 2020
—
—
—
5,000.0
—
—
4,428.0
5,000.0
3,000.0
5,000.0
—
—
8,384.0
9,000.0
Nov 2028
10,361.0
10,361.0
10,361.0
—
135.0
2,215.0
0.69%
—
—
Oct 2021
May 2020
May 2020
—
1,728.1
435.0
750.0
500.0
435.0
750.0
500.0
July 2020
1,000.0
1,000.0
—
—
—
—
—
—
—
June 2021
400.0
598.0
400.0
9,650.4
400.0
—
—
April 2021
—
—
—
7,085.2
—
4,000.0
4,150.0
—
—
% of Net
Assets
322225
—%
—%
—%
0.93%
1.55%
—%
2.79%
3.22%
—%
—%
—%
—%
—%
2.99%
0.12%
—%
1.29%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2019
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
Controlled Investments (5) (22)
SIDCO, LLC
(#) (16)
151 W. 30th St., New York, NY
10001
Professional, Scientific, and
Technical Services
Newtek Merchant Solutions,
LLC
(#) (11)
1981 Marcus Ave., Lake Success,
NY 11042
Data processing, Hosting, and
Related Services
Mobil Money, LLC
(#) (17)
1981 Marcus Ave., Lake Success,
NY 11042
Newtek Business Lending,
LLC
(*,#) (10)
14 East Washington St., Orlando,
FL 32801
Newtek Conventional Lending,
LLC
Titanium Asset Management,
LLC
(#) (18) (25)
(26)
(*,#) (14)
1981 Marcus Ave., Lake Success,
NY 11042
1981 Marcus Ave., Lake Success,
NY 11042
Data processing, Hosting, and
Related Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Administrative and Support
Services
Excel WebSolutions, LLC
(*,#) (15)
888 East Brighton Ave. Syracuse,
NY 13205
Data processing, Hosting, and
Related Services
POS on Cloud, LLC
(#) (20)
1981 Marcus Ave., Lake Success,
NY 11042
Data processing, Hosting, and
Related Services
100%
Membership
Interest
Line of Credit
100%
Membership
Interest
100%
Membership
Interest
100%
Membership
Interest
50%
Membership
Interest
Term Loan
100%
Membership
Interest
Term Loan
50%
Membership
Interest
Term Loan
50.14%
Membership
Interest
Total Controlled Investments
Non-Control/Affiliate Investments (22)
% of Net
Assets
322225
2.06%
0.26%
—%
Prime plus 0.5%
—
—
July 2020
100.0
7,119.7
850.0
6,649.7
850.0
—%
—%
—%
—%
10%
—%
10%
—
10%
—
—
—
—
—
—
—
—
—
16,438.0
121,250.0
37.63%
2,980.0
3,750.0
1.16%
18,623.0
22,252.7
6.91%
14,270.0
16,122.8
March 2021
900.0
900.0
390.4
—
—
—
Sept 2020
159.2
159.2
—
—
—
—
—
—
5.00%
0.12%
—%
—%
—%
Sept 2023
775.0
775.0
775.0
0.24%
—
—
—
—
$ 20,761.2
$ 107,300.2
$ 215,817.0
—%
66.98%
EMCAP Loan Holdings, LLC
(+,#) (19)
(25)
1140 Reservoir Ave., Cranston,
RI 02920
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
6.04%
Membership
Interest
—%
— $
— $
1,000.0
$
1,000.0
0.31%
Total Investments
^ Denotes investment has been pledged as collateral under the Securitization Trusts.
$ 473,631.5
$ 561,342.9
$ 659,043.7
204.53%
F-141
See accompanying notes to consolidated financial statements.
* Denotes non-income producing security.
# Denotes fair value determined using significant unobservable inputs.
+ Denotes restricted security.
(1) Newtek values each unguaranteed portion of SBA 7(a) accrual loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-
payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for each
Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated
under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded PLP status from the SBA. Portions of these Loans are not
guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to
qualified investors.
(2) The interest rates in effect on our loans as of December 31, 2019 are based off a Prime Rate equal to 5.00% and 1 month LIBOR equal to 1.76250%.
(3) Newtek values non-accrual SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate)
is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the
modification period.
(4a) Newtek values guaranteed accrual SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells accrual SBA 7(a) loans into this secondary market.
Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in NOTE 6—FAIR VALUE MEASUREMENTS.
(4b) Newtek values guaranteed non-accrual loans based on the estimated recovery under the SBA guarantee, which is at cost.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment
Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of
the voting securities of such company. See NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS in the accompanying notes to the
consolidated financial statements for transactions during the year ended December 31, 2019 with affiliates the Company is deemed to control.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As
such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 50.15% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a
subsidiary of Newtek Business Services Corp.).
(9) 25% owned by The Whitestone Group, LLC, (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of
Newtek Business Services Corp.), and 10% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 100% owned by Newtek Business Services Holdco 6, Inc. (a subsidiary of Newtek Business Services Corp.
(11) 100% owned by NBSH Holdings, LLC (a subsidiary of Newtek Business Services Holdco 1, Inc., a subsidiary of Newtek Business Services Corp.). Premier was merged with NMS at December
31, 2018.
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Newtek Business Services Holdco 5, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 47.8% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings
I, Inc., a subsidiary of Newtek Business Services Corp.) and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 50% owned by non-affiliate.
(16) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.).
(17) 100% owned by Newtek Business Services Holdco 4, Inc. (a subsidiary of Newtek Business Services Corp.).
F-142
See accompanying notes to consolidated financial statements.
(18) On May 20, 2019, the Company and its joint venture partner launched Newtek Conventional Lending, LLC (“NCL”) to provide non-conforming conventional commercial and industrial term
loans to U.S. middle-market companies and small businesses. NCL is 50% owned by Newtek Commercial Lending, Inc. (a subsidiary of Newtek Business Services Corp.) and 50% owned by
Conventional Lending TCP Holding, LLC (a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (NASDAQ:TCPC)). Deemed an investment company under the 1940 Act.
(20) 50.13% owned by Newtek Business Services Holdco 3, Inc. (a subsidiary of Newtek Business Services Corp.) and 49.87% owned by multiple non-affiliates.
(21) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were
expensed when incurred.
(22) All of the Company’s investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(23) The fair value of the investment was determined using significant unobservable inputs.
(24) The Company’s investments generally are acquired in private transactions exempt from registration under the Securities Act and, therefore, generally are subject to limitations on resale, and may
be deemed to be “restricted securities” under the Securities Act. However, unless otherwise indicated, such securities may be sold in certain transactions (generally to qualified institutional
buyers) and remain exempt from registration.
(25) Restricted security.
(26) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least
70% of the Company’s total assets. At December 31, 2019, 7.1% of total assets are non-qualifying assets.
As of December 31, 2019, the federal tax cost of investments was $561,343,000 resulting in estimated gross unrealized gains and losses of $155,414,000 and $49,330,000, respectively.
F-143
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
SBA Unguaranteed Accrual Investments (1)
HDD Solutions, LLC
Romain Tower Inc. David Romaine, Sugar Land Crane
and Rigging, LLC
The Chop House Inc.
Galt Insurance Group of Bonita Springs, LLC & Bonita
Safety Institute
Superior Concepts Acquisition Corp
Nix and Nix Funeral Home North Inc,
Capitol Fitness Shelby Inc.
American Rewinding of NC Inc dba MTS
Omega Funeral and Cremation Services, LLC
Superior Concepts Acquisition Corp
Insight Vision Care, PC, CRMOD Lubbock, P.C.,Vielm
Vision Eyecare Inc
East Breeze LLC dba Historic Springdale Pub and
Eatery
Children First Home Health Care Inc
Medworxs Inc.
Green Valley Landscape Management Inc. dba Apopka
Mower and Equipment
Fave Realty Inc.
Simkar LLC, Neo Lights Holding Inc, Kalco Lighting,
LLC
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
12/31/2028
$
553.8
$
553.8
$
Heavy and Civil Engineering Construction
Food Services and Drinking Places
Insurance Carriers and Related Activities
Professional, Scientific, and Technical Services
Personal and Laundry Services
Amusement, Gambling, and Recreation Industries
Fabricated Metal Product Manufacturing
Personal and Laundry Services
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/31/2028
12/31/2043
12/28/2043
12/28/2028
12/28/2043
12/28/2028
12/28/2028
12/28/2043
12/28/2043
237.5
557.8
18.8
119.8
569.5
18.2
425.0
342.9
509.6
237.5
557.8
18.8
119.8
569.5
18.2
425.0
342.9
509.6
527.5
213.1
575.3
20.6
111.4
610.9
16.8
396.2
355.1
514.0
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/27/2043
1,137.8
1,137.8
1,170.1
Food Services and Drinking Places
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Administrative and Support Services
Real Estate
Electrical Equipment, Appliance, and Component
Manufacturing
Reservations Unlimited LLC
BD Branson Victorian LLC dba Branson Victorian Inn
Timios Enterprises Corp dba Palm Court
RM Hawkins LLC
LP Industries, Inc and Playground Packages, LLC
Real Estate
Accommodation
Food Services and Drinking Places
Nonstore Retailers
Miscellaneous Manufacturing
Tri-State Financial Group Inc
Insurance Carriers and Related Activities
Royalty Freight Inc
Fifth Wheel Truck Stop 001, Inc.
Siman Trio Trading
The Law Office of Jared E. Shapiro, P.A.
Kyle M Walker DDS, PC
Diamond Estates LLC
Burgess and Dudley, Incorporated
Truck Transportation
Gasoline Stations
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Construction of Buildings
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/27/2043
12/27/2028
12/27/2028
12/27/2043
12/27/2043
12/26/2043
12/26/2043
12/24/2043
12/24/2043
12/24/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
128.3
300.0
10.5
463.5
123.5
500.0
142.3
497.0
707.6
300.0
93.8
37.8
97.5
105.0
150.0
11.3
112.5
75.0
237.5
128.3
300.0
10.5
463.5
123.5
500.0
142.3
497.0
707.6
300.0
93.8
37.8
97.5
105.0
150.0
11.3
112.5
75.0
237.5
136.0
286.9
9.4
475.5
135.6
549.1
151.1
533.9
741.7
281.8
84.0
33.8
87.1
93.8
134.8
10.0
101.5
67.0
220.1
F-144
See accompanying notes to consolidated financial statements.
0.18%
0.07%
0.20%
0.01%
0.04%
0.21%
0.01%
0.14%
0.12%
0.18%
0.41%
0.05%
0.10%
—%
0.17%
0.05%
0.19%
0.05%
0.19%
0.26%
0.10%
0.03%
0.01%
0.03%
0.03%
0.05%
—%
0.04%
0.02%
0.08%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
D.A.F.S Transport, LLC
Precision Bytes LLC dba Tower Connect
Accel Compression Inc., Accel Workover Services Inc
Cammarata Associates LLC
C&D Trucking & Equipment Service, Inc.
Baseline Health, LLC & Baseline Health Management,
LLC
Sesolinc GRP, Inc.
ETS Tree Service Inc and Eastern Tree Service, Inc
Local Liberty Inc dba The Wardsboro Country Store
Yellow Fin Marine Services LLC, K Marine XI, LLC K
Marine VIII, LLC
Graff Excavating, Inc
Flashii App, Inc.
Alaska Motor Home Inc
Hotel Compete, LLC
Healthy and Fresco LLC
CK Green Parners, LLC dba Reis and Irvy's Columbus
Darian L Hampton DDS PA and Darian L. Hampton
Roots N Shoots, LLC & Yardplus LLC
Cedric Construction Inc.
Accent Comfort Services, Inc
Marlin Lighting LLC
Sheldon T Banks and Sheldon T Banks LLC dba
Serenity Funeral Chapel ll
Always Goldie's Florist
The Cromer Company
JejoJesi Corp dba Dukunoo Jamaican Kitchen,
Dunkunoo
^Mediterranean Tastes Inc dba Mediterranean Tastes
Since 1974
^Peanut Butter & Co., Inc.
^Alpha Landscape Contractors, Inc
^YBL Restaurant Group LLC dba Tropisueno
^Cordoba Foods LLC, Multi Logistics Network Inc,
Karina Mena
^Alpha Omega Trucking LLC
Truck Transportation
Professional, Scientific, and Technical Services
Rental and Leasing Services
Credit Intermediation and Related Activities
Repair and Maintenance
Ambulatory Health Care Services
Fabricated Metal Product Manufacturing
Administrative and Support Services
Food and Beverage Stores
Rental and Leasing Services
Heavy and Civil Engineering Construction
Professional, Scientific, and Technical Services
Rental and Leasing Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Nonstore Retailers
Ambulatory Health Care Services
Administrative and Support Services
Specialty Trade Contractors
Specialty Trade Contractors
Specialty Trade Contractors
Personal and Laundry Services
Miscellaneous Store Retailers
Miscellaneous Store Retailers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/21/2028
12/21/2028
6/21/2044
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/21/2028
12/20/2043
12/20/2028
12/20/2028
12/20/2028
12/20/2028
12/20/2028
2/20/2029
3/20/2029
12/20/2028
12/20/2028
12/20/2028
12/19/2028
12/19/2028
9/19/2044
12/19/2028
12/19/2028
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/19/2029
Food and Beverage Stores
Merchant Wholesalers, Nondurable Goods
Administrative and Support Services
Food Services and Drinking Places
Food Manufacturing
Truck Transportation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/14/2028
12/14/2028
1/14/2029
3/14/2029
12/14/2028
12/14/2028
F-145
See accompanying notes to consolidated financial statements.
660.0
129.8
44.5
75.0
117.5
118.8
375.0
230.0
155.3
662.5
195.5
62.5
300.0
62.5
25.0
187.5
300.0
68.0
100.0
68.8
101.8
28.9
11.7
500.0
42.1
15.8
250.0
334.0
377.0
317.5
70.0
660.0
129.8
44.5
75.0
117.5
118.8
375.0
230.0
155.3
662.5
195.5
62.5
300.0
62.5
25.0
187.5
300.0
68.0
100.0
68.8
101.8
28.9
11.7
500.0
42.1
15.8
250.0
334.0
377.0
317.5
70.0
653.7
116.6
48.9
67.0
122.2
107.9
355.5
216.6
164.9
648.5
176.9
63.8
284.8
55.8
23.5
179.3
269.8
61.7
104.0
61.8
90.9
31.7
10.6
448.0
41.4
14.1
223.3
311.6
339.6
294.8
72.8
0.23%
0.04%
0.02%
0.02%
0.04%
0.04%
0.12%
0.08%
0.06%
0.23%
0.06%
0.02%
0.10%
0.02%
0.01%
0.06%
0.09%
0.02%
0.04%
0.02%
0.03%
0.01%
—%
0.16%
0.01%
—%
0.08%
0.11%
0.12%
0.10%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Nonstore Retailers
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
12/14/2028
12/14/2028
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Prime plus 2.75%
12/14/2043
^Healthy Human, LLC
^Aero Consulting and Engineering Inc
^L&M Services, LLC
^Redskin Cafe Inc. dba Goodfellas Wine & Spirits,
Redskin Cafe Inc.
^Ventures TBD LLC dba The Bottle Tree
^Fitness Orlando LLC & Fitness Orlando Oviedo, LLC Amusement, Gambling, and Recreation Industries
Food and Beverage Stores
Food Services and Drinking Places
^Stony Creek Wellness Group, LLC
Sound Contracting LLC
Sound Contracting LLC
^OC Helicopters LLC
^The Miller Center for Esthetic Excellence
^Plan B Burger LLC
^Burton Realty Co., Inc dba Anchor Realty, Northeast
^Tapia Auto Care, LLC dba Shoreline Quick LUbe and
Car Wash
D for Dream LLC dba Blow Dry Bar Inc
^All About Kids and Families Mediical Center, Inc.
^United States Plastic Equipment LLC
Anglin Cultured Stone Products LLC dba Anglin
Construction
^Tier1 Solutions LLC
^Mateo Enterprise Inc dba El Milagro Market
^Behind The Scenes Chicago, LLC dba Paramount
Events
^Ashwood Food Services Inc. dba Jake Rooney's
Airstrike Firefighters LLC
^Mateo Enterprise Inc dba El Milagro Market
^Ashwood Food Services, Incorporated dba Jake
Rooney's
^Oregon Medical Training Private Career School Inc.
^TFE Resources ,LTD
^B&B Bodega of Delray LLC
White Wilson & Associates LLC
^EMES Supply, LLC
^Googlyoogly, LLC dba Bi-Rite Supermarket
Ambulatory Health Care Services
Fabricated Metal Product Manufacturing
Fabricated Metal Product Manufacturing
Air Transportation
Ambulatory Health Care Services
Food Services and Drinking Places
Real Estate
Repair and Maintenance
Personal and Laundry Services
Ambulatory Health Care Services
Merchant Wholesalers, Durable Goods
Specialty Trade Contractors
Professional, Scientific, and Technical Services
Food and Beverage Stores
Food Services and Drinking Places
Food Services and Drinking Places
Support Activities for Agriculture and Forestry
Food and Beverage Stores
Food Services and Drinking Places
Educational Services
Utilities
Food and Beverage Stores
Professional, Scientific, and Technical Services
General Merchandise Stores
Food and Beverage Stores
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/14/2043
12/14/2043
12/14/2028
12/14/2043
12/14/2043
12/14/2028
12/13/2028
12/13/2043
1/13/2029
12/13/2028
12/13/2043
5/13/2029
1/13/2029
12/13/2028
1/12/2029
1/12/2029
12/12/2043
1/12/2029
12/12/2043
12/12/2028
1/12/2029
1/12/2029
1/11/2029
1/11/2029
1/11/2029
12/11/2043
1/11/2029
12/11/2043
F-146
See accompanying notes to consolidated financial statements.
125.0
15.0
200.0
245.8
98.8
275.0
98.8
197.0
41.8
25.0
125.0
15.0
200.0
245.8
98.8
275.0
98.8
197.0
41.8
25.0
387.5
1,050.0
387.5
1,050.0
303.0
977.5
24.4
368.8
142.5
62.5
10.2
120.0
256.3
215.0
303.0
977.5
24.4
368.8
142.5
62.5
10.2
120.0
256.3
215.0
111.7
13.4
209.2
266.9
101.6
254.6
105.0
200.3
39.4
26.0
383.0
976.2
270.7
1,000.2
21.9
363.2
127.3
63.6
9.1
123.5
251.3
230.7
1,250.0
1,250.0
1,196.7
60.0
67.5
40.0
597.5
19.5
42.5
125.0
203.0
60.0
67.5
40.0
597.5
19.5
42.5
125.0
203.0
53.7
62.9
35.8
548.6
17.5
43.7
114.0
209.0
0.04%
—%
0.07%
0.09%
0.04%
0.09%
0.04%
0.07%
0.01%
0.01%
0.13%
0.34%
0.09%
0.35%
0.01%
0.13%
0.04%
0.02%
—%
0.04%
0.09%
0.08%
0.42%
0.02%
0.02%
0.01%
0.19%
0.01%
0.02%
0.04%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Hilltop Wine Shop, Inc dba Graceland Party
^The Duck's Nuts Inc dba Pet Place Market
^Team Henry, LLC dba Kelly Automotive of Deltona
^ZLM Services LLC
^Shining Star Kids, Inc. dba Brain Balance
^Food Service Industry Consultants Inc.
^Metro R Services Inc. and Metal & Roof Supplies Inc.
^CET Inc
^3SIXO Motorsports LLC dba 3SIXO Motorsports
Shop
^Consulting Solutions, Inc and Mark Luciani
^Little West LLC, 340 Group LLC, Retail West LLc,
Andrew W Walker
^Unique Home Solutions Inc. and Unique Home
Solutions of Ohio
^Levine Daycare Inc dba Kids R Kids
^Jay Carlton's, LLC dba Jay Birds Rotisserie & Grill
^Access Staffing, LLC
^The Altitude Group LLC
^York Concrete Corp
^Swantown Inn and Spa, LLC
^Tammy's Place LLC
^Microplex Co, Third Market LLC
^Hernando Beach Motel LLC,The Purple Cow House o
APancake A Inc.
^Cabrera's Auto Services LLC
^Water Station Holdings LLC
^Luxury Furniture, Inc.dba Venicasa & Luxe Home
Interiors
^Albert M Quashie, DDS, PC
^JJB Production LLC
^Albert M. Quashie, DDS, PC
^Bike Slug Holdings Inc
^Extreme Granite Corp
^True Love Christian Academy LLC
Food Services and Drinking Places
Miscellaneous Store Retailers
Repair and Maintenance
Administrative and Support Services
Educational Services
Professional, Scientific, and Technical Services
Specialty Trade Contractors
Truck Transportation
Motor Vehicle and Parts Dealers
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Construction of Buildings
Social Assistance
Food Services and Drinking Places
Administrative and Support Services
Specialty Trade Contractors
Specialty Trade Contractors
Accommodation
Food Services and Drinking Places
Food and Beverage Stores
Accommodation
Repair and Maintenance
Nonstore Retailers
Furniture and Home Furnishings Stores
Ambulatory Health Care Services
Administrative and Support Services
Ambulatory Health Care Services
Repair and Maintenance
Specialty Trade Contractors
Social Assistance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/11/2043
1/11/2029
12/10/2043
1/10/2029
1/7/2029
1/7/2029
1/6/2029
1/6/2029
1/6/2029
1/5/2029
1/5/2029
1/5/2029
1/5/2029
1/4/2029
1/4/2029
1/4/2029
12/3/2043
1/3/2029
1/30/2044
12/30/2028
11/30/2043
11/30/2043
12/30/2028
12/30/2028
12/29/2028
12/29/2028
11/29/2043
12/28/2028
12/28/2043
12/28/2043
128.0
43.3
391.3
40.0
87.5
71.5
207.5
1,250.0
98.3
57.5
87.5
250.0
270.0
39.0
194.3
150.0
200.0
13.5
436.8
165.0
225.0
81.0
693.3
125.0
87.5
7.4
65.0
9.0
187.5
42.0
128.0
43.3
391.3
40.0
87.5
71.5
207.5
1,250.0
98.3
57.5
87.5
250.0
270.0
39.0
194.3
150.0
200.0
13.5
436.8
165.0
225.0
81.0
693.3
125.0
87.5
7.4
65.0
9.0
187.5
42.0
133.7
40.9
401.5
35.8
78.7
64.2
216.0
1,154.7
88.2
51.4
79.0
260.3
252.9
37.0
173.7
134.7
217.1
14.1
476.1
147.4
247.1
85.5
662.9
123.5
83.8
6.6
67.4
8.0
202.2
45.4
0.05%
0.01%
0.14%
0.01%
0.03%
0.02%
0.08%
0.40%
0.03%
0.02%
0.03%
0.09%
0.09%
0.01%
0.06%
0.05%
0.08%
—%
0.17%
0.05%
0.09%
0.03%
0.23%
0.04%
0.03%
—%
0.02%
—%
0.07%
0.02%
F-147
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Recovery Boot Camp, LLC, Rule 62, Inc. and Healing
Properties, LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/28/2028
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Term Loan
Prime plus 2.75%
11/28/2043
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
11/28/2043
123.8
90.0
431.3
123.8
90.0
431.3
111.1
91.4
473.6
^Level Up Gaming, Inc
^Sky Wonder Pyrotechnics, LLC dba Sky Wonder Fire
and Safety Gear Up
^BEK Holdings LLC, Veseli Fine Art Galleries, LLC,
Trusted.com LLC
Thames Aquatic Club, LLC
^Best Global Alternative North, LLC
^M.A.W. Enterprises LLC dbaY-Not Pizza
^Commonwealth Warehouse Inc
^On Call Electrical of Georgia LLC
^K & A Automotive Inc
^High Desert Transport, Inc.
^Cali Fit Meals
Professional, Scientific, and Technical Services
Educational Services
Furniture and Home Furnishings Stores
Food Services and Drinking Places
Warehousing and Storage
Specialty Trade Contractors
Gasoline Stations
Truck Transportation
Food Services and Drinking Places
Food Services and Drinking Places
^Cocomo Joe's LLC
^Saunders Management LLC dba Northern Light
Espresso Bar and Cafe
Beau & HB Inc dba Beau's Billiard, Bowling & Arcade Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
^Sektor Salutions Inc.
^Beau & HB Inc dba Beau's Billard, Bowling & Arcade Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
^Allegro Assisted Living Services of Texas LLC
^GEM2K, LLC
^Schafer Fisheries Inc.
^US Dedicated LLC
^Jinwoo Sushi Inc
^Salon Femi LLC
^McNeill Stokes
Vancole Investments, Inc. dba Smoothie King #913
^JN Thompson Ent, Inc.
JP Dhillon's Foods LLC
^Peter Thomas Roth Labs LLC and June Jacobs Labs,
LLC
^Modutech Marine Inc
Nursing and Residential Care Facilities
Nonmetallic Mineral Product Manufacturing
Merchant Wholesalers, Nondurable Goods
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Personal and Laundry Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Construction of Buildings
Food Services and Drinking Places
Merchant Wholesalers, Durable Goods
Transportation Equipment Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/21/2028
1,250.0
1,250.0
1,278.9
7/21/2029
12/21/2028
12/21/2028
12/20/2028
12/20/2043
11/19/2043
12/19/2028
12/16/2028
12/16/2028
11/16/2028
3/16/2029
11/16/2028
12/16/2043
11/15/2043
12/15/2043
11/14/2028
12/9/2028
12/9/2028
12/9/2028
12/8/2028
5/7/2044
12/7/2028
2/1/2029
12/1/2028
12/1/2028
18.5
87.5
22.5
450.0
666.9
122.0
76.0
62.5
1.7
40.5
6.9
158.0
70.0
95.0
381.3
50.0
420.0
22.3
7.5
6.8
229.3
394.5
25.8
325.0
375.0
18.5
87.5
22.5
450.0
666.9
122.0
76.0
62.5
1.7
40.5
6.9
158.0
70.0
95.0
381.3
50.0
420.0
22.3
7.5
6.8
229.3
394.5
25.8
325.0
375.0
19.3
78.2
21.1
426.0
689.5
131.0
70.0
56.0
1.6
42.1
7.2
141.2
73.1
104.3
398.3
52.0
381.1
23.1
7.2
6.0
249.3
363.4
24.6
290.3
390.0
0.04%
0.03%
0.16%
0.44%
0.01%
0.03%
0.01%
0.15%
0.24%
0.05%
0.02%
0.02%
—%
0.01%
—%
0.05%
0.03%
0.04%
0.14%
0.02%
0.13%
0.01%
—%
—%
0.09%
0.13%
0.01%
0.10%
0.14%
F-148
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Steele Security, LLC dba Signal 88 Security of San
Antonio
^Abington Caregivers, LLC
Organic Juice Bar Wexford LLC dba The OJB "The
Organic Juice Bar"
^C.A.T.I. Armor, LLC
UK, LLC dba Pita Pit
^JAL Group, Inc. dba Brainy Boulevard Daycare
^Ohio Gold & Pawn LLC, Our New Building LLC and
Corey Fischer
^The Face Place, LLC dba Classic Aesthetics
^Reliant Trucking Inc.
^Bellas Sports Pub, Inc dba Brewmasters Tavern
^Shovels and Whiskey LLC
Hackstaff Restaurants LLC
^TA Coleman, LLC dba Tom's Truck Shop
^Cater To You Agency, LLC, dba Cater To You
^Faydon, Inc
^MB Click It Photography, LLC
^Wellfleet Consulting Inc.
^Apps Inc and Market Share Inc.
^Moore Care LLC
^SwabCo Inc.
^A-1 Van Sevices, Inc.
^La Venezia Corporation dba La Venezia Ballroom &
Robertos Lounge
^Burd Brothers Inc.
^Mellow Sweets, Inc dba Jaafer Sweets & Marwan
Hamdan
^Throop Family Holdings, Inc
^JAM Media Solutions LLC
^Rami Technology USA, LLC
^Quality Electric & Data
Blue Seven, LLC
^Catherine Brandon, PSY.D., Inc dba Kenneth A
Deluca, PH.D., & Associates
^TFR Transit Inc, The Free Ride Inc, South Florida
Free Ride Inc.,Tag-A
Administrative and Support Services
Social Assistance
Food Services and Drinking Places
Apparel Manufacturing
Food Services and Drinking Places
Social Assistance
Miscellaneous Store Retailers
Personal and Laundry Services
Truck Transportation
Food Services and Drinking Places
Motion Picture and Sound Recording Industries
Food Services and Drinking Places
Food Services and Drinking Places
Ambulatory Health Care Services
Nursing and Residential Care Facilities
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Telecommunications
Ambulatory Health Care Services
Support Activities for Mining
Transit and Ground Passenger Transportation
Food and Beverage Stores
Truck Transportation
Food Manufacturing
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Computer and Electronic Product Manufacturing
Specialty Trade Contractors
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
F-149
See accompanying notes to consolidated financial statements.
10/31/2028
11/30/2043
1/30/2029
10/30/2043
1/30/2029
10/29/2028
10/26/2028
10/25/2028
10/25/2028
10/24/2043
10/16/2043
1/15/2029
10/12/2028
10/11/2043
10/10/2028
10/10/2043
10/9/2028
10/5/2028
10/4/2028
9/28/2043
9/28/2028
9/28/2043
9/28/2028
9/28/2028
9/28/2043
9/28/2028
9/28/2028
9/27/2028
1/27/2029
9/27/2028
9/27/2028
110.6
124.9
81.3
210.0
32.4
56.8
146.0
10.0
132.3
69.7
76.4
57.5
5.8
22.5
74.6
38.2
14.9
94.5
51.7
946.7
105.1
330.5
534.0
55.5
643.5
887.5
178.4
98.9
49.8
117.4
123.6
110.6
124.9
81.3
210.0
32.4
56.8
146.0
10.0
132.3
69.7
76.4
57.5
5.8
22.5
74.6
38.2
14.9
94.5
51.7
946.7
105.1
330.5
534.0
55.5
643.5
887.5
178.4
98.9
49.8
117.4
123.6
99.9
132.0
73.9
217.8
30.3
51.4
151.8
9.0
124.1
75.8
81.9
53.6
5.6
23.4
76.5
40.7
13.3
84.4
46.2
988.9
102.7
350.1
513.1
49.8
665.9
813.2
160.6
95.3
46.4
105.3
117.3
0.03%
0.05%
0.03%
0.08%
0.01%
0.02%
0.05%
—%
0.04%
0.03%
0.03%
0.02%
—%
0.01%
0.03%
0.01%
—%
0.03%
0.02%
0.34%
0.04%
0.12%
0.18%
0.02%
0.23%
0.28%
0.06%
0.03%
0.02%
0.04%
0.04%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Blackwater Diving, LLC
^Barricade Holding LLC and Action Barricade
Company, LLC
^LG Law Center, Inc
^Quality Electric & Data Inc.
^Zeeba Company, Inc dba Zeeba Rent-A-Van & 5 Star
Rent- A-Van
^Action Barricade Company, LLC and Barricade
Holding LLC
^Dentistry By Design, P.C
^US Shipping Trans Inc, Esteem Trucking Inc
^Ace Auto Recovery, Inc.
^Above and Beyond Preschool LLC
^Anglin Cultured Stone Products LLC dba Anglin
Construction
^LTS School, Inc.
^Akron Biotechnology, LLC
^Bhatti LLC, Bhatti 3 LLC, dba Auntie Annes
^Steadfast Support Services, LLC
^Newsome Mobile Notary LLC
^Alania Import & Export, Inc.
^Phillip Ramos Upholstery Inc.
^D & D Optics Inc dba Sterling Optical
^The Garden Club, LLC
^DC Lofty, LLC,
^MillClem Corporation & Monticello Corporation
^Southern Services and Equipment, Inc
^Southern Services and Equipment, Inc.
^Sommer Auto Sales, Inc
^Somerled Investments, LLC dba Mak's Place LLC
^Tables and Bars Services, Inc and Tables and Bars
Rentals, LLC
^M&P RV LLC dba M&P RV
^C3 Capital, Inc
^Dash Point Distributing LLC, Dash Point Logistics
LLC and Sara Consal
^MB Xpress Inc
Support Activities for Mining
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Professional, Scientific, and Technical Services
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
Rental and Leasing Services
Ambulatory Health Care Services
Truck Transportation
Administrative and Support Services
Social Assistance
Construction of Buildings
Educational Services
Chemical Manufacturing
Food Services and Drinking Places
Nursing and Residential Care Facilities
Professional, Scientific, and Technical Services
Merchant Wholesalers, Nondurable Goods
Repair and Maintenance
Ambulatory Health Care Services
Miscellaneous Store Retailers
Accommodation
Merchant Wholesalers, Nondurable Goods
Fabricated Metal Product Manufacturing
Fabricated Metal Product Manufacturing
Motor Vehicle and Parts Dealers
Food Services and Drinking Places
Administrative and Support Services
Motor Vehicle and Parts Dealers
Nonstore Retailers
Truck Transportation
Truck Transportation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/27/2028
9/27/2043
9/27/2028
9/27/2043
9/27/2028
9/27/2028
9/26/2028
9/26/2028
9/26/2043
9/26/2043
9/26/2028
9/26/2043
9/25/2028
9/25/2028
9/25/2028
9/25/2028
9/24/2028
9/24/2028
12/21/2028
9/21/2028
9/21/2028
9/21/2043
9/21/2028
9/21/2043
9/20/2028
9/20/2028
9/20/2028
9/19/2043
9/19/2028
9/19/2028
9/19/2028
F-150
See accompanying notes to consolidated financial statements.
791.1
177.3
14.8
129.7
685.8
333.4
14.8
822.9
159.6
551.3
98.9
101.0
494.5
123.6
11.9
5.2
11.1
15.3
53.0
6.5
22.3
330.8
424.3
209.8
340.6
193.3
17.8
112.2
667.8
455.4
791.1
177.3
14.8
129.7
685.8
333.4
14.8
822.9
159.6
551.3
98.9
101.0
494.5
123.6
11.9
5.2
11.1
15.3
53.0
6.5
22.3
330.8
424.3
209.8
340.6
193.3
17.8
112.2
667.8
455.4
723.2
180.7
13.6
132.6
660.2
320.3
13.6
809.0
168.9
587.4
93.3
110.9
492.7
113.8
10.6
4.6
10.1
13.6
48.1
5.8
20.1
363.1
406.5
213.2
351.8
172.6
16.8
122.2
647.5
406.4
1,193.2
1,193.2
1,121.1
0.25%
0.06%
—%
0.05%
0.23%
0.11%
—%
0.28%
0.06%
0.20%
0.03%
0.04%
0.17%
0.04%
—%
—%
—%
—%
0.02%
—%
0.01%
0.13%
0.14%
0.07%
0.12%
0.06%
0.01%
0.04%
0.23%
0.14%
0.39%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Watearth Inc
^Super Station Inc
^Lewis River Golf Course, Inc.
^E & G Enterprises LLC dba Comfort Keepers
^DB Talak LLC
^Culmination Motorsports, Inc.
^Glendale Grill Inc, Roddy Cameron, Jr & John K
Symasko
^Pastel de Feira LLC dba Original Pastel De Feira
^Baby's on Broadway LLC
^J & C Garcia LLC
^Innovim LLC
^LJS Electric, Inc
^Rihahn Inc. dba RDBL, Inc
^QBS, LLC dba Sterling Optical Exton
^L&M Equipment, Inc
^Underground Productions LLC dba 31 Escape
^Peter K Lee MD, PC dba Atlanta Primary Care
TPE Midstream LLC, Dasahm Company, S & S
Ventures LLC and TPE Supply
^Brewster Marketplace Pharmacy & Hardware, LLC
^Peter K Lee MD, PC dba Atlanta Primary Care LLC
^Innovative Network Solutions Inc
^Perry Olson Insurance Agency Inc. dba State Farm
Insurance
^Rancho Paving, Inc
^Pelican Executives Suites, LLC
^NY Tent, LLC dba Tent Company of New York LLC,
NY Tent Parent LLC
^MurlinComputerCompany LLC dba Murlin Computer
^Dr. G's Urgent Care LLC
^Pool Guard of LA
Amaka Consulting LLC dba Donut Minis
^Asheville Spine and Nerve Institute PC
Professional, Scientific, and Technical Services
Gasoline Stations
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Specialty Trade Contractors
Repair and Maintenance
Food Services and Drinking Places
Food Services and Drinking Places
Furniture and Home Furnishings Stores
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Specialty Trade Contractors
Forestry and Logging
Ambulatory Health Care Services
Specialty Trade Contractors
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
Building Material and Garden Equipment and Supplies
Dealers
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Insurance Carriers and Related Activities
Repair and Maintenance
Administrative and Support Services
Rental and Leasing Services
Repair and Maintenance
Ambulatory Health Care Services
Specialty Trade Contractors
Food Services and Drinking Places
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/19/2028
9/19/2043
9/19/2043
9/18/2028
9/18/2043
9/17/2043
9/17/2043
9/17/2028
9/14/2028
9/14/2028
9/14/2028
9/14/2028
9/14/2028
9/14/2028
9/14/2043
9/13/2043
9/13/2043
9/13/2028
9/13/2028
9/13/2028
9/13/2028
9/12/2028
9/10/2028
9/7/2028
9/7/2028
9/7/2028
9/7/2028
9/7/2028
12/7/2028
9/7/2043
F-151
See accompanying notes to consolidated financial statements.
22.3
209.0
498.9
5.9
151.7
558.2
174.6
6.0
49.4
73.2
123.6
447.5
134.7
80.3
22.3
209.0
498.9
5.9
151.7
558.2
174.6
6.0
49.4
73.2
123.6
447.5
134.7
80.3
19.9
229.4
547.5
5.3
158.5
607.8
183.4
5.7
46.9
66.6
110.3
458.4
127.2
72.3
1,247.2
1,247.2
1,320.3
98.5
860.6
261.1
86.5
383.2
123.6
14.8
185.4
314.2
318.4
15.4
22.3
22.3
52.0
91.0
98.5
860.6
261.1
86.5
383.2
123.6
14.8
185.4
314.2
318.4
15.4
22.3
22.3
52.0
91.0
108.1
944.5
248.6
77.2
398.0
113.1
13.3
183.3
280.3
304.8
14.1
19.9
20.0
48.1
98.9
0.01%
0.08%
0.19%
—%
0.06%
0.21%
0.06%
—%
0.02%
0.02%
0.04%
0.16%
0.04%
0.03%
0.46%
0.04%
0.33%
0.09%
0.03%
0.14%
0.04%
—%
0.06%
0.10%
0.11%
—%
0.01%
0.01%
0.02%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Trolley Express Philly, Inc dba Shuttlebee &
Honeybee Transportation LLC
Support Activities for Transportation
Repair and Maintenance
^Extreme Auto Repair, Inc dba 1st Class Towing
^Living Centers Inc. dba Veranda House Senior Living Nursing and Residential Care Facilities
National Stone LTD and NSI Group Inc
^LACCRB LLC dba PostNet
^XL Soccer World Orlando. LLC, XL Soccer World
Saco LLC, XL Sports World
^Stat Constructor L.P
^Extreme Engineering, Inc.
^Greenfield Hill Wines & Spirits, LLC
^ARVAmethod LLC
^Kotyark LLC dba Gibsonton Motel
^Graphish Studio, Inc.
^JFK Transportation Inc
^Atlas Geo-Constructors LLC
^Finn & Emma LLC
^Montana Life Group, LLC
^Wearware Inc dba FlyWire Cameras
^Evans and Paul LLC, Evans & Paul Unlimited Corp
^Zash LLC dba Papa Murphy's Take 'N' Bake Pizza
^Buffalo Biodiesel Inc.
^Ginekis Enterprises, Inc dba Locanda Veneta
^Wilkie J. Stadeker DDS
Geo Tek Alaska, Inc
^ATI Jet, Inc.
^Lewins Law, P.C.
^GS Bath Inc
^Pamletics LLC dba F45
^Conference Services International ETC LLC
Building Material and Garden Equipment and Supplies
Dealers
Printing and Related Support Activities
Amusement, Gambling, and Recreation Industries
Specialty Trade Contractors
Professional, Scientific, and Technical Services
Food and Beverage Stores
Personal and Laundry Services
Accommodation
Professional, Scientific, and Technical Services
Transit and Ground Passenger Transportation
Specialty Trade Contractors
Clothing and Clothing Accessories Stores
Insurance Carriers and Related Activities
Computer and Electronic Product Manufacturing
Miscellaneous Manufacturing
Food Services and Drinking Places
Merchant Wholesalers, Nondurable Goods
Food Services and Drinking Places
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Air Transportation
Professional, Scientific, and Technical Services
Truck Transportation
Amusement, Gambling, and Recreation Industries
Administrative and Support Services
^L.A. Insurance Agency GA 10 LLC
Insurance Carriers and Related Activities
^Crystal Shores Inc. dba Shorewood Laundromat
^David D. Sullivan dba DMS Construction
^Palanuk & Associates, Inc.dba Wolfpk
Personal and Laundry Services
Specialty Trade Contractors
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/6/2028
9/6/2028
8/31/2043
8/31/2044
11/30/2028
8/30/2043
8/30/2028
8/29/2028
8/29/2028
8/29/2028
8/29/2043
8/28/2028
8/28/2028
8/24/2028
8/24/2028
8/24/2028
8/24/2028
8/24/2028
8/23/2028
8/21/2028
8/20/2028
8/17/2028
2/17/2044
8/16/2028
8/16/2028
8/15/2028
11/14/2028
8/14/2028
8/10/2028
8/9/2028
8/9/2028
8/8/2028
12.6
107.5
420.3
193.2
14.9
448.4
102.3
122.9
90.5
2.4
82.2
7.4
159.4
73.7
122.9
7.4
22.1
86.2
41.5
12.6
107.5
420.3
193.2
14.9
448.4
102.3
122.9
90.5
2.4
82.2
7.4
159.4
73.7
122.9
7.4
22.1
86.2
41.5
11.7
111.7
461.3
211.6
13.5
492.1
106.2
110.4
81.4
2.1
90.2
6.6
144.5
73.4
109.6
6.6
20.1
78.9
38.9
1,228.9
1,228.9
1,218.3
86.0
41.8
56.8
211.6
17.7
565.3
42.9
617.2
11.1
22.0
13.3
100.8
86.0
41.8
56.8
211.6
17.7
565.3
42.9
617.2
11.1
22.0
13.3
100.8
77.1
37.3
62.4
203.6
15.8
560.3
40.0
588.4
9.9
20.3
11.8
90.6
—%
0.04%
0.16%
0.07%
—%
0.17%
0.04%
0.04%
0.03%
—%
0.03%
—%
0.05%
0.03%
0.04%
—%
0.01%
0.03%
0.01%
0.42%
0.03%
0.01%
0.02%
0.07%
0.01%
0.19%
0.01%
0.20%
—%
0.01%
—%
0.03%
F-152
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Red Tail Management, Inc dba Jon Smith Subs
^CJNR, LLC
^Mercedes Cab Company, Inc
^Ron's Pool and Spa Services LLC
^20th Century Lanes, Inc dba West Seattle Bowl
^Alma Jacobsen,ODD Family Eye Care & Contact Lens
LLC
Food Services and Drinking Places
Accommodation
Transit and Ground Passenger Transportation
Personal and Laundry Services
Amusement, Gambling, and Recreation Industries
Health and Personal Care Stores
Wholesale Electronic Markets and Agents and Brokers
^Millwork Unlimited, Incorporated
^Accel Compression Inc., Accel Workover Services Inc. Rental and Leasing Services
^Samy Optical LLC dba Site for Sore Eyes
^Accel Compression Inc., Accel Workover Services, Inc Rental and Leasing Services
Ambulatory Health Care Services
^Nichols Stephens Funeral & Cremation Services Ltd
^CSL Services Inc
^Sandlot Sports Inc dba Play it Again Sports
^Summitsoft Corporation
^Nunez Enterprises Corporation dba La Casa
^Relevant Elephant, LLC
^Fitness Central, Inc dba Fitness Central
^HAVL Enterprises Inc dba FedEx
^Florida Apnea Diagnostics, LLC
^Top Shelf Towing and Road Service, LLC
^TR Nails, LLC dba Simple Nails
^Elephant's Trunk of Westchester, LTD
^674 Club LLC
^ZA Trucking LLC
^Mother's Cantina LLC dba Mother's Cantina
^Smart-tel Communications LLC
^HQTRONICS LLC
^Smoove Move Productions, LLC dba Smoove Move
Productions
^Talent Logistix, LLC, Pinpoint Staffing LLC & ITC
2.0 LLC
^H.M.C, Incorporated
Personal and Laundry Services
Professional, Scientific, and Technical Services
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Publishing Industries (except Internet)
Miscellaneous Store Retailers
Professional, Scientific, and Technical Services
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Couriers and Messengers
Ambulatory Health Care Services
Support Activities for Transportation
Personal and Laundry Services
Clothing and Clothing Accessories Stores
Food Services and Drinking Places
Truck Transportation
Food Services and Drinking Places
Administrative and Support Services
Merchant Wholesalers, Durable Goods
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Motion Picture and Sound Recording Industries
Term Loan
Prime plus 2.75%
Administrative and Support Services
Furniture and Related Product Manufacturing
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
F-153
See accompanying notes to consolidated financial statements.
8/8/2028
8/7/2043
8/7/2028
8/3/2028
8/3/2028
8/3/2028
8/2/2028
8/1/2028
8/1/2028
8/1/2043
11/30/2043
7/27/2028
7/26/2028
7/26/2028
7/26/2028
7/25/2028
7/25/2028
7/24/2028
7/24/2028
7/24/2028
7/20/2028
7/17/2028
7/17/2043
7/17/2028
7/13/2028
7/13/2028
7/13/2028
7/12/2028
7/3/2028
7/3/2028
49.2
121.3
127.8
3.7
110.6
59.0
7.4
455.0
115.3
310.2
107.4
535.2
18.3
240.6
8.1
8.8
61.1
78.2
20.8
13.2
61.5
38.9
49.2
121.3
127.8
3.7
110.6
59.0
7.4
455.0
115.3
310.2
107.4
535.2
18.3
240.6
8.1
8.8
61.1
78.2
20.8
13.2
61.5
38.9
46.2
133.2
117.3
3.3
108.5
53.3
6.6
443.0
102.9
319.9
117.6
503.0
16.3
215.1
7.2
7.8
55.5
78.1
18.5
11.8
54.9
40.4
260.6
260.6
286.0
10.0
67.2
22.0
61.1
10.5
61.1
188.1
10.0
67.2
22.0
61.1
10.5
61.1
188.1
9.6
60.9
22.7
54.5
10.9
56.2
169.5
0.02%
0.05%
0.04%
—%
0.04%
0.02%
—%
0.15%
0.04%
0.11%
0.04%
0.17%
0.01%
0.07%
—%
—%
0.02%
0.03%
0.01%
—%
0.02%
0.01%
0.10%
—%
0.02%
0.01%
0.02%
—%
0.02%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Deal to Win Inc
^Vital Inspection Professionals, Inc. dba VIP
^US Cargo Express, LLC
^M J Losito Electrical Contractor's, Inc
Bio-Haz Solutions, Inc.
Bio-Haz Solutions, Inc
^Critter Cabana, LLC dba Critter Cabana
^Corptek Solutions LLC
^Local Leads, LLC dba New Direction Chiropractic
^RLW4 Builders LLC
^InUSA Ventures, Inc
^Darnoc Enterprises Inc, Setira Paul Inc dba Conrad's
Famous Bakery, Inc
^Nick's Country Kitchen, LLC
^National Dredging Services of North Florida, Inc.
^National Dredging Services of North Florida, Inc.
^Julie Cooper-Bierman dba Forever Shopper
^Bengals, Inc. dba Royal Liquor Mart
^Peter Thomas Roth Labs LLC, & June Jacobs Labs,
LLC
^Sun Pools, Inc
^DPF Filters Inc.
^Sun Pools, Inc dba Sun Fiberglass Pools
^Sushi Prime, LLC and Vasilia Investments
^Martha Beauty Supply And Braiding, Inc.
^Judy E. Moncrief C.P.A LLC
^Mr. Lube, Inc
^The Desert House Assisted Living ,LLC dba The
Desert House Assisted Living
^Mr. Lube, Inc.
Surya Hotel LLC dba Hotel Royal
^York Woods Tree Service, LLC dba York Woods Tree
and Products, LLC
Nonstore Retailers
Professional, Scientific, and Technical Services
Support Activities for Transportation
Specialty Trade Contractors
Waste Management and Remediation Services
Waste Management and Remediation Services
Miscellaneous Store Retailers
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Construction of Buildings
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Term Loan
Prime plus 2.75%
Food Manufacturing
Food Services and Drinking Places
Repair and Maintenance
Repair and Maintenance
Nonstore Retailers
Food and Beverage Stores
Health and Personal Care Stores
Plastics and Rubber Products Manufacturing
Merchant Wholesalers, Durable Goods
Plastics and Rubber Products Manufacturing
Food Services and Drinking Places
Personal and Laundry Services
Professional, Scientific, and Technical Services
Repair and Maintenance
Nursing and Residential Care Facilities
Repair and Maintenance
Accommodation
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Independent Life LLC
Ambulatory Health Care Services
7/3/2028
7/3/2028
7/2/2043
6/29/2028
6/29/2043
1/29/2029
6/28/2028
6/28/2028
6/28/2028
6/27/2043
6/27/2028
6/27/2043
6/27/2028
6/27/2043
6/27/2028
6/27/2028
6/26/2043
6/26/2028
6/25/2043
6/25/2028
6/25/2028
6/22/2028
6/22/2043
6/22/2028
6/22/2043
6/22/2043
6/22/2028
12/21/2028
6/21/2043
6/21/2028
122.2
304.2
88.1
57.1
302.1
112.0
81.4
46.2
17.5
994.2
48.6
352.4
21.9
28.6
51.8
15.6
105.6
898.9
304.2
66.8
759.3
267.2
139.7
14.6
659.9
78.3
569.7
100.9
242.1
121.5
122.2
304.2
88.1
57.1
302.1
112.0
81.4
46.2
17.5
994.2
48.6
352.4
21.9
28.6
51.8
15.6
105.6
898.9
304.2
66.8
759.3
267.2
139.7
14.6
659.9
78.3
569.7
100.9
242.1
121.5
109.0
294.9
96.7
51.2
300.5
110.9
71.7
40.6
15.5
1,084.8
42.8
373.1
19.6
31.2
53.5
13.7
109.2
814.5
295.0
60.3
692.4
248.3
152.4
12.8
668.6
83.1
544.9
104.4
248.8
107.0
0.04%
0.10%
0.03%
0.02%
0.10%
0.04%
0.02%
0.01%
0.01%
0.38%
0.01%
0.13%
0.01%
0.01%
0.02%
—%
0.04%
0.28%
0.10%
0.02%
0.24%
0.09%
0.05%
—%
0.23%
0.03%
0.19%
0.04%
0.09%
0.04%
F-154
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^York Woods Tree Service, LLC dba York Woods Tree
and Products, LLC
Building Material and Garden Equipment and Supplies
Dealers
^Lilo Holdings LLC
^Olsen Bros. Transportation, Inc. & Golden Spike
Leasing, LLC
^Jones Roger Sherman Inn, Inc.
^LCP Transportation, LLC dba LCP Teleservices
^Mid America Motorworks, Inc and Yager Holdings
L.P
^Colovic Hackettstown Dairy LLC
^Allen Theatre and Back Stage Cafe LLC
^Schumacker Recreation, LLC
^Softrol Systems Inc dba Softrol Systems
^Oil Palace Inc.
^Kootenay Columbia LLC
^Northway Exit 29 Campground, Inc
^Dianne Williams and Louis Williams dba Sweetlips
Store
^Venzix Ventures Inc. dba Venzix
^Barrett Appliance Distributors Inc.
^Tele Tax Express Inc
^Top Cat Ready Mix, LLC & Ples Investments LLC,
Pappy's Sand & Gravel
^E & J Sims Co. LLC
^Barrett Appliance Distributors, Inc
^Team Sandy Blanton Realty, Inc
^Mastiff Studios LLC
^Golf Swing Prescription LLC
^Ciasom LLC dba Mosaic
^Skyways LTD,Jet 60 LLC,Mendean Jonath, Inc,Jet
AOG, Inc & Jonathan Men
^Beyond Grooming LLC and Michelle McWatters
^Camp K-9 Pet Resort & Spa, Inc.
^Icebox Cafe, L.C. and Icebox Cafe at Doral, LLC
^Applied Behavioral Consulting, Inc
^H S Corporation dba Lake Anna Lodge
Food Services and Drinking Places
Truck Transportation
Food Services and Drinking Places
Transit and Ground Passenger Transportation
Merchant Wholesalers, Durable Goods
Food Services and Drinking Places
Motion Picture and Sound Recording Industries
Amusement, Gambling, and Recreation Industries
Computer and Electronic Product Manufacturing
Performing Arts, Spectator Sports, and Related Industries
Truck Transportation
Accommodation
Food and Beverage Stores
Nonstore Retailers
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Specialty Trade Contractors
Amusement, Gambling, and Recreation Industries
Merchant Wholesalers, Durable Goods
Real Estate
Educational Services
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Support Activities for Transportation
Miscellaneous Store Retailers
Personal and Laundry Services
Food Services and Drinking Places
Social Assistance
Accommodation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
6/21/2028
6/20/2028
6/20/2028
6/19/2028
6/19/2028
6/19/2043
6/19/2043
6/18/2043
6/18/2028
6/15/2028
9/15/2043
6/15/2028
6/15/2043
6/15/2043
6/15/2028
6/14/2043
6/14/2028
6/14/2028
6/14/2028
6/14/2028
6/14/2043
6/13/2043
6/11/2028
6/11/2028
6/8/2043
6/8/2043
6/8/2028
6/8/2028
6/7/2043
6/7/2043
F-155
See accompanying notes to consolidated financial statements.
138.5
18.3
603.5
425.0
794.4
497.7
274.0
125.3
145.8
906.3
143.4
5.8
215.0
46.0
12.8
619.3
21.9
151.8
48.6
489.5
96.7
42.5
12.8
174.9
378.5
42.7
8.0
769.2
49.7
130.5
138.5
18.3
603.5
425.0
794.4
497.7
274.0
125.3
145.8
906.3
143.4
5.8
215.0
46.0
12.8
619.3
21.9
151.8
48.6
489.5
96.7
42.5
12.8
174.9
378.5
42.7
8.0
769.2
49.7
130.5
134.2
16.5
535.5
438.9
699.5
543.0
296.8
133.9
150.5
808.6
156.6
5.6
234.6
48.5
12.4
611.5
21.4
140.9
44.3
455.2
97.1
45.8
11.3
154.9
385.0
46.0
7.2
690.7
53.2
142.4
0.05%
0.01%
0.19%
0.15%
0.24%
0.19%
0.10%
0.05%
0.05%
0.28%
0.05%
—%
0.08%
0.02%
—%
0.21%
0.01%
0.05%
0.02%
0.16%
0.03%
0.02%
—%
0.05%
0.13%
0.02%
—%
0.24%
0.02%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Anurag, LLC dba Oakwood Package Store
^Sowells Consulting Engineers, LLC
^Hardway Inc and A F C Leasing, Inc
^SSD Designs LLC
^Funtime ,LLC dba Indoor Playgrounds International
^BTD Feed & Nutrition, LLC dba Thomaston Feed
Cheshire
Food and Beverage Stores
Professional, Scientific, and Technical Services
Rental and Leasing Services
Waste Management and Remediation Services
Merchant Wholesalers, Durable Goods
AVM LLC dba Luv 2 Play
^Mastrocinque Restaurant Management Company LLC Food Services and Drinking Places
Miscellaneous Store Retailers
Social Assistance
Electronics and Appliance Stores
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Seraj Wireless, LLC
^Awan Business Management Group LLC, Awan Sign
Company lLLC &Awan Promo
^Brooks Seaplane Service Inc and Lunt Enterprises
LLC
^SSMV LLC dba Burgerim
^Eagle Aggregate Transportation, LLC
^Crowley Ventures, LLC
^Iloka, Inc dba New Cloud Networks
^Conan Enterprises LLC
Starship, LLC dba Tint World Smyrna
^Ocean Breeze Holdings, LLC, Ocean Beach Resort
LLC & Ocean Breeze
^Adow Pools LLC
^Dream Spa LLC and Dream Spa Greenwich LLC
^Broadalbin Properties LLC dba Broadalbin Hotel &
1854 Pub & Eatery
^Seaside Acupuncture LLC
^DMA Equipment LLC
^Chem-Flotronics, Inc.
^LightStorm Security LLC
^Yakov Levy M.D., P.C.
^Mark A Espinoza, DDS PLLC dba Central Dental
Care
^JVLS LLC dba Vaccines 2 Go
^On Stage Enterprises LLC, On Stage Theaters
Branson, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
Scenic and Sightseeing Transportation
Food Services and Drinking Places
Truck Transportation
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Nonstore Retailers
Repair and Maintenance
Accommodation
Personal and Laundry Services
Personal and Laundry Services
Accommodation
Ambulatory Health Care Services
Merchant Wholesalers, Durable Goods
Nonmetallic Mineral Product Manufacturing
Administrative and Support Services
Ambulatory Health Care Services
Ambulatory Health Care Services
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
6/6/2043
6/6/2028
6/6/2028
6/5/2028
6/5/2028
6/1/2028
6/1/2028
6/1/2028
5/31/2028
5/31/2043
5/31/2028
5/30/2028
5/30/2028
5/29/2028
5/25/2028
5/25/2028
5/25/2043
5/25/2043
5/25/2028
5/25/2028
10/25/2043
5/24/2043
5/24/2043
5/22/2028
5/21/2028
5/18/2028
5/18/2028
5/17/2028
136.5
21.9
287.5
72.2
243.4
51.3
26.1
81.4
120.7
272.6
142.0
64.5
84.5
72.1
241.5
21.7
88.8
136.5
21.9
287.5
72.2
243.4
51.3
26.1
81.4
120.7
272.6
142.0
64.5
84.5
72.1
241.5
21.7
88.8
139.0
19.4
253.1
64.2
214.5
45.2
25.2
78.5
123.4
287.3
125.0
61.6
78.0
64.5
225.2
19.1
96.1
1,245.1
1,245.1
1,358.7
169.0
97.4
201.0
49.6
259.6
96.6
5.2
106.0
58.9
8.0
169.0
97.4
201.0
49.6
259.6
96.6
5.2
106.0
58.9
8.0
152.5
86.7
219.7
51.9
266.2
86.9
4.6
93.7
51.9
7.0
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
5/17/2028
241.5
241.5
212.6
F-156
See accompanying notes to consolidated financial statements.
0.05%
0.01%
0.09%
0.02%
0.07%
0.02%
0.01%
0.03%
0.04%
0.10%
0.04%
0.02%
0.03%
0.02%
0.08%
0.01%
0.03%
0.47%
0.05%
0.03%
0.08%
0.02%
0.09%
0.03%
—%
0.03%
0.02%
—%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Joshua One Limited Liability Company dba Genesis
Personal Fitness
^Clore Construction LLC
^James T. Hendel dba Autotexx Mobile Auto Repair
^Fireplace Outlet Inc
^Galore Salon & Extension Lounge Inc dba Pretty Chic
Hair & Lashes
^Circle and Square, Inc dba Stamford Kumon
^Bote Virginia Beach, Inc. dba Bote Virginia Beach
^Adhara, LLC
^Daniel Woodward, DC PLLC dba Doc's Body Shop
^Baby Gentry's Childcare & Learning Academy
^P & M Entertainment, LLC dba Luv 2 Play
^Buy Gitomer Inc., Gitgo LLC.,GitGo Archives, LLC,
and Jeffrey Gitomer
Amusement, Gambling, and Recreation Industries
Heavy and Civil Engineering Construction
Repair and Maintenance
Furniture and Home Furnishings Stores
Personal and Laundry Services
Educational Services
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Personal and Laundry Services
Ambulatory Health Care Services
Social Assistance
Amusement, Gambling, and Recreation Industries
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Educational Services
Term Loan
Prime plus 2.75%
^Whitetail Nurseries Inc
^Oculi Entertainment Inc
^Schmaltz Operations LLC dba Companion Camp
^Container Shipping, LLC
^Wilbur Standford Jr Trucking and Excavating, LLC
^Warner Family Restaurant LLC dba Burgerim
Olmsted LLC and 626 Van LLC dba Maison Yaki
^McIntosh Trail Management Service Organization,
Inc.
^Sunlinc Inc
^SOWC Associates LLC dba Serenity Oaks Wellness
Center
^Saltamontes Tire Company, LLC
Metropolitan Solutions Inc.
^Brenden Kehren Development LLC
^Corona Dance, LLC dba Huracan Dance Studio
^Little Angels Daycare and Learning Center LLC
^Rory James Contracting LLC
Building Material and Garden Equipment and Supplies
Dealers
Motion Picture and Sound Recording Industries
Personal and Laundry Services
Support Activities for Transportation
Specialty Trade Contractors
Food Services and Drinking Places
Food Services and Drinking Places
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Repair and Maintenance
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Performing Arts, Spectator Sports, and Related Industries
Social Assistance
Construction of Buildings
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
5/16/2043
5/16/2028
5/15/2028
5/15/2028
5/14/2028
5/11/2028
5/11/2028
5/11/2043
5/11/2028
5/10/2028
5/10/2028
5/9/2043
5/9/2028
5/8/2028
5/7/2028
5/4/2028
5/3/2028
5/3/2028
2/1/2029
5/1/2028
4/30/2028
4/30/2043
4/30/2043
4/30/2043
4/30/2028
4/30/2028
4/27/2043
4/27/2028
F-157
See accompanying notes to consolidated financial statements.
319.2
145.1
7.2
21.7
4.3
41.0
10.9
43.5
39.8
10.9
116.3
719.9
258.4
21.7
58.0
48.3
231.8
20.1
188.2
91.8
9.4
1,242.1
101.7
34.2
2.9
11.5
159.4
15.4
319.2
145.1
7.2
21.7
4.3
41.0
10.9
43.5
39.8
10.9
116.3
719.9
258.4
21.7
58.0
48.3
231.8
20.1
188.2
91.8
9.4
1,242.1
101.7
34.2
2.9
11.5
159.4
15.4
324.5
134.7
7.5
22.4
3.9
36.2
9.7
45.5
35.1
9.6
106.9
785.6
247.0
19.1
55.5
42.5
226.1
18.5
171.7
94.8
8.2
1,355.4
106.7
37.3
2.5
10.1
173.9
13.6
0.11%
0.05%
—%
0.01%
—%
0.01%
—%
0.02%
0.01%
—%
0.04%
0.27%
0.09%
0.01%
0.02%
0.01%
0.08%
0.01%
0.06%
0.03%
—%
0.47%
0.04%
0.01%
—%
—%
0.06%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Kastoria Inc. dba Bantam Pizza
^Suraj Enterprises, Inc.
^Contrada Snacks LLC
^Pledge 4 Hope LLC
^RWT Corporation dba Welding Works
^Matrix Z, LLC
^K&S Hardware LLC
^RWT Corporation dba Welding Works
^LMH Optics LLC dba Sterling Optical
^Joe & Sons Service, Inc
Kneading Dough LLC dba NY Bagel Cafe & Deli, NY
Bagel, New York Bagel
^Just for Boats LLC
^Nando LLC dba Tall Timbers Banquet and Conference
Center
^Digzy Dogz and Grill LLC
^Spitnale's Garage LLC
^Rosemarie Products Company LLC
^Means Enterprises LLC
^James L Shoemaker APCC
^Veterinary Preventive Care, LLC
^A New Dawn Psychotherapy Associates, LLC
^Southern HVAC LLC
^Southern Oaks Athletic Club, LLC
^The Vine, LLC
^Southern HVAC LLC
^1301 Starks Inc.
^Patricia A. Freeman & Samuel C. Freeman dba Teenas
Pizza
^Precision Components Group Inc
^Sexy Nails Center LLC
^Mark Baker
^Innovation Transport LLC
^Newsome Mobile Notary LLC
^Shree Lakshminarayyn Grocery Stores LLC
^Bean City Bar and Grill LLC
Food Services and Drinking Places
Food and Beverage Stores
Truck Transportation
Data Processing, Hosting, and Related Services
Fabricated Metal Product Manufacturing
Nonmetallic Mineral Product Manufacturing
Building Material and Garden Equipment and Supplies
Dealers
Fabricated Metal Product Manufacturing
Ambulatory Health Care Services
Repair and Maintenance
Food Services and Drinking Places
Repair and Maintenance
Food Services and Drinking Places
Food Services and Drinking Places
Repair and Maintenance
Health and Personal Care Stores
Furniture and Home Furnishings Stores
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Specialty Trade Contractors
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Specialty Trade Contractors
Food and Beverage Stores
Food Services and Drinking Places
Miscellaneous Manufacturing
Personal and Laundry Services
Truck Transportation
Truck Transportation
Professional, Scientific, and Technical Services
Gasoline Stations
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
4/27/2028
4/27/2028
4/27/2028
4/26/2028
4/26/2028
4/26/2028
4/26/2028
4/26/2043
4/26/2028
4/24/2028
2/23/2029
4/20/2043
4/20/2028
4/20/2028
4/20/2043
4/18/2028
4/18/2028
4/18/2028
4/18/2028
4/18/2043
4/17/2043
4/17/2043
4/17/2028
4/17/2028
4/16/2028
4/13/2043
4/11/2028
4/10/2043
4/9/2028
4/6/2028
4/5/2028
4/5/2043
4/4/2043
F-158
See accompanying notes to consolidated financial statements.
14.4
300.6
9.8
14.4
498.6
72.6
21.6
210.9
48.0
108.0
18.1
17.4
19.4
8.6
59.8
14.4
7.2
15.4
44.9
86.8
22.3
14.4
300.6
9.8
14.4
498.6
72.6
21.6
210.9
48.0
108.0
18.1
17.4
19.4
8.6
59.8
14.4
7.2
15.4
44.9
86.8
22.3
12.8
284.5
8.6
12.7
458.4
72.0
19.0
205.9
42.4
111.5
16.7
18.9
17.6
8.3
62.1
12.7
6.4
13.6
41.0
88.0
22.4
364.3
364.3
389.5
12.4
38.4
21.6
43.1
21.6
200.8
11.5
49.3
5.0
119.0
93.7
12.4
38.4
21.6
43.1
21.6
200.8
11.5
49.3
5.0
119.0
93.7
11.3
36.4
21.8
45.1
20.7
215.7
10.5
47.1
4.4
125.3
99.1
—%
0.10%
—%
—%
0.16%
0.03%
0.01%
0.07%
0.01%
0.04%
0.01%
0.01%
0.01%
—%
0.02%
—%
—%
—%
0.01%
0.03%
0.01%
0.14%
—%
0.01%
0.01%
0.02%
0.01%
0.08%
—%
0.02%
—%
0.04%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Alaska Industrial Paint LLC
^GQ Investments,LLC
^B&C Texas Leasing Inc and M&W Hot Oil, Inc.
^Master Roofing and Siding Inc.
^Romancing the Stone
^Alaska Industrial Paint LLC
^Michael S Brown Physical Therapy, P.C
^Arrow Freight Inc
^B&C Texas Leasing Inc.,M & W Hot Oill, Inc
^Fifth Wheel Truck Stop 001
^Boulevard Books Inc.
^Technical Ordnance Solutions,LLC
^Payne's Environmental Services LLC
^America's Little Leaders Academy, Inc
^Kaz Wellness, LLC dba Grounded Wellness Center
^Hot Shot Services, Inc and TFB, Ltd Co
Lou & Choo Enterprises Inc.
^Montage Mountain Resorts, LP
^Clancy 15 LLC and Allied Molded Products LLC
^Kenneth Whelchel dba Whelchel Fencing and
Construction
^Clancy 15 LLC and Allied Molded Products LLC
^Corning Lumber Company Inc & Frank R Close &
Son Inc
^Cartwright Termite & Pest Control Inc. and Cartwright
Termite & Pest Co.
^K.C. Communications, Inc.
^Towing Professionals of Arizona Inc dba Shamrock
Towing
^Towing Professionals of Arizona Inc dba Shamrock
Towing
^Cable Management, LLC
^Sunshine Tents and Event Rentals LLC
^Shweiki Media Inc dba Study Breaks Magazine
Repair and Maintenance
Term Loan
Prime plus 2.75%
Electrical Equipment, Appliance, and Component
Manufacturing
Truck Transportation
Specialty Trade Contractors
Specialty Trade Contractors
Repair and Maintenance
Ambulatory Health Care Services
Truck Transportation
Truck Transportation
Gasoline Stations
Publishing Industries (except Internet)
Fabricated Metal Product Manufacturing
Administrative and Support Services
Social Assistance
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Plastics and Rubber Products Manufacturing
Specialty Trade Contractors
Plastics and Rubber Products Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Prime plus 2.75%
Administrative and Support Services
Telecommunications
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Support Activities for Transportation
Term Loan
Prime plus 2.75%
Support Activities for Transportation
Waste Management and Remediation Services
Rental and Leasing Services
Publishing Industries (except Internet)
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-159
See accompanying notes to consolidated financial statements.
3/30/2043
3/30/2028
3/30/2028
3/30/2028
3/30/2043
3/30/2028
3/30/2028
3/30/2028
3/30/2043
3/30/2043
3/30/2043
3/30/2028
3/30/2028
3/30/2043
3/29/2028
3/29/2043
2/28/2044
3/28/2043
3/28/2028
3/28/2028
3/28/2043
3/28/2028
3/28/2028
3/27/2028
3/26/2028
3/26/2043
3/23/2028
3/23/2028
3/23/2028
220.9
200.8
935.0
252.8
345.3
119.0
94.2
671.7
267.4
1,135.3
120.1
1,142.6
216.2
22.3
15.2
396.2
33.8
220.9
200.8
935.0
252.8
345.3
119.0
94.2
671.7
267.4
1,135.3
120.1
1,142.6
216.2
22.3
15.2
396.2
33.8
231.5
180.6
894.7
222.3
356.8
118.3
82.9
590.6
270.9
1,134.1
126.7
1,012.9
205.3
23.6
14.0
432.0
37.0
1,238.0
1,238.0
1,350.0
147.5
62.0
212.9
83.5
222.1
59.6
143.1
533.6
94.5
58.9
71.6
147.5
62.0
212.9
83.5
222.1
59.6
143.1
533.6
94.5
58.9
71.6
140.2
57.6
214.7
86.1
209.5
61.5
131.4
520.4
90.3
60.7
72.4
0.08%
0.06%
0.31%
0.08%
0.12%
0.04%
0.03%
0.21%
0.09%
0.39%
0.04%
0.35%
0.07%
0.01%
—%
0.15%
0.01%
0.47%
0.05%
0.02%
0.07%
0.03%
0.07%
0.02%
0.05%
0.18%
0.03%
0.02%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Aque Investment Group LLC
^Denton BioFuels LLC and Amercian BioSource, LLC Waste Management and Remediation Services
^All Regional Recyclers of Wood LLC dba ARROW Waste Management and Remediation Services
Real Estate
^New York Label & Box Corp
^Sofasco, Inc
^Kajun Martial Arts LLC
^ME Interiors LLC
^GeoTek Alaska, Inc
^Rexco Foods LLC dba Papa John's
^RTSP Union LLC
^Cest Chic Concepts, LLC dba Salon Cest Chic
^Petroleum Equipment & Services, Inc
^Camerabots Media, LLC
^Car Pro Auto Spa of Stuart, LLC dba Tide Pools Island
Gifts
^Rojenco, Inc. dba Buggy Bathe Auto Wash Lube &
Detail Shoppe
^Rojenco II,Inc.
^Bear Bones, Inc.
^CTD Operations Inc
^Rojenco, Inc. dba The Buggy Bathe Auto Wash Lube
& Detail Shoppe
^Rojenco II, Inc.
^Summit Insights Group LLC
^Dante Ultimate Cleaning Service LLC
^SRG Waterfront LLC
^2b Mom Inc dba Mom's the Word Maternity
^Bee Kidz Funzone Inc
^Integrity Machinery Moving, LLC
^Treft Systems Inc
^Unpainted Arizona, LLC dba Westside Bowl
^Play4Fun dba Luv 2 Play
^Espinoza & Salinas Group Ltd dba Credit 360
Consulting
^BC Bishop Enterprises LLC dba 9Round Pooler
Printing and Related Support Activities
Merchant Wholesalers, Durable Goods
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Personal and Laundry Services
Support Activities for Mining
Motion Picture and Sound Recording Industries
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Repair and Maintenance
Repair and Maintenance
Beverage and Tobacco Product Manufacturing
Food Services and Drinking Places
Repair and Maintenance
Repair and Maintenance
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Administrative and Support Services
Food Services and Drinking Places
Clothing and Clothing Accessories Stores
Amusement, Gambling, and Recreation Industries
Support Activities for Transportation
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Educational Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-160
See accompanying notes to consolidated financial statements.
3/23/2028
3/23/2028
3/23/2028
3/23/2043
3/23/2043
3/23/2028
3/22/2028
3/21/2043
3/20/2028
9/20/2028
3/19/2028
3/16/2028
3/16/2028
3/16/2028
3/15/2043
9/15/2043
3/15/2043
7/15/2028
9/15/2043
3/15/2043
3/14/2028
3/9/2028
3/9/2028
3/9/2028
3/9/2028
3/8/2028
3/8/2028
8/7/2043
3/7/2028
3/2/2028
3/2/2028
253.3
93.0
125.2
253.3
93.0
125.2
261.2
86.8
119.5
1,238.0
1,238.0
1,288.6
99.0
21.5
17.9
841.9
40.6
99.0
21.5
17.9
841.9
40.6
99.2
19.2
15.7
878.6
35.7
1,182.3
1,182.3
1,107.4
10.7
238.5
14.3
21.5
514.0
76.3
22.3
63.2
76.3
398.6
84.9
9.7
298.2
93.1
186.6
21.5
14.3
103.5
170.4
4.7
8.0
10.7
238.5
14.3
21.5
514.0
76.3
22.3
63.2
76.3
398.6
84.9
9.7
298.2
93.1
186.6
21.5
14.3
103.5
170.4
4.7
8.0
9.7
244.1
12.9
22.1
542.8
80.6
23.8
56.6
80.6
420.9
74.6
9.2
265.8
81.9
169.9
22.1
12.7
107.0
156.8
4.3
7.2
0.09%
0.03%
0.04%
0.45%
0.03%
0.01%
0.01%
0.31%
0.01%
0.39%
—%
0.08%
—%
0.01%
0.19%
0.03%
0.01%
0.02%
0.03%
0.15%
0.03%
—%
0.09%
0.03%
0.06%
0.01%
—%
0.04%
0.05%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Stepping Stones Childrens Academy
^Connie Engelbrecht
^The Law Offices of Samuel R Miller LLC
^Merciful Heavenly Homes, LLC
^Urban Fitness Group LLC dba Crunch Fitness Group
LLC
^Carey Collision Repairs Inc.
^Betty's Catering Corp, Betty's Decoration & Wedding
Center Inc.
^Purely Seed LLC
^Carries Cakes and Catering, Inc dba Carrie's Cakes and
Confections
^Jackpine Technologies Corporation
^Crossfit iQ LLC
^Wellfleet Consulting Inc.
^New View Media Group LLC
^Town & Country Transportation Co.
^Lulinjett LLC dba All American Printing & Design
^JumboMarkets, Inc.
^Margab Inc dba Smoothie King
^Tony Herring & Associates, Inc.
^Start "UP "Dreams, Inc dba SDC Concrete and
Start"UP" Dream Construction
^Quality Machine of Iowa, Inc
^Apps Inc., Market Share, and Singular Leaseholdings
LLC
^De La Vega LLC dba De La Vega Deland and De La
Vega Oviedo
^Macrotech Integrated Management Solutions dba
Extreme Lawn Care
^Midlothian Hardware Inc dba Grills True Value
^M&R Wong LLC
^Chace Building Supply of CT Inc.,
Social Assistance
Nonmetallic Mineral Product Manufacturing
Professional, Scientific, and Technical Services
Nursing and Residential Care Facilities
Amusement, Gambling, and Recreation Industries
Repair and Maintenance
Food Services and Drinking Places
Merchant Wholesalers, Nondurable Goods
Food Services and Drinking Places
Publishing Industries (except Internet)
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Publishing Industries (except Internet)
Transit and Ground Passenger Transportation
Printing and Related Support Activities
Food and Beverage Stores
Food Services and Drinking Places
Furniture and Home Furnishings Stores
Specialty Trade Contractors
Fabricated Metal Product Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
3/2/2043
2/28/2028
2/28/2043
2/28/2043
2/28/2028
2/27/2028
2/26/2043
2/26/2028
2/23/2028
2/22/2028
2/21/2028
2/21/2028
2/16/2028
2/16/2028
2/14/2043
2/13/2028
2/13/2028
2/9/2028
2/9/2028
2/9/2028
252.0
2.8
117.7
65.6
212.4
71.1
352.9
118.5
4.9
75.0
40.3
14.2
78.2
62.8
105.4
196.7
12.1
7.8
71.1
252.0
2.8
117.7
65.6
212.4
71.1
352.9
118.5
4.9
75.0
40.3
14.2
78.2
62.8
105.4
196.7
12.1
7.8
71.1
268.3
2.6
128.0
71.5
219.0
64.2
384.8
104.2
4.3
72.3
36.5
12.5
80.7
64.8
115.0
179.3
10.9
7.9
66.2
1,223.3
1,223.3
1,172.9
Telecommunications
Term Loan
Prime plus 2.75%
2/8/2028
497.4
497.4
437.4
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Building Material and Garden Equipment and Supplies
Dealers
Administrative and Support Services
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
2/7/2028
2/5/2028
2/2/2028
2/1/2028
1/31/2043
1/31/2043
1/31/2028
1/30/2043
74.4
11.4
14.2
11.3
296.7
74.1
14.1
46.9
74.4
11.4
14.2
11.3
296.7
74.1
14.1
46.9
68.1
11.7
14.6
10.0
323.6
80.8
12.8
49.4
^Rocco'sLandscaping LLC
^USA General Investment LLC dba Braniff Paint and
Body Shop
^WydeBodi, LLC dba Wyde Bodi Auto Tags
Administrative and Support Services
Repair and Maintenance
Support Activities for Transportation
0.09%
—%
0.04%
0.02%
0.08%
0.02%
0.13%
0.04%
—%
0.03%
0.01%
—%
0.03%
0.02%
0.04%
0.06%
—%
—%
0.02%
0.41%
0.15%
0.02%
—%
0.01%
—%
0.11%
0.03%
—%
0.02%
F-161
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^New Phaze Packaging Inc
^Parati USA Inc
^Concrete Services LLC and James Ward
^Southside BBQ Corp
^Flair Interiors, Inc dba Giant Don's Flooring America
^Tier1 Solutions LLC
^Lavish Specs Inc
^Friend Contractors, LLC
Paper Manufacturing
Merchant Wholesalers, Nondurable Goods
Specialty Trade Contractors
Food Services and Drinking Places
Furniture and Home Furnishings Stores
Professional, Scientific, and Technical Services
Machinery Manufacturing
Construction of Buildings
Personal and Laundry Services
^Weeping Willow Kennels, Inc.
^Lou & Choo Enterprises Inc dba Lou & Choo Lounge Food Services and Drinking Places
^MedWorxs Inc.
^Specialized Dairy Processors LLC and Nathaly Zapata Food Services and Drinking Places
Professional, Scientific, and Technical Services
^Human Resource Time Manager LLC
^Impress Therapeutic Massage LLC
^Sandfree Systems LLC
^Crad Holding LLC dba Neighborhood Laundry of
Bloomfield
^Social Link LLC
^Anglin Cultured Stone Products LLC
^Morrocco Method, Inc
^Dudeck Enterprise LLC dba Detail Garage Las Vegas
^O'Rourke's Diner, LLC
^Muckamuck Trucks, Inc.
^Advance Case Parts Inc
^TrialHawk Litigation Group LLC
^Landmark Ventures USA Inc
^Medical Plaza of Boro Park PC
^Bisson Transportation Inc
^Jacliff Investments Inc dba International Heal
^Salida Family Chiropractic-PPLC dba Salida Sport and
Spine
^Lab Partner, LLC and Beechtree Diagnostics, LLP and
Cottonwood Diagnostics
^CT Auto Spa LLC
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Specialty Trade Contractors
Personal and Laundry Services
Professional, Scientific, and Technical Services
Construction of Buildings
Chemical Manufacturing
Motor Vehicle and Parts Dealers
Food Services and Drinking Places
Truck Transportation
Repair and Maintenance
Professional, Scientific, and Technical Services
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Ambulatory Health Care Services
Truck Transportation
Publishing Industries (except Internet)
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
1/26/2043
1/25/2028
1/25/2028
1/25/2028
1/24/2028
1/23/2028
1/19/2028
1/19/2043
1/19/2028
1/18/2043
1/18/2028
1/16/2028
1/8/2028
1/8/2043
1/5/2028
1/5/2028
12/29/2027
12/27/2042
12/27/2042
12/22/2027
12/22/2027
12/22/2027
12/22/2027
12/22/2027
12/22/2027
12/22/2027
12/22/2027
12/22/2027
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/22/2027
Professional, Scientific, and Technical Services
Repair and Maintenance
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
12/22/2027
12/21/2027
F-162
See accompanying notes to consolidated financial statements.
947.6
20.0
94.2
18.4
129.5
7.1
7.1
229.7
9.9
113.6
74.2
61.2
14.6
62.2
7.1
58.9
10.5
635.1
719.0
15.2
3.5
12.9
46.4
14.7
58.5
58.5
70.2
46.8
11.2
728.4
202.8
947.6
1,026.9
20.0
94.2
18.4
129.5
7.1
7.1
229.7
9.9
113.6
74.2
61.2
14.6
62.2
7.1
58.9
10.5
635.1
719.0
15.2
3.5
12.9
46.4
14.7
58.5
58.5
70.2
46.8
11.2
728.4
202.8
17.6
87.9
18.9
133.6
6.4
6.2
238.2
10.2
117.0
65.2
53.8
15.0
66.0
7.3
52.2
9.2
629.6
763.7
15.7
3.4
12.3
44.6
12.9
51.4
51.4
69.0
41.1
9.9
648.5
206.6
0.36%
0.01%
0.03%
0.01%
0.05%
—%
—%
0.08%
—%
0.04%
0.02%
0.02%
0.01%
0.02%
—%
0.02%
—%
0.22%
0.27%
0.01%
—%
—%
0.02%
—%
0.02%
0.02%
0.02%
0.01%
—%
0.23%
0.07%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Blue Lagoon Resort, LLC dba Hill View Cottages
^DHD Enterprise LLC dba Edible Arrangements #1699 Miscellaneous Store Retailers
Accommodation
^Tropical Stone LLC
^Ameco Forest Products LLC
^DBMS Consulting, Inc.
^Best Quality Home Care LLC
^CZAR Industries, Inc.
^Auto Excellance of Fort Myers Inc.
^1-0 Granny's Helpful Hands, LLC
^Legion Bowl, Inc & Legion Pub Inc
^Montessori Community School
^Ocean Trans LLC & Dehal Trucking LLC
^Capital Containers LLC
^Crystal II Auto Glass Inc
Neville Galvanizing, Inc
^JMD Aviation Holdings, LLC
^Peanut Butter & Co., Inc
^KR Calvert & Co, LLC
^Royalty Freight Inc
^Atlas Geo-Constructors, LLC
^Barcade Holdings, LLC, Barcade LLC,& Barcade
New Haven LLC
^Heung Kyun Im
^AADJ Empire Inc and AADJ Galaxy Inc.
^LP Industries Inc. dba Childforms
^Beale Street Blues Company Inc.dba B.B. King's
Club-Memphis
^Hana Pastries Enterprises LLC dba Hana Kitchens,
Hana Pastries, Inc.
^Nichols Fire and Security LLC
^Hardway Inc & AFC Leasing Inc
^LPB LPB Property Management Inc dba Wilderness
View Cabins & Ellijay C
^Clore Construction LLC
^Jai Ganeshai LLC, Mahiveera 1 LLC, Mahiveera 2
LLC & KSVP LLC
Merchant Wholesalers, Durable Goods
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Nursing and Residential Care Facilities
Machinery Manufacturing
Motor Vehicle and Parts Dealers
Nursing and Residential Care Facilities
Amusement, Gambling, and Recreation Industries
Social Assistance
Truck Transportation
Truck Transportation
Repair and Maintenance
Fabricated Metal Product Manufacturing
Rental and Leasing Services
Merchant Wholesalers, Nondurable Goods
Transit and Ground Passenger Transportation
Truck Transportation
Specialty Trade Contractors
Management of Companies and Enterprises
Nonstore Retailers
Food Services and Drinking Places
Plastics and Rubber Products Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/21/2042
12/21/2027
12/21/2027
12/21/2027
12/20/2027
12/19/2027
12/19/2027
12/19/2042
12/15/2027
12/15/2042
12/15/2027
12/15/2042
12/15/2027
12/15/2027
12/15/2042
12/15/2027
12/15/2027
12/14/2027
12/14/2027
12/14/2027
12/14/2027
12/14/2027
12/14/2042
12/14/2027
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/14/2027
Food Manufacturing
Administrative and Support Services
Rental and Leasing Services
Real Estate
Heavy and Civil Engineering Construction
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/14/2027
12/13/2042
12/13/2027
12/12/2042
12/12/2027
Gasoline Stations
Term Loan
Prime plus 2.75%
12/12/2027
F-163
See accompanying notes to consolidated financial statements.
186.6
21.4
175.8
163.8
70.2
7.4
248.9
104.8
21.1
329.7
59.6
601.8
21.1
14.1
625.0
468.0
210.6
446.3
625.9
284.5
59.0
14.5
178.8
70.3
942.9
90.3
86.3
871.8
98.6
433.2
46.8
186.6
21.4
175.8
163.8
70.2
7.4
248.9
104.8
21.1
329.7
59.6
601.8
21.1
14.1
625.0
468.0
210.6
446.3
625.9
284.5
59.0
14.5
178.8
70.3
942.9
90.3
86.3
871.8
98.6
433.2
46.8
203.3
19.7
181.1
168.7
67.2
6.5
233.3
114.2
18.7
359.3
56.6
599.0
18.9
12.4
641.5
473.7
184.9
393.5
549.6
275.3
52.8
12.7
181.2
68.6
834.9
89.6
89.3
765.5
107.0
415.5
41.1
0.07%
0.01%
0.06%
0.06%
0.02%
—%
0.08%
0.04%
0.01%
0.12%
0.02%
0.21%
0.01%
—%
0.22%
0.16%
0.06%
0.14%
0.19%
0.10%
0.02%
—%
0.06%
0.02%
0.29%
0.03%
0.03%
0.27%
0.04%
0.14%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Big Picture Group LLC
^Sky Way Enterprises, Inc, A-Liner-8-Aviation, Inc,
Kissimmee Aviation
^A-1 Van Services Inc
^The Ohio Valley Group Inc dba Ohio Valley
Landscapes & Design
^Clear Sound Communications, Inc
^AV Strategy Inc
^JVLS LLC dba Vaccines 2 Go
^Kim Howard Corp dba NPN Machine Tools
^IHC Hardware Inc.
^Driven Powersports, Inc
^Earth First Recycling LLC
^ODS Inc
^Healthcare Interventions, Inc dba Brightstar
Healthcare of & Brightstar
^Oil Palace, Inc.
^PS Camping Inc.
^Square1 Partners, LLC
^Utara LLC
^Linda Jean Howard Riley dba The Rusty Bolt
^Salud Bar & Grill LLC
^Fortress Verve Inc, Maurice R. Margules and Antonie
C. Reinhard
^WTI Distribution Inc
^Frontier Sand LLC
^Create- A- Stitch, Inc
^J. Venture Holdings, LLC
^Skin Beauty Bar Inc. and Tameka J. Mathis
^OPH Lexington, Inc
^Clearwater Transportation LTD dba Thrifty Car
Rental, Dollar Rent A Car
^Our Playhouse Preschool, LLC
^Amped Coffee Company LLC
^Beacon Brewing LLC and C' Sons, LLC
^Step Up Academy of the Arts, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/12/2027
Air Transportation
Transit and Ground Passenger Transportation
Administrative and Support Services
Administrative and Support Services
Rental and Leasing Services
Ambulatory Health Care Services
Fabricated Metal Product Manufacturing
Building Material and Garden Equipment and Supplies
Dealers
Motor Vehicle and Parts Dealers
Merchant Wholesalers, Durable Goods
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Performing Arts, Spectator Sports, and Related Industries
Accommodation
Publishing Industries (except Internet)
Food Services and Drinking Places
Miscellaneous Store Retailers
Food Services and Drinking Places
Miscellaneous Store Retailers
Support Activities for Transportation
Mining (except Oil and Gas)
Printing and Related Support Activities
Professional, Scientific, and Technical Services
Personal and Laundry Services
Social Assistance
Rental and Leasing Services
Social Assistance
Food Services and Drinking Places
Food Services and Drinking Places
Educational Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-164
See accompanying notes to consolidated financial statements.
12/12/2027
12/12/2027
12/12/2027
12/8/2027
12/8/2027
12/7/2027
12/7/2042
12/6/2042
12/6/2027
12/6/2027
12/6/2027
12/4/2027
12/4/2042
12/1/2027
12/1/2027
12/1/2027
12/1/2042
12/1/2027
11/30/2027
11/30/2027
11/30/2027
11/30/2042
11/30/2027
11/30/2027
11/29/2042
11/29/2027
11/29/2042
11/28/2027
11/27/2042
11/22/2027
351.0
468.0
673.6
14.0
3.5
414.1
14.0
568.2
98.6
81.9
72.8
45.9
14.0
976.8
18.9
58.5
22.0
20.7
52.6
122.0
37.2
479.0
86.2
11.6
8.4
192.8
160.4
233.8
58.2
125.1
14.7
351.0
468.0
673.6
14.0
3.5
414.1
14.0
568.2
98.6
81.9
72.8
45.9
14.0
976.8
18.9
58.5
22.0
20.7
52.6
122.0
37.2
479.0
86.2
11.6
8.4
192.8
160.4
233.8
58.2
125.1
14.7
321.7
410.9
651.9
12.8
3.1
389.4
12.3
617.2
98.7
71.9
72.9
42.7
12.3
1,064.4
19.1
51.4
20.4
22.6
46.5
122.1
35.3
473.3
92.7
11.9
7.6
210.1
144.1
254.8
60.0
136.3
12.9
0.11%
0.14%
0.23%
—%
—%
0.14%
—%
0.21%
0.03%
0.03%
0.03%
0.01%
—%
0.37%
0.01%
0.02%
0.01%
0.01%
0.02%
0.04%
0.01%
0.16%
0.03%
—%
—%
0.07%
0.05%
0.09%
0.02%
0.05%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Webtez Inc dba Mod Vans
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/22/2027
^JMD Corporation dba Dart's True Value
^Glencadia Corporation
^Grumpy's Restaurant Company, LLC
^Cali Fit Meals
^PB Market LLC dba Pure Barre
^N Transport LLC
^N Transport LLC
^B Lam LLC
^Maya Motel, LLC dba Town House Motel
^TPE Midstream LLC, Dasham Company dba Sahm Co
& S & S Ventures Inc.
^SSI Refrigerated Express Inc. and Robert M Stallone
^Jacob's Towing, Inc.dba Jacob's Automotive
Locksmith & Jacob's Auto Repair
^Southern Specialty Contractor, LLC & Ronald David
Holbrook Jr.
^H & H Hotshot Services, Inc.
^Murf & Sons LLC
^J R Wholesale Tires & Auto Center, LLC
^Marcaco LLC
^Auto Rx LLC,J&P Auto Repair Inc
Paramount Dance Studios Inc. and Homestead Dance
Supply
^GFA International Inc.
^Wing King at the Gardens LLC
^Linqserv Inc.
^Hofgard & Co, Inc dba Hofgard Benefits and James
Marsh
Building Material and Garden Equipment and Supplies
Dealers
Personal and Laundry Services
Food Services and Drinking Places
Food Services and Drinking Places
Educational Services
Truck Transportation
Truck Transportation
Personal and Laundry Services
Accommodation
Rental and Leasing Services
Truck Transportation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/22/2027
11/21/2027
11/21/2027
11/21/2027
11/21/2027
11/20/2027
11/20/2042
11/20/2042
11/17/2042
11/17/2027
11/17/2027
Support Activities for Transportation
Term Loan
Prime plus 2.75%
11/17/2027
Specialty Trade Contractors
Couriers and Messengers
Food Services and Drinking Places
Motor Vehicle and Parts Dealers
Nonmetallic Mineral Product Manufacturing
Repair and Maintenance
Educational Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Transit and Ground Passenger Transportation
Insurance Carriers and Related Activities
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/17/2027
11/16/2027
11/16/2027
11/15/2042
11/15/2042
11/15/2042
10/14/2043
11/13/2027
11/10/2027
11/9/2027
11/8/2027
11/7/2027
11/6/2042
11/3/2027
11/3/2042
11/2/2027
11/1/2027
10/31/2027
F-165
See accompanying notes to consolidated financial statements.
^JNP Delivery Inc
^His Loving Hands Christian Academy, Inc.
Couriers and Messengers
Social Assistance
^Sterling Campbell Insurance Agency, Inc
Insurance Carriers and Related Activities
^S & S Auto Body Shop Inc.
^Top Quality Dent Service LLC
^Edge Studios Inc Radiant Yoga LLC
Repair and Maintenance
Repair and Maintenance
Amusement, Gambling, and Recreation Industries
^Rachael Reel dba Rachel Reel Insurance Age
Insurance Carriers and Related Activities
65.1
17.4
3.5
66.1
20.9
100.9
385.5
175.3
178.6
56.2
175.8
59.4
46.5
49.3
65.1
154.7
13.3
651.7
193.3
408.5
87.2
9.1
574.1
13.8
104.1
90.4
7.0
162.6
5.6
61.6
6.9
65.1
17.4
3.5
66.1
20.9
100.9
385.5
175.3
178.6
56.2
175.8
59.4
46.5
49.3
65.1
154.7
13.3
651.7
193.3
408.5
87.2
9.1
574.1
13.8
104.1
90.4
7.0
162.6
5.6
61.6
6.9
57.5
16.5
3.1
58.2
19.9
88.7
338.5
164.3
190.0
61.2
170.7
53.4
42.8
43.7
59.7
138.0
14.5
693.3
209.2
432.7
89.8
8.0
548.7
12.1
97.5
96.1
6.1
175.5
4.9
55.5
6.1
0.02%
0.01%
—%
0.02%
0.01%
0.03%
0.12%
0.06%
0.07%
0.02%
0.06%
0.02%
0.01%
0.02%
0.02%
0.05%
0.01%
0.24%
0.07%
0.15%
0.03%
—%
0.19%
—%
0.03%
0.03%
—%
0.06%
—%
0.02%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Berza TLG,LLC dba The Little Gym of Lake Charles
^The Five Lakes LLC
^Die Hard Used Car Sales
^Blue Eagle Transport Inc, Golden Eagle Transport, Inc Couriers and Messengers
^Sage Oil LLC
^Ashore Ventures Inc dba PuroClean Professional
Restoration
^Cardinal Homes, Inc
^Suzie LLC dba Tony D's Restaurant
^White Walker LLC dba Frenchette
^Grand Blanc Lanes, Inc.
^Schafer Fisheries Inc
^Action Physical Therapy Yoga and Wellness Center
Inc.
^The Jig, LLC
^Florida Apnea Diagnostics LLC
^Looky Enterprises, LLC
^Island Refrigeration & AC Inc
^H and K Dry Cleaning LLC, Quintero Shopping
Center LLC, Aqua Laundry
^Blueridge Armor LLC
^Albas Bar & Grill LLC
^Cortez Landscaping, LLC
^Crawfordsville Fitness LLC dba Planet Fitness
^On Call Services LLC
^JD Ventures LLC and JD Roof Co LLC
^Pro Anderson, LLC
^Sandbox Ventures LLC
^Eye Optique Inc.
^Becky Lou Corp dba Rent A Center
^Ains Holding Company LLC
^Dan Cline Transport Inc.
^Cagwin Trucking LLC
^Sashshel Corporation
^Threads of Time LLC
Amusement, Gambling, and Recreation Industries
Educational Services
Motor Vehicle and Parts Dealers
Merchant Wholesalers, Nondurable Goods
Repair and Maintenance
Wood Product Manufacturing
Food Services and Drinking Places
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Food Manufacturing
Ambulatory Health Care Services
Food Services and Drinking Places
Ambulatory Health Care Services
Food Services and Drinking Places
Specialty Trade Contractors
Electronics and Appliance Stores
Miscellaneous Manufacturing
Food Services and Drinking Places
Administrative and Support Services
Amusement, Gambling, and Recreation Industries
Construction of Buildings
Specialty Trade Contractors
Amusement, Gambling, and Recreation Industries
Amusement, Gambling, and Recreation Industries
Health and Personal Care Stores
Rental and Leasing Services
Management of Companies and Enterprises
Truck Transportation
Truck Transportation
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
8%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Term Loan
Prime plus 2.75%
F-166
See accompanying notes to consolidated financial statements.
10/31/2027
10/30/2042
10/30/2042
10/27/2027
10/27/2027
10/27/2027
10/27/2027
10/25/2042
10/25/2027
10/25/2027
10/25/2027
10/24/2027
10/24/2042
10/20/2027
10/18/2027
10/18/2042
10/17/2042
10/17/2027
10/13/2042
10/13/2027
10/13/2027
10/13/2027
10/12/2027
10/11/2027
10/11/2027
10/5/2027
10/2/2027
10/2/2027
9/29/2030
9/29/2042
9/29/2042
9/29/2042
39.2
467.3
55.4
34.7
9.2
13.4
101.0
86.1
258.9
13.9
32.3
20.8
74.8
146.5
61.4
138.6
63.3
7.6
44.3
17.7
39.2
467.3
55.4
34.7
9.2
13.4
101.0
86.1
258.9
13.9
32.3
20.8
74.8
146.5
61.4
138.6
63.3
7.6
44.3
17.7
35.1
509.2
60.4
31.4
8.2
12.2
104.1
92.5
266.7
14.3
33.3
20.4
79.1
131.1
55.4
144.3
69.0
7.2
44.5
16.5
114.6
114.6
103.4
16.6
20.8
49.9
17.3
13.9
84.2
75.8
948.9
321.7
209.1
135.1
16.6
20.8
49.9
17.3
13.9
84.2
75.8
948.9
321.7
209.1
135.1
17.1
18.7
44.5
17.0
12.2
78.9
68.3
864.6
344.6
227.7
139.1
0.01%
0.18%
0.02%
0.01%
—%
—%
0.04%
0.03%
0.09%
—%
0.01%
0.01%
0.03%
0.05%
0.02%
0.05%
0.02%
—%
0.02%
0.01%
0.04%
0.01%
0.01%
0.02%
0.01%
—%
0.03%
0.02%
0.30%
0.12%
0.08%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Harco Metal Products Inc
^Miechella Suzette Decker
^Chicago American Manufacturing LLC, Dockside
Steel Processing LLC
^Pets A Go Go LLC
^Rhode Island Tennis Management LLC
^Nicholson Lumber Co Inc.
^Rhode Island Tennis Management LLC
^National Media Services, Inc
^Complete Care IT LLC
^Technologist Inc
^Rollins Construction & Trucking LLC
^Inspirations Food Design, Inc
^KB Waterjet Cutting LLC
^JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of
Brooklyn
^Magnation Corporation
^Sallee Pro-Custom Fabrication Shop LLC
^Sound Manufacturing, Inc. & Monster Power
Equipment, Inc.
^Alpha Preparatory Academy LLC
^CR Park Incorporated dba Define Body and Mind
^Denek Contracting Inc and Denek Leasing LLC
^Excel, RP Inc.
^Max Home Deliveries, Inc
^Montessori Community School
^Imagine By Carleen, Inc.
^NY Tent LLC & NY Tent Parent, LLC dba Tent
Company of New York
^Alexander Pierce Corporation
^Commonwealth Diagnostics International, Inc
^Insight Diagnostic Technologist Services
^Venus Pizza, Inc.
^CIS BIG DOG, LLC
^Stone's Construction and Remodeling, LLC
Primary Metal Manufacturing
Miscellaneous Store Retailers
Fabricated Metal Product Manufacturing
Personal and Laundry Services
Amusement, Gambling, and Recreation Industries
Building Material and Garden Equipment and Supplies
Dealers
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Heavy and Civil Engineering Construction
Construction of Buildings
Food Services and Drinking Places
Fabricated Metal Product Manufacturing
Food Services and Drinking Places
Utilities
Repair and Maintenance
Fabricated Metal Product Manufacturing
Social Assistance
Amusement, Gambling, and Recreation Industries
Specialty Trade Contractors
Machinery Manufacturing
Couriers and Messengers
Social Assistance
Personal and Laundry Services
Rental and Leasing Services
Fabricated Metal Product Manufacturing
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Administrative and Support Services
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/29/2042
9/29/2042
9/29/2042
9/28/2042
9/28/2042
9/28/2030
9/28/2042
9/28/2027
9/27/2027
9/27/2027
9/26/2027
9/26/2042
9/22/2027
9/22/2027
9/22/2027
9/21/2027
9/20/2027
9/20/2042
9/20/2027
9/20/2042
9/20/2027
9/20/2027
9/20/2042
9/20/2027
9/20/2027
9/20/2042
9/20/2027
9/20/2027
9/20/2042
9/19/2027
9/19/2027
F-167
See accompanying notes to consolidated financial statements.
483.3
98.4
483.3
98.4
479.2
107.1
1,230.3
1,230.3
1,289.0
195.5
540.4
202.9
376.3
17.2
13.5
318.5
312.4
460.0
9.4
20.6
45.9
8.3
183.3
159.7
92.1
206.3
91.7
74.1
387.8
6.9
942.4
613.6
195.5
540.4
202.9
376.3
17.2
13.5
318.5
312.4
460.0
9.4
20.6
45.9
8.3
183.3
159.7
92.1
206.3
91.7
74.1
387.8
6.9
942.4
613.6
206.8
555.3
204.5
386.7
15.1
11.8
316.0
311.0
478.7
8.7
18.3
47.2
8.5
177.1
163.6
83.8
224.6
86.3
69.1
390.9
6.8
917.5
632.7
1,104.2
278.4
90.4
56.9
4.8
1,104.2
278.4
90.4
56.9
4.8
1,136.0
254.6
98.4
58.1
4.2
0.17%
0.04%
0.45%
0.07%
0.19%
0.07%
0.13%
0.01%
—%
0.11%
0.11%
0.17%
—%
0.01%
0.02%
—%
0.06%
0.06%
0.03%
0.08%
0.03%
0.02%
0.14%
—%
0.32%
0.22%
0.40%
0.09%
0.03%
0.02%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Party By Design Inc.
^Clark Realty LLC
^Inglis Food Mart Inc.
^Clinton Food Market LLC
^Li Family Spokane LLC
^Tarleton & Family Landscaping, LLC
^Alaska Motor Home Inc
^Nails By Mercede LLC
^Fox Valley Rentals & Investments, LLC
^Town & Country Transportation Co. and Popco, LLC.
^Rajbai Maa Inc. dba Nara Lounge
^Morgan Lynn Kerstetter dba Catherine School of
Dance
^Health & Performance Center, LLC
^Foxtail, LLC and Tottly New Services Corp
^Desert Ribs, LLC and Famous Charlie, LLC and
Famous Freddie, LLC
^Echelon Planning Group, LLC dba Echelon Financial
Services and Echelon
^Crazy Beatz Productions LLC
^South Fulton Landscape & Nursery, Inc.
^Dreaming Big Learning Center Inc
^Big Coop's Trucking LLC
^Blue EagleTransport Inc, Greeneagle Transport Inc &
Golden Eagle Transport
^The Pink Alli, LLC dba The Alli
^Busby Outdoor LLC
^Busby Outdoor LLC
^Parlay Disributors LLC
^Lake County Tow LLC
Personal and Laundry Services
Real Estate
Food and Beverage Stores
Gasoline Stations
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Rental and Leasing Services
Personal and Laundry Services
Food Services and Drinking Places
Transit and Ground Passenger Transportation
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Performing Arts, Spectator Sports, and Related Industries
Ambulatory Health Care Services
Social Assistance
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 3.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/18/2042
9/15/2027
9/15/2027
9/15/2042
9/15/2042
9/15/2027
9/13/2027
9/13/2027
9/13/2027
9/12/2042
9/12/2042
9/11/2027
9/11/2027
9/8/2042
1,190.5
1,190.5
1,216.5
58.6
20.6
257.9
377.8
76.8
304.0
13.1
6.9
165.8
381.9
6.9
18.7
286.2
58.6
20.6
257.9
377.8
76.8
304.0
13.1
6.9
165.8
381.9
6.9
18.7
286.2
54.8
21.0
266.7
402.2
69.8
266.6
12.4
7.0
180.5
383.4
7.1
16.4
296.9
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/8/2042
1,233.2
1,233.2
1,206.1
Insurance Carriers and Related Activities
Motion Picture and Sound Recording Industries
Building Material and Garden Equipment and Supplies
Dealers
Social Assistance
Truck Transportation
Couriers and Messengers
Miscellaneous Store Retailers
Real Estate
Real Estate
Educational Services
Support Activities for Transportation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 3.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/8/2027
9/7/2027
9/7/2042
9/5/2042
9/1/2027
8/31/2027
8/30/2027
8/29/2042
8/29/2042
8/25/2027
8/25/2042
8/24/2027
8/24/2030
8/23/2042
8/22/2027
6.9
4.9
98.4
364.1
91.7
349.9
16.4
540.2
687.6
102.5
85.9
22.8
524.6
81.1
188.0
6.9
4.9
98.4
364.1
91.7
349.9
16.4
540.2
687.6
102.5
85.9
22.8
524.6
81.1
188.0
6.9
4.6
107.2
377.4
87.9
316.4
15.0
506.6
644.9
91.4
88.5
20.0
502.4
88.3
187.8
F-168
See accompanying notes to consolidated financial statements.
0.42%
0.02%
0.01%
0.09%
0.14%
0.02%
0.09%
—%
—%
0.06%
0.13%
—%
0.01%
0.10%
0.42%
—%
—%
0.04%
0.13%
0.03%
0.11%
0.01%
0.18%
0.22%
0.03%
0.03%
0.01%
0.17%
0.03%
0.07%
^InUSA Ventures Inc dba InUSA Services
^Genuine Ventures LLC and Seaweed Ventures LLC
^R & R Strength & Conditioning Corp dba Crossfit
Light House Point
^Delicias de Minas Restaurant, LLC
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^L&V Auto Sales, Inc.
^M.E. Interiors LLC
^Damiano Global Corp
^Tier1 Solutions LLC
^Tony Herring & Associates, Inc
^Chester's World Enterprise LLC
Motor Vehicle and Parts Dealers
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Furniture and Home Furnishings Stores
Amusement, Gambling, and Recreation Industries
Specialty Trade Contractors
^D'Amato & Sons Construction, Inc.
^Roundhay Partners LLC and Roundhay Farming LLC Crop Production
^L & J Corporate Services Inc
^Furniture Masters Limited Liability Company
^HMG Strategy LLC
^Bowl Mor LLC dba Bowl Mor Lanes
^Hope Health Care, LLC
^Royal Blue Investments, Inc. and Cleland Pharmacy
LLC
^Raffi's Inc dba Atlantic Auto Center
^Sharon G McMillen, MA Psychologist, Inc.
^HQTRONIC LLC
^Oberon IT, Inc.
^Gilles Peress Studio LLC
^Obok LLC
^Ocean Trans LLC
^Lil Tots' Learning Center LLC
^Matrix Z LLC
^Nova Solutions, Inc.
^Aitheras Aviation Group, LLC (OH) , Aitheras
Aviation Group, LLC (FL)
^Wildflour Bakery & Cafe, LLC
^Koep Companies dba Pipestone True value
^Florida Home and Kitchen LLC
^Rocks Auto Exchange LLC
^McCord Holdings, Inc. dba Fast Signs 176101
^Thrifty Market Inc dba Thrifty Foods
^The Country House Restaurant, LLC and Pelton Real
Estate, LLC
^Qycell Corporation
Professional, Scientific, and Technical Services
Repair and Maintenance
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Nursing and Residential Care Facilities
Health and Personal Care Stores
Repair and Maintenance
Ambulatory Health Care Services
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Food Manufacturing
Truck Transportation
Social Assistance
Nonmetallic Mineral Product Manufacturing
Furniture and Related Product Manufacturing
Air Transportation
Food Manufacturing
Building Material and Garden Equipment and Supplies
Dealers
Professional, Scientific, and Technical Services
Motor Vehicle and Parts Dealers
Administrative and Support Services
Food and Beverage Stores
Food Services and Drinking Places
Plastics and Rubber Products Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 3.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
8/21/2027
8/21/2027
8/21/2027
8/18/2027
8/17/2027
8/16/2027
8/11/2027
8/8/2042
8/4/2027
8/3/2027
8/2/2027
7/31/2027
7/31/2027
7/31/2042
7/31/2027
7/28/2027
7/27/2027
7/26/2027
7/25/2027
7/21/2027
7/21/2027
7/21/2042
7/19/2027
7/19/2027
7/18/2027
7/17/2027
7/14/2042
7/14/2027
7/13/2027
7/7/2027
7/6/2027
6/30/2042
6/30/2027
16.4
15.0
20.5
17.1
6.8
20.5
7.5
16.4
15.0
20.5
17.1
6.8
20.5
7.5
16.9
13.2
19.7
15.7
6.0
18.8
7.0
902.1
902.1
853.8
6.8
8.2
45.5
6.8
9.5
51.9
12.9
16.8
20.4
6.8
8.2
45.5
6.8
9.5
51.9
12.9
16.8
20.4
6.0
7.2
39.9
5.9
8.3
55.6
13.1
14.8
17.8
197.9
197.9
184.6
56.6
10.9
33.9
46.6
6.8
22.6
745.9
20.3
319.9
10.9
13.6
17.0
92.9
48.9
68.5
56.6
10.9
33.9
46.6
6.8
22.6
745.9
20.3
319.9
10.9
13.6
17.0
92.9
48.9
68.5
49.6
10.3
29.7
48.0
7.1
22.6
658.8
20.9
324.0
9.5
11.9
15.2
85.5
53.3
71.0
0.01%
—%
0.01%
0.01%
—%
0.01%
—%
0.30%
—%
—%
0.01%
—%
—%
0.02%
—%
0.01%
0.01%
0.06%
0.02%
—%
0.01%
0.02%
—%
0.01%
0.23%
0.01%
0.11%
—%
—%
0.01%
0.03%
0.02%
0.02%
F-169
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^J. T. O'Neill Company, L.L.C
^Hamilton & Associates Real Estate and Investments
Firm LLC
^New Chicago Wholesale Bakery Inc.
^BQRS, Inc. DBA Gresham Meineke Car Care Center
^JWH Designs, LLC
^Veola's Day Spa and Wellness Center Inc.
^J&M Civil Construction Services LLC
^Best Bees Company
^Stiegelbauer Associates Inc.
^Oakhill Farms, LLC
^Greensboro Plastic Surgical Associates, PA
^Malhame & Company Publishers & Importers Inc.
^Intellixion LLC
^Ocean Trans LLC and Dehal Trucking LLC
^Foxhop Fitness, LLC
^Akal Express Inc. dba Truck Trailer Service Stop
^Old Dominion Transportation Group, Inc.
^Citibin, Inc.
^Auxiliary Systems Inc.,Sharrick Company, LLC &
KMN, LLC
^WB Cleaners Inc. DBA $2.75 Cleaners
^Ains Holding Company, LLC
^Four Seasons Laser Center Inc.
^Northern Industries, LLC
^Rustic LLC
^Vella Construction Enterprises, Inc. dba Vella
Construction
^Birches Group, LLC
^Sanabi Investment ,,LLC dba Oscar's Moving and
Storage
^Scarlet Spartan Inc.dba FastSigns of Brighton
^Don G. Timpton DDS & Associates PA and Indsaad
Properties,LLC
^JAM Media Solutions, LLC
Real Estate
Term Loan
Prime plus 2.75%
Real Estate
Food Manufacturing
Repair and Maintenance
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Specialty Trade Contractors
Animal Production and Aquaculture
Specialty Trade Contractors
Specialty Trade Contractors
Ambulatory Health Care Services
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Truck Transportation
Amusement, Gambling, and Recreation Industries
Repair and Maintenance
Transit and Ground Passenger Transportation
Furniture and Related Product Manufacturing
Transportation Equipment Manufacturing
Personal and Laundry Services
Food Services and Drinking Places
Personal and Laundry Services
Miscellaneous Manufacturing
Personal and Laundry Services
Construction of Buildings
Professional, Scientific, and Technical Services
Truck Transportation
Administrative and Support Services
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
6/30/2027
6/30/2042
6/30/2027
6/30/2027
6/30/2027
6/30/2027
6/30/2027
6/29/2027
6/29/2027
6/29/2030
6/29/2042
6/29/2027
6/29/2027
6/29/2027
6/28/2027
6/28/2042
6/28/2027
6/27/2027
6/27/2030
6/27/2027
6/26/2027
6/26/2042
6/23/2042
6/23/2042
6/23/2027
6/22/2027
6/20/2027
6/19/2027
6/16/2042
6/15/2027
13.5
52.9
13.5
56.1
95.4
8.2
89.9
20.2
278.0
93.1
565.8
80.9
3.4
541.1
83.6
58.7
909.2
112.3
228.3
14.7
13.5
52.9
13.5
56.1
95.4
8.2
89.9
20.2
278.0
93.1
565.8
80.9
3.4
541.1
83.6
58.7
909.2
112.3
228.3
14.7
1,056.4
213.6
1,056.4
213.6
56.5
15.9
20.2
44.9
110.0
50.0
391.7
56.1
56.5
15.9
20.2
44.9
110.0
50.0
391.7
56.1
12.4
56.9
13.5
52.6
88.1
7.8
83.0
18.7
288.4
98.0
600.4
74.8
3.1
499.8
77.9
64.1
855.7
103.7
236.6
15.3
992.7
227.6
62.5
15.8
18.7
41.5
105.7
47.0
406.8
51.8
—%
0.02%
—%
0.02%
0.03%
—%
0.03%
0.01%
0.10%
0.03%
0.21%
0.03%
—%
0.17%
0.03%
0.02%
0.30%
0.04%
0.08%
0.01%
0.35%
0.08%
0.02%
0.01%
0.01%
0.01%
0.04%
0.02%
0.14%
0.02%
F-170
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Refoleen Inc dba Spice and Tea Exchange
^Earth First Recycling, LLC and 191 Clark Road, LLC Merchant Wholesalers, Durable Goods
^All Regional Recyclers of Wood LLC dba ARROW,
Superior Carting, LLC
^Tele Tax Express Inc., El Rancho Paiso, LLC and
Nestor Romero
^ESA 365 Corp and Lucathor Realty LLC
^Susan Hughes dba Aloha Junction B and B
^Hull's Kitchen, LLC and HK Too, LLC
^Yachting Solutions LLC
^Skydive California, LLC
^SCW, LLC dba Arthur Murray Dance Studio
^Speaker City, Inc.and Speaker Town, LLC dba Rollin
Thunder
^Impact Grounds Maintenance and Design, Inc.dba
Impact Landscaping and
^Funtime, LLC and Universal Entertainment Group
LLC
^Ricnet III, Inc. dba Edible Arrangements
^Haroon Baig,Inc.dba US1 Petrol
^Eagle Wood Works LLC
^Hurricane Group, Inc.
^Swantown Inn & Spa LLC
^Beyond Waves A Unique Salon LLC and Lori Ann
Carlson
^Jung Design Inc.
^Locavore LLC dba Paloma Restaurant
^Abdul Naushad MD PC dba Advanced Pain Centers
^Innovim, LLC
^Gill Express Inc. and Gill Express 2 LLC
^Prestige Construction of Florida, LLC
^GEM2K, LLC dba Precision Precast Group
Waste Management and Remediation Services
Term Loan
Prime plus 2.75%
6/15/2042
304.0
304.0
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Accommodation
Food Services and Drinking Places
Motor Vehicle and Parts Dealers
Food and Beverage Stores
Educational Services
Educational Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Administrative and Support Services
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable Goods
Food and Beverage Stores
Gasoline Stations
Merchant Wholesalers, Nondurable Goods
Repair and Maintenance
Furniture and Related Product Manufacturing
Other Information Services
Accommodation
Personal and Laundry Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Repair and Maintenance
Construction of Buildings
Miscellaneous Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-171
See accompanying notes to consolidated financial statements.
6/14/2042
6/14/2042
6/14/2042
6/14/2042
6/12/2027
6/8/2027
6/5/2027
6/2/2027
6/2/2042
6/1/2042
5/31/2042
5/31/2027
5/31/2027
5/31/2042
5/31/2027
5/26/2042
5/26/2042
5/26/2027
5/26/2027
5/26/2042
5/25/2027
5/25/2027
5/25/2027
5/25/2042
5/24/2027
5/23/2042
5/23/2042
5/19/2027
90.5
22.0
60.7
94.3
106.7
3.2
338.0
50.1
142.8
44.6
77.6
59.2
13.2
257.8
20.1
774.0
191.0
10.7
66.9
124.2
13.4
8.0
44.6
384.6
300.9
330.9
328.6
145.9
90.5
22.0
60.7
94.3
106.7
3.2
338.0
50.1
142.8
44.6
77.6
59.2
13.2
257.8
20.1
774.0
191.0
10.7
66.9
124.2
13.4
8.0
44.6
384.6
300.9
330.9
328.6
145.9
^Sage Oil LLC
^Chet Lemon Enterprises LLC dba All American Sports Amusement, Gambling, and Recreation Industries
^Mitchell Auto Repair, LLC and and C&M Mitchell,
LLC
321.8
98.5
23.7
67.2
104.1
105.2
2.9
347.6
51.9
152.4
48.2
85.0
55.4
12.4
285.3
18.7
856.5
206.9
10.3
61.8
136.4
12.5
7.4
42.3
418.5
277.9
350.4
344.2
138.9
0.11%
0.03%
0.01%
0.02%
0.04%
0.04%
—%
0.12%
0.02%
0.05%
0.02%
0.03%
0.02%
—%
0.10%
0.01%
0.30%
0.07%
—%
0.02%
0.05%
—%
—%
0.01%
0.15%
0.10%
0.12%
0.12%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Hayden Trucking LLC
^Tres K Deli,Grocery,Fruit and Meat Inc.
^Iron Men Home Repair, Inc. and Ironmen House
Lifting Inc.
Truck Transportation
Food and Beverage Stores
Specialty Trade Contractors
^Enfield Tractor & Equipment Co
Building Material and Garden Equipment and Supplies
Dealers
^PS Camping, Inc. dba Prospectors RV Resort
Accommodation
^Mr. B's Bicycles & Mopeds, Inc.
^Waterford Plumbing Co, Inc.
^Bay Car Wash LLC
^Computech Computers Inc.
^Arco Electrical Contractors Inc. dba Arco Construction
Group
^Batter & Company,LLC dba Batter Co. Dessert
Collection
^5 Stars Learning Center Inc
^Band Sawn Lumber,LLC and Nathan Ryan Adams
^Sanderson Distribution Inc.
^Keys Armored Express, Inc.
^SG Linke LLC
^B G F Bobby Q's Inc
^Estelle Finkel Educational Associates,LLC
^Labmates,LLC
^NHS, LLC
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Specialty Trade Contractors
Repair and Maintenance
Educational Services
Specialty Trade Contractors
Food and Beverage Stores
Social Assistance
Wood Product Manufacturing
Truck Transportation
Administrative and Support Services
Clothing and Clothing Accessories Stores
Food Services and Drinking Places
Educational Services
Miscellaneous Store Retailers
Building Material and Garden Equipment and Supplies
Dealers
^1872 Rosecrans, LLC dba Goodbar
Food Services and Drinking Places
^NHS, LLC
^Innovation Transport, LLC
^Arclay, LLC
^Benchmark Building, Inc.
^Cable Management LLC
Building Material and Garden Equipment and Supplies
Dealers
Truck Transportation
Nonmetallic Mineral Product Manufacturing
Construction of Buildings
Waste Management and Remediation Services
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Fine Arts Center of Easley, Inc. dba Midtown Music
^Zahmel Restaurant Suppliers Corp dba Cash & Carry;
Zahners Hardware
^Love and Glory Learning Center, Inc.
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Nondurable Goods
Social Assistance
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
5/19/2027
5/19/2027
5/19/2042
5/19/2027
5/19/2042
5/18/2042
5/18/2027
5/18/2042
5/17/2027
5/16/2027
5/16/2027
5/16/2042
5/15/2042
5/12/2027
5/12/2027
5/12/2027
5/11/2027
5/11/2027
5/10/2027
5/9/2027
5/9/2027
5/9/2042
5/9/2027
5/5/2030
5/5/2027
5/3/2027
5/2/2042
4/28/2027
4/28/2042
F-172
See accompanying notes to consolidated financial statements.
210.1
7.4
568.9
264.6
253.7
143.3
44.6
117.9
44.6
320.8
47.9
60.4
111.1
9.4
35.7
74.2
6.7
107.8
89.2
78.9
57.0
21.4
69.5
137.1
20.1
51.1
114.0
79.6
76.1
210.1
7.4
568.9
264.6
253.7
143.3
44.6
117.9
44.6
320.8
47.9
60.4
111.1
9.4
35.7
74.2
6.7
107.8
89.2
78.9
57.0
21.4
69.5
137.1
20.1
51.1
114.0
79.6
76.1
205.6
7.2
611.3
264.9
279.9
153.4
41.7
126.9
41.2
311.4
45.0
64.7
117.3
8.7
34.0
77.0
6.8
99.6
89.1
75.3
52.9
21.8
69.4
134.3
18.5
50.5
126.1
74.2
80.9
0.07%
—%
0.21%
0.09%
0.10%
0.05%
0.01%
0.04%
0.01%
0.11%
0.02%
0.02%
0.04%
—%
0.01%
0.03%
—%
0.03%
0.03%
0.03%
0.02%
0.01%
0.02%
0.05%
0.01%
0.02%
0.04%
0.03%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Rental and Leasing Services
Term Loan
Prime plus 2.75%
^Georgia Productions Services LLC
^JMA Inc. dba Primecut and Mezzo; Primecut at
Marquee
^Sneads Ferry Foods, Inc. dba DQ Grill & Chill
^Asheville's Fun Depot, LLC
^Resident Research, LLC
^Getting Even LLC dba The Zoo Health Club
^Ralph's Hair Salon, Inc.
^M.E. Interiors LLC
^Condron Brothers LLC DBA Luv 2 Play
^Bloomer Machine & Fab, Inc and Dale Stertz
Properties
^Carpeteria (Markarian) Co.
^Butternuts Beer and Ale LLC
^Citizens Lanes, LLC
^Shelter Harbor Inn, Inc.
^The Altitude Group, LLC and Core Home Security,
LLC
^MIT LLC
^Bear Trail Lodge LLC
^Landmark Ventures USA, Inc.
^Golden Hen Inc. dba Cafe
^Applied Integrated Technologies, Inc.
^Signature Rooms, Inc dba Gallery Furniture
^KWG Industries LLC dba Peterson & Marsh Metal
Industries
^Sea Smoke Barbeque, Corp and Danwen LLC
^Schafer Fisheries Inc.
^Discount Price, LLC dba Robert's Market
Food Services and Drinking Places
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Other Information Services
Amusement, Gambling, and Recreation Industries
Personal and Laundry Services
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Fabricated Metal Product Manufacturing
Furniture and Home Furnishings Stores
Beverage and Tobacco Product Manufacturing
Amusement, Gambling, and Recreation Industries
Accommodation
Specialty Trade Contractors
Publishing Industries (except Internet)
Amusement, Gambling, and Recreation Industries
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Furniture and Home Furnishings Stores
Fabricated Metal Product Manufacturing
Food Services and Drinking Places
Food Manufacturing
Gasoline Stations
Ambulatory Health Care Services
^Douglas K. Soderblom . dba Loma Linda Optometry
^Gauri Hospitality Group LLC dba Microtel Inns &
Suites by Wyndham
^First Sail Group Inc. and Omen Board Industires LLC Nonstore Retailers
^H and H Hotshot Services, Inc. dba AA Hotshot &
Logistics
Accommodation
Couriers and Messengers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
F-173
See accompanying notes to consolidated financial statements.
4/28/2027
4/27/2042
4/27/2042
4/26/2027
4/24/2027
4/21/2027
4/21/2042
4/20/2027
4/19/2027
4/13/2042
4/13/2027
4/12/2027
3/31/2042
3/31/2042
3/31/2027
3/31/2042
3/31/2042
3/31/2027
3/31/2027
3/31/2027
3/30/2042
3/30/2027
3/30/2042
3/30/2042
3/29/2042
3/29/2027
3/29/2042
3/29/2027
3/29/2030
80.8
216.8
611.4
77.4
78.0
6.6
48.8
123.2
105.8
200.4
117.4
65.3
608.5
202.6
43.4
85.4
539.5
165.0
57.0
110.1
484.1
26.4
230.9
242.4
201.4
88.0
80.8
216.8
611.4
77.4
78.0
6.6
48.8
123.2
105.8
200.4
117.4
65.3
608.5
202.6
43.4
85.4
539.5
165.0
57.0
110.1
484.1
26.4
230.9
242.4
201.4
88.0
78.3
239.9
648.4
80.3
72.1
6.3
52.7
113.8
101.5
218.5
120.8
67.7
672.7
224.0
40.0
94.5
592.7
152.2
53.1
101.5
533.5
26.9
247.9
268.0
217.7
84.3
1,031.5
1,031.5
1,136.2
17.6
89.6
17.6
89.6
17.1
84.1
0.03%
0.08%
0.23%
0.03%
0.03%
—%
0.02%
0.04%
0.04%
0.08%
0.04%
0.02%
0.23%
0.08%
0.01%
0.03%
0.21%
0.05%
0.02%
0.04%
0.19%
0.01%
0.09%
0.09%
0.08%
0.03%
0.40%
0.01%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^New England Country Day School, Inc. and Thomas
D. Walker
^American Pharmaceutical Innovation Company, LLC Chemical Manufacturing
^Pecos Entertainment LLC dba State Theater and Pecos
Inn LLC
Social Assistance
^Heil & Hornik LLC dba Elysium Tennis
^Robert Dixon PA dba Law Offices of Robert Dixon
^Ericon Inc. dba Quik Pik
Motion Picture and Sound Recording Industries
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Gasoline Stations
Amusement, Gambling, and Recreation Industries
^Executive Fitness & Nutrition Inc.
^Denton Bio Fuels LLC and American Bio Source LLC Waste Management and Remediation Services
^Color Graphic Press, Inc.
^JBK Truck Trailer and Bus Inc.
^Baton Rouge Cargo Services Inc. and 6507 Westport,
LLC
^Vehicle Safety Supply LLC
^J Sivilis LLC dba Pet Wants
^Texcor, Inc.dba Texas Corral,Texas Coral Restaurants
II, Inc.
^The Purple Cow House of Pancake Inc
^Reservoir International LLC
^1MTX LLC and Sunrise Transportation and Logistics,
LLC and Mustafa M
^Dwayne Bernard Tate
^Elegant Occasions, LLC dba E Productions
^E & P Holdings 1 LLC and Evans & Paul Unlimited
Corp. and Evans & Paul
^Anthony LLC dba Star of Woodward Market
^Allegro Assisted Living Of Texas
^Robbie E. Bakery and Cafe LLC
^Podium Auto Sales Inc and RRS Property, LLC
^Weeping Willow Kennels, Inc and Aileen N Black
^SSI Refrigerated Express Inc. and Robert M Stallone
dba SSI Express
Printing and Related Support Activities
Repair and Maintenance
Truck Transportation
Motor Vehicle and Parts Dealers
Personal and Laundry Services
Food Services and Drinking Places
Food Services and Drinking Places
Educational Services
Truck Transportation
Truck Transportation
Personal and Laundry Services
Nonmetallic Mineral Product Manufacturing
Food and Beverage Stores
Nursing and Residential Care Facilities
Food and Beverage Stores
Motor Vehicle and Parts Dealers
Personal and Laundry Services
^Getting Even LLC dba The Zoo Health Club
^Total Document Solutions Inc and,TDS Services, LLC Merchant Wholesalers, Durable Goods
Truck Transportation
Amusement, Gambling, and Recreation Industries
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
3/28/2042
3/28/2027
3/27/2042
3/27/2042
3/24/2042
3/24/2027
3/23/2027
3/23/2027
3/23/2027
3/23/2042
3/22/2042
3/21/2027
3/17/2027
3/16/2027
3/16/2042
3/16/2027
3/13/2027
3/10/2027
3/10/2042
3/9/2027
3/9/2042
3/6/2027
3/3/2027
3/3/2042
2/28/2042
2/28/2027
2/28/2027
2/27/2030
362.6
26.4
400.7
907.1
416.2
55.0
18.0
52.1
105.6
86.6
628.0
19.8
10.8
264.0
156.9
87.5
603.3
9.2
575.3
109.9
112.5
84.5
56.4
88.6
136.6
205.8
84.1
285.1
362.6
26.4
400.7
907.1
416.2
55.0
18.0
52.1
105.6
86.6
628.0
19.8
10.8
264.0
156.9
87.5
603.3
9.2
575.3
109.9
112.5
84.5
56.4
88.6
136.6
205.8
84.1
285.1
388.6
24.4
443.0
968.8
458.8
55.4
18.4
50.3
109.4
92.5
683.9
18.3
10.2
273.5
173.4
85.6
556.4
8.9
616.6
103.2
124.3
87.5
52.0
94.5
147.8
189.8
80.0
279.5
0.14%
0.01%
0.15%
0.34%
0.16%
0.02%
0.01%
0.02%
0.04%
0.03%
0.24%
0.01%
—%
0.10%
0.06%
0.03%
0.19%
—%
0.21%
0.04%
0.04%
0.03%
0.02%
0.03%
0.05%
0.07%
0.03%
0.10%
F-174
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^McNally Enterprises Inc.
^Teracore Inc.
^B & J Bicycle Shop Inc.
^3W Enterprises LLC
^TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant
^Victorian Restaurant and Tavern, LLC
^DER Services, LLC dba A.K.A. Sports
^Bike Slug, LLC, Bike Slug Holdings Inc. and Seven
Rivers Group, LLC
^Ameritube, LLC and Ravone Properties, LLC
^R&S Barnes Enterprises, Inc. dba Massage Envy Spa
^Baton Rouge Cargo Services Inc. and 2808 Court
Street, LLC
^Sushiya Inc.
^Maximo Canot dba Wash and Dry Laundrymat
^Marvic Enterprises Inc dba Jordan's Liquor
^Harrison Logging Company LLC
^8 Minute Oil Change Auto Repair & Tire Center and
Jumir L.L.C.
^DBMS Consulting, Inc.
^Brandco, LLC
^Chidlren's House Learning, Inc and Tarps Investment
Group
^Fave Realty Inc.
^Return to Excellence Inc
^House of Bread & Coffee Corp dba Casa Do Pao
^ZMKNY Tires Inc dba Houston International Tires
^SRC Publishing LLC
^Fox Valley Rentals & Investments LLC and Brian M
Tomaszewski
^Rhone Wolf Vineyard LLC, Goldline Brands Inc. and
Myka Cellars, Inc.
^Jolibe LLC and Jolibe Atelier LLC
Administrative and Support Services
Professional, Scientific, and Technical Services
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Textile Product Mills
Food Services and Drinking Places
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Term Loan
Prime plus 2.75%
Repair and Maintenance
Primary Metal Manufacturing
Personal and Laundry Services
Truck Transportation
Food Services and Drinking Places
Personal and Laundry Services
Food and Beverage Stores
Forestry and Logging
Repair and Maintenance
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Social Assistance
Real Estate
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Motor Vehicle and Parts Dealers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Term Loan
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Beverage and Tobacco Product Manufacturing
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
F-175
See accompanying notes to consolidated financial statements.
2/27/2027
2/27/2027
2/24/2027
2/24/2042
2/24/2027
2/22/2042
2/17/2042
2/17/2027
2/14/2042
2/10/2027
2/10/2042
2/10/2027
2/10/2042
2/10/2042
2/9/2027
2/7/2042
2/1/2042
1/31/2027
1/31/2042
1/30/2042
1/27/2027
1/27/2042
1/27/2042
1/27/2027
1/20/2042
1/19/2030
1/18/2027
56.8
143.0
8.4
63.8
93.9
104.8
39.1
17.0
180.7
81.9
241.3
16.4
134.3
213.6
92.8
320.7
180.4
37.9
313.3
53.1
15.6
169.9
104.9
19.5
41.4
232.5
9.1
56.8
143.0
8.4
63.8
93.9
104.8
39.1
17.0
180.7
81.9
241.3
16.4
134.3
213.6
92.8
320.7
180.4
37.9
313.3
53.1
15.6
169.9
104.9
19.5
41.4
232.5
9.1
54.0
131.9
8.7
69.7
92.2
110.7
43.2
15.7
199.8
76.2
262.9
15.5
146.5
231.6
89.3
339.0
190.8
35.0
335.5
57.3
16.2
176.2
116.0
18.0
44.1
228.6
8.6
0.02%
0.05%
—%
0.02%
0.03%
0.04%
0.02%
0.01%
0.07%
0.03%
0.09%
0.01%
0.05%
0.08%
0.03%
0.12%
0.07%
0.01%
0.12%
0.02%
0.01%
0.06%
0.04%
0.01%
0.02%
0.08%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Eickmann Management Group LLC dba Jimmy Johns
of Dundee
^Fullbro Trust dba Menemsha Blues
^Ramjay Inc.
^Echelon Enterprises, Inc
Food Services and Drinking Places
Miscellaneous Store Retailers
Transit and Ground Passenger Transportation
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
^Fort Smith Wings Inc. dba Wing Stop
^Sand Hill Associates, Ltd. dba Charlie O's Tavern on
the Point
Food Services and Drinking Places
Food Services and Drinking Places
^Joshua L. Baker
^Jacliff Investments Inc. dba International health
Technologies
^Metropolitan Solutions Group Inc.
^Means Enterprises LLC dba FastFrame Frisco
^Soon Im. Chin dba Stan C-Store
^Sempco, Inc.
^New Chicago Wholesale Bakery, Inc.
^Ericon, Inc. dba Quik Pik
^White Hawk Inc.
^Elita 7, LLC
^Allied Welding Inc.
^Techni-Pro Institute LLC
^Trison Enterprises Inc.dba Lee's Automotive
^D and E Hardware Co. and D and E Pump Sales and
Service
^HMG Strategy, LLC
^Cardinal Homes Inc,.Alouette Holdings Inc.,Bret
Berneche
^AGG Management Team LLC dba Chevron
^Cardinal Homes Inc. and Bret A Berneche
^Success Advertising Inc.
^Wayfarer Bicycle LLC
^Roast Beef Levittown LLC dba Arby's
Insurance Carriers and Related Activities
Publishing Industries (except Internet)
Professional, Scientific, and Technical Services
Furniture and Home Furnishings Stores
Gasoline Stations
Miscellaneous Manufacturing
Food Manufacturing
Gasoline Stations
Truck Transportation
Nursing and Residential Care Facilities
Fabricated Metal Product Manufacturing
Educational Services
Repair and Maintenance
Building Material and Garden Equipment and Supplies
Dealers
Professional, Scientific, and Technical Services
Wood Product Manufacturing
Gasoline Stations
Wood Product Manufacturing
Professional, Scientific, and Technical Services
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Food Services and Drinking Places
Gasoline Stations
^Queen Express LLC
^Mack Team Enterprises Inc.dba The UPS Store #6815 Couriers and Messengers
^Myndshft Technologies LLC
^Recycling Revolution, LLC
Professional, Scientific, and Technical Services
Merchant Wholesalers, Durable Goods
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
1/17/2027
1/13/2027
1/13/2027
1/10/2027
12/28/2026
12/27/2041
12/23/2026
12/23/2026
12/19/2041
12/16/2026
12/15/2041
12/15/2041
12/15/2041
12/15/2041
12/15/2026
12/15/2041
12/15/2041
12/15/2026
12/14/2041
12/14/2041
12/14/2026
12/14/2026
12/14/2041
12/14/2041
12/13/2041
12/13/2041
12/13/2026
12/13/2041
12/9/2026
12/9/2026
12/9/2041
86.4
19.5
389.8
43.4
16.8
413.0
13.5
107.5
267.1
19.4
206.4
40.8
440.6
323.2
944.4
692.2
729.8
163.7
395.9
513.5
43.0
917.0
279.3
117.8
453.2
89.9
280.5
182.1
17.5
666.6
89.6
86.4
19.5
389.8
43.4
16.8
413.0
13.5
107.5
267.1
19.4
206.4
40.8
440.6
323.2
944.4
692.2
729.8
163.7
395.9
513.5
43.0
917.0
279.3
117.8
453.2
89.9
280.5
182.1
17.5
666.6
89.6
88.2
20.2
375.4
44.9
16.0
438.0
12.5
99.0
278.2
18.0
225.9
45.1
467.2
344.9
869.7
749.9
771.5
154.2
426.4
547.0
39.6
948.6
308.5
129.9
496.5
94.4
290.2
199.7
16.8
633.9
95.4
0.03%
0.01%
0.13%
0.02%
0.01%
0.15%
—%
0.03%
0.10%
0.01%
0.08%
0.02%
0.16%
0.12%
0.30%
0.26%
0.27%
0.05%
0.15%
0.19%
0.01%
0.33%
0.11%
0.05%
0.17%
0.03%
0.10%
0.07%
0.01%
0.22%
0.03%
F-176
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Imagine By Carleen Inc.
^New Life Hospital LLC
^Hanson's Greeks LLC
^Lan Doctors, Inc.
^Yachting Solutions LLC
^The Lake Shore Hospitality Inc dba Dowagiac
Baymont Inn & Suites
^Lilo Holdings LLC
^Noso Development LLC
^Ericon, Inc.
^Sharaz Shah DBA Thomas Jewelers
^Imaginarium Foods LLC,
^RD Management, LLC
^Pebble Wood Lane, LLC and Good Sam's Assisted
Living Resiidence, LLC
^Studio Find It Georgia, Inc.
^B4 Fitness LLC dba The Zoo Health Club
^Quick Ship, LLC
^Access Staffing, LLC
^Usman Jalil, LLC dba Food Mart
^WPN Recycling Company LLC
^Hafa Adai Signs and Graphics LLC dba Fastsigns of
Auburn -#281901
^CRK Mens, LLC dba Spiff for Men
^Merchant Coterie, Inc.
^Broms Asset Management LLC
^6E Technologies LLC
^JBK Truck Trailer and Bus Inc.
^Bouquet Restaurant LLC
^Skaggs RV Outlet LLC
^Catherine Christine Morin dba Purr-Fect Pets
^Stratmar Systems Inc dba Stratmar Retail Services
^Hoosier Health Plus, LLC
Personal and Laundry Services
Hospitals
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Motor Vehicle and Parts Dealers
Accommodation
Food Services and Drinking Places
Construction of Buildings
Gasoline Stations
Clothing and Clothing Accessories Stores
Food Services and Drinking Places
Food Services and Drinking Places
Nursing and Residential Care Facilities
Amusement, Gambling, and Recreation Industries
Amusement, Gambling, and Recreation Industries
Couriers and Messengers
Administrative and Support Services
Gasoline Stations
Merchant Wholesalers, Durable Goods
Administrative and Support Services
Personal and Laundry Services
Merchant Wholesalers, Nondurable Goods
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Professional, Scientific, and Technical Services
Repair and Maintenance
Food Services and Drinking Places
Motor Vehicle and Parts Dealers
Personal and Laundry Services
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/8/2041
12/8/2041
12/8/2026
12/7/2026
12/7/2029
12/5/2041
12/5/2026
12/1/2026
12/1/2041
11/30/2026
2/28/2042
11/30/2026
11/30/2041
11/30/2026
11/30/2026
11/30/2026
11/29/2026
11/29/2041
11/23/2026
11/23/2026
11/23/2026
11/23/2026
11/22/2026
11/22/2026
11/22/2041
11/22/2041
11/21/2026
11/17/2026
11/16/2026
11/15/2026
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Prime plus 2.75%
11/10/2026
F-177
See accompanying notes to consolidated financial statements.
51.0
51.0
54.6
1,184.9
1,184.9
1,308.9
9.7
212.0
64.5
343.4
13.7
64.5
706.5
6.9
364.4
182.4
65.5
6.4
19.2
9.0
959.9
226.3
19.2
51.2
91.2
107.0
107.3
144.6
403.0
121.2
85.3
16.0
58.4
106.8
172.8
9.7
212.0
64.5
343.4
13.7
64.5
706.5
6.9
364.4
182.4
65.5
6.4
19.2
9.0
959.9
226.3
19.2
51.2
91.2
107.0
107.3
144.6
403.0
121.2
85.3
16.0
58.4
106.8
172.8
10.0
216.0
64.5
375.1
13.2
59.4
756.5
6.4
393.9
169.6
72.3
6.0
18.3
8.3
884.0
237.0
19.9
47.6
85.3
98.5
98.8
141.2
431.5
130.4
88.3
14.7
60.4
105.9
176.6
0.02%
0.46%
—%
0.08%
0.02%
0.13%
—%
0.02%
0.26%
—%
0.14%
0.06%
0.03%
—%
0.01%
—%
0.31%
0.08%
0.01%
0.02%
0.03%
0.03%
0.03%
0.05%
0.15%
0.05%
0.03%
0.01%
0.02%
0.04%
0.06%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
^Panther Ironworks and Rigging Solutions LLC
^Hackensack Steel Corporation and Luzerne Ironworks
Inc
^Rich's Food Stores LLC dba Hwy 55 of Wallace
^Dyer Properties, LLC and Bayview Pharmacy, Inc.
^Big Apple Entertainment Partners LLC
^MIK LLC dba Firehouse Subs
^Fine Line Interiors, Inc.
^131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr
Hero
^Veracruz Shabo, LLC, Waterfalls Quick Lube LLC
^Glocecol LLC
^Moolchan Enterprises LLC dba Staying Green
^Bloomquist Communications Inc.
^Middlesex Auto Sales Corp
^Woodstock Enterprises Corp dba True Scent Candle
Co
^FibAire Communications, LLC
Building Material and Garden Equipment and Supplies
Dealers
Specialty Trade Contractors
Specialty Trade Contractors
Food Services and Drinking Places
Health and Personal Care Stores
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Repair and Maintenance
Food Services and Drinking Places
Repair and Maintenance
Administrative and Support Services
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Motor Vehicle and Parts Dealers
Miscellaneous Manufacturing
Telecommunications
Fabricated Metal Product Manufacturing
^Elite Structures Inc
^Blakeslee Arpaia Chapman Inc and Chapman
Construction Services LLC
^Worldwide Estate, Inc. dba Washington Heights Manor Nursing and Residential Care Facilities
Heavy and Civil Engineering Construction
^Gold Wind Logistics LLC
^Speaker City, Inc. dba Rollin Thunder
^Maine Service Corp
^Justin Partlow
^Reliable Recovery Services LLC
^Ailky Corporation
^Wyspen Corporation dba Charlestown Ace
^MegaPhase, LLC
^Adelwerth Bus Corp.
^JJA Transportation Management Inc.
Truck Transportation
Electronics and Appliance Stores
Merchant Wholesalers, Durable Goods
Insurance Carriers and Related Activities
Support Activities for Transportation
Building Material and Garden Equipment and Supplies
Dealers
Building Material and Garden Equipment and Supplies
Dealers
Computer and Electronic Product Manufacturing
Transit and Ground Passenger Transportation
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-178
See accompanying notes to consolidated financial statements.
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/10/2041
11/10/2026
11/10/2026
11/9/2026
11/9/2041
11/9/2026
11/9/2026
11/4/2041
11/3/2041
11/1/2041
11/1/2026
10/31/2026
10/31/2026
10/31/2041
10/31/2041
10/27/2026
10/27/2029
10/24/2026
10/21/2041
10/20/2041
10/14/2041
10/13/2026
10/13/2026
10/7/2026
10/3/2026
10/3/2026
9/30/2026
9/30/2041
9/30/2026
438.5
129.1
206.5
37.3
233.0
149.3
174.0
71.2
122.6
117.6
64.0
14.0
50.8
121.2
86.1
91.6
203.9
359.7
217.6
171.1
121.1
158.6
16.5
95.2
211.6
30.5
125.7
234.7
44.0
438.5
129.1
206.5
37.3
233.0
149.3
174.0
71.2
122.6
117.6
64.0
14.0
50.8
121.2
86.1
91.6
203.9
359.7
217.6
171.1
121.1
158.6
16.5
95.2
211.6
30.5
125.7
234.7
44.0
475.9
125.4
213.6
36.7
247.0
137.5
161.8
78.6
133.1
127.4
66.2
14.0
46.8
131.6
90.4
89.0
208.6
372.1
240.4
189.0
131.1
157.7
15.2
92.0
198.8
28.1
126.9
249.2
40.4
0.17%
0.04%
0.07%
0.01%
0.09%
0.05%
0.06%
0.03%
0.05%
0.04%
0.02%
—%
0.02%
0.05%
0.03%
0.03%
0.07%
0.13%
0.08%
0.07%
0.05%
0.05%
0.01%
0.03%
0.07%
0.01%
0.04%
0.09%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Seaway LLC and Reklaw LLC dba Allure Lounge
^Adelwerth Bus Corporation, Transportation Leasing
Corp.
^Thunderdome Racing Inc.
^Graphics,Type and Color Enterprises Inc dba
Clubflyers.com and GTC Med
^CD Game Exchange Inc.
^CNC Precision Machine, Inc.
^Beadon Inc
^Reynolds Fence & Guardrail Inc.
^Kyle M Walker DDS, PC
^Luna Nueva LLC dba Bio Builders
^Luv 2 Play Nor Cal, LLC dba Luv 2 Play
^Sarah S Olelewe MD Inc
^PeopleBest Inc.
^TPFC,LLC dbaThe Picture Frame Company
^Ridge Road Equestrian LLC dba Ricochet Ridge
Ranch
^Mr. Mulch, Inc
^B4 Fitness LLC dba The Zoo Health Club
^Cuppiecakes LLC
^Wrecking Crew Media LLC
^Benoit's Towing and Recovery LLC
^Consulting Solutions Inc. and Mark Luciani
^Brittany Burns LLC dba Dreams Come True
^Eyncon LLC
^The Merrin Group LLC
^Rich's Food Stores LLC dba Hwy 55 of Wallace
^Atlantic Alarm Systems and Services LLC
^Metropet Dog Center, Inc
^Marquis Cattle Company
^Bingham Enterprises, Inc and Full Belli Deli and
Sausage Company
^SRA Mechanicial Inc
^Sandia Enterprises Inc dba Massage Envy Spa
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Transit and Ground Passenger Transportation
Amusement, Gambling, and Recreation Industries
Printing and Related Support Activities
Merchant Wholesalers, Durable Goods
Fabricated Metal Product Manufacturing
Food and Beverage Stores
Heavy and Civil Engineering Construction
Ambulatory Health Care Services
Specialty Trade Contractors
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Administrative and Support Services
Miscellaneous Store Retailers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Support Activities for Agriculture and Forestry
Term Loan
Prime plus 2.75%
Building Material and Garden Equipment and Supplies
Dealers
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Performing Arts, Spectator Sports, and Related Industries
Support Activities for Transportation
Professional, Scientific, and Technical Services
Personal and Laundry Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Food Services and Drinking Places
Administrative and Support Services
Personal and Laundry Services
Animal Production and Aquaculture
Food Services and Drinking Places
Specialty Trade Contractors
Personal and Laundry Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/30/2041
9/30/2029
9/29/2026
9/28/2041
9/28/2026
9/28/2041
9/28/2026
9/27/2026
9/27/2026
9/27/2026
9/27/2026
9/26/2041
9/26/2026
9/26/2041
9/26/2026
9/23/2041
9/23/2026
9/21/2041
9/21/2026
9/20/2026
9/20/2026
9/19/2026
9/16/2041
9/15/2026
9/14/2026
9/14/2026
9/13/2041
9/13/2026
9/12/2041
9/6/2041
9/6/2026
F-179
See accompanying notes to consolidated financial statements.
132.6
581.3
15.0
824.3
18.8
132.6
581.3
15.0
824.3
18.8
146.4
589.7
15.5
909.9
17.3
1,235.9
1,235.9
1,319.6
18.8
527.4
193.4
12.6
44.0
282.4
12.6
56.7
7.5
18.8
527.4
193.4
12.6
44.0
282.4
12.6
56.7
7.5
19.5
527.8
181.9
11.9
41.9
302.6
11.6
60.8
7.7
391.3
391.3
401.1
73.3
21.7
41.9
10.1
18.8
11.2
48.2
146.6
124.9
12.9
105.4
42.3
79.6
42.2
52.4
73.3
21.7
41.9
10.1
18.8
11.2
48.2
146.6
124.9
12.9
105.4
42.3
79.6
42.2
52.4
69.6
23.2
38.5
9.3
18.7
11.6
52.0
147.5
122.6
12.2
113.9
43.7
83.9
46.6
48.1
0.05%
0.21%
0.01%
0.32%
0.01%
0.46%
0.01%
0.18%
0.06%
—%
0.01%
0.11%
—%
0.02%
—%
0.14%
0.02%
0.01%
0.01%
—%
0.01%
—%
0.02%
0.05%
0.04%
—%
0.04%
0.02%
0.03%
0.02%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Animal Intrusion Prevention Systems Holding
Company, LLC dba Critter C
^Raem Corporation dba Dryclean Express
^Clark Realty LLC
^Warren Dale Warrington dba Custom Paint and Body
^TAGR Inc dba Miami Grill 137and John Nakis
^Albert Basse Associates Inc
^Avery Management Inc. dba Whetstone Upholstery
^TR Companies LLC dba Liberty Rental 4 U
^Tabadesa Associates Inc.
^Rosmel Pools Inc
^Sambella Holdings, LLC and Strike Zone
Entertainment Center LLC
^Luv 2 Play Temecula, LLC
^2 Cool Beans LLC dba Menchies's Frozen Yogurt
^Grayson O Company
^Paul Belanger dba Paul Belanger Landscaping
^Nicolette Reiser dba Comfort & Balance
^USA General Investment LLC dba Braniff Paint and
Body Shop
^The Hungry Rhino LLC
^303 Tower Drive LLC
^Little Tree Huggers Child Care LLC
^Big Apple Entertainment Partners LLC dba Ripley's
Believe It or Not
^676 Club LP dba The Green Door Tavern/The Drifter
^MacIver Corporation dba Division Camera
^Intrepid Trinity LLC
^Apple Tree NC Inc dba Williams Farm & Garden
Center
^EPEC Juice LLC dba Jamba Juice
^Pinco Pizza LLC dba Jet's Pizza
^Kidtastic LLC dba The Little Gym of Audubon
^JAG Unit 1, LLC dba Arooga's Grille House and
Sports Bar
Administrative and Support Services
Personal and Laundry Services
Real Estate
Repair and Maintenance
Food Services and Drinking Places
Printing and Related Support Activities
Repair and Maintenance
Rental and Leasing Services
Professional, Scientific, and Technical Services
Repair and Maintenance
Amusement, Gambling, and Recreation Industries
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Merchant Wholesalers, Durable Goods
Administrative and Support Services
Personal and Laundry Services
Repair and Maintenance
Real Estate
Repair and Maintenance
Social Assistance
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Rental and Leasing Services
Nonstore Retailers
Building Material and Garden Equipment and Supplies
Dealers
Food Services and Drinking Places
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
F-180
See accompanying notes to consolidated financial statements.
8/30/2026
8/29/2041
8/29/2041
8/26/2041
8/26/2026
8/25/2026
8/25/2026
8/25/2026
8/25/2026
8/25/2026
12/24/2041
8/15/2026
8/11/2026
8/10/2041
8/9/2026
7/29/2041
7/29/2026
7/29/2041
7/29/2041
7/29/2041
7/28/2026
7/28/2041
7/28/2026
7/28/2041
7/28/2041
7/27/2026
7/27/2026
7/27/2026
7/27/2026
104.2
104.2
69.8
73.3
97.5
88.7
51.3
8.8
74.8
18.7
18.7
492.0
49.8
68.5
601.7
12.5
64.2
18.5
73.3
384.7
134.6
247.1
644.0
69.8
73.3
97.5
88.7
51.3
8.8
74.8
18.7
18.7
492.0
49.8
68.5
601.7
12.5
64.2
18.5
73.3
384.7
134.6
247.1
644.0
97.7
76.6
80.9
105.8
83.2
53.0
8.1
68.8
17.2
17.5
540.6
45.8
63.0
662.3
11.5
70.4
17.5
78.4
419.2
148.5
227.2
706.0
1,028.7
1,028.7
1,021.7
60.1
326.8
68.8
60.8
46.7
103.0
60.1
326.8
68.8
60.8
46.7
103.0
65.0
347.1
63.3
62.5
43.0
94.7
0.03%
0.03%
0.03%
0.04%
0.03%
0.02%
—%
0.02%
0.01%
0.01%
0.19%
0.02%
0.02%
0.23%
—%
0.02%
0.01%
0.03%
0.15%
0.05%
0.08%
0.25%
0.36%
0.02%
0.12%
0.02%
0.02%
0.01%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^The Grasso Companies, LLC and Grasso Pavement
Maintenance, LLC
^My Sainath Inc dba Motel 6
Heavy and Civil Engineering Construction
Accommodation
^Robert G Larson State Farm Insurance
Insurance Carriers and Related Activities
^J and D Resources LLC dba Aqua Science
^Robert P Daniels dba Ginger and Friend's Peppermint
Village Gift Shop
^Franklin Firm LLC dba Luv 2 Play
^Jacob Rugs LLC dba Rugs Outlet
^Takeuchi Commercial Cleaning Services, LLC dba We
Clean San Diego
^RM Hawkins LLC dba Pure Water Tech West
^Dino Smiles Children's Cosmetic Dentistry
^Nevey's LLC dba Stark Food III
^P L H Pharmaco Inc dba Farmacia San Jose
^Martin Inventory Management LLC
^VMA Technologies LLC
^Desert Tacos LLC
^Corning Lumber Company Inc and Frank R Close and
Son Inc
^WGI, LLC dba Williams Grant Inn
^O.D.S. Inc dba Four Seasons Health & Racquet and
Step 'N' Motion, Inc
^KWG Industries, LLC dba Peterson & Marsh Metal
Industries
^MaidPro Marin dba MaidPro
^E & P Holdings 1 LLC and Evans & Paul LLC
^Edge Pest Control LLC
^All Printing Solutions, Inc. dba Pryntcomm
^Island Time Investments, LLC dba Swantown Inn Bed
& Breakfast
^JumboMarkets Inc dba Rines Jumbomarkets
^Visual Advantage LLC dba Signs Now Perryberg
^Long Island Comedy LLC dba Governors and New
York Comedy, LLC
^Shooting Sports Academy LLC and Jetaa LLC dba
Shooting Sports Academy
^SNS of Central Alabama, LLC dba Steak N Shake dba
Steak N Shake
Specialty Trade Contractors
Miscellaneous Store Retailers
Amusement, Gambling, and Recreation Industries
Furniture and Home Furnishings Stores
Administrative and Support Services
Nonstore Retailers
Ambulatory Health Care Services
Food and Beverage Stores
Health and Personal Care Stores
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Building Material and Garden Equipment and Supplies
Dealers
Accommodation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
Fabricated Metal Product Manufacturing
Administrative and Support Services
Nonmetallic Mineral Product Manufacturing
Administrative and Support Services
Printing and Related Support Activities
Accommodation
Food and Beverage Stores
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
F-181
See accompanying notes to consolidated financial statements.
7/26/2026
7/22/2041
7/22/2026
7/19/2026
7/18/2026
7/15/2041
7/13/2026
7/13/2026
7/7/2026
7/7/2026
6/30/2041
6/30/2026
6/30/2026
6/30/2026
6/30/2026
6/30/2029
6/29/2041
6/29/2026
6/29/2041
6/28/2026
6/28/2026
6/27/2026
6/27/2041
6/24/2041
6/24/2026
6/23/2041
6/23/2041
6/23/2041
6/21/2026
75.1
293.5
18.5
97.0
13.0
154.7
54.1
38.1
41.2
11.7
283.0
140.2
21.1
18.4
82.8
170.9
125.9
114.3
292.6
14.3
110.3
612.5
528.8
97.2
40.8
87.6
179.9
478.1
46.9
75.1
293.5
18.5
97.0
13.0
154.7
54.1
38.1
41.2
11.7
283.0
140.2
21.1
18.4
82.8
170.9
125.9
114.3
292.6
14.3
110.3
612.5
528.8
97.2
40.8
87.6
179.9
478.1
46.9
72.8
320.5
17.0
90.1
11.9
167.1
55.8
35.0
41.4
11.0
319.4
146.9
22.2
18.2
85.1
182.5
140.9
114.5
329.0
14.2
110.7
607.6
583.8
110.1
40.5
97.7
201.4
530.3
47.6
0.03%
0.11%
0.01%
0.03%
—%
0.06%
0.02%
0.01%
0.01%
—%
0.11%
0.05%
0.01%
0.01%
0.03%
0.06%
0.05%
0.04%
0.11%
—%
0.04%
0.21%
0.20%
0.04%
0.01%
0.03%
0.07%
0.18%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Evergreen Investment & Property Management LLC,
Universal Kidney Center
^Bagelicious, LLC
^NKJ Lusby Donuts LLC
^Winegirl Wines LLC
^Blue Eagle Transport Inc, Greeneagle Transport Inc
and Golden Eagle Transport
^Jai-Alexia Consulting, Inc.
^Pumpkin Patch Child Care of Southington, LLC and
Giuseppe Pugliares
^Strag Industries LLC dba Meineke Car Care Center
841
^Luv 2 Play AZ LLC
Ambulatory Health Care Services
Food Services and Drinking Places
Food and Beverage Stores
Beverage and Tobacco Product Manufacturing
Couriers and Messengers
Couriers and Messengers
Social Assistance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2%
Repair and Maintenance
Amusement, Gambling, and Recreation Industries
Food and Beverage Stores
^Refoleen Inc dba Spice and Tea Exchange
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden Food Services and Drinking Places
^ScimTech Industries Inc dba Archer Aerospace
^Larry H. Patterson and Rainbow Movers, Inc
^Solvit Inc and Solvit North Inc
^AP5 LLC dba Krauser's Food Store
^ATI Jet Inc
^Angelo Faia dba AVF Construction
^Premier Athletic Center of Ohio, Inc
Computer and Electronic Product Manufacturing
Truck Transportation
Specialty Trade Contractors
Food and Beverage Stores
Air Transportation
Construction of Buildings
Amusement, Gambling, and Recreation Industries
^Jack Frost Firewood Inc. and David Dubinsky
Building Material and Garden Equipment and Supplies
Dealers
^Mersada Holdings LLC
^Southwest Division Inc
^International Kitchen Supply LLC
^Groth Lumber Co. Inc. dba True Value
^Island Life Graphics Inc dba FASTSIGNS #576
^Powerspec Inc
^Horseshoe Barbecue, LLC
^Elderfriend Inc dba Granny Nannies dba GN Live
Scan
^National Air Cargo Holdings Inc
^Pro Auto Repair LLC
^J&A Laundromat Inc.
^Dedicated Incorporated
Nonstore Retailers
Heavy and Civil Engineering Construction
Merchant Wholesalers, Durable Goods
Building Material and Garden Equipment and Supplies
Dealers
Miscellaneous Manufacturing
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Social Assistance
Air Transportation
Repair and Maintenance
Personal and Laundry Services
Administrative and Support Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-182
See accompanying notes to consolidated financial statements.
6/20/2041
6/17/2026
6/16/2026
6/16/2026
6/16/2026
6/15/2026
6/15/2041
6/15/2026
6/10/2026
6/10/2026
6/8/2026
6/6/2026
6/6/2026
6/3/2026
6/2/2041
5/31/2026
5/27/2041
5/27/2026
5/26/2041
5/26/2026
5/26/2026
5/25/2026
5/25/2026
5/24/2026
5/24/2026
5/23/2029
5/20/2026
5/20/2026
5/20/2026
5/18/2026
5/18/2041
1,215.0
1,215.0
1,370.1
44.5
18.4
9.2
453.2
9.7
492.2
12.2
51.1
70.7
43.5
9.8
18.4
207.8
186.1
419.1
95.4
70.8
197.6
273.5
6.7
151.2
18.2
18.2
70.7
10.6
10.3
44.5
18.4
9.2
453.2
9.7
492.2
12.2
51.1
70.7
43.5
9.8
18.4
207.8
186.1
419.1
95.4
70.8
197.6
273.5
6.7
151.2
18.2
18.2
70.7
10.6
10.3
44.3
18.2
9.6
449.5
9.6
524.6
12.5
53.3
70.1
43.1
9.7
18.3
209.9
210.6
422.9
106.7
74.2
220.4
286.7
6.8
153.1
19.1
18.2
70.2
11.3
10.2
1,014.0
1,014.0
1,061.5
6.0
54.6
44.5
6.0
54.6
44.5
6.2
54.8
50.0
0.48%
0.02%
0.01%
—%
0.16%
—%
0.18%
—%
0.02%
0.02%
0.01%
—%
0.01%
0.07%
0.07%
0.15%
0.04%
0.03%
0.08%
0.10%
—%
0.05%
0.01%
0.01%
0.02%
—%
—%
0.37%
—%
0.02%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^HBA LLC dba Palmetto Twist-Vista
^Studio Find It Georgia Inc
^FJN Catering Inc
^Pumpkin Patch Inc and Christine Feliciano and
Antonio Feliciano
^Sabir Inc. dba Bear Diner
^Gator D'Lites LLC dba D'Lites Emporium
Repair and Maintenance
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Social Assistance
Food Services and Drinking Places
Food and Beverage Stores
Specialty Trade Contractors
^Keller, Fishback & Jackson LLP
^Warner Home Comfort, LLC dba Smith Piping
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Motor Vehicle and Parts Dealers
Amusement, Gambling, and Recreation Industries
Truck Transportation
Transportation Equipment Manufacturing
^Hard Exercise Works Winter Park LLC
^Alpha Omega Trucking LLC
^Euro Car Miami LLC
^May-Craft Fiberglass Products Inc
^Empowerschool LLC and Empower Autism Academy,
LLC
^La Nopalera Mexicano 2, Inc.
^Loriet LLC
^Shepherd Appraisal Services LLC dba Property
Damage Appraisers of Oklahoma
^Pecos Inn LLC dba Econo Lodge
^Costume World Inc
^Inner Beauty Salon and Suite LLC
^Green Country Filter Manufacturing LLC
^Accent Comfort Services, LLC
Social Assistance
Food Services and Drinking Places
Merchant Wholesalers, Nondurable Goods
Real Estate
Accommodation
Clothing and Clothing Accessories Stores
Personal and Laundry Services
Miscellaneous Manufacturing
Specialty Trade Contractors
Ambulatory Health Care Services
^Homecare Casa Rhoda 123 Inc
^Automotive Core Recycling, LLC and 828 Old Colony
Road, LLC
^McIntosh Trail Management Services Organization Inc Ambulatory Health Care Services
Merchant Wholesalers, Durable Goods
^AAA Mill Direct, Inc. dba Carpet Mill Outlets
^Jande Graphics LLC dba FastSigns #103201
^Miguel Fernando Borda, P.A. dba BGR Dental
^Sushiya Inc
Furniture and Home Furnishings Stores
Professional, Scientific, and Technical Services
Ambulatory Health Care Services
Food Services and Drinking Places
Personal and Laundry Services
^Sierra Foothill Cremation & Funeral Service, Inc.
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
5/18/2026
5/13/2026
5/13/2041
5/12/2041
5/11/2041
5/5/2026
4/29/2041
4/29/2026
4/29/2026
4/29/2026
4/29/2026
4/29/2041
4/29/2041
4/29/2041
4/29/2026
4/29/2026
4/28/2026
4/28/2041
4/28/2041
4/28/2041
4/27/2026
4/26/2026
4/26/2041
4/22/2041
4/22/2041
4/21/2026
4/21/2026
4/15/2026
4/12/2026
4/7/2026
4/6/2041
15.7
18.2
251.8
126.9
118.7
18.2
78.9
18.1
104.5
50.1
32.7
168.3
236.7
145.3
0.2
6.0
7.2
15.7
18.2
251.8
126.9
118.7
18.2
78.9
18.1
104.5
50.1
32.7
168.3
236.7
145.3
0.2
6.0
7.2
15.7
18.3
285.0
141.8
133.8
18.1
88.2
17.9
109.5
52.5
32.4
190.7
268.2
164.6
0.2
6.0
7.2
645.6
1,197.2
645.6
1,197.2
727.7
1,356.7
62.2
68.3
72.2
643.3
239.1
407.1
6.3
44.9
18.1
70.3
42.5
62.2
68.3
72.2
643.3
239.1
407.1
6.3
44.9
18.1
70.3
42.5
70.3
68.5
71.6
688.8
263.9
461.3
6.6
44.6
18.1
70.7
42.1
265.4
265.4
298.1
0.01%
0.01%
0.10%
0.05%
0.05%
0.01%
0.03%
0.01%
0.04%
0.02%
0.01%
0.07%
0.09%
0.06%
—%
—%
—%
0.25%
0.47%
0.02%
0.02%
0.02%
0.24%
0.09%
0.16%
—%
0.02%
0.01%
0.02%
0.01%
0.10%
F-183
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^KNS Early Learning Academy LLC
^Men of Steel Enterprises LLC and Vogelbacher
Properties LLC
^Vehicle Safety Supply LLC
^Dana A. Farley dba Independent Cabinets
^Gill Express Inc and Blue Speed LLC
^Christian Soderquist dba Soderquist Plumbing and
Heating LLC
^Duke's Cleaners Inc
^Cameo Carter, MD A Professional Corporation dba
The Garden Pediatric Group
^NOSO Development, LLC
^Wyldewood Cellars, Inc.
^Tom Sawyer Country Restaurant LLC and AM 3208
LLC
^Beale Street Blues Company-West Palm Beach, LLC
dba Lafayette’s-West Palm
^Gordon Rogers and Heidi Rogers dba Stone House
Motor Inn
^MTS Car Service LLC
^Barrocas Gym LLC dba Snap Fitness
^Lust for Life Footwear, LLC
^Vinmar Inc. dba Locanda Portofino
^Marathon Engineering Corporation
^PHCDC1 LLC dba Quarter + Glory and Public House
Collective, Corp.
^Revolution Physical Therapy LLC dba Apex Network
Physical Therapy
^RCB Enterprises, Inc.
^Excel RP Inc
^Flooring Liquidators Inc and Premier Flooring
Yonkers Inc and Flooring
^ActKnowledge, Inc.
^International Construction Inc
^Acton Hardware LLC and Mark Allgood & Jamie
Allgood
Social Assistance
Term Loan
Prime plus 2.75%
Fabricated Metal Product Manufacturing
Motor Vehicle and Parts Dealers
Furniture and Related Product Manufacturing
Repair and Maintenance
Specialty Trade Contractors
Personal and Laundry Services
Ambulatory Health Care Services
Construction of Buildings
Beverage and Tobacco Product Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
Accommodation
Transit and Ground Passenger Transportation
Amusement, Gambling, and Recreation Industries
Leather and Allied Product Manufacturing
Food Services and Drinking Places
Miscellaneous Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services
Administrative and Support Services
Machinery Manufacturing
Specialty Trade Contractors
Personal and Laundry Services
Heavy and Civil Engineering Construction
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Magnation Corporation and Misha Family Trust
^growth.period LLC and Potomac Recruiting LLC
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
4/6/2041
3/31/2041
3/31/2026
3/31/2041
3/31/2041
3/31/2041
3/31/2026
3/31/2026
3/30/2026
3/30/2041
3/30/2041
3/30/2026
3/30/2026
3/30/2026
3/29/2026
3/29/2026
3/29/2026
3/28/2041
3/28/2026
3/25/2026
3/25/2026
3/25/2026
3/24/2026
3/24/2026
3/24/2041
3/24/2041
3/22/2041
3/21/2026
48.8
375.7
17.9
64.4
494.5
54.2
37.4
59.6
149.1
960.1
246.9
74.6
18.1
8.3
15.5
48.8
375.7
17.9
64.4
494.5
54.2
37.4
59.6
149.1
960.1
246.9
74.6
18.1
8.3
15.5
54.4
412.3
17.7
72.9
552.6
61.3
38.2
59.1
147.7
1,060.0
278.4
74.6
19.0
8.3
15.9
298.2
298.2
295.3
64.6
43.0
39.8
18.1
44.7
99.4
39.7
99.4
47.8
478.2
96.9
28.6
64.6
43.0
39.8
18.1
44.7
99.4
39.7
99.4
47.8
478.2
96.9
28.6
64.0
48.3
40.2
18.1
44.3
100.8
41.5
104.0
53.3
529.5
109.7
28.4
0.02%
0.14%
0.01%
0.03%
0.19%
0.02%
0.01%
0.02%
0.05%
0.37%
0.10%
0.03%
0.01%
—%
0.01%
0.10%
0.02%
0.02%
0.01%
0.01%
0.02%
0.04%
0.01%
0.04%
0.02%
0.18%
0.04%
0.01%
F-184
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Precious Care LLC and Precious Care Management
LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/21/2026
444.9
444.9
441.7
^Media Capital Partners, Inc
^Kekoa Enterprises Inc dba Signarama Sandy
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
^ERT Group Inc and Curt's Tools Inspection Inc
^Brian T Rice dba BD Logging
^K Soles Corp dba Max Collections
^Evergreen Pallet LLC and Evergreen Recycle LLC
^LAN Doctors Inc
^R & D Enterprises Inc dba My Pool Man
^HEWZ, LLC dba Hard Exercise Works
^Mustafa Inc and Raouf Properties LLC
^Country Paint and Hardware Inc
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Professional, Scientific, and Technical Services
Repair and Maintenance
Support Activities for Mining
Forestry and Logging
Merchant Wholesalers, Nondurable Goods
Wood Product Manufacturing
Professional, Scientific, and Technical Services
Administrative and Support Services
Amusement, Gambling, and Recreation Industries
Food and Beverage Stores
Building Material and Garden Equipment and Supplies
Dealers
^ABCs & 123s Infant and Child Care Center LP
^Accuair Control Systems LLC dba Accuair Suspension Transportation Equipment Manufacturing
Social Assistance
^Magill Truck Line LLC and Jeff J. Ralls
^Dupre Capital LLC dba Fastsigns
^State Painting & Decorating Co., Inc.
^Step Up Academy of the Arts LLC
^Faith Summit Supply Inc dba Summit Supply and
Summit True Value
^Swerve Salon LLC
^J & W Hardwood Flooring Inc
^Labmates LLC and POV Holdings LLC
^Hueston and Company CPA LLC
^Almost Home Daycare LLC
^Miles of Smiles Inc
^Doxa Deo Inc dba Luv 2 Play
^Powerpits CS1, LLC dba Pita Pit
^Drug Detection Laboratories, Inc. and Minh Tran
^The River Beas, LLC dba Subway and Punam Singh
Truck Transportation
Miscellaneous Manufacturing
Specialty Trade Contractors
Educational Services
Building Material and Garden Equipment and Supplies
Dealers
Personal and Laundry Services
Specialty Trade Contractors
Miscellaneous Store Retailers
Professional, Scientific, and Technical Services
Social Assistance
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Ambulatory Health Care Services
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
3/21/2026
3/18/2026
3/18/2041
3/18/2041
3/17/2026
3/16/2026
3/16/2026
3/16/2026
3/15/2026
3/14/2026
3/14/2041
3/11/2026
3/11/2026
3/11/2026
3/11/2029
3/11/2026
3/10/2026
3/9/2026
3/9/2026
3/8/2026
3/7/2026
3/4/2041
3/4/2026
3/3/2026
3/2/2026
2/28/2026
2/28/2026
2/28/2026
2/28/2041
17.9
39.4
77.1
17.9
39.4
77.1
17.7
39.0
87.1
1,197.6
1,197.6
1,336.4
1.5
17.9
912.8
45.2
39.8
17.8
71.6
69.5
8.9
119.3
193.4
46.4
82.5
6.4
17.9
62.8
6.0
1.5
17.9
912.8
45.2
39.8
17.8
71.6
69.5
8.9
119.3
193.4
46.4
82.5
6.4
17.9
62.8
6.0
1.5
17.7
921.6
47.3
39.4
17.7
80.8
69.4
8.9
119.1
199.0
46.0
81.7
6.3
18.2
62.2
5.9
104.3
104.3
118.1
6.5
43.0
75.7
86.6
14.8
15.6
6.5
43.0
75.7
86.6
14.8
15.6
6.5
44.8
75.6
86.9
14.9
15.5
129.4
129.4
146.1
0.15%
0.01%
0.01%
0.03%
0.46%
—%
0.01%
0.32%
0.02%
0.01%
0.01%
0.03%
0.02%
—%
0.04%
0.07%
0.02%
0.03%
—%
0.01%
0.02%
—%
0.04%
—%
0.02%
0.03%
0.03%
0.01%
0.01%
0.05%
F-185
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Living Essentials HVAC Corp
^Consulting Solutions, Inc. and Mark Luciani
^Aaradhya LLC dba Market Square Laundry
^Blackstones Hairdressing LLC
^R & K Contracting Inc
^B for Blonde, LLC dba Blo Blow Dry Bar
^Jersey Shore Marina & Boat Sales, Inc.
^Gilmore Heights Dental Holdings, LTD and Chas Rob
LLC
^Ei3 Corporation
^Base USA, Inc.
^Zouk Ltd dba Palma
^SuzyQue's LLC dba SuzyQue's
^Wildflour Bakery & Cafe LLC
^Tammy Lavertue
^Gendron Funeral and Cremation Services, Inc.
Specialty Trade Contractors
Professional, Scientific, and Technical Services
Personal and Laundry Services
Personal and Laundry Services
Specialty Trade Contractors
Personal and Laundry Services
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Clothing and Clothing Accessories Stores
Food Services and Drinking Places
Food Services and Drinking Places
Social Assistance
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Personal and Laundry Services
Food Services and Drinking Places
^Dolarian Realty LLC and OV's Restaurant Inc
^Lemonberry Food Stores Inc dba Lemonberry Frozen
Yogurt
Food and Beverage Stores
Food Services and Drinking Places
^MCF Forte LLC
^Bright Dialysis LLC and Ft Pierce Kidney Care LLC Ambulatory Health Care Services
^Panditos LLC dba White Lotus Home
^V2 Tango LLC dba Palette 22
^800 on the Trax LLC and Matrix Z LLC
^Ridge Road Equestrian LLC dba Ricochet Ridge
Ranch Inc
^Joyce Outdoor Advertising Chicago LLC
^Premier Athletic Center of Ohio Inc. and Gates
Investments and Wade Gates
^Hattingh Incorporated dba Prosthetic Care Facility
^Jay Kevin Gremillion dba Dino Smiles Children's
Cosmetic Dentistry
^Trip Consultants U.S.A. Inc.
^Accent Tag and Label Inc
^Labmates LLC
Miscellaneous Manufacturing
Food Services and Drinking Places
Nonmetallic Mineral Product Manufacturing
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Printing and Related Support Activities
Miscellaneous Store Retailers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
2/28/2026
2/28/2026
2/23/2026
2/23/2026
2/18/2026
2/12/2026
2/12/2041
2/12/2029
2/12/2026
2/2/2026
1/29/2026
1/28/2026
1/28/2026
1/28/2026
1/11/2041
1/5/2041
12/29/2025
12/29/2025
12/28/2025
12/28/2025
12/23/2025
12/23/2040
12/23/2040
12/22/2040
12/22/2028
12/21/2025
12/18/2025
12/18/2025
12/18/2040
12/18/2040
11.8
8.8
63.0
41.3
12.5
49.5
596.7
265.4
257.6
39.4
17.6
17.6
48.8
8.8
105.8
64.5
87.1
14.5
967.3
12.3
193.5
229.7
97.3
286.6
744.8
13.9
58.0
135.4
629.4
154.2
11.8
8.8
63.0
41.3
12.5
49.5
596.7
265.4
257.6
39.4
17.6
17.6
48.8
8.8
105.8
64.5
87.1
14.5
967.3
12.3
193.5
229.7
97.3
286.6
744.8
13.9
58.0
135.4
629.4
154.2
11.8
9.2
62.4
41.0
13.1
49.0
675.4
274.9
269.5
41.3
18.4
18.4
51.1
9.1
119.7
73.1
87.3
14.4
957.5
12.2
193.6
256.8
109.0
319.8
793.0
14.1
57.9
133.9
704.6
174.4
—%
—%
0.02%
0.01%
—%
0.02%
0.23%
0.10%
0.09%
0.01%
0.01%
0.01%
0.02%
—%
0.04%
0.03%
0.03%
0.01%
0.33%
—%
0.07%
0.09%
0.04%
0.11%
0.28%
—%
0.02%
0.05%
0.25%
0.06%
F-186
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Abbondanza Market LLC dba Hampton Falls Village
Market
^Learning Skills LLC and Christopher Shrope
^Mustafa Inc dba Adiba Grocery
Food and Beverage Stores
Educational Services
Food and Beverage Stores
Ambulatory Health Care Services
^New York Home Health Care Equipment, LLC
^Moments to Remember USA LLC dba Retain Loyalty Professional, Scientific, and Technical Services
^Swalm Street LLC and New York Home Health Care
Equipment LLC
^JAG Unit 1, LLC
^Abitino's JFK LLC dba Abitino's
^Evans & Paul LLC and E&P Holdings I LLC
^Basista Family Limited Partnership and UPE, Inc.
^DC Enterprises Ltd. dba Lakeview True Value
^Alexandra Afentoulides dba Vi's Pizza Restaurant
^AGR Foodmart Inc dba Nashua Road Mobil
^Cares, Inc dba Dumpling Grounds Day Care Center
^Custom Exteriors, Inc.
^Sushiya, Inc.
^My Jewels, LLC dba The UPS Store #6712
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax
LLC
^Tariq, LLC dba 76 Food Mart
^Hurshell Leon Dutton dba High Jump Party Rentals
^Japp Business Inc dba Pick and Eat and Japp Drink
Corp.
^Delta Aggregate, LLC
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop
^State Painting and Decorating Co Inc
^DWeb Studio, Inc.
^Sambella Holdings, LLC and Strike Zone
Entertainment Center LLC
^Play and Learn Child Care and School Inc
^Ronny Ramirez RX Corp dba Naturxheal Family
Pharmacy
Ambulatory Health Care Services
Food Services and Drinking Places
Food Services and Drinking Places
Nonmetallic Mineral Product Manufacturing
Merchant Wholesalers, Durable Goods
Building Material and Garden Equipment and Supplies
Dealers
Food Services and Drinking Places
Gasoline Stations
Social Assistance
Specialty Trade Contractors
Food Services and Drinking Places
Administrative and Support Services
Repair and Maintenance
Gasoline Stations
Rental and Leasing Services
Food Services and Drinking Places
Mining (except Oil and Gas)
Food Services and Drinking Places
Specialty Trade Contractors
Educational Services
Amusement, Gambling, and Recreation Industries
Social Assistance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/18/2025
12/17/2025
12/17/2025
12/16/2025
12/16/2025
12/16/2040
12/16/2025
12/16/2022
12/15/2025
12/14/2040
12/14/2025
12/11/2040
12/11/2025
12/10/2025
12/9/2025
12/8/2025
12/7/2025
12/4/2040
12/2/2040
11/30/2025
11/30/2025
11/30/2025
11/30/2025
11/25/2025
11/25/2025
11/23/2040
11/23/2025
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
11/20/2025
F-187
See accompanying notes to consolidated financial statements.
51.9
8.4
80.7
758.9
58.0
363.0
193.5
81.6
105.1
325.1
17.4
28.1
17.4
5.8
77.4
84.2
27.4
477.8
356.0
13.6
95.9
83.9
95.8
55.4
8.6
738.3
8.5
69.3
51.9
8.4
80.7
758.9
58.0
363.0
193.5
81.6
105.1
325.1
17.4
28.1
17.4
5.8
77.4
84.2
27.4
477.8
356.0
13.6
95.9
83.9
95.8
55.4
8.6
738.3
8.5
69.3
52.0
8.3
84.3
789.8
59.5
408.8
191.2
80.8
105.1
363.4
18.0
31.8
18.0
6.1
77.6
84.5
27.1
536.6
400.0
14.3
96.7
87.7
95.5
54.8
8.5
832.8
8.9
69.0
0.02%
—%
0.03%
0.27%
0.02%
0.14%
0.07%
0.03%
0.04%
0.13%
0.01%
0.01%
0.01%
—%
0.03%
0.03%
0.01%
0.19%
0.14%
—%
0.03%
0.03%
0.03%
0.02%
—%
0.29%
—%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario
LLC
Food Services and Drinking Places
^S.B.B. Enterprises Inc dba Williamston Hardware
^Key Pix Productions Inc. dba Air Bud Entertainment
^E.S.F.P. LLC dba Volusia Van and Storage
^Green Life Lawnscapes LLC dba Green Life Lawn
Care
^JumboMarkets Inc dba Rines Jumbomarkets
^Bisson Transportation Inc dba I & R Associates and
Document Secutiry
^Top Cat Ready Mix, LLC, Ples Investments LLC, and
Pappy's Sand and Gravel
^Windsor Direct Distribution LLC
^Financial Network Recovery Inc
^ADMO Inc dba Mid States Equipment
^Recycling Consultants, Inc. and Prairie State Salvage
and Recycling Inc
^SCJEN Management Inc dba Bowl of Heaven
^Accent Homes Services LLC dba Benjamin Franklin
Plumbing of Kansas City
^Barub Realty LLC and Barub LLC dba Woodlawn
Cabinets
^R.H. Hummer Jr., Inc.
^Binky's Vapes LLC
^Greensward of Marco Inc.
^RIM Investments LLC and RIM Architects LLC
^The Grasso Companies LLC and Grasso Pavement
Maintenance LLC Veranda L
^Daniel W. Stark dba Mountain Valley Lodge and RV
Park
^Prestigious LifeCare for Seniors LLC
^Sandlot Ventures LLC and Sandbox Ventures LLC
^Yachting Solutions LLC
^St Lawrence Hotel Corp and Oheka Catering Inc dba
Quality Inn
^Hagerstown Muffler, Inc. and JMS Muffler, Inc
^Rutledge Enterprises Inc dba BLC Property
Management
Building Material and Garden Equipment and Supplies
Dealers
Performing Arts, Spectator Sports, and Related Industries
Truck Transportation
Administrative and Support Services
Food and Beverage Stores
Term Loan
Prime plus 2.75%
11/20/2040
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/19/2040
11/18/2040
11/11/2025
11/6/2025
11/4/2025
Truck Transportation
Term Loan
Prime plus 2.75%
10/30/2025
Specialty Trade Contractors
Merchant Wholesalers, Nondurable Goods
Administrative and Support Services
Plastics and Rubber Products Manufacturing
Merchant Wholesalers, Durable Goods
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
Furniture and Home Furnishings Stores
Truck Transportation
Miscellaneous Store Retailers
Administrative and Support Services
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
Accommodation
Ambulatory Health Care Services
Amusement, Gambling, and Recreation Industries
Motor Vehicle and Parts Dealers
Accommodation
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Administrative and Support Services
Term Loan
Prime plus 2.75%
10/28/2025
10/26/2025
10/26/2025
10/8/2025
9/30/2027
9/30/2025
9/30/2028
9/30/2040
9/30/2025
9/30/2025
9/28/2040
9/28/2040
9/28/2025
9/25/2040
9/25/2025
9/25/2040
9/25/2040
9/24/2040
9/24/2040
9/23/2040
F-188
See accompanying notes to consolidated financial statements.
232.4
102.8
597.3
68.2
105.6
234.7
17.1
538.5
10.8
30.4
17.1
487.7
54.1
55.1
135.0
292.1
16.9
82.6
376.7
387.2
12.7
7.4
418.9
908.7
590.0
311.5
58.5
232.4
102.8
597.3
68.2
105.6
234.7
17.1
538.5
10.8
30.4
17.1
487.7
54.1
55.1
135.0
292.1
16.9
82.6
376.7
387.2
12.7
7.4
418.9
908.7
590.0
311.5
58.5
255.2
113.0
675.5
68.1
109.8
244.7
17.6
540.3
10.7
30.0
17.0
501.5
53.4
58.1
152.5
302.3
16.7
92.1
419.3
403.7
14.4
7.5
464.0
1,006.0
659.8
351.9
65.5
0.09%
0.04%
0.24%
0.02%
0.04%
0.09%
0.01%
0.19%
—%
0.01%
0.01%
0.17%
0.02%
0.02%
0.05%
0.11%
0.01%
0.03%
0.15%
0.14%
0.01%
—%
0.16%
0.35%
0.23%
0.12%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^J3K LLC dba Ronan True Value Hardware
^Finish Strong Inc dba FASTSIGNS St Peters
^Nova Solutions Inc
^Pine Belt Wood Products LLC
^IIoka Inc dba New Cloud Networks
^Sound Manufacturing Inc
^Vanderhoof LLC dba Soxfords
^MiJoy Inc dba Imo's Pizza
^Naeem Khan LTD
^Import Car Connection Inc dba Car Connection
^FirstVitals Health and Wellness Inc
^Almost Home Daycare LLC
^Gardner's Wharf Holdings LLC and Gardner's Wharf
Seafood Inc
^Empower Autism Academy
^Higher Grounds Community Coffeehouse, LLC
^The Camera House Inc
^LAN Doctors Inc
^Elite Institute LLC dba Huntington Learning Center
^J and K Fitness L.L.C. dba Physiques Womens Fitness
Center
^3000 CSI Property LLC and Consulting Solutions Inc
^God Be Glorified Inc dba GBG Inc
^GDP Gourmet LLC dba Joe and John's Pizza
Restaurant
^Gold Jet Corp.
^SKJ Inc dba Subway
^LP Industries Inc dba Childforms
^Pauley Tree and Lawn Care Inc
^Beale Street Blues Company-West Palm Beach LLC
dba Lafayette's-West Palm
^Smart Artists Inc.
^Free Ion Advisors LLC
^Murrayville Donuts, Inc dba Dunkin' Donuts
^Union 2 LLC dba The Standard
Building Material and Garden Equipment and Supplies
Dealers
Miscellaneous Manufacturing
Furniture and Related Product Manufacturing
Forestry and Logging
Professional, Scientific, and Technical Services
Fabricated Metal Product Manufacturing
Apparel Manufacturing
Food Services and Drinking Places
Apparel Manufacturing
Motor Vehicle and Parts Dealers
Merchant Wholesalers, Durable Goods
Social Assistance
Merchant Wholesalers, Nondurable Goods
Social Assistance
Food Services and Drinking Places
Merchant Wholesalers, Durable Goods
Professional, Scientific, and Technical Services
Educational Services
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Insurance Carriers and Related Activities
Food Services and Drinking Places
Couriers and Messengers
Food Services and Drinking Places
Plastics and Rubber Products Manufacturing
Administrative and Support Services
Performing Arts, Spectator Sports, and Related Industries
Performing Arts, Spectator Sports, and Related Industries
Professional, Scientific, and Technical Services
Food and Beverage Stores
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
9/23/2025
9/23/2025
9/22/2040
9/22/2040
9/21/2025
9/21/2025
9/18/2025
9/18/2025
9/17/2025
9/16/2040
9/15/2025
9/11/2025
9/8/2040
9/4/2040
9/2/2025
8/31/2025
8/28/2025
8/28/2025
2/28/2041
8/20/2040
8/20/2025
8/19/2040
8/14/2025
8/13/2025
7/29/2025
7/28/2025
7/24/2025
7/23/2025
7/21/2025
7/15/2040
7/10/2025
F-189
See accompanying notes to consolidated financial statements.
114.6
37.6
302.1
154.6
502.2
37.5
11.9
6.2
94.0
384.7
112.7
8.2
132.4
646.7
6.2
929.6
62.7
11.3
90.1
129.8
39.4
136.9
53.5
62.9
92.0
48.3
48.8
16.6
47.3
330.7
74.6
114.6
37.6
302.1
154.6
502.2
37.5
11.9
6.2
94.0
384.7
112.7
8.2
132.4
646.7
6.2
929.6
62.7
11.3
90.1
129.8
39.4
136.9
53.5
62.9
92.0
48.3
48.8
16.6
47.3
330.7
74.6
113.1
37.1
337.9
168.5
495.6
37.8
11.8
6.1
92.7
433.5
111.2
8.6
149.5
730.6
6.2
947.0
63.6
11.2
101.4
146.2
38.9
152.8
54.3
62.4
94.5
48.8
48.9
16.4
46.7
366.5
76.0
0.04%
0.01%
0.12%
0.06%
0.17%
0.01%
—%
—%
0.03%
0.15%
0.04%
—%
0.05%
0.25%
—%
0.33%
0.02%
—%
0.04%
0.05%
0.01%
0.05%
0.02%
0.02%
0.03%
0.02%
0.02%
0.01%
0.02%
0.13%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Thrifty Market, Inc. dba Thrifty Foods
^Jonathan E Nichols and Nichols Fire and Security LLC Administrative and Support Services
^Anglin Cultured Stone Products LLC dba Anglin
Construction
Food and Beverage Stores
^Danny V, LLC dba Hugo's Taproom
^BJ's Tavern LLC and BJ's Cabana Bar Inc
^Myclean Inc.
^Summit Beverage Group LLC
^Advanced Skincare Medcenter Inc dba Advanced
Skincare Surgery
^CEM Autobody LLC dba Dawn's Autobody
^SofRep, Inc dba Force 12 Media
^TJU-DGT Inc dba The Lorenz Cafe
^Jihan Inc dba ARCO AM/PM and Diana Inc dba
Diana's Recycling
^E & G Enterprises LLC dba Comfort Keepers
^Ohs Auto Body, Inc. dba Ohs Body Shop
^Wolf Enviro Interests, LLC and Enviromax Services
Inc
^Evinger PA One, Inc. dba Postal Annex, Falcon
^RJI Services, Inc.
^Real Help LLC dba Real Help Decorative Concrete
^PM Cassidy Enterprises, Inc. dba Junk King
^KRN Logistics, LLC and Newsome Trucking, Inc
^Inverted Healthcare Staffing of Florida LLC
^Flooring Liquidators Inc and Flooring Liquidators of
Mt Kisco LLC
^AM PM Properties, LLC and AM PM Willington,
LLC
^Bizzare Foods Inc dba Trooper Foods
^Anturio Marketing Inc dba Logic Consulting
^Mirage Plastering Inc and Mpire LLC and Mpire II
LLC
^Eldredge Tavern LLC dba Gonyea's Tavern
^Nicor LLC dba Fibrenew Sacramento
^ViAr Visual Communications, Inc. dba Fastsigns
281701
Specialty Trade Contractors
Food Services and Drinking Places
Food Services and Drinking Places
Personal and Laundry Services
Beverage and Tobacco Product Manufacturing
Ambulatory Health Care Services
Repair and Maintenance
Other Information Services
Food Services and Drinking Places
Gasoline Stations
Ambulatory Health Care Services
Repair and Maintenance
Administrative and Support Services
Miscellaneous Store Retailers
Professional, Scientific, and Technical Services
Administrative and Support Services
Waste Management and Remediation Services
Truck Transportation
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
7.72%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Specialty Trade Contractors
Term Loan
6.75%
Food Services and Drinking Places
Merchant Wholesalers, Nondurable Goods
Professional, Scientific, and Technical Services
Specialty Trade Contractors
Food Services and Drinking Places
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
F-190
See accompanying notes to consolidated financial statements.
6/30/2030
6/30/2025
6/30/2025
6/30/2040
6/30/2040
6/29/2025
8/29/2030
6/29/2025
6/26/2040
6/26/2025
6/26/2029
6/26/2040
6/26/2025
6/25/2040
6/25/2040
6/24/2025
6/23/2025
6/22/2025
6/19/2025
6/19/2025
6/18/2025
6/17/2025
6/17/2040
6/12/2025
6/12/2040
6/12/2040
6/8/2040
6/5/2022
6/5/2025
225.1
54.7
205.4
38.6
199.5
11.6
248.8
246.0
127.4
48.3
17.2
356.7
16.4
225.1
54.7
205.4
38.6
199.5
11.6
248.8
246.0
127.4
48.3
17.2
356.7
16.4
240.1
57.2
212.0
43.8
227.3
11.9
266.7
252.6
144.7
49.4
18.5
405.9
16.8
1,145.8
1,145.8
1,301.2
231.4
231.4
261.3
16.4
16.2
38.7
10.9
391.4
44.7
316.5
81.5
80.2
272.4
130.3
52.8
7.8
45.2
16.4
16.2
38.7
10.9
391.4
44.7
316.5
81.5
80.2
272.4
130.3
52.8
7.8
45.2
17.0
16.6
40.6
11.1
406.1
45.7
332.0
93.1
82.0
311.8
146.3
60.4
7.9
46.5
0.08%
0.02%
0.07%
0.02%
0.08%
—%
0.09%
0.09%
0.05%
0.02%
0.01%
0.14%
0.01%
0.45%
0.09%
0.01%
0.01%
0.01%
—%
0.14%
0.02%
0.12%
0.03%
0.03%
0.11%
0.05%
0.02%
—%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Chitalian Fratelli LLC dba Francesca Brick Oven
Pizza and Pasta
^Video Vault & Tanning LLC and Mosaic Salon LLC
^Medworxs LLC
^XCESSIVE THROTTLE, INC dba Jake's Roadhouse
^Villela CPA PL
^Douglas Posey and Sally Watkinson dba Audrey's
Farmhouse
^15 McArdle LLC and No Other Impressions Inc
^Guard Dogs MFS LLC
^George S Cochran DDS Inc
^South Park Properties LLC and Midlothian Hardware
LLC
^Matthew Taylor and Landon Farm LLC
^Cares Inc dba Dumpling Grounds Day Care Center
^Orchid Enterprises Inc dba Assisting Hands of Sussex
County
^Ragazza Restaurant Group, Inc. dba Bambolina
^Diamond Solutions LLC
^Giacchino Maritime Consultants Inc
^Sound Coaching Inc
Food Services and Drinking Places
Rental and Leasing Services
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Accommodation
Printing and Related Support Activities
Repair and Maintenance
Ambulatory Health Care Services
Building Material and Garden Equipment and Supplies
Dealers
Personal and Laundry Services
Social Assistance
Ambulatory Health Care Services
Food Services and Drinking Places
Merchant Wholesalers, Durable Goods
Personal and Laundry Services
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
^Faramarz Nikourazm dba Car Clinic Center
^HAVANA CENTRAL NJ1, LLC dba Havana Central
^Advance Case Parts RE Holdings LLC and Advance
Case Parts Inc
^Mid-South Lumber Co. of Northwest Florida, Inc.
Repair and Maintenance
Food Services and Drinking Places
Repair and Maintenance
Merchant Wholesalers, Durable Goods
^Copper Beech Financial Group LLC
Insurance Carriers and Related Activities
^Delta Aggregate LLC
^Sunset Marine Resort LLC and GoXpeditions LLC
and Lavon Gomes and Trac
^Foresite Realty Partners LLC and Foresite Real Estate
Holdings LLC
^Shellhorn and Hill Inc dba Total Fleet Service
^Shorr Enterprises Inc dba New Design Furniture
Manufacturers
Mining (except Oil and Gas)
Accommodation
Real Estate
Nonstore Retailers
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Furniture and Related Product Manufacturing
Term Loan
Prime plus 2.75%
F-191
See accompanying notes to consolidated financial statements.
6/5/2025
6/4/2040
6/3/2025
5/29/2025
5/27/2025
5/20/2040
5/15/2040
5/8/2025
5/7/2025
5/6/2040
5/4/2040
5/1/2040
4/24/2025
4/21/2025
4/21/2025
4/17/2025
4/14/2025
4/3/2040
3/31/2025
3/31/2040
3/31/2040
3/30/2025
3/30/2025
3/27/2040
3/27/2025
3/27/2040
3/27/2025
11.4
85.3
91.1
5.9
6.5
163.2
240.9
46.7
93.8
45.1
94.4
75.9
10.7
12.9
14.6
16.1
31.7
68.8
203.4
707.0
400.2
88.3
72.3
281.7
874.5
967.3
75.4
11.4
85.3
91.1
5.9
6.5
163.2
240.9
46.7
93.8
45.1
94.4
75.9
10.7
12.9
14.6
16.1
31.7
68.8
203.4
707.0
400.2
88.3
72.3
281.7
874.5
967.3
75.4
11.7
97.6
93.4
6.1
6.7
186.2
272.9
47.9
96.0
51.6
106.2
86.9
11.0
13.3
15.0
16.5
32.5
78.3
213.0
798.7
451.7
91.5
75.7
322.0
893.4
1,091.8
78.4
—%
0.03%
0.03%
—%
—%
0.06%
0.09%
0.02%
0.03%
0.02%
0.04%
0.03%
—%
—%
0.01%
0.01%
0.01%
0.03%
0.07%
0.28%
0.16%
0.03%
0.03%
0.11%
0.31%
0.38%
0.03%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor
Advertising LLC
^Zero-In Media Inc
^Loriet LLC
^Shelton Incorporated dba Mrs. Winners
^Jaymie Hazard dba Indigo Hair Studio and Day Spa
^R & R Security and Investigations Inc dba Pardners
Lake Buchanan
^MMS Realty, LLC and Molecular MS Diagnostics
LLC
Professional, Scientific, and Technical Services
Data Processing, Hosting, and Related Services
Merchant Wholesalers, Nondurable Goods
Food Services and Drinking Places
Personal and Laundry Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Professional, Scientific, and Technical Services
Motor Vehicle and Parts Dealers
^Royal Crest Motors LLC
^BND Sebastian Limited Liability Company and
Sebastian Fitness LLC
^Douglas Printy Motorsports, Inc. dba Blackburn Trike Motor Vehicle and Parts Dealers
^Luigi's on Main LLC and Luigi's Main Street Pizza Inc Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
^Baystate Firearms and Training, LLC
^Pace Motor Lines, Inc.
^Kingseal LLC dba Desoto Health and Rehab Center
^Nelson Financial Services LLC
^Kiddie Steps 4 You Inc.
^Triangle Trash LLC dba Bin There Dump That
^Silva Realty Holdings, LLC and MF-Silva Enterprises,
Inc.
^740 Barry Street Realty LLC and Wild Edibles Inc
^Kostekos Inc dba New York Style Pizza
^DuCharme Realty LLC and DuCharme Enterprises
LLC
^Dean 1021 LLC dba Pure Pita
^Limameno LLC dba Sal's Italian Ristorante
^Palmabak Inc dba Mami Nora's
^Jung Design Inc
^Grand Blanc Lanes, Inc. and H, H and H, LLC
^Evans and Paul LLC
^First Prevention and Dialysis Center, LLC
^Bowlerama Inc
Educational Services
Truck Transportation
Nursing and Residential Care Facilities
Professional, Scientific, and Technical Services
Social Assistance
Waste Management and Remediation Services
Food Services and Drinking Places
Merchant Wholesalers, Nondurable Goods
Food Services and Drinking Places
Wood Product Manufacturing
Food Services and Drinking Places
Food Services and Drinking Places
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Merchant Wholesalers, Durable Goods
Ambulatory Health Care Services
Amusement, Gambling, and Recreation Industries
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
3/26/2040
3/25/2025
3/24/2025
3/20/2040
3/20/2040
3/19/2040
3/18/2040
3/16/2040
3/16/2040
3/9/2040
3/4/2025
2/27/2025
2/26/2025
2/26/2040
2/24/2025
2/19/2040
2/18/2025
2/11/2040
2/10/2040
2/6/2040
2/2/2040
4/29/2025
1/23/2025
1/22/2025
1/20/2022
12/31/2039
12/30/2024
12/30/2024
12/24/2039
50.4
15.9
8.5
105.0
40.1
79.7
150.0
85.1
161.0
179.1
7.9
44.2
46.0
50.4
15.9
8.5
105.0
40.1
79.7
150.0
85.1
161.0
179.1
7.9
44.2
46.0
57.6
16.2
8.7
120.0
45.5
91.1
170.2
96.8
183.5
203.1
8.3
45.2
48.2
1,190.4
1,190.4
1,360.8
8.7
57.8
51.9
159.9
459.6
61.9
210.1
59.4
57.5
8.5
4.3
123.5
167.9
204.0
8.7
57.8
51.9
159.9
459.6
61.9
210.1
59.4
57.5
8.5
4.3
123.5
167.9
204.0
8.9
65.5
53.7
181.2
525.4
70.3
237.7
61.0
59.1
8.9
4.3
140.9
175.2
212.4
1,117.6
1,117.6
1,276.1
0.02%
0.01%
—%
0.04%
0.02%
0.03%
0.06%
0.03%
0.06%
0.07%
—%
0.02%
0.02%
0.47%
—%
0.02%
0.02%
0.06%
0.18%
0.02%
0.08%
0.02%
0.02%
—%
—%
0.05%
0.06%
0.07%
0.44%
F-192
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^The Lodin Group LLC and Lodin Health Imaging Inc
dba Highlands Breast
^Thermoplastic Services Inc and Paragon Plastic Sheet,
Inc
^Beale Street Blues Company-West Palm Beach, LLC
dba Lafayette Music Hall
^MM and M Management Inc dba Pizza Artista
^B.S. Ventures LLC dba Dink's Market
^Will Zac Management LLC dba Papa John's
^The Jewelers Inc. dba The Jewelers of Las Vegas
^B & W Towing, LLC and Boychucks Fuel LLC
^All American Games, LLC and Sportslink - The
Game, LLC
^Kemmer LLC and Apples Tree Top Liquors LLC
^Teamnewman Enterprises LLC dba Newmans at 988
and John H. Newman
^DeRidder Chiropractic LLC
^Modern Manhattan LLC
^J&D Resources, LLC dba Aqua Science
^Legacy Estate Planning Inc dba American Casket
Enterprises
^DC Real LLC and DC Enterprises LTD dba Lakeview
True Value
^Joey O's LLC and Jennifer Olszewski
^Heartland American Properties LLC and Skaggs RV
Outlet LLC
^Seelan Inc dba Candleridge Market
^Navdeep B Martins and Busy Bubbles LLC dba Wishy
Washy
^One Hour Jewelry Repair Inc
^Return to Excellence, Inc. dba The Waynesville Inn
Golf & Spa
^Sound Manufacturing Inc
^DNT Storage and Properties LLC
^Smith Spinal Care Center P.C. and James C. Smith
^Doctors Express Management of Central Texas LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/23/2039
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
12/23/2039
Performing Arts, Spectator Sports, and Related Industries
Food Services and Drinking Places
Merchant Wholesalers, Nondurable Goods
Food Services and Drinking Places
Clothing and Clothing Accessories Stores
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
6.25%
Prime plus 2.75%
Prime plus 2.75%
Performing Arts, Spectator Sports, and Related Industries
Food and Beverage Stores
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Ambulatory Health Care Services
Furniture and Home Furnishings Stores
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/22/2024
4/19/2025
12/19/2039
12/19/2024
12/19/2024
12/17/2039
12/10/2024
12/4/2039
11/25/2039
11/25/2024
11/25/2024
11/21/2024
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/21/2024
Building Material and Garden Equipment and Supplies
Dealers
Specialty Trade Contractors
Motor Vehicle and Parts Dealers
Gasoline Stations
Personal and Laundry Services
Repair and Maintenance
Amusement, Gambling, and Recreation Industries
Fabricated Metal Product Manufacturing
Real Estate
Ambulatory Health Care Services
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/20/2039
11/7/2024
10/31/2039
10/27/2039
10/24/2039
10/14/2024
10/10/2039
10/10/2024
10/10/2039
10/8/2039
10/8/2024
492.1
464.0
128.1
32.8
49.9
112.1
851.7
152.6
273.2
130.0
110.3
8.9
148.5
512.0
28.4
111.1
0.6
442.8
83.7
82.4
13.7
492.1
464.0
128.1
32.8
49.9
112.1
851.7
152.6
273.2
130.0
110.3
8.9
148.5
512.0
28.4
111.1
0.6
442.8
83.7
82.4
13.7
555.0
529.8
131.9
33.7
57.0
117.2
870.1
172.7
281.6
146.9
125.5
9.3
151.9
524.1
28.9
126.5
0.6
503.8
94.8
93.1
14.0
1,173.5
124.7
94.1
55.5
32.4
1,173.5
124.7
94.1
55.5
32.4
1,339.9
128.3
107.2
63.1
33.9
0.19%
0.18%
0.05%
0.01%
0.02%
0.04%
0.30%
0.06%
0.10%
0.05%
0.04%
—%
0.05%
0.18%
0.01%
0.04%
—%
0.18%
0.03%
0.03%
—%
0.47%
0.04%
0.04%
0.02%
0.01%
F-193
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Personal and Laundry Services
Administrative and Support Services
Food Services and Drinking Places
Accommodation
Food and Beverage Stores
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Administrative and Support Services
Term Loan
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
^Michael Rey Jr. and Lynn J. Williams and GIG Petcare
dba Hickory
^Sumad LLC dba BrightStar Care of Encinitas
^Roccos LLC and Sullo Pantalone Inc dba Rocco's
^Gordon E Rogers dba Stonehouse Motor Inn
^North Columbia LLC and Loop Liquor and
Convenience Store LLC
^6 Price Avenue, LLC and Pauley Tree & Lawn Care,
Inc
^Andrene's LLC dba Andrene's Caribbean Soul Food
Carry Out
^Ryan Crick and Pamela J. Crick and Crick Enterprises
Inc
^Modern Leather Goods Repair Shop Inc
^Animal Intrusion Prevention Systems Holding
Company, LLC
Repair and Maintenance
Repair and Maintenance
Administrative and Support Services
Food Services and Drinking Places
^Tavern Properties LLC and Wildwood Tavern LLC
^Indy East Smiles Youth Dentistry LLC dba Prime
Smile East
^Qycell Corporation
^Delta Aggregate LLC
^Orange County Cleaning Inc
^Lamjam LLC, Goldsmith Lambros Inc
^B&P Diners LLC dba Engine House Restaurant
Ambulatory Health Care Services
Food Services and Drinking Places
Mining (except Oil and Gas)
Administrative and Support Services
Clothing and Clothing Accessories Stores
Plastics and Rubber Products Manufacturing
Repair and Maintenance
Social Assistance
^Alpha Preparatory Academy LLC
^Katie Senior Care LLC dba Home Instead Senior Care Social Assistance
^Hamer Road Auto Salvage, LLC and Scott T. Cook
and Nikki J. Cook
^Almost Home Property LLC and Almost Home
Daycare LLC
Motor Vehicle and Parts Dealers
^Atlas Auto Body Inc dba Atlas Auto Sales
^AGV Enterprises LLC dba Jet's Pizza #42
^iFood, Inc. dba Steak N Shake
^575 Columbus Avenue Holding Company, LLC and
LA-ZE LLC dba EST EST EST
^Honeyspot Investors LLP and Pace Motor Lines Inc
Social Assistance
Food Services and Drinking Places
Food Services and Drinking Places
Food Services and Drinking Places
Truck Transportation
10/3/2039
10/2/2024
9/30/2039
9/26/2039
9/24/2039
9/24/2039
9/23/2024
9/17/2039
9/17/2024
9/15/2024
9/15/2039
9/11/2024
9/10/2024
8/28/2039
8/27/2024
8/27/2024
8/26/2024
8/22/2039
8/15/2039
8/15/2024
8/8/2039
8/7/2039
7/31/2024
7/31/2024
7/30/2039
7/24/2039
114.0
35.5
235.9
53.0
146.9
432.6
19.1
134.2
38.2
180.1
394.7
415.6
52.8
859.0
9.4
88.4
78.5
47.5
134.3
80.8
176.0
677.8
35.2
253.5
19.4
137.8
114.0
35.5
235.9
53.0
146.9
432.6
19.1
134.2
38.2
180.1
394.7
415.6
52.8
859.0
9.4
88.4
78.5
47.5
134.3
80.8
176.0
677.8
35.2
253.5
19.4
137.8
129.9
37.1
266.8
60.5
167.1
486.3
19.4
153.1
38.9
185.4
448.5
423.5
53.7
979.7
9.6
92.2
81.1
53.8
153.1
82.2
200.8
771.8
36.0
261.8
22.1
157.1
0.05%
0.01%
0.09%
0.02%
0.06%
0.17%
0.01%
0.05%
0.01%
0.06%
0.16%
0.15%
0.02%
0.34%
—%
0.03%
0.03%
0.02%
0.05%
0.03%
0.07%
0.27%
0.01%
0.09%
0.01%
0.05%
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
6%
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-194
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Miss Cranston Diner II, LLC and Miss Cranston II
Realty LLC
^Lisle Lincoln II Limited Partnership dba Lisle Lanes
LP
^iFood, Inc. dba Steak N Shake
^Honeyspot Investors LLP and Pace Motor Lines Inc
^AMG Holding, LLC and Stetson Automotive, Inc
^Zinger Hardware and General Merchant Inc
^JPM Investments LLC and Carolina Family Foot Care
P.A.
^Nikobella Properties LLC and JPO Inc dba Village Car
Wash
^Big Sky Plaza LLC and Strickland, Incorporated dba
Livingston True Value
^Nirvi Enterprises LLC dba Howard Johnson / Knights
Inn
^Sico & Walsh Insurance Agency Inc and The AMS
Trust
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh
Patel
^Long Island Barber Institute Inc
^CJR LLC and PowerWash Plus, Inc.
^Pocono Coated Products, LLC
^Wilton Dental Care P.C.
^EGM Food Services Inc dba Gold Star Chili
^Jonesboro Health Food Center LLC
^Hae M. and Jin S. Park dba Buford Car Wash
^The River Beas LLC and Punam Singh
^AS Boyals LLC dba Towne Liquors
^Gerami Realty, LC, Sherrill Universal City Corral, LP
dba Golden
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Truck Transportation
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
7.25%
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
Repair and Maintenance
Term Loan
Prime plus 2.75%
Building Material and Garden Equipment and Supplies
Dealers
Term Loan
Prime plus 2.75%
Accommodation
Term Loan
Prime plus 2.75%
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Educational Services
Repair and Maintenance
Printing and Related Support Activities
Ambulatory Health Care Services
Food Services and Drinking Places
Health and Personal Care Stores
Repair and Maintenance
Food Services and Drinking Places
Food and Beverage Stores
Food Services and Drinking Places
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Complete Body & Paint, Inc.
^Island Wide Realty LLC and Long Island Partners, Inc. Real Estate
^Wilshire Media Systems Inc
^1899 Tavern & Tap LLC and Ale House Tavern & Tap
LLC
Specialty Trade Contractors
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
F-195
See accompanying notes to consolidated financial statements.
7/17/2039
6/30/2024
6/30/2039
6/30/2039
6/30/2039
6/26/2024
6/26/2039
6/25/2039
6/20/2039
6/17/2039
6/6/2039
6/3/2024
6/2/2039
5/30/2024
5/30/2024
5/29/2024
5/29/2024
5/27/2024
5/15/2039
5/8/2039
4/29/2039
4/23/2027
4/23/2039
4/22/2039
4/17/2024
4/9/2039
93.8
63.3
579.0
803.5
190.9
43.8
129.6
444.1
214.0
843.8
85.5
14.3
50.9
33.1
14.1
81.9
12.3
38.7
93.8
63.3
579.0
803.5
190.9
43.8
129.6
444.1
214.0
843.8
85.5
14.3
50.9
33.1
14.1
81.9
12.3
38.7
151.7
151.7
82.9
99.4
58.1
19.0
94.8
115.0
124.6
82.9
99.4
58.1
19.0
94.8
115.0
124.6
106.6
66.2
662.6
924.8
219.7
45.8
148.9
510.3
245.9
971.2
98.4
14.9
58.4
34.7
14.8
84.9
12.7
40.1
173.9
95.2
114.4
62.1
21.9
109.1
119.4
143.3
0.04%
0.02%
0.23%
0.32%
0.08%
0.02%
0.05%
0.18%
0.09%
0.34%
0.03%
0.01%
0.02%
0.01%
0.01%
0.03%
—%
0.01%
0.06%
0.03%
0.04%
0.02%
0.01%
0.04%
0.04%
0.05%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Hodges Properties LLC and Echelon Enterprises Inc
dba Treads Bicycle
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
^Dantanna's Tavern LLC
^Little People's Village II LLC and Iliopoulos Realty
LLC
^Little People's Village II LLC and Iliopoulos Realty
LLC
^Eagle Aggregate Transportation, LLC and Eagle
Pneumatic Transport LLC
^Kemmer, LLC and Pitts Package Store, Inc.
^Lake Area Autosound LLC and Ryan H. Whittington
^Knowledge First Inc dba Magic Years of Learning and
Kimberly Knox
^636 South Center Holdings, LLC and New Mansfield
Brass and Aluminum Co
^Cormac Enterprises and Wyoming Valley Beverage
Incorporated
^Kinisi, Inc. dba The River North UPS Store
^Tortilla King Inc.
^Tortilla King, Inc.
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge,
Inc.
^R & R Boyal LLC dba Cap N Cat Clam Bar and Little
Ease Tavern
Food Services and Drinking Places
Social Assistance
Social Assistance
Truck Transportation
Food and Beverage Stores
Motor Vehicle and Parts Dealers
Social Assistance
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Administrative and Support Services
Food Manufacturing
Food Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
Food and Beverage Stores
Beverage and Tobacco Product Manufacturing
^Summit Beverage Group LLC
^952 Boston Post Road Realty, LLC and HNA LLC dba
Styles International
^Choe Trade Group Inc dba Rapid Printers of Monterey Printing and Related Support Activities
Personal and Laundry Services
^Faith Memorial Chapel LLC
^96 Mill Street LLC, Central Pizza LLC and Jason
Bikakis George Bikaki
^JWB Industries, Inc. dba Carteret Die Casting
^986 Dixwell Avenue Holding Company, LLC(EPC)
and Mughali Foods, LLC
^Awesome Pets II Inc dba Mellisa's Pet Depot
Personal and Laundry Services
Food Services and Drinking Places
Primary Metal Manufacturing
Food Services and Drinking Places
Miscellaneous Store Retailers
^Sarah Sibadan dba Sibadan Agency
Insurance Carriers and Related Activities
^Icore Enterprises Inc dba Air Flow Filters Inc
^Nutmeg North Associates LLC, Steeltech Building
Products Inc
Miscellaneous Manufacturing
Construction of Buildings
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
3/31/2039
6/30/2024
3/31/2039
3/31/2039
3/31/2024
3/31/2039
7/28/2039
3/21/2039
3/20/2039
3/20/2039
3/18/2024
3/14/2039
3/14/2029
3/13/2039
2/28/2039
2/28/2024
2/28/2039
2/28/2024
2/28/2039
2/12/2039
2/11/2024
2/7/2039
2/7/2024
1/27/2039
1/15/2024
Term Loan
Prime plus 2.75%
12/31/2038
F-196
See accompanying notes to consolidated financial statements.
409.2
103.3
84.4
93.2
430.2
108.2
115.7
133.3
71.9
101.1
13.1
42.2
824.3
203.7
379.8
211.5
192.0
96.1
195.1
128.8
168.9
90.5
50.8
117.4
12.9
830.5
409.2
103.3
84.4
93.2
430.2
108.2
115.7
133.3
71.9
101.1
13.1
42.2
824.3
203.7
379.8
211.5
192.0
96.1
195.1
128.8
168.9
90.5
50.8
117.4
12.9
830.5
469.9
107.4
96.6
106.6
448.9
123.5
133.0
152.7
82.6
116.2
13.7
48.5
889.8
234.1
435.5
220.4
219.9
100.3
223.5
148.0
175.0
103.9
52.7
134.9
13.5
950.2
0.16%
0.04%
0.03%
0.04%
0.16%
0.04%
0.05%
0.05%
0.03%
0.04%
—%
0.02%
0.31%
0.08%
0.15%
0.08%
0.08%
0.03%
0.08%
0.05%
0.06%
0.04%
0.02%
0.05%
—%
0.33%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^KK International Trading Corporation
^Kurtis Sniezek dba Wolfe's Foreign Auto
^PLES Investements, LLC and John Redder, Pappy
Sand & Gravel, Inc.
^TAK Properties LLC and Kinderland Inc
^TOL LLC dba Wild Birds Unlimited
^920 CHR Realty LLC, V. Garofalo Carting Inc
^DKB Transport Corp
^Firm Foundations Inc David S Gaitan Jr and
Christopher K Daigle
^Spectrum Development LLC and Solvit Inc & Solvit
North, Inc
^BVIP Limousine Service LTD
^Wallace Holdings LLC, GFA International Inc
^AcuCall LLC
^Kids in Motion of Springfield LLC dba The Little
Gym of Springfield IL
^Yousef Khatib dba Y&M Enterprises
^Howell Gun Works LLC
Merchant Wholesalers, Nondurable Goods
Repair and Maintenance
Specialty Trade Contractors
Social Assistance
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Waste Management and Remediation Services
Truck Transportation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/23/2028
12/20/2038
12/19/2038
12/18/2038
12/13/2023
12/10/2038
12/5/2038
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/3/2038
Specialty Trade Contractors
Transit and Ground Passenger Transportation
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Wholesale Electronic Markets and Agents and Brokers
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
^Polpo Realty, LLC, Polpo Restaurant, LLC
^Twinsburg Hospitality Group LLC dba Comfort Suites Accommodation
Food Services and Drinking Places
^Mid-Land Sheet Metal Inc
^Master CNC Inc & Master Properties LLC
^Janice B. McShan and The Metropolitan Day School,
LLC
^1 North Restaurant Corp dba 1 North Steakhouse
^Clairvoyant Realty Corp. and Napoli Marble &
Granite Design, Ltd
^Greenbrier Technical Services, Inc
^First Steps Real Estate Company, LLC and First Steps
Preschool
^Lenoir Business Partners LLC, LP Industries, Inc dba
Childforms
^LP Industries, Inc dba Childforms
^Cencon Properties LLC and Central Connecticut
Warehousing Company, Inc
Specialty Trade Contractors
Professional, Scientific, and Technical Services
Social Assistance
Food Services and Drinking Places
Specialty Trade Contractors
Repair and Maintenance
Social Assistance
Plastics and Rubber Products Manufacturing
Plastics and Rubber Products Manufacturing
Warehousing and Storage
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.5%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
12/2/2023
11/27/2038
11/25/2023
11/21/2023
11/18/2023
11/15/2023
11/14/2023
11/6/2038
10/31/2038
10/31/2038
10/31/2038
10/31/2023
10/31/2038
10/24/2038
10/24/2023
9/30/2038
9/30/2038
9/30/2038
9/30/2038
F-197
See accompanying notes to consolidated financial statements.
146.3
80.5
502.8
367.1
10.9
379.3
125.7
94.4
235.8
69.1
71.9
8.9
26.5
43.4
2.7
56.3
853.9
124.1
538.0
24.9
191.6
133.6
117.5
87.8
265.5
108.2
310.2
146.3
80.5
502.8
367.1
10.9
379.3
125.7
94.4
235.8
69.1
71.9
8.9
26.5
43.4
2.7
56.3
853.9
124.1
538.0
24.9
191.6
133.6
117.5
87.8
265.5
108.2
310.2
158.1
92.4
573.5
420.5
11.3
435.5
144.3
107.7
244.0
79.3
74.5
9.2
27.4
44.8
2.8
64.6
977.5
142.4
614.7
26.0
219.8
153.4
122.4
100.2
304.2
124.1
355.7
0.06%
0.03%
0.20%
0.15%
—%
0.15%
0.05%
0.04%
0.08%
0.03%
0.03%
—%
0.01%
0.02%
—%
0.02%
0.34%
0.05%
0.21%
0.01%
0.08%
0.05%
0.04%
0.03%
0.11%
0.04%
0.12%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Discount Wheel and Tire of Broken Bow Inc
^Mitchellville Family Dentistry, Dr. Octavia Simkins-
Wiseman DDS PC
^Gabrielle Realty, LLC
^Eastside Soccer Dome, Inc .
^Anthony C Dinoto and Susan S P Dinoto and Anthony
C Dinoto Funeral Homes
^Southeast Chicago Soccer, Inc.
^Kiddie Steps 4 You Inc.
^Diamond Memorials Incorporated
^Serious-Fun in Alpharetta, LLC dba The Little Gym of
Alpharetta
^Faith Memorial Chapel LLC
^Westville Seafood LLC
^Maynard Enterprises Inc dba Fastsigns of Texarkana
^Grafio Inc dba Omega Learning Center-Acworth
^The Berlerro Group, LLC dba Sky Zone
^Sound Manufacturing Inc
^Prospect Kids Academy Inc
^Alma J. and William R. Walton and Almas Child Day
Care Center
^B for Brunette dba Blo
^Schmaltz Holdings, LLC and Schmaltz Operations,
LLC
^Excel RP Inc
^ACI Northwest Inc.
^Gulfport Academy Child Care and Learning Center,
Inc. and Jennifer Sis
^IlOKA Inc dba Microtech Tel and NewCloud
Networks
^Ramard Inc and Advanced Health Sciences Inc
^RM Hawkins LLC dba Pure Water Tech West and
Robert M Hawkins
^JSIL LLC dba Blackstones Hairdressing
^Island Nautical Enterprises, Inc. and Ingwall Holdings,
LLC
^Caribbean Concepts, Inc. dba Quick Bleach
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services
Gasoline Stations
Amusement, Gambling, and Recreation Industries
Personal and Laundry Services
Amusement, Gambling, and Recreation Industries
Social Assistance
Professional, Scientific, and Technical Services
Educational Services
Personal and Laundry Services
Food Services and Drinking Places
Miscellaneous Store Retailers
Educational Services
Amusement, Gambling, and Recreation Industries
Fabricated Metal Product Manufacturing
Educational Services
Social Assistance
Personal and Laundry Services
Personal and Laundry Services
Machinery Manufacturing
Heavy and Civil Engineering Construction
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
Professional, Scientific, and Technical Services
Merchant Wholesalers, Nondurable Goods
Nonstore Retailers
Personal and Laundry Services
Miscellaneous Manufacturing
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-198
See accompanying notes to consolidated financial statements.
9/30/2038
9/27/2038
9/27/2038
9/26/2038
9/26/2038
9/26/2038
9/25/2038
9/25/2023
9/20/2023
9/20/2038
9/19/2038
9/18/2023
9/13/2023
9/12/2023
9/12/2028
9/11/2038
9/11/2038
9/10/2023
9/4/2038
8/30/2023
8/30/2023
8/30/2023
8/30/2023
8/28/2023
8/26/2023
8/16/2023
8/14/2038
8/12/2023
201.2
301.3
681.1
416.9
89.9
46.0
81.8
6.3
26.1
241.6
101.0
9.1
93.2
243.6
41.4
111.7
35.6
30.4
200.3
72.1
300.1
23.9
359.7
103.8
44.7
10.7
311.1
12.4
201.2
301.3
681.1
416.9
89.9
46.0
81.8
6.3
26.1
241.6
101.0
9.1
93.2
243.6
41.4
111.7
35.6
30.4
200.3
72.1
300.1
23.9
359.7
103.8
44.7
10.7
311.1
12.4
230.0
344.8
778.4
478.0
103.1
52.8
93.5
6.5
27.0
276.1
115.5
9.4
96.3
251.4
44.5
127.9
40.9
31.3
228.6
74.5
312.1
24.9
371.6
106.8
46.4
11.0
355.3
12.8
0.08%
0.12%
0.27%
0.17%
0.04%
0.02%
0.03%
—%
0.01%
0.10%
0.04%
—%
0.03%
0.09%
0.02%
0.04%
0.01%
0.01%
0.08%
0.03%
0.11%
0.01%
0.13%
0.04%
0.02%
—%
0.12%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Specialty Trade Contractors
Specialty Trade Contractors
Truck Transportation
Miscellaneous Manufacturing
Personal and Laundry Services
Truck Transportation
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Fabricated Metal Product Manufacturing
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Administrative and Support Services
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
^Daniel W and Erin H Gordon and Silver Lining
Stables CT, LLC
^Angkor Restaurant Inc
^Harbor Ventilation Inc and Estes Investment, LLC
^Tri County Heating and Cooling Inc.
^Morning Star Trucking LLC and Morning Star
Equipment and Leasing LLC
^Maxiflex LLC
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview
Laundromat
^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.
^Blakeslee Arpaia Chapman, Inc. dba Blakeslee
Industrial Services
^KDP LLC and KDP Investment Advisors, Inc and
KDP Asset Management, Inc
^Elite Structures Inc
^Willowbrook Properties LLC, Grove Gardens
Landscaping Inc.
^Absolute Desire LLC and Mark H. Szierer,
Sophisticated Smile
^Gregory P Jellenek OD and Associates PC dba
Gregory P Jellenek OD
^Peanut Butter & Co., Inc.
^PowerWash Plus, Inc. and CJR, LLC
^Kidrose, LLC dba Kidville Riverdale
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc
^A & M Commerce, Inc. dba Cranberry Sunoco
^Ryan D. Thornton and Thornton & Associates LLC
Insurance Carriers and Related Activities
Ambulatory Health Care Services
Food Manufacturing
Repair and Maintenance
Educational Services
Miscellaneous Store Retailers
Gasoline Stations
Paper Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Xela Pack, Inc. and Aliseo and Catherine Gentile
^American Diagnostic Imaging, Inc. dba St. Joseph
Imaging Center
^Michael A.and HeatherR. Welsch dba Art & FrameEtc. Miscellaneous Store Retailers
Ambulatory Health Care Services
^Truth Technologies Inc dba Truth Technologies Inc.
^Sound Manufacturing, Inc. and Monster Power
Equipment Inc.
Professional, Scientific, and Technical Services
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
F-199
See accompanying notes to consolidated financial statements.
7/24/2023
7/19/2038
7/19/2038
7/19/2023
7/17/2023
6/28/2023
6/28/2038
6/19/2026
6/18/2028
6/14/2023
6/12/2038
6/5/2038
6/5/2038
5/28/2023
5/24/2023
4/30/2023
4/30/2038
4/22/2023
3/29/2038
3/27/2038
3/27/2028
3/25/2038
3/22/2038
3/21/2023
3/15/2023
6.5
83.4
2.1
47.8
29.3
24.2
87.0
449.8
648.9
184.5
812.2
166.4
168.3
33.1
25.2
51.7
489.6
41.4
110.6
292.9
197.7
476.9
59.9
44.1
261.6
6.5
83.4
2.1
47.8
29.3
24.2
87.0
449.8
648.9
184.5
812.2
166.4
168.3
33.1
25.2
51.7
489.6
41.4
110.6
292.9
197.7
476.9
59.9
44.1
261.6
6.7
95.5
2.4
49.8
30.1
25.2
100.2
479.3
701.9
191.1
933.6
191.4
193.3
34.4
26.1
53.5
562.9
43.0
126.9
336.5
213.5
547.6
68.8
45.6
271.4
—%
0.03%
—%
0.02%
0.01%
0.01%
0.03%
0.17%
0.24%
0.07%
0.32%
0.07%
0.07%
0.01%
0.01%
0.02%
0.20%
0.01%
0.04%
0.12%
0.07%
0.19%
0.02%
0.02%
0.09%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Golden Gate Lodging LLC
^Bakhtar Group LLC dba Malmaison
^Osceola River Mill, LLC, Ironman Machine, Inc.
^Java Warung, LLC
^Retain Loyalty LLC
^North Country Transport, LLC
^MJD Investments, LLC dba The Community Day
School
^Sherill Universal City dba Golden Corral LP
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace
Mantels
Accommodation
Food Services and Drinking Places
Machinery Manufacturing
Food Services and Drinking Places
Printing and Related Support Activities
Transit and Ground Passenger Transportation
Social Assistance
Food Services and Drinking Places
Specialty Trade Contractors
Food Manufacturing
^Macho LLC, Madelaine Chocolate Novelties Inc
^Babie Bunnie Enterprises Inc dba Triangle Mothercare Ambulatory Health Care Services
Merchant Wholesalers, Nondurable Goods
^John Duffy Fuel Co., Inc.
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo
Restaurant
^Martin L Hopp, MD PHD A Medical Corp dba Tower
Ambulatory Health Care Services
ENT
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC Ambulatory Health Care Services
^Daniel Gordon and Erin Gordon and Silver Lining
Stables CT, LLC
Food Services and Drinking Places
Support Activities for Agriculture and Forestry
Miscellaneous Store Retailers
Food and Beverage Stores
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
3/12/2038
2/28/2023
2/20/2038
2/19/2038
2/15/2038
2/6/2023
1/31/2038
1/28/2038
12/31/2022
12/31/2037
12/28/2027
12/28/2022
Term Loan
Prime plus 2.75%
12/27/2037
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/21/2022
11/30/2037
11/28/2037
11/27/2022
11/27/2037
11/26/2022
^D&L Rescources, Inc. dba The UPS Store
^Richmond Hill Mini Market, LLC
^DRV Enterprise, Inc. dba Cici's Pizza # 339
^U & A Food and Fuel, Inc. dba Express Gas & Food
Mart
^Pioneer Windows Manufacturing Corp, Pioneer
Windows
^R & J Petroleum LLC, Manar USA, Inc.
^St Judes Physical Therapy P.C.
^Hi-Def Imaging, Inc. dba SpeedPro Imaging
^Reidville Hydraulics Mfg Inc dba Summit
^Big Apple Entertainment Partners, LLC d/b/a Ripley's
Believe It or Not
^University Park Retreat, LLC dba Massage Heights
^O'Rourkes Diner LLC dba O'Rourke's Diner
Gasoline Stations
Term Loan
Prime plus 2.75%
11/21/2037
Fabricated Metal Product Manufacturing
Gasoline Stations
Ambulatory Health Care Services
Printing and Related Support Activities
Machinery Manufacturing
Amusement, Gambling, and Recreation Industries
Personal and Laundry Services
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/21/2022
11/20/2037
11/19/2022
11/9/2022
11/2/2037
10/26/2022
9/27/2022
9/19/2037
F-200
See accompanying notes to consolidated financial statements.
102.2
102.2
52.6
76.3
45.2
94.1
7.7
228.1
390.6
47.3
442.9
29.9
249.5
456.9
32.0
252.5
201.4
4.6
162.9
28.8
84.6
129.9
158.2
10.0
10.6
234.6
86.2
34.8
57.3
52.6
76.3
45.2
94.1
7.7
228.1
390.6
47.3
442.9
29.9
249.5
456.9
32.0
252.5
201.4
4.6
162.9
28.8
84.6
129.9
158.2
10.0
10.6
234.6
86.2
34.8
57.3
117.4
54.3
87.7
52.0
108.0
8.0
261.9
449.0
48.7
508.6
32.1
257.5
524.6
33.1
289.8
231.3
4.8
186.9
29.9
97.2
134.3
181.6
10.4
10.9
268.7
88.8
36.0
65.6
0.04%
0.02%
0.03%
0.02%
0.04%
—%
0.09%
0.16%
0.02%
0.18%
0.01%
0.09%
0.18%
0.01%
0.10%
0.08%
—%
0.07%
0.01%
0.03%
0.05%
0.06%
—%
—%
0.09%
0.03%
0.01%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^AJK Enterprise LLC dba AJK Enterprise LLC
^Suncoast Aluminum Furniture, Inc
Truck Transportation
Furniture and Related Product Manufacturing
^Hofgard & Co., Inc. dba HofgardBenefits
Insurance Carriers and Related Activities
^Georgia Safe Sidewalks LLC
^Havana Central (NY) 5, LLC
^Central Tire, Inc. dba Cooper Tire & Auto Services
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil
Change
^KIND-ER-ZZ Inc dba Kidville
^Graphish Studio, Inc. and Scott Fishoff
Specialty Trade Contractors
Food Services and Drinking Places
Repair and Maintenance
Repair and Maintenance
Educational Services
Professional, Scientific, and Technical Services
Motor Vehicle and Parts Dealers
^ALF, LLC, Mulit-Service Eagle Tires
^Christou Real Estate Holdings LLC dba Tops
American Grill
^Tracey Vita-Morris dba Tracey Vita's School of Dance Performing Arts, Spectator Sports, and Related Industries
Food Services and Drinking Places
Gasoline Stations
Ambulatory Health Care Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
^Fair Deal Food Mart Inc dba Neighbors Market
^Tanner Optical, Inc. dba Murphy Eye Care
^Zane Filippone Co Inc dba Culligan Water
Conditioning
^Indoor Playgrounds Limited Liability Company dba
Kidville
^Access Staffing, LLC
^Brandywine Picnic Park, Inc. and B.Ross Capps &
Linda Capps
^DC Realty, LLC dba FOGO Data Centers
^DC Realty, LLC dba FOGO Data Centers
^Manuel P. Barrera and Accura Electrical Contractor,
Inc.
^Shweiki Media, Inc. dba Study Breaks Magazine
^ATI Jet, Inc.
^J. Kinderman & Sons, Inc. dba Brite Star
Manufacturing Company
^K's Salon, LLC d/b/a K's Salon
^15 Frederick Place LLC & Pioneer Windows Holdings
Inc & Subs
^Taylor Transport, Inc
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
Nonstore Retailers
Term Loan
Prime plus 2.75%
Educational Services
Administrative and Support Services
Amusement, Gambling, and Recreation Industries
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Specialty Trade Contractors
Publishing Industries (except Internet)
Air Transportation
Furniture and Home Furnishings Stores
Personal and Laundry Services
Fabricated Metal Product Manufacturing
Truck Transportation
Publishing Industries (except Internet)
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
6%
6.25%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
F-201
See accompanying notes to consolidated financial statements.
8/27/2022
8/17/2037
7/27/2022
7/27/2022
6/29/2022
6/29/2037
6/27/2037
6/15/2022
6/14/2022
5/31/2037
5/17/2037
5/10/2022
5/3/2037
4/27/2022
4/12/2022
4/5/2022
3/30/2022
3/30/2031
3/23/2037
3/23/2022
3/23/2028
3/22/2027
12/28/2026
12/22/2036
12/20/2021
12/16/2021
12/8/2021
10/26/2021
7.3
314.4
46.2
6.5
641.8
250.3
60.5
21.4
8.7
54.5
245.4
9.5
330.0
3.4
229.4
2.0
73.7
7.3
314.4
46.2
6.5
641.8
250.3
60.5
21.4
8.7
54.5
245.4
9.5
330.0
3.4
229.4
2.0
73.7
7.6
360.5
47.5
6.7
662.8
287.6
69.5
22.1
8.9
62.6
282.0
9.8
379.2
3.5
236.9
2.0
75.9
179.3
2,623.4
179.3
2,623.4
198.2
3,010.5
609.9
72.1
786.4
548.2
352.6
27.8
92.2
93.2
21.7
609.9
72.1
786.4
548.2
352.6
27.8
92.2
93.2
21.7
628.6
78.0
844.5
587.5
404.1
28.5
94.7
95.8
22.3
—%
0.13%
0.02%
—%
0.23%
0.10%
0.02%
0.01%
—%
0.02%
0.10%
—%
0.13%
—%
0.08%
—%
0.03%
0.07%
1.05%
0.22%
0.03%
0.29%
0.20%
0.14%
0.01%
0.03%
0.03%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^28 Cornelia Street Properties, LLC and Zouk, Ltd.dba
Palma
^39581 Garfield, LLC and Tri County Neurological
Associates, P.C.
^Robert E. Caves, Sr. and American Plank dba Caves
Enterprises
^39581 Garfield, LLC and Tricounty Neurological
Associates, P.C.
^Big Apple Entertainment Partners, LLC dba Ripley's
Believe it or Not
^Equity National Capital LLC & Chadbourne Road
Capital, LLC
^Michael S. Decker & Janet Decker dba The Hen
House Cafe
^Qycell Corporation
^Trademark Equipment Company Inc and David A.
Daniel
^Valiev Ballet Academy, Inc
^LaHoBa, LLC d/b/a Papa John's
^MTV Bowl, Inc. dba Legend Lanes
^Lavertue Properties LLP dba Lavertue Properties
^Lisle Lincoln II Limited Partnership dba Lisle Lanes
LP
^Pierce Developments, Inc. dba Southside Granite
^J&K Fitness, LLC dba Physiques Womens Fitness
Center
^Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
^Modern on the Mile, LLC dba Ligne Roset
^Profile Performance, Inc. and Eidak Real Estate,
L.L.C.
^Northwind Outdoor Recreation, Inc. dba Red Rock
Wilderness Store
^Michael S. Korfe dba North Valley Auto Repair
^Actknowledge,Inc dba Actknowledge
^Stephen Frank, Patricia Frank and Suds Express LLC
dba Frank Chiropra
^SuzyQue’s LLC dba Suzy Que’s
^Little People’s Village, LLC dba Little People’s
Village
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
10/25/2021
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Term Loan
Prime plus 2.75%
Food Services and Drinking Places
Plastics and Rubber Products Manufacturing
Miscellaneous Store Retailers
Performing Arts, Spectator Sports, and Related Industries
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Amusement, Gambling, and Recreation Industries
Merchant Wholesalers, Durable Goods
Amusement, Gambling, and Recreation Industries
Merchant Wholesalers, Nondurable Goods
Furniture and Home Furnishings Stores
Repair and Maintenance
Nonstore Retailers
Repair and Maintenance
Personal and Laundry Services
Ambulatory Health Care Services
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Term Loan
Prime plus 2.75%
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Social Assistance
Term Loan
Prime plus 2.75%
F-202
See accompanying notes to consolidated financial statements.
9/30/2036
9/30/2021
9/30/2036
9/28/2021
9/26/2021
8/30/2036
8/19/2021
8/19/2036
8/12/2036
8/3/2036
6/30/2036
6/29/2036
6/29/2036
6/13/2036
6/8/2036
6/3/2021
5/25/2021
4/20/2036
4/18/2036
3/24/2036
3/21/2021
2/25/2023
2/11/2036
1/31/2036
7.9
70.4
104.5
23.9
363.9
21.8
13.9
60.1
113.0
35.9
65.1
213.2
37.8
295.7
215.3
392.9
14.0
64.3
106.6
113.8
12.9
16.7
26.1
50.9
25.8
7.9
70.4
104.5
23.9
363.9
21.8
13.9
60.1
113.0
35.9
65.1
213.2
37.8
295.7
215.3
392.9
14.0
64.3
106.6
113.8
12.9
16.7
26.1
50.9
25.8
8.2
80.5
107.2
27.4
373.0
22.4
15.9
61.6
129.3
41.0
74.5
243.8
43.2
338.0
246.1
449.2
14.3
65.8
121.9
130.1
14.7
17.1
27.1
58.1
29.4
—%
0.03%
0.04%
0.01%
0.13%
0.01%
0.01%
0.02%
0.04%
0.01%
0.03%
0.08%
0.02%
0.12%
0.09%
0.16%
—%
0.02%
0.04%
0.05%
0.01%
0.01%
0.01%
0.02%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Seagate Group Holdings, Inc. dba Seagate Logistics,
Inc.
^Dixie Transport, Inc. & Johnny D. Brown & Jimmy
Brown & Maudain Brown
^Shree OM Lodging, LLC dba Royal Inn
^Lodin Medical Imaging, LLC dba Watson Imaging
Center
^Robert F. Schuler and Lori A. Schuler dba Bob’s
Service Center
^K9 Bytes, Inc & Epazz, Inc
^Elan Realty, LLC and Albert Basse Asociates, Inc.
^Success Express,Inc. dba Success Express
^Modern Manhattan, LLC
^Dirk's Trucking, L.L.C. dba Dirk's Trucking
^Rudy & Louise Chavez dba Clyde's Auto and
Furniture Upholstery
^Newsome Trucking Inc and Kevin Newsome
^DDLK Investments LLC d/b/a Smoothie King
^Members Only Software, Inc
^ActKnowledge,Inc dba ActKnowledge
^I-90 RV & Auto Supercenter
^Zouk, Ltd. dba Palma
^CJ Park Inc. dba Kidville Midtown West
^B&B Fitness and Barbell, Inc. dba Elevations Health
Club
^Tanner Optical Inc. dba Murphy Eye Care
^Excel RP, Inc./Kevin and Joann Foley
^ValleyStar, Inc. dba BrightStar Healthcare
ValleyStar, Inc. dba BrightStar HealthCare
^Diag, LLC dba Kidville
^New Economic Methods LLC dba Rita's
^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
^Lahoba,LLC dba Papa John's Pizza
^Animal Intrusion Prevention Systems Holding
Company, LLC
^David A. Nusblatt, D.M.D, P.C.
^KMC RE, LLC & B&B Kennels
Support Activities for Transportation
Term Loan
Prime plus 2.75%
1/28/2036
94.0
94.0
107.4
Support Activities for Transportation
Accommodation
Term Loan
Term Loan
5.25%
Prime plus 2.75%
12/28/2035
12/17/2035
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/1/2020
Repair and Maintenance
Publishing Industries (except Internet)
Printing and Related Support Activities
Couriers and Messengers
Furniture and Home Furnishings Stores
Truck Transportation
Repair and Maintenance
Truck Transportation
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Personal and Laundry Services
Motor Vehicle and Parts Dealers
Food Services and Drinking Places
Educational Services
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Machinery Manufacturing
Ambulatory Health Care Services
Ambulatory Health Care Services
Educational Services
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Administrative and Support Services
Ambulatory Health Care Services
Personal and Laundry Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
6%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
11/30/2035
9/30/2020
9/30/2035
9/29/2020
9/20/2020
9/17/2020
9/2/2035
9/2/2035
8/30/2020
8/30/2020
6/30/2020
6/29/2035
8/25/2020
6/25/2020
6/22/2035
6/22/2035
7/8/2028
6/28/2020
6/28/2020
6/21/2020
7/15/2020
4/26/2020
12/30/2034
3/29/2024
12/11/2019
11/19/2034
F-203
See accompanying notes to consolidated financial statements.
1,316.8
1,316.8
1,501.0
22.9
17.1
28.0
4.4
187.1
19.5
47.4
4.0
41.0
201.6
0.6
8.5
10.1
60.8
5.9
4.1
200.3
76.6
33.4
1.5
1.1
7.1
0.3
1.1
34.1
22.0
1.2
46.5
22.9
17.1
28.0
4.4
187.1
19.5
47.4
4.0
41.0
201.6
0.6
8.5
10.1
60.8
5.9
4.1
200.3
76.6
33.4
1.5
1.1
7.1
0.3
1.1
34.1
22.0
1.2
46.5
26.1
17.4
31.9
4.4
212.9
19.8
48.2
4.1
46.6
229.4
0.6
8.7
10.3
69.2
6.0
4.1
227.7
87.1
36.3
1.5
1.2
7.2
0.4
1.1
38.6
23.1
1.2
52.8
0.04%
0.52%
0.01%
0.01%
0.01%
—%
0.07%
0.01%
0.02%
—%
0.02%
0.08%
—%
—%
—%
0.02%
—%
—%
0.08%
0.03%
0.01%
—%
—%
—%
—%
—%
0.01%
0.01%
—%
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^ROVER REPAIRS
^Supreme Screw Products
^Gourmet to You, Inc.
^The Alba Financial Group, Inc.
^D & D's Divine Beauty School of Esther, LLC
Bliss Coffee and Wine Bar, LLC
^Zog Inc.
^Connect Litigation Technology, Inc.
^1911 East Main Street Holdings, Corp
^Water Works Laundromat, LLC
^Dave Kris, and MDK Ram Corp.
^Gill Express Inc. dba American Eagle Truck Wash
^Smooth Grounds, Inc.
^Fran-Car Corporation dba Horizon Landscape
Management
^Head To Toe Personalized Pampering, Inc.
^Christopher F. Bohon & Pamela D. Bohon
^Mogas Limited
^Shree Om Lodging, LLC dba Royal Inn
^Pedzik's Pets, LLC
Repair and Maintenance
Fabricated Metal Product Manufacturing
Food Services and Drinking Places
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Educational Services
Food Services and Drinking Places
Other Information Services
Professional, Scientific, and Technical Services
Repair and Maintenance
Personal and Laundry Services
Food and Beverage Stores
Repair and Maintenance
Food Services and Drinking Places
Administrative and Support Services
Personal and Laundry Services
Social Assistance
Gasoline Stations
Accommodation
Support Activities for Agriculture and Forestry
^Nancy Carapelluci & A & M Seasonal Corner Inc.
Building Material and Garden Equipment and Supplies
Dealers
^Patricia Hughes Jones, MD PC
^Moonlight Multi Media Production, Inc.
David M. Goens dba Superior Auto Paint & Body, Inc.
^McCallister Venture Group, LLC and Maw's Vittles,
Inc.
^Chong Hun Im dba Kim's Market
Whirlwind Car Wash, Inc.
^Shuttle Car Wash, Inc. dba Shuttle Car Wash
^Min Hui Lin
^Delta Partners, LLC dba Delta Carwash
^Auto Sales, Inc.
^RAB Services, Inc. & Professional Floor Installations
Ambulatory Health Care Services
Other Information Services
Repair and Maintenance
Food Services and Drinking Places
Food and Beverage Stores
Repair and Maintenance
Repair and Maintenance
Food Services and Drinking Places
Repair and Maintenance
Motor Vehicle and Parts Dealers
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.5%
Prime plus 2.75%
Prime plus 2.75%
6%
6%
6%
Prime plus 2.75%
Prime plus 2%
Prime plus 2.75%
Prime plus 2.25%
Prime plus 2.75%
Prime plus 2.75%
7.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
5.3%
6%
Prime plus 2.75%
Prime plus 2.5%
Prime plus 2%
Prime plus 2.25%
Prime plus 2.75%
Prime plus 2.5%
6%
Prime plus 2.5%
11/28/2029
4/17/2019
2/28/2019
1/10/2019
8/1/2031
8/31/2019
4/30/2020
10/18/2025
5/18/2032
9/7/2027
2/5/2026
1/5/2027
1/31/2019
3/3/2028
1/27/2031
10/28/2026
5/31/2030
5/2/2030
3/31/2030
3/1/2025
1/13/2020
2/1/2025
8/26/2024
7/30/2029
2/27/2024
4/9/2029
11/10/2028
1/30/2028
4/5/2029
8/17/2023
1/31/2023
F-204
See accompanying notes to consolidated financial statements.
48.5
14.2
0.3
7.0
46.6
66.1
32.1
22.7
11.4
160.0
26.8
160.1
23.7
61.9
8.2
2.7
66.1
58.4
8.1
11.7
1.9
2.2
13.8
10.3
7.3
13.8
15.0
15.2
37.8
5.8
5.0
48.5
14.2
0.3
7.0
46.6
66.1
32.1
22.7
11.4
160.0
26.8
160.1
23.7
61.9
8.2
2.7
66.1
58.4
8.1
11.7
1.9
2.2
13.8
10.3
7.3
13.8
15.0
15.2
37.8
5.8
5.0
52.6
14.3
0.3
7.0
51.7
66.7
32.6
23.5
12.7
169.3
28.6
172.1
23.8
67.0
9.0
2.9
72.8
64.3
8.9
12.4
1.9
2.3
14.6
11.3
7.6
14.6
16.0
16.5
40.8
6.0
5.2
0.02%
—%
—%
—%
0.02%
0.02%
0.01%
0.01%
—%
0.06%
0.01%
0.06%
0.01%
0.02%
—%
—%
0.03%
0.02%
—%
—%
—%
—%
0.01%
—%
—%
0.01%
0.01%
0.01%
0.01%
—%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
^Taste of Inverness, Inc. dba China Garden
^Ralph Werner dba Werner Transmission Inc
^Robin C. & Charles E. Taylor & Brigantine Aquatic
Center LLC
^OrthoQuest, P.C.
^Track Side Collision & Tire, Inc.
^Duttakrupa, LLC dba Birmingham Motor Court
^Deesha Corporation, Inc. dba Best Inn & Suites
^Maruti, Inc
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
^Gain Laxmi, Inc. dba Super 8 Motel
^Naseeb Corporation
^Stillwell Ave Prep School
^Karis, Inc.
^Five Corners, Ltd.
^Alyssa Corp dba Knights Inn
^Bhailal Patel dba New Falls Motel
^Pegasus Automotive, Inc.
^Delyannis Iron Works
^P. Agrino, Inc. dba Andover Diner
Total SBA Unguaranteed Accrual Investments
Food Services and Drinking Places
Gasoline Stations
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Plastics and Rubber Products Manufacturing
Accommodation
Accommodation
Accommodation
Furniture and Home Furnishings Stores
Accommodation
Accommodation
Social Assistance
Accommodation
Gasoline Stations
Accommodation
Accommodation
Gasoline Stations
Fabricated Metal Product Manufacturing
Food Services and Drinking Places
SBA Unguaranteed Non-Accrual Investments (3)
*^200 North 8th Street Associates LLC and Enchanted
Acres Fa
Food Manufacturing
Repair and Maintenance
*^A & A Auto Care LLC
*^A & A Auto Care, LLC d/b/a A & A Auto Care, LLC Repair and Maintenance
*Alive Design, LLC
*^Amboy Group, LLC dba Tommy's Moloney's
*^American Reclamation LLC
*Anderson Farms Inc
*^Auto Shine Carwash Inc and AKM R. Hossain and
Jessica F. Masud
*AWA Fabrication & Construction, L.L.C.
*^B & J Manufacturing Corporation and Benson Realty
Trust
Professional, Scientific, and Technical Services
Food Manufacturing
Furniture and Related Product Manufacturing
Truck Transportation
Gasoline Stations
Fabricated Metal Product Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2%
Prime plus 2.75%
6%
Prime plus 2%
Prime plus 2.75%
Prime plus 2.25%
Prime plus 2.25%
Prime plus 2.25%
Prime plus 2.75%
Prime plus 2.25%
Prime plus 2.25%
Prime plus 2.75%
Prime plus 2%
Prime plus 2.75%
Prime plus 2.25%
Prime plus 2.75%
Prime plus 2.75%
6%
Prime plus 2.75%
6.25%
7.5%
7.25%
Prime plus 2.75%
7%
Prime plus 2.75%
7.5%
7.75%
6%
6/29/2025
12/29/2021
9/14/2023
3/12/2022
6/16/2025
9/8/2023
2/14/2025
11/25/2024
3/13/2023
5/31/2023
3/31/2024
1/14/2023
12/22/2023
12/11/2019
9/30/2023
3/27/2023
12/23/2022
12/8/2022
7/18/2021
7.1
1.5
27.6
2.5
4.0
9.1
22.0
20.2
5.1
14.7
22.9
4.6
10.1
1.7
36.2
2.4
7.2
5.2
7.1
1.5
27.6
2.5
4.0
9.1
22.0
20.2
5.1
14.7
22.9
4.6
10.1
1.7
36.2
2.4
7.2
5.2
7.4
1.5
28.8
2.6
4.2
9.4
22.9
21.0
5.3
15.2
23.7
4.8
10.4
1.7
37.4
2.5
7.5
5.4
5.2
$ 318,862.2
5.2
$ 318,862.2
5.3
$ 329,339.7
5/4/2028
$
469.3
$
469.3
$
366.0
3/9/2026
8/12/2036
3/13/2027
6/24/2025
11/1/2027
10.4
88.0
17.9
375.2
7.2
10.4
88.0
17.9
375.2
7.2
12/22/2027
1,217.1
1,217.1
9/26/2024
4/30/2025
3/30/2021
15.7
34.8
11.0
15.7
34.8
11.0
4.5
84.7
13.7
367.9
6.4
947.3
14.8
5.2
9.8
—%
—%
0.01%
—%
—%
—%
0.01%
0.01%
—%
0.01%
0.01%
—%
—%
—%
0.01%
—%
—%
—%
—%
114.57%
0.13%
—%
0.03%
—%
0.13%
—%
0.33%
0.01%
—%
—%
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2%
F-205
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
*^B and J Catering Inc dba Culinary Solutions
*Baker Sales, Inc. d/b/a Baker Sales, Inc.
*^Fieldstone Quick Stop LLC(OC) Barber Investments
LLC (EPC) Thadius M B
*^Barber Investments LLC and Fieldstone Quickstop
LLC and Maine Dollar D
*^Bear Creek Entertainment LLC dba The Woods at
Bear Creek
*^Bear Creek Entertainment, LLC dba The Woods at
Bear Creek
*Bebos Inc dba Pizza Hut & Sunoco
*^Bobcatt Solutions, LLC
*Bone Bar & Grill LLC
*^Calhoun Satellite Communications Inc and
Transmission Solutions Group
*Calhoun Satellite Communications, Inc.
*^Capstone Pediatrics PLLC and Capstone Healthcare
Consulting LLC
*^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber
Transportation/Bieber
*^Central Ohio Cleaners Inc
*^Chickamauga Properties, Inc., MSW Enterprises,
LLP
*^Chickamauga Properties, Inc. and MSW Enterprises,
LLP
*^CLU Amboy, LLC (EPC) and Amboy Group, LLC
(OC) dba Tommy Moloney's
*^CM Lab Inc
*^Colts V LLC and Nowatzke Service Center, Inc dba
Nowatzke Truck & Trai
*^Custom Software, Inc. a Colorado Corporation dba
M-33 Access
*^Custom Software, Inc. a Colorado Corporation dba
M-33 Access
*^D&G Capital LLC dba Miami Grill 277
*^Demand Printing Solutions, Inc
*^Demand Printing Solutions, Inc.
*^Demand Printing Solutions, Inc. and MLM
Enterprises, LLC d/b/a Demand
*^MLM Enterprises LLC and Demand Printing
Solutions Inc
Food Services and Drinking Places
Nonstore Retailers
Gasoline Stations
Gasoline Stations
Accommodation
Accommodation
Gasoline Stations
Specialty Trade Contractors
Food Services and Drinking Places
Broadcasting (except Internet)
Telecommunications
Term Loan
Term Loan
Term Loan
7%
6%
6%
Term Loan
6.25%
8/27/2040
3/29/2036
9/30/2038
8/15/2039
532.9
177.4
400.4
146.3
532.9
177.4
400.4
146.3
486.2
81.8
36.4
—
Term Loan
Prime plus 2.75%
8/12/2041
1,608.1
1,671.3
412.9
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
7.25%
Prime plus 2.75%
Prime plus 2.75%
7%
6.75%
7%
12/30/2024
3/28/2028
11/8/2027
6/30/2042
2/27/2025
12/2/2026
5/15/2025
9/30/2027
6/13/2024
12/22/2035
10/19/2022
12/27/2023
5/20/2026
9/26/2039
6/17/2021
4/30/2022
12/16/2025
10/29/2034
12/12/2019
85.4
214.1
35.8
73.4
724.2
189.1
556.4
573.2
90.5
59.0
43.5
469.0
166.1
553.3
256.7
94.3
81.2
119.5
1.6
5.5
50.2
85.4
214.1
35.8
73.4
724.2
189.1
556.4
573.2
90.5
59.0
43.5
469.0
166.1
553.3
256.7
94.3
81.2
119.5
1.6
5.5
50.2
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
Transit and Ground Passenger Transportation
Personal and Laundry Services
Term Loan
Term Loan
7.5%
7%
Amusement, Gambling, and Recreation Industries
Term Loan
6.25%
Amusement, Gambling, and Recreation Industries
Term Loan
6.25%
Food Manufacturing
Professional, Scientific, and Technical Services
Repair and Maintenance
Term Loan
Term Loan
7%
6.75%
Term Loan
6.75%
Professional, Scientific, and Technical Services
Term Loan
6.25%
Broadcasting (except Internet)
Food Services and Drinking Places
Printing and Related Support Activities
Printing and Related Support Activities
Term Loan
Term Loan
Term Loan
Term Loan
6.25%
6.5%
Prime plus 2.75%
Prime plus 2.75%
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
5/27/2021
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
11/18/2024
F-206
See accompanying notes to consolidated financial statements.
0.17%
0.03%
0.01%
—%
0.14%
0.03%
0.03%
0.01%
0.02%
—%
0.01%
0.11%
0.19%
—%
0.02%
—%
0.16%
0.05%
0.18%
0.08%
—%
0.01%
0.04%
—%
—%
79.0
99.5
33.1
57.5
—
40.9
314.8
551.2
8.9
56.8
—
459.9
134.9
528.7
226.1
—
28.7
110.5
1.5
5.1
46.4
0.02%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
*^Demand Printing Solutions Inc
*^Demand Printing Solutions Inc.
*^Demand Printing Solutions Inc.
*^Dr Richard Rolle JR, PLLC dba Rolle Oral & Facial
Surgery PLLC
*^Dr. Richard R. Rolle, Jr., PLLC dba Rolle Oral &
Facial Surgery
*^Driven Warehouse/Distribution LLC
*^Driven Warehouse/Distribution LLC
*^DTM Parts Supply Inc.
*^E & I Holdings, LP & PA Farm Products, LLC
*^Europlast Ltd
*^Europlast Ltd
*^Event Mecca LLC
*^Evernook Valley Milk LLC
*^EZ Towing, Inc.
*^Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
*^New Image Building Services, Inc. dba New Image
Repair Services
*^New Image Building Services Inc. dba New Image
Repair Services; The Ma
*^New Image Building Services, Inc. dba The Maids
serving Oakland and Ma
*^New Image Building Services, Inc.dba The Maids
Servicing Oakland &Maco
*^New Image Building Services, Inc.
*Farec, Inc
*^Galaforo Construction and Companies LLC
*Galaforo Construction LLC and Paul M Galaforo, Jr.
*^Gator Communications Group LLC dba Harvard
Printing Group
*^Gator Communications Group LLC dba Harvard
Printing Group
*^Gator Communications Group, LLC dba Harvard
Printing Group
*^Gino Italian American Deli and Meat Market Inc
*^Groundworks Unlimited LLC
Printing and Related Support Activities
Printing and Related Support Activities
Printing and Related Support Activities
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/15/2027
3/16/2026
5/25/2027
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/29/2042
Ambulatory Health Care Services
Truck Transportation
Truck Transportation
Merchant Wholesalers, Durable Goods
Food Manufacturing
Plastics and Rubber Products Manufacturing
Plastics and Rubber Products Manufacturing
Other Information Services
Animal Production and Aquaculture
Support Activities for Transportation
Administrative and Support Services
Repair and Maintenance
Repair and Maintenance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
7%
6%
6%
6%
6%
7.5%
6%
Prime plus 2.75%
12/18/2027
12/22/2027
1/18/2028
6/2/2025
4/30/2030
9/26/2022
5/31/2023
4/10/2023
8/31/2042
1/31/2023
12/20/2027
Term Loan
Prime plus 2.75%
8/23/2037
Term Loan
Prime plus 2.75%
10/29/2023
Administrative and Support Services
Term Loan
Prime plus 2.75%
1/19/2026
Administrative and Support Services
Administrative and Support Services
Amusement, Gambling, and Recreation Industries
Construction of Buildings
Construction of Buildings
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
7.5%
7.5%
7.5%
Printing and Related Support Activities
Term Loan
6.25%
Printing and Related Support Activities
Term Loan
6.25%
Printing and Related Support Activities
Food and Beverage Stores
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
6.25%
7%
6%
12/21/2026
5/18/2027
12/29/2042
12/15/2042
12/15/2027
3/30/2022
4/25/2022
3/27/2023
7/25/2041
12/17/2023
F-207
See accompanying notes to consolidated financial statements.
17.0
17.8
199.2
869.9
122.3
726.2
129.0
54.8
17.0
17.8
199.2
869.9
122.3
726.2
129.0
54.8
4,705.2
313.0
4,822.6
313.0
73.4
11.4
637.5
86.4
286.5
251.9
197.1
67.8
39.0
138.9
267.9
207.8
334.0
233.5
157.8
13.3
119.9
8.8
73.4
11.4
637.5
86.4
286.5
251.9
197.1
67.8
39.0
138.9
267.9
207.8
334.0
233.5
157.8
13.3
119.9
8.8
15.7
16.5
82.1
679.6
—
671.6
10.2
43.9
2,741.0
22.3
—
9.0
545.9
1.2
72.5
152.9
—
—
—
—
248.9
196.0
82.8
—
—
—
113.1
8.3
0.01%
0.01%
0.03%
0.24%
—%
0.23%
—%
0.02%
0.95%
0.01%
—%
—%
0.19%
—%
0.03%
0.05%
—%
—%
—%
—%
0.09%
0.07%
0.03%
—%
—%
—%
0.04%
—%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
*^Grand Manor Realty, Inc. & Kevin LaRoe
*Guzman Group,LLC
*Harrelson Materials Management,Inc
*^Hartford Cardiology Group LLC and Ideal Nutrition
of Connecticut LLC
*^Hascher Gabelstapler Inc
*^HG Ventures, Inc.
*^HG Ventures, Inc. dba Diamond Head Trucking
*^Home Again Restaurant LLC
*^Ian Winterbotham dba Furnishing America
*^InformationTelevision Network Inc
*^J And G Group Services LLC and United Vending of
Florida Inc and John
*J Harris Trucking LLC
*^J Harris Trucking, LLC
*^J Olson Enterprises LLC and Olson Trucking Direct,
Inc.
*^Jacksonville Beauty Institute Inc. dba Beauty
Institute's
*Jenny's Wunderland, Inc.
*Juliador Resources LLC DBA Cue Hair Salon and
Skin Care
*^Kantz LLC and Kantz Auto LLC dba Kantz's
Hometown Auto
*^Kids at Heart,LLC dba Monster Mini Golf
*Krishna of Orangeburg, Inc.
*^Kup's Auto Spa Inc
*Kup’s Auto Spa, Inc.
*^L.M. Jury Enterprises, Inc dba Midwest Monograms
*^LA Diner Inc dba Loukas L A Diner
*^Las Casuelas Del Este Inc.
*^Lowgap Grocery & Grill LLC
*^M & H Pine Straw Inc and Harris L. Maloy
*^M & H Pine Straw, Inc and Harris L. Maloy
*^M & H Pine Straw, Inc.and Harris Maloy
*^M & H Pinestraw, Inc. and Harris L. Maloy
*^M and C Renovations Inc
Real Estate
Rental and Leasing Services
Waste Management and Remediation Services
Ambulatory Health Care Services
Repair and Maintenance
Truck Transportation
Truck Transportation
Food Services and Drinking Places
Furniture and Home Furnishings Stores
Motion Picture and Sound Recording Industries
Merchant Wholesalers, Nondurable Goods
Truck Transportation
Truck Transportation
Truck Transportation
Educational Services
Social Assistance
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
6%
6%
6%
6.25%
7%
7.5%
7.5%
6.25%
Prime plus 2.75%
7.5%
7.25%
7.25%
7.25%
6%
7%
6%
Personal and Laundry Services
Term Loan
7.25%
Motor Vehicle and Parts Dealers
Amusement, Gambling, and Recreation Industries
Accommodation
Repair and Maintenance
Repair and Maintenance
Textile Product Mills
Food Services and Drinking Places
Food Services and Drinking Places
General Merchandise Stores
Merchant Wholesalers, Nondurable Goods
Support Activities for Agriculture and Forestry
Support Activities for Agriculture and Forestry
Merchant Wholesalers, Nondurable Goods
Construction of Buildings
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
6.25%
6.75%
6%
6.25%
6.25%
7.25%
7.25%
7%
7.25%
7.5%
6%
7.5%
7.5%
6.25%
2/20/2023
9/30/2019
6/24/2021
6/30/2026
3/26/2024
3/9/2028
6/29/2030
6/30/2040
11/17/2027
9/22/2041
7/28/2026
5/19/2027
5/13/2026
19.0
173.8
465.2
462.5
106.6
125.9
929.1
0.4
93.4
823.0
29.6
18.7
38.1
19.0
173.8
465.2
462.5
106.6
125.9
929.1
0.4
93.4
823.0
29.6
18.7
38.1
6/28/2025
628.4
628.4
10/23/2025
6/29/2036
5/24/2027
10/29/2039
9/22/2026
2/20/2032
11/15/2038
10/23/2025
10/28/2025
9/28/2037
9/29/2041
3/24/2041
3/21/2023
4/30/2020
7/10/2020
12/15/2021
10/31/2024
40.9
98.8
21.9
11.1
20.4
10.3
70.5
54.7
60.6
617.8
791.6
48.0
197.4
54.2
27.4
133.8
13.0
40.9
98.8
21.9
11.1
20.4
10.3
70.5
54.7
60.6
617.8
791.6
48.0
197.4
54.2
27.4
133.8
13.0
17.2
37.6
23.8
—
58.8
96.7
715.9
0.4
73.9
761.1
28.5
8.3
36.5
44.2
31.7
14.6
19.4
8.7
15.9
5.5
31.6
—
9.1
571.4
356.0
40.0
58.4
52.1
19.8
48.7
7.8
0.01%
0.01%
0.01%
—%
0.02%
0.03%
0.25%
—%
0.03%
0.26%
0.01%
—%
0.01%
0.02%
0.01%
0.01%
0.01%
—%
0.01%
—%
0.01%
—%
—%
0.20%
0.12%
0.01%
0.02%
0.02%
0.01%
0.02%
—%
F-208
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
*^Mariam Diner Inc dba Country Kitchen Restaurant
*^Matchless Transportation LLC dba First Class Limo
*^Medeiros Holdings Inc dba Outdoor Lighting
Perspectives of the Triad
Food Services and Drinking Places
Transit and Ground Passenger Transportation
Electrical Equipment, Appliance, and Component
Manufacturing
*^Mojo Brands Media, LLC
*^Morris Glass and Construction Inc
*^Nelson Sargsyan dba HDA Trucking
*^Nowatzke Service Center Inc dba Nowatzke Truck
and Trailer
*Paragon Fabricators Inc, Paragon Field Services, Inc
and Paragon Globa
*^Paragon Global, LLC and Paragon Fabricators Inc
and Paragon Field Serv
*^Peckett's Inc
*^Pooh's Corner Realty LLC and Pooh's Corner Inc
*^RDT Enterprises LLC
*^RDT Enterprises, L.L.C.
*^RDT Enterprises, LLC
*^Route 130 SCPI Holdings LLC (EPC) Route 130
SCPI Operations LLC (OC) d
*^Scoler LLC dba Gold's Gym
*^Scoville Plumbing & Heating Inc and Thomas P.
Scoville
*^SDA Holdings LLC and Les Cheveux Salon Inc
*Select Propane & Fuel Inc. and Select Fuel &
Convenience LLC
*Shaffer Automotive Repair, LLC
*^Shane M. Howell and Buck Hardware and Garden
Center, LLC
*^Shivsakti, LLC dba Knights Inn
*^Soregard Inc
*^Sourceco Limited Liability Company
*^Sovereign Communications LLC
*^Square Deal Siding Company,LLC dba Square Deal
Siding Company
*^Stellar Environmental LLC
Broadcasting (except Internet)
Specialty Trade Contractors
Support Activities for Transportation
Repair and Maintenance
Heavy and Civil Engineering Construction
Heavy and Civil Engineering Construction
Crop Production
Social Assistance
Specialty Trade Contractors
Specialty Trade Contractors
Specialty Trade Contractors
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Specialty Trade Contractors
Personal and Laundry Services
Merchant Wholesalers, Nondurable Goods
Repair and Maintenance
Building Material and Garden Equipment and Supplies
Dealers
Accommodation
Furniture and Related Product Manufacturing
Merchant Wholesalers, Nondurable Goods
Broadcasting (except Internet)
Specialty Trade Contractors
Waste Management and Remediation Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
6.25%
7%
6%
15%
Prime plus 2.75%
7%
7%
7%
7%
7%
7%
7%
7%
6.25%
Prime plus 2.75%
6.75%
7.5%
7.5%
7%
7.5%
6.25%
7.5%
6.5%
6.75%
7.5%
Prime plus 2.75%
3/18/2026
8/3/2022
11/25/2025
8/28/2023
10/1/2023
6/16/2025
1/29/2026
9/28/2026
9/28/2041
7/27/2041
7/23/2040
9/15/2027
11/12/2025
12/31/2028
9/30/2039
4/29/2026
7/25/2022
12/15/2040
2/10/2030
5/24/2030
12/27/2038
12/20/2032
6/30/2041
12/17/2025
2/7/2024
6/18/2025
3/18/2023
F-209
See accompanying notes to consolidated financial statements.
42.8
123.3
19.6
725.0
448.0
100.8
96.9
571.2
110.1
219.6
100.3
136.9
19.6
111.5
279.5
219.3
32.1
108.5
593.3
132.8
120.2
3.3
158.9
45.0
654.2
2.1
30.6
42.8
123.3
19.6
725.0
448.0
100.8
96.9
571.2
110.1
219.6
100.3
136.9
19.6
111.5
279.5
219.3
32.1
108.5
593.3
132.8
120.2
3.3
158.9
45.0
654.2
2.1
30.6
24.5
103.0
12.7
325.3
350.5
63.7
61.3
25.9
101.9
169.0
96.4
77.9
—
70.1
125.2
26.7
30.8
104.3
109.4
120.1
93.3
—
81.3
44.1
517.0
2.0
28.3
0.01%
0.04%
—%
0.11%
0.12%
0.02%
0.02%
0.01%
0.04%
0.06%
0.03%
0.03%
—%
0.02%
0.04%
0.01%
0.01%
0.04%
0.04%
0.04%
0.03%
—%
0.03%
0.02%
0.18%
—%
0.01%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
*^STK Ventures Inc dba JP Dock Service & Supply
*^Stormrider Inc dba Shirley's Stormrider Inc
*^Stormrider Inc dba Shirley's Stormrider, Inc
*^Street Magic Enterprise LLC
*^Street Magic Enterprise LLC dba New Lisbon Travel
Mart
*^Suncrest Stone Products LLC
*^Suncrest Stone Products LLC
*^T and B Boots Inc dba Takken's Shoes
*^T and B Boots Inc dba Takken's Shoes
*T and B Boots Inc dba Takken's Shoes
*^Tannehill Enterprises Inc dba Hobbytown USA
Folsom
*^Tarver-Henley Inc. and Tar-Hen LLC
*^The Delon Group LLC dba I Love Juice Bar
*^Tim's Tire & Automotive Center, LLC
*^The Woods at Bear Creek LLC and Bear Creek
Entertainment LLC dba The
*^Thomas P. Scoville dba Scoville Plumbing &
Heating, Inc.
*Transmission Solutions Group, Inc. and Calhoun
Satellite Communicatio
*^Tri-State Remodeling & Investments, LLC
*^TX Superior Communications, LLC
*^Vision Automotive LLC dba Vision Chrysler Jeep
Dodge Ram of Defiance
*Vision Collision Center LLC dba Integrity Auto Body
& Vision Automoti
*^Webb Eye Associates, PA
*^Wilban LLC
*^Wilban LLC
*Work of Heart Inc dba Little Nest Portraits
*^Work of Heart Inc dba Little Nest Portraits
Total SBA Unguaranteed Non-Accrual Investments
Total Unguaranteed SBA Investments
Specialty Trade Contractors
Truck Transportation
Truck Transportation
Gasoline Stations
Gasoline Stations
Nonmetallic Mineral Product Manufacturing
Nonmetallic Mineral Product Manufacturing
Clothing and Clothing Accessories Stores
Clothing and Clothing Accessories Stores
Clothing and Clothing Accessories Stores
Sporting Goods, Hobby, Musical Instrument, and Book
Stores
Building Material and Garden Equipment and Supplies
Dealers
Food Services and Drinking Places
Support Activities for Transportation
Accommodation
Specialty Trade Contractors
Telecommunications
Specialty Trade Contractors
Specialty Trade Contractors
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
6%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
7.5%
7.25%
7.5%
7%
7.25%
7.25%
Term Loan
7.75%
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
7%
7%
Term Loan
7%
Term Loan
6.75%
Term Loan
Term Loan
Term Loan
7%
7.5%
Prime plus 2.75%
Motor Vehicle and Parts Dealers
Term Loan
7.5%
Repair and Maintenance
Ambulatory Health Care Services
Food Services and Drinking Places
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
7.5%
7.25%
7.5%
7.25%
7.5%
7.5%
5/9/2037
9/23/2025
11/25/2024
12/21/2027
11/7/2042
8/29/2041
8/29/2026
3/31/2025
6/17/2026
12/7/2026
10/14/2025
6/21/2042
5/12/2026
8/16/2026
9/29/2039
11/16/2021
12/2/2041
12/11/2025
3/19/2028
9/29/2029
11/21/2027
7/19/2027
3/11/2026
3/28/2039
1/10/2028
7/28/2027
31.6
50.9
102.9
86.3
419.0
638.7
539.6
23.0
204.5
95.2
71.1
314.6
19.3
410.2
489.6
33.6
141.3
13.3
90.3
570.1
349.2
71.2
93.2
402.7
5.2
47.1
31.6
50.9
102.9
86.3
419.0
638.7
539.6
23.0
204.5
95.2
71.1
314.6
19.3
410.2
489.6
33.6
141.3
13.3
90.3
570.1
349.2
71.2
93.2
402.7
5.2
47.1
11.2
—
37.5
15.7
387.5
262.8
131.3
20.2
—
89.8
45.5
302.5
18.6
98.6
452.8
32.3
65.7
11.5
30.5
299.4
—
28.9
86.2
289.6
5.1
46.2
—%
—%
0.01%
0.01%
0.13%
0.09%
0.05%
0.01%
—%
0.03%
0.02%
0.11%
0.01%
0.03%
0.16%
0.01%
0.02%
—%
0.01%
0.10%
—%
0.01%
0.03%
0.10%
—%
0.02%
F-210
See accompanying notes to consolidated financial statements.
$ 36,546.2
$ 36,726.8
$ 20,062.3
6.98%
$ 355,408.4
$ 355,589.0
$ 349,402.0
121.55%
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
SBA Guaranteed Accrual Investments (4)
Always Goldie's Florist
The Law Office of Jared E. Shapiro, P.A.
Medworxs Inc.
Fave Realty Inc.
East Breeze LLC dba Historic Springdale Pub and
Eatery
Children First Home Health Care Inc
Superior Concepts Acquisition Corp
Superior Concepts Acquisition Corp
Nix and Nix Funeral Home North Inc,
Galt Insurance Group of Bonita Springs, LLC & Bonita
Safety Institute
Omega Funeral and Cremation Services, LLC
Capitol Fitness Shelby Inc.
The Chop House Inc.
Romain Tower Inc. David Romaine, Sugar Land Crane
and Rigging, LLC
HDD Solutions, LLC
Paramount Dance Studios Inc. and Homestead Dance
Supply
Lou & Choo Enterprises Inc.
Metropolitan Solutions Inc.
Kneading Dough LLC dba NY Bagel Cafe & Deli, NY
Bagel, New York Bagel
Olmsted LLC and 626 Van LLC dba Maison Yaki
Starship, LLC dba Tint World Smyrna
AVM LLC dba Luv 2 Play
Surya Hotel LLC dba Hotel Royal
Bio-Haz Solutions, Inc.
Bio-Haz Solutions, Inc
Geo Tek Alaska, Inc
National Stone LTD and NSI Group Inc
Blue Seven, LLC
Hackstaff Restaurants LLC
Miscellaneous Store Retailers
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Real Estate
Food Services and Drinking Places
Ambulatory Health Care Services
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services
Personal and Laundry Services
Insurance Carriers and Related Activities
Personal and Laundry Services
Amusement, Gambling, and Recreation Industries
Food Services and Drinking Places
Heavy and Civil Engineering Construction
Heavy and Civil Engineering Construction
Educational Services
Food Services and Drinking Places
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Food Services and Drinking Places
Repair and Maintenance
Social Assistance
Accommodation
Waste Management and Remediation Services
Waste Management and Remediation Services
Professional, Scientific, and Technical Services
Building Material and Garden Equipment and Supplies
Dealers
Ambulatory Health Care Services
Food Services and Drinking Places
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
12/19/2028
12/21/2028
12/27/2028
12/27/2043
12/27/2043
12/27/2028
12/28/2028
12/28/2043
12/28/2043
12/28/2043
12/28/2043
12/28/2028
12/31/2043
12/31/2028
12/31/2028
66.3
63.8
59.5
370.5
384.8
900.0
359.5
1,528.8
1,708.5
106.3
1,028.6
102.9
1,673.3
712.5
1,661.3
66.3
63.8
59.5
370.5
384.8
900.0
359.5
1,528.8
1,708.5
106.3
1,028.6
102.9
1,673.3
712.5
1,661.3
72.7
69.9
65.2
415.3
431.3
988.2
395.1
1,710.0
1,905.0
119.1
1,152.0
113.0
1,870.7
783.0
1,816.6
10/14/2043
1,225.5
1,225.5
1,360.4
2/28/2044
4/30/2043
2/23/2029
2/1/2029
5/25/2043
6/1/2028
12/21/2028
6/29/2043
1/29/2029
2/17/2044
8/31/2044
1/27/2029
1/15/2029
101.4
102.7
102.5
564.5
266.3
78.2
302.6
906.3
335.9
170.3
579.5
149.3
172.6
101.4
102.7
102.5
564.5
266.3
78.2
302.6
906.3
335.9
170.3
579.5
149.3
172.6
113.1
114.5
111.8
617.0
297.1
84.4
331.1
1,011.7
367.5
190.5
645.4
164.1
189.7
0.03%
0.02%
0.02%
0.14%
0.15%
0.34%
0.14%
0.59%
0.66%
0.04%
0.40%
0.04%
0.65%
0.27%
0.63%
0.47%
0.04%
0.04%
0.04%
0.21%
0.10%
0.03%
0.12%
0.35%
0.13%
0.07%
0.22%
0.06%
0.07%
F-211
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Vancole Investments, Inc. dba Smoothie King #913
Beau & HB Inc dba Beau's Billiard, Bowling & Arcade Amusement, Gambling, and Recreation Industries
UK, LLC dba Pita Pit
JP Dhillon's Foods LLC
Thames Aquatic Club, LLC
D for Dream LLC dba Blow Dry Bar Inc
JejoJesi Corp dba Dukunoo Jamaican Kitchen,
Dunkunoo
Sheldon T Banks and Sheldon T Banks LLC dba
Serenity Funeral Chapel ll
Healthy and Fresco LLC
Accel Compression Inc., Accel Workover Services Inc
Total SBA Guaranteed Accrual Investments
Food Services and Drinking Places
Food Services and Drinking Places
Food Services and Drinking Places
Educational Services
Personal and Laundry Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
Personal and Laundry Services
Food Services and Drinking Places
Rental and Leasing Services
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
Prime plus 2.75%
1/30/2029
2/1/2029
5/7/2044
3/16/2029
7/21/2029
5/13/2029
3/19/2029
9/19/2044
2/20/2029
6/21/2044
97.2
77.5
687.7
20.7
55.5
73.2
126.4
86.7
75.0
133.6
97.2
77.5
687.7
20.7
55.5
73.2
126.4
86.7
75.0
133.6
106.8
85.2
770.6
22.8
61.0
80.4
138.9
97.0
82.4
149.7
0.04%
0.03%
0.27%
0.01%
0.02%
0.03%
0.05%
0.03%
0.03%
0.05%
$ 17,217.4
$ 17,217.4
$ 19,100.2
6.64%
$ 372,625.8
$ 372,806.4
$ 368,502.2
128.20%
Total SBA Unguaranteed and Guaranteed Investments
Controlled Investments (5)
*Advanced Cyber Security Systems, LLC (6), (20)
Data processing, hosting and related services.
*Automated Merchant Services, Inc. (7), (20)
Data processing, hosting and related services.
CDS Business Services, Inc. (8)
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Newtek Technology Solutions, Inc. (11)
Data processing, hosting and related services.
50%
Membership
Interest
Term Loan
100% Common
Stock
100% Common
Stock
Line of Credit
Term Loan
100% Common
Stock
—%
3%
—%
—%
—
—
—
December
2014
381.0
381.0
—
—
—
—
—
4,428.0
5,000.0
—
—
—
Prime plus 2.5%
December
2019
10% April 2020
5,000.0
1,000.0
5,000.0
1,000.0
5,000.0
1,000.0
—%
—
—
8,384.0
8,500.0
—%
—%
—%
1.74%
1.74%
0.35%
2.96%
2.37%
Line of Credit
LIBOR plus 2.5%
November
2028
6,800.0
6,800.0
6,800.0
F-212
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
*Newtek Insurance Agency, LLC (13)
Insurance Carriers and Related Activities
*PMTWorks Payroll, LLC (9)
Data processing, hosting and related services.
Small Business Lending, LLC (12), (20)
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
*ADR Partners, LLC dba banc-serv Partners, LLC (12)
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
International Professional Marketing, Inc. (16)
Professional, Scientific, and Technical Services
SIDCO, LLC (16)
Professional, Scientific, and Technical Services
Newtek Merchant Solutions, LLC (11)
Data processing, hosting and related services.
Mobil Money, LLC (17)
Data processing, hosting and related services.
Newtek Business Lending, LLC (10)
Newtek Conventional Lending, LLC (18)
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
Titanium Asset Management, LLC (14)
Administrative and Support Services
Excel WebSolutions, LLC (15)
Data processing, hosting and related services.
Line of Credit
Prime plus 0.5%
April 2019
800.0
100%
Membership
Interest
—%
—
—
Line of Credit
Prime plus 0.5%
July 2019
175.0
100%
Membership
Interest
100%
Membership
Interest
Term Loan
100%
Membership
Interest
100%
Membership
Interest
100% Common
Stock
10%-12%
—%
—%
—%
—%
—%
100%
Membership
Interest
100%
Membership
Interest
100%
Membership
Interest
50%
Membership
Interest
Term Loan
100%
Membership
Interest
Term Loan
50%
Membership
Interest
—%
—%
—%
—%
10%
—%
10%
—%
—
—
Various
maturities
through May
2020
—
135.0
2,215.0
0.77%
—
1,106.1
—
—%
2,685.0
2,685.0
—
—%
—
—
—
—
—
—
—
—
—
—
—
—
—
—
250.0
3,300.0
1.15%
6,799.2
4,000.0
800.0
7,119.7
175.0
—
3,300.0
800.0
7,819.7
175.0
—%
1.15%
0.28%
2.72%
0.06%
16,438.0
116,250.0
40.44%
2,980.0
2,980.0
1.04%
5,445.0
8,445.0
2.94%
—
December
2018
193.9
193.9
—
—
—
September
2020
159.2
159.2
—
—
—
—
—
—
—
—
—%
—%
—%
—%
—%
F-213
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2018
(In Thousands)
Portfolio Company
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Total Controlled Investments
Non-control/Affiliate Investments
$ 17,194.1
$ 74,279.1
$ 171,584.7
59.69%
EMCAP Loan Holdings, LLC (19) (23)
Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
6.04%
Membership
Interest
—%
—
—
1,000.0
1,000.0
0.35%
Investments in Money Market Funds
UBS Select Treasury Institutional Fund - 2.17% yield
$
9.0
$
9.0
$
9.0
—%
Total Investments
^ Denotes investment that has been pledged as collateral under the Securitization Trusts.
* Denotes non-income producing security.
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan
188.24%
$ 389,828.9
$ 448,094.5
$ 541,095.9
pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for
each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were
originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded Preferred Lender Program (“PLP”) status from
the SBA. Portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as
a pool of loans in a security form to qualified investors. Includes 5 loans with a cost basis of $4,663,000 and fair value of $5,258,000 which NSBF owns 100% of the outstanding loan balance
that were originated by NSBF, but are no longer deemed SBA 7(a) loans as a result of Newtek repurchasing the guaranteed portions of the loans from the SBA.
(2) Prime Rate is equal to 5.25% and 1 month LIBOR is equal to 2.50269% as of December 31, 2018.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to
liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end
of the modification period. Includes 3 loans with a cost basis of $6,942,000 and fair value of $3,504,000 which NSBF owns 100% of the outstanding loan balance that were originated by NSBF,
but are no longer deemed SBA 7(a) loans as a result of Newtek repurchasing the guaranteed portions of the loans from the SBA.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market.
Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment
Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of
the voting securities of such company. See Note 5 in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2018 with affiliates the
Company is deemed to control.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As
such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 50.15% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a
subsidiary of Newtek Business Services Corp.).
F-214
See accompanying notes to consolidated financial statements.
(9) 25% owned by The Whitestone Group, LLC, (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of
Newtek Business Services Corp.), and 10% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 100% owned by Newtek Business Services Holdco 6, Inc. (a subsidiary of Newtek Business Services Corp.
(11) 100% owned by NBSH Holdings, LLC (a subsidiary of Newtek Business Services Holdco 1, Inc., a subsidiary of Newtek Business Services Corp.). Premier was merged with NMS at December
31, 2018.
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Newtek Business Services Holdco 5, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 47.8% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings
I, Inc., a subsidiary of Newtek Business Services Corp.) and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.) and 50% owned by non-affiliate.
(16) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.). During the year ended December 31, 2017, a portion of IPM’s business was spun off
into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and
SIDCO to be $4,000,000 and $7,120,000, respectively.
(17) 100% owned by Newtek Business Services Holdco 4, Inc. (a subsidiary of Newtek Business Services Corp.).
(18) 50% owned by Newtek Conventional Lending, Inc. (a subsidiary of Newtek Business Services Corp.).
(19) 6.04% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(20) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were
expensed when incurred.
(21) All of the Company’s investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(22) The fair value of the investment was determined using significant unobservable inputs.
(23) The Company’s investments generally are acquired in private transactions exempt from registration under the Securities Act and, therefore, generally are subject to limitations on resale, and may
be deemed to be “restricted securities” under the Securities Act. However, unless otherwise indicated, such securities may be sold in certain transactions (generally to qualified institutional
buyers) and remain exempt from registration.
(24) Restricted security initially obtained on April 25, 2018.
(25) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least
70% of the Company’s total assets. At December 31, 2018, 4.2% of total assets are non-qualifying assets.
As of December 31, 2018, the federal tax cost of investments was $439,711,000 resulting in estimated gross unrealized gains and losses of $136,870,000 and $35,485,000, respectively.
F-215
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:
Newtek Business Services Corp. is a Maryland corporation which was formed in August 2013 and is an internally managed, closed end, non-diversified investment company. The Company’s
investment strategy is to maximize the investment portfolio’s return by generating current income from the debt investments the Company makes and generate dividend income from equity
investments in controlled portfolio companies.
The Company has formed certain Taxable Subsidiaries, which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow the Company to hold equity securities of
portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.
The following wholly-owned subsidiaries are consolidated in the financial statements of the Company:
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
CCC Real Estate Holdings, LLC
The Whitestone Group, LLC
Wilshire Colorado Partners, LLC (1)
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana BIDCO, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire New York Partners IV, LLC (2)
Wilshire New York Partners V, LLC (2)
Wilshire Partners, LLC
Exponential Business Development Co., Inc.
Newtek Commercial Lending, Inc.
Newtek LSP Holdco, LLC
NBSH Holdings, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.
Newtek Business Services Holdco 3, Inc.
Newtek Business Services Holdco 4, Inc.
Newtek Business Services Holdco 5, Inc. (formerly Banc-Serv Acquisition, Inc.)
Newtek Business Services Holdco 6, Inc.
(1) Entity was merged into The Whitestone Group, LLC on December 31, 2018.
(2) Entity was merged into The Whitestone Group, LLC on December 31, 2017.
Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.
F-216
NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:
Fair Value
The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair
value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial
instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the
market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to
reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.
The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is
new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less
observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest
for financial instruments classified as Level 3.
Any changes to the valuation methodology are reviewed by management and the Board to confirm that the changes are appropriate. As markets change, new products develop and the pricing for
products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 6.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of
uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.
Consolidation
As provided under ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose
business consists of providing services to the Company.
Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated
statements of assets and liabilities as investments. Those assets are owned by the securitization trusts and are included in the Company’s consolidated financial statements. The creditors of the special
purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company.
Although the Company owns more than 25% of the voting securities of NCL, the Company does not have sole control over significant actions of NCL for purposes of the 1940 Act or otherwise, and
does not consolidate its interest in NCL.
Distributions
Dividends and distributions to the Company's common stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the
Company's Board each quarter and is generally based upon the annual taxable earnings estimated by management.
Cash
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high
credit quality. As of December 31, 2019, cash deposits in excess of insured amounts totaled $15,490,000. The Company has not experienced any losses with respect to cash
F-217
balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of December 31, 2019.
Restricted Cash
Restricted cash includes amounts due on SBA loan-related remittances to third parties and cash reserves associated with securitization transactions. As of December 31, 2019, total restricted cash was
$31,445,000.
The following table provides a reconciliation of cash and restricted cash as of December 31, 2019, 2018, 2017, and 2016:
Cash
Restricted cash
Cash and restricted cash
Broker Receivable
December 31, 2019
December 31, 2018
December 31, 2017
December 31, 2016
$
$
1,762 $
31,445
33,207 $
2,316 $
29,034
31,350 $
2,464 $
18,074
20,538 $
2,051
20,845
22,896
Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.
Income Taxes
Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the
year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not
be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.
The Company’s U.S. federal and state income tax returns prior to fiscal year 2015 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed
settlements, changes in tax law and new authoritative rulings.
The Company has elected to be treated as a RIC under the Code beginning with the 2015 tax year and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The
RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC tax return.
The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not included in the RIC tax return. In order to maintain its RIC tax treatment, among other
things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90% of investment company taxable income,
as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with
respect to any income that is distributed to its stockholders as dividends.
Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable
income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable
income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as
taxable income is earned. For the years ended December 31, 2019, 2018 and 2017, no U.S. federal excise taxes were due.
The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the net unrealized appreciation generated by the controlled investments held by the
Taxable Subsidiaries. Such deferred tax liabilities amounted to $12,405,000 and $9,241,000 at December 31, 2019 and December 31, 2018, respectively, and are recorded as deferred tax liabilities on
the consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investments in the consolidated
statements of operations.
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Investment Income
Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on
management’s designation of non-accrual status. Interest receivable is analyzed regularly and may be reserved against when deemed uncollectible. Interest payments received on non-accrual loans
may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and
interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of
collection.
Dividend income is recognized on an accrual basis for preferred equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend
income to recognize, if any, from cash distributions on common equity securities, we will assess many factors including a portfolio company’s cumulative undistributed income and operating cash
flow. Cash distributions from common equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.
The Company earns servicing income related to the guaranteed portions of SBA loan investments which it sells into the secondary market. These recurring fees are earned and recorded daily.
Servicing income is earned for the full term of the loan or until the loan is repaid.
The Company earns a variety of fees from borrowers in the ordinary course of conducting its business, including packaging, legal, late payment and prepayment fees. All other income is recorded
when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new debt investments with non-affiliates.
Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost
basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of investments as a component of the net change
in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.
Stock – Based Compensation
The Company accounts for its equity-based compensation plan using the fair value method, as prescribed by ASC Topic 718, Stock Compensation. Accordingly, for restricted stock awards, the
Company measures the grant date fair value based upon the market price of the Company’s common stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the
requisite service period or vesting term.
Recently Adopted Accounting Standards
In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease
liability for leases with a duration of greater than one year.
The Company adopted ASC 842 on January 1, 2019 using the modified transition method. As part of the transition to ASC 842, the Company elected the package of practical expedients that allowed
it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing
leases. The Company recognized the cumulative effect of applying ASC 842 as an opening balance sheet adjustment at January 1, 2019. The comparative information has not been retrospectively
adjusted and continues to be reported under the accounting standards in effect for those periods.The adoption of ASC 842 did not have a material impact on the Company’s accompanying
consolidated statements of assets and liabilities, statements of operations or statements of cash flows. Due to the adoption of ASC 842, the Company recognized operating lease right-of-use assets and
lease liabilities for its operating leases with lease terms greater than one year. The Company expects the adoption of ASC 842 will not materially impact its results of operations, financial condition,
or cash flows on an ongoing basis.
New Accounting Standards
In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820)”, which is intended to improve fair value and defined benefit disclosure requirements by removing disclosures
that are not cost-beneficial, clarifying disclosures' specific requirements, and adding relevant disclosure requirements. The ASU is effective for annual reporting periods beginning after December 15,
2019 and interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2018-13 on December 31, 2019. No significant changes to our fair value
disclosures were necessary in the notes to the consolidated financial statements in order to comply with ASU 2018-13.
F-219
Segments
The Company has determined that it has a single reporting segment and operating unit structure. The Company issues debt and makes equity investments in portfolio companies in various industries.
The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these debt and equity investment relationships have similar business
and economic characteristics, they have been aggregated into a single lending and investment segment.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.
NOTE 3—INVESTMENTS:
Investments, all of which are in portfolio companies in the United States, consisted of the following at:
Money market funds
Non-affiliate debt investments
Non-control/affiliate equity investments
Controlled investments:
Equity
Equity interest in NCL (Joint Venture)
Debt
Total investments
SBA unguaranteed investments, consisted of the following breakdown of accrual and non-accrual loans at:
Accrual
Non-Accrual
Total SBA unguaranteed investments
SBA guaranteed investments, consisted of the following breakdown of accrual and non-accrual loans at:
Accrual
Non-Accrual
Total SBA guaranteed investments
F-220
December 31, 2019
December 31, 2018
Cost
Fair Value
Cost
Fair Value
$
— $
— $
9 $
453,043
1,000
71,519
14,270
21,511
442,227
1,000
181,917
16,123
17,777
372,806
1,000
57,085
—
17,194
$
561,343 $
659,044 $
448,094 $
9
368,502
1,000
157,810
—
13,775
541,096
December 31, 2019
December 31, 2018
Cost
Fair Value
Cost
Fair Value
$
$
370,612 $
382,986 $
318,862 $
59,085
34,237
36,727
429,697 $
417,223 $
355,589 $
329,340
20,062
349,402
December 31, 2019
December 31, 2018
Cost
Fair Value
Cost
Fair Value
$
$
16,555 $
18,213 $
17,217 $
6,790
6,791
—
23,345 $
25,004 $
17,217 $
19,100
—
19,100
The following table shows the Company’s portfolio investments by industry at December 31, 2019 and December 31, 2018:
Data Processing, Hosting, and Related Services
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
Professional, Scientific, and Technical Services
Food Services and Drinking Places
Amusement, Gambling, and Recreation Industries
Truck Transportation
Repair and Maintenance
Ambulatory Health Care Services
Fabricated Metal Product Manufacturing
Specialty Trade Contractors
Administrative and Support Services
Personal and Laundry Services
Accommodation
Social Assistance
Food Manufacturing
Rental and Leasing Services
Transit and Ground Passenger Transportation
Construction of Buildings
Heavy and Civil Engineering Construction
Electrical Equipment, Appliance, and Component Manufacturing
Air Transportation
Printing and Related Support Activities
Support Activities for Mining
Real Estate
NCL (Joint Venture)
Other
Total
Newtek Conventional Lending, LLC
December 31, 2019
December 31, 2018
Cost
Fair Value
Cost
Fair Value
$
45,154 $
146,320 $
38,964 $
134,559
37,930
41,514
40,331
25,343
30,172
20,308
22,146
18,230
16,460
13,733
11,856
11,508
9,849
11,063
9,223
7,177
5,945
6,037
5,192
5,373
4,803
4,658
4,612
42,079
41,330
40,516
26,787
25,920
20,451
20,409
17,845
15,650
12,696
12,446
11,506
10,683
9,161
8,780
6,755
6,019
5,326
5,164
5,159
4,992
4,837
4,682
14,270
138,456
16,123
137,408
24,738
36,575
37,919
21,030
23,040
17,690
21,182
12,608
13,048
8,003
10,758
11,994
8,424
9,073
7,959
6,859
5,085
7,553
720
3,432
5,042
3,174
4,030
—
109,194
$
561,343 $
659,044 $
448,094 $
24,526
37,116
38,293
22,300
21,145
18,054
20,999
12,793
13,051
7,265
11,425
11,742
9,006
7,056
7,539
6,541
5,010
7,210
742
3,371
4,868
3,293
4,064
—
109,128
541,096
On May 20, 2019, the Company and its joint venture partner launched Newtek Conventional Lending, LLC (“NCL”) to provide non-conforming conventional commercial and industrial term loans to
U.S. middle-market companies and small businesses. NCL is a 50/50 joint venture between Newtek Commercial Lending, Inc. a wholly-owned subsidiary of Newtek, and Conventional Lending TCP
Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq:TCPC).
F-221
The following table shows NCL’s individual investments as of December 31, 2019:
Portfolio Company
Industry
Type of Investment
Interest Rate
Maturity
Principal
Cost
Fair Value
10 28th Ave SW Associates LLC (#)
10 28th Ave SW Associates LLC (#)
Cocoa Beach Office LLC (#)
XL Sports World NJ LLC and XL Soccer
World Orlando LLC (#)
XL Sports World NJ LLC and XL Soccer
World Orlando LLC (#)
The Emerald Green Group, LLC (#)
The Camera Division, LLC (#)
XL Soccer World Orlando II LLC and XL
Soccer World Orlando LLC (#)
Foxhall Hospitality, LLC (#)
Foxhall Hospitality, LLC (#)
JW Aviation LLC and 21 Air LLC and
AMN Doral LLC (#)
Tricare Unlimited LLC and Geron
Enterprises LLC (#)
E Entities LLC (#)
Total
Amusement, Gambling, and Recreation
Industries
Amusement, Gambling, and Recreation
Industries
Securities, Commodity Contracts, and
Other Financial Investments and Related
Activities
Amusement, Gambling, and Recreation
Industries
Amusement, Gambling, and Recreation
Industries
Food Services and Drinking Places
Electronics and Appliance Stores
Amusement, Gambling, and Recreation
Industries
Hotels (except Casino Hotels) and
Motels
Hotels (except Casino Hotels) and
Motels
Other Nonscheduled Air Transportation
Nursing Care Facillities(Skilled Nursing
Facilities)
Exterminating & Pest Control Services
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
# Denotes fair value determined using significant unobservable inputs.
Prime plus 3.0%
4/1/2045
$
2,295.0
$
2,295.0
$
Prime plus 3.0%
4/1/2045
1,292.0
1,292.0
2 Yr Libor plus 5.70% 8/1/2044
5 Yr Libor plus 5.50% 8/1/2044
5 Yr Libor plus 5.50% 8/1/2044
2 Yr Libor plus 5.65% 8/1/2029
2 Yr Libor plus 7.25% 9/1/2029
Prime plus 3.25%
11/1/2045
5 Yr Libor plus 6.0% 11/1/2044
5 Yr Libor plus 6.0% 11/1/2044
2 Yr Libor plus 8.25% 12/1/2044
2 Yr Libor plus 6.51% 1/1/2045
2 Yr Libor plus 7.71% 1/1/2030
435.0
6,246.3
4,802.9
6,503.4
11,318.1
770.1
10,585.7
6,191.6
2,520.0
5,760.0
6,000.0
435.0
6,246.3
4,802.9
6,503.4
11,318.1
770.1
10,585.7
6,191.6
2,520.0
5,760.0
6,000.0
$
64,720.1 $
64,720.1 $
2,488.0
1,400.6
442.9
6,702.6
5,093.4
6,462.3
11,514.9
845.1
11,120.8
6,504.6
3,035.7
6,316.2
6,498.7
68,425.8
The following tables show certain summarized financial information for NCL as of December 31, 2019 and for the year ended December 31, 2019:
Selected Statement of Assets and Liabilities Information
Cash
Investments in loans, at fair value
Other assets
Total assets
Bank notes payable
Other liabilities
Total liabilities
Net assets
Total liabilities and net assets
F-222
December 31, 2019
(Unaudited)
1,299
68,426
1,094
70,819
36,938
1,635
38,573
32,246
70,819
$
$
$
Selected Statements of Operations Information
Interest and other income
Total expenses
Net investment income
Net unrealized appreciation on investments
Net increase in net assets resulting from operations
Year Ended December 31, 2019
$
3,488
1,525
1,963
3,706
5,669
NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:
Transactions with Affiliated Companies
An affiliated company is an entity in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is an entity in which the Company owns more than 25% of its
voting securities. Transactions related to our investments with controlled and non-controlled affiliated companies for the year ended December 31, 2019 were as follows:
Portfolio Company
Controlled Investments
Fair Value at
December 31, 2018 Purchases (Cost)
Principal
Received
Net Realized
Gains/(Losses)
Net Unrealized
Gains/(Losses)
Fair Value at
December 31, 2019
Interest and
Other Income
Dividend Income
Newtek Merchant Solutions, LLC (NMS)
$
116,250 $
Mobil Money, LLC
Newtek Technology Solutions, Inc. (NTS)
International Professional Marketing, Inc.
SIDCO, LLC
banc-serv Partners, LLC
CDS Business Services, Inc.
Small Business Lending, LLC
Newtek Insurance Agency, LLC
PMTWorks Payroll, LLC
Titanium Asset Management LLC
POS on Cloud, LLC
Excel WebSolutions, LLC
Newtek Conventional Lending, LLC
Newtek Business Lending, LLC
2,980
15,300
4,100
7,995
—
11,000
3,300
2,215
—
—
—
—
—
8,445
— $
—
3,561
—
750
286
360
748
—
622
900
775
—
14,270
17,378
— $
— $
5,000 $
121,250 $
— $
11,490
—
—
(800)
(75)
—
(1,360)
—
—
—
(194)
—
—
—
(4,200)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
770
500
850
(1,170)
(286)
(2,000)
6,002
—
(622)
(316)
—
—
1,853
630
3,750
19,361
4,150
7,500
—
8,000
10,050
2,215
—
390
775
—
16,123
22,253
—
522
8
9
—
438
23
—
—
—
24
—
—
—
375
—
900
700
—
—
—
—
—
—
—
—
822
—
Total Controlled Investments
$
171,585 $
39,650 $
(6,629) $
— $
11,211 $
215,817 $
1,024 $
14,287
Non-Control/Affiliate Investments
EMCAP Loan Holdings, LLC
Total Affiliate Investments
$
$
1,000 $
— $
— $
172,585 $
39,650 $
(6,629) $
— $
— $
— $
1,000 $
— $
11,211 $
216,817 $
1,024 $
111
14,398
F-223
Related Party Transactions
Note Payable - Related Parties
In June 2015, the Company entered into the Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.
In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance had an interest rate equal to 1 month LIBOR (with a floor of 0.50%)
plus 6.0% or a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to the lesser of 1 month LIBOR plus
2.5% or the Prime Rate plus 1.5%.
At December 31, 2019, the Related Party RLOC interest rate was 4.71%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings from NMS at December 31,
2019 under the Related Party RLOC were $12,163,000.
For the years ended December 31, 2019, 2018 and 2017, interest expense was $911,000, $916,000 and $780,000, respectively.
Expenses Incurred from Controlled Portfolio Companies
The Company incurs expenses from certain controlled portfolio companies including managed technology services from NTS, origination and loan processing fees from various related parties and
payroll processing fees from PMT.
Managed technology services
Origination and loan processing
Referral fees
Payroll processing fees
Total
December 31, 2019
December 31, 2018
December 31, 2017
$
$
1,026 $
9,975
—
35
11,036 $
725 $
41
104
42
912 $
836
127
167
38
1,168
The Company also sub-leases portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged were as follows:
Portfolio Company
Newtek Merchant Solutions, LLC (NMS)
Newtek Technology Solutions, Inc.
Small Business Lending, LLC
Newtek Insurance Agency, LLC
CDS Business Services, Inc.
Premier Payments LLC (1)
PMTWorks Payroll, LLC
Titanium Asset Management
United Capital Source, LLC
Newtek Business Lending, LLC
Total
(1) On December 31, 2018, Premier was merged into NMS.
December 31, 2019
December 31, 2018
December 31, 2017
$
232 $
11
244
61
69
—
44
—
—
8
166 $
11
75
88
57
38
32
—
—
2
$
669 $
469 $
147
—
81
86
63
46
46
13
7
—
489
Amounts due from related parties were $2,972,000 and $3,232,000 at December 31, 2019 and December 31, 2018, respectively. Amounts due to related parties were $131,000 and $4,000 at
December 31, 2019 and December 31, 2018, respectively.
F-224
Managerial Assistance Fees from Controlled Investments
The Company offers managerial assistance to all portfolio companies and currently provides managerial assistance to certain controlled portfolio companies. Amounts are charged based on estimates
of time and effort spent by certain employees providing managerial services for certain controlled portfolio companies. Fees are recorded on a quarterly basis, are recurring in nature and are charged
at an arm’s length basis. The table below summarizes amounts charged to each controlled portfolio company, and are recorded as a credit to salaries and benefits in the consolidated statements of
operations.
Portfolio Company
Newtek Merchant Solutions, LLC (NMS)
Newtek Technology Solutions, Inc.
PMTWorks Payroll, LLC
Newtek Insurance Agency, LLC
Summit Systems and Designs, LLC (1)
Secure CyberGateway Services, LLC (1)
banc-serv Partners, LLC
Premier Payments LLC (2)
CDS Business Services, Inc.
International Professional Marketing, Inc.
SIDCO, LLC
Mobil Money, LLC
Newtek Business Lending, LLC
Small Business Lending, LLC
Total
(1) Entity was dissolved in May 2018.
(2) On December 31, 2018, Premier was merged into NMS.
Other Transactions with Related Parties
December 31, 2019
December 31, 2018
December 31, 2017
$
373 $
385 $
476
185
185
—
—
87
—
88
93
111
133
93
449
$
2,273 $
508
85
175
—
—
248
172
88
89
93
67
12
366
2,288 $
407
543
75
204
10
2
215
163
35
72
52
—
—
364
2,142
In September 2016, the Company entered into an advisory services agreement (the “AK Agreement”) with AK Capital, LLC (“AK Capital”). The Company’s Chief Executive Officer is a director of
AK Capital. AK Capital provides consulting and advisory services to the Company in connection with the sale and/or securitization of participations in SBA guaranteed and unguaranteed SBA 7(a)
loans. The AK Agreement contains total fees of $10,000, to be paid monthly over one year. The agreement was terminated in November 2019. During the years ended December 31, 2019, 2018 and
2017 the Company incurred $9,000, $14,000 and $7,000 in fees respectively, from AK Capital.
The nephew of the Chief Executive Officer of the Company is employed by one of the Company’s controlled portfolio companies and earned annual compensation in excess of $125,000 during 2017,
2018, and 2019. The brother of the Chief Executive Officer of the Company was employed by one of the Company’s controlled portfolio companies through 2019 and earned annual compensation
less than $125,000; as of January 2020 he is no longer employed by the Company’s controlled portfolio company.
NOTE 5—SERVICING ASSETS:
Servicing assets are measured at fair value. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells.
The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2019 and December 31, 2018:
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Table of Contents
Fair Value
Discount factor (1)
Cumulative prepayment rate
Average cumulative default rate
(1) Determined based on risk spreads and observable secondary market transactions.
December 31, 2019
December 31, 2018
$
24,411
$
13.38%
26.00%
22.00%
21,360
14.24%
26.00%
20.00%
Servicing fee income earned for the years ended December 31, 2019, 2018, and 2017 was $10,078,000, $8,552,000, and $7,206,000, respectively.
NOTE 6—FAIR VALUE MEASUREMENTS:
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement
date. In determining fair value, management uses various valuation approaches, all of which have been approved by the Company’s Board. In accordance with GAAP, a fair value hierarchy for inputs
is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). The
levels of the fair value hierarchy are as follows:
Level 1
Level 2
Level 3
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active
exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-
counter markets.
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or
can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are
traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can
be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities,
corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial
instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair
value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations,
residential mortgage servicing rights, and highly structured or long-term derivative contracts.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is
based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety
requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date. There were no transfers to or from Level
3 of the fair value hierarchy for assets and liabilities during the years ended December 31, 2019 or 2018.
Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices
for similar assets and liabilities.
For certain investments, the Company generally calculates the fair value of the investment primarily based on the net asset NAV of the entity and adjusts the fair value for other factors that would
affect the fair value of the investment. The Company uses this valuation approach for its investment in NCL.
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Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from
the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments
are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or
liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.
The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the
markets in which the investments are traded.
The following tables present fair value measurements of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the
Company to determine such fair values as of December 31, 2019 and December 31, 2018:
Assets:
SBA unguaranteed non-affiliate investments
SBA guaranteed non-affiliate investments
Controlled investments
Other real estate owned (1)
Non-control/affiliate investments
Servicing assets
Controlled investments measured at NAV(2)
Total assets
Liabilities:
Contingent consideration liabilities (3)
Fair Value Measurements at December 31, 2019
Total
Level 1
Level 2
Level 3
417,223
25,004
199,694
2,539
1,000
24,411
16,123
—
—
—
—
—
—
—
—
25,004
—
2,539
—
—
—
417,223
—
199,694
—
1,000
24,411
—
685,993 $
— $
27,543 $
642,328
621 $
— $
— $
621
$
$
(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities
(2) The Company’s investment in NCL is measured at fair value using NAV and has not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit
reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.
(3) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities
The change in unrealized appreciation (depreciation) included in the consolidated statements of operations attributable to Level 3 investments held at December 31, 2019 includes $6,291,000 in
unrealized depreciation on SBA unguaranteed non-affiliate investments, $9,358,000 in unrealized appreciation on controlled investments and $5,178,000 in unrealized depreciation on servicing
assets.
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Assets:
Investments in money market funds
SBA unguaranteed non-affiliate investments
SBA guaranteed non-affiliate investments
Controlled investments
Other real estate owned (1)
Non-control/Non-affiliate investments
Servicing assets
Total assets
Liabilities:
Contingent consideration liabilities (2)
(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities
Fair Value Measurements at December 31, 2018
Total
Level 1
Level 2
Level 3
$
$
$
9 $
9 $
349,402
19,100
171,585
1,998
1,000
21,360
—
—
—
—
—
—
— $
—
19,100
—
1,998
—
—
564,454 $
9 $
21,098 $
—
349,402
—
171,585
—
1,000
21,360
543,347
1,733 $
— $
— $
1,733
(2) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities
The following tables represents the changes in investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2019 and 2018:
SBA Unguaranteed
Investments
Controlled
Investments
Servicing Assets
Non-Control/Affiliate
Investments
Contingent
Consideration
Liabilities (1)
Year Ended December 31, 2019
Fair value, December 31, 2018
Net change in unrealized appreciation (depreciation)
Realized loss
SBA unguaranteed non-affiliate investments, funded
Foreclosed real estate acquired
Purchase of investments
Change in fair value of contingent consideration liabilities
Payment of contingent consideration
Net accretion of premium/discount
Return of investment
Principal payments received on debt investments
Additions to servicing assets
$
349,402 $
171,585 $
(6,291)
(3,924)
130,214
(2,540)
—
—
—
(8)
—
(49,630)
—
9,358
—
—
—
25,380
—
—
—
(4,200)
(2,429)
—
Fair value, December 31, 2019
(1) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities
417,223 $
$
199,694 $
21,360 $
(5,178)
—
—
—
—
—
—
—
—
—
8,229
24,411 $
1,000 $
1,733
—
—
—
—
—
—
—
—
—
—
—
1,000 $
—
—
—
—
—
42
(1,154)
—
—
—
—
621
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SBA Unguaranteed
Investments
Controlled
Investments
Servicing Assets
Non-Control/Non-
Affiliate Investments
Contingent
Consideration
Liabilities (1)
Year Ended December 31, 2018
Fair value, December 31, 2017
Net change in unrealized appreciation (depreciation)
Realized gain (loss)
SBA unguaranteed non-affiliate investments, funded
Foreclosed real estate acquired
Purchase of investments
Sale of investment
Return of investment
Net accretion of premium/discount
Record fair value of contingent consideration liabilities
Change in fair value of contingent consideration liabilities
Payment of contingent consideration
Principal payments received on debt investments
Additions to servicing assets
$
278,034 $
153,156 $
3,471
(2,738)
113,101
(2,367)
—
1,206
—
(18)
—
—
—
(41,287)
—
4,048
52
—
—
39,627
(2,502)
(8,785)
—
—
—
—
(14,011)
—
Fair value, December 31, 2018
(1) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities
349,402 $
171,585 $
$
19,359 $
(5,685)
—
—
—
—
—
—
—
—
—
—
—
7,686
21,360 $
— $
913
—
—
—
—
1,000
—
—
—
—
—
—
—
—
1,000 $
—
—
—
—
—
—
—
—
1,350
(51)
(479)
—
—
1,733
The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2019 and December 31, 2018. In addition to the inputs
noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not
intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at December 31, 2019 and December 31, 2018.
Fair Value as of
December 31, 2019
Unobservable Input
Weighted Average (A)
Minimum
Maximum
Range
Assets:
SBA unguaranteed non-affiliate investments -
accrual loans
SBA unguaranteed non-affiliate investments - non-
accrual loans
Controlled equity investments (A)
Controlled debt investments
Non-control/affiliate investments
Servicing assets
Liabilities:
$
$
$
$
$
$
382,986 Market yields
34,237 Market yields
181,917 EBITDA multiples (B)
Revenue multiples (B)
Weighted average cost of capital (B)
17,777 Market yields
1,000 Asset value
24,411 Market yields
5.20%
5.33%
8.20x
1.07x
11.92%
9.03%
N/A
13.38%
5.20%
5.20%
5.33%
4.50x
0.15x
10.70%
5.25%
N/A
13.38%
5.33%
9.00x
2.30x
18.50%
10.00%
N/A
13.38%
Contingent consideration liabilities
(A) Weighted by relative fair value.
(B) The Company valued $143,265,000 of investments using generally, an equal weighting of EBITDA and revenue multiples in the overall valuation approach which included the use of market
N/A
N/A
621
$
N/A
Projected EBITDA and net residual income and
probability of achievement
comparable companies. The Company valued $38,653,000 of investments using only discounted cash flows.
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Fair Value as of
December 31, 2018
Unobservable Input
Weighted Average (A)
Minimum
Maximum
Range
Assets:
SBA unguaranteed non-affiliate investments - accrual
loans
SBA unguaranteed non-affiliate investments - non-
accrual loans
Controlled equity investments (A)
Controlled debt investments
Non-control/affiliate investments
Servicing assets
Liabilities:
$
$
$
$
$
$
329,340 Market yields
20,062 Market yields
157,810 EBITDA multiples (B)
Revenue multiples (B)
Weighted average cost of capital (B)
13,775 Market yields
1,000 Asset value
21,360 Market yields
6.40%
7.89%
8.83x
1.05x
13.46%
6.34%
N/A
14.24%
6.40%
6.40%
7.89%
7.89%
3.97x
0.15x
11.84%
4.84%
N/A
14.24%
10.00x
2.73x
40.00%
10.00%
N/A
14.24%
Contingent consideration liabilities
(A) Weighted by relative fair value.
(B) The Company valued $138,085,000 of investments using an equal weighting of EBITDA and revenue multiples in the overall valuation approach which included the use of market comparable
1,733 Projected EBITDA and probability of achievement
N/A
N/A
$
N/A
companies. The Company valued $19,725,000 of investments using only discounted cash flows.
NOTE 7—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES:
The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2019 and December 31, 2018:
Due to participants and SBA (1)
Accrued payroll and related expenses
Accrued interest
Deferred rent and other lease related liabilities
Loan processing, servicing and other loan related expenses
Contingent consideration liabilities
Other
Total accounts payable, accrued expenses and other liabilities
(1) Represents loan related remittances received by NSBF, and due to third parties.
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December 31, 2019
December 31, 2018
11,169 $
2,337
1,200
—
3,023
621
2,474
20,824 $
10,682
3,635
569
2,217
3,083
1,733
3,102
25,021
$
$
NOTE 8—BORROWINGS:
At December 31, 2019 and December 31, 2018, the Company had borrowings comprised of the following:
Capital One line of credit - guaranteed (1)
Capital One line of credit - unguaranteed (1)
Notes due 2022
Notes due 2023
Notes due 2024
Notes payable - related parties
Notes payable - Securitization Trusts
Total
December 31, 2019
December 31, 2018
Commitments
Borrowings
Outstanding
Weighted Average
Interest Rate
Commitments
Borrowings
Outstanding
Weighted Average
Interest Rate
$
150,000 $
30,000
4.00% $
100,000 $
—
—
57,500
63,250
50,000
276,637
$
597,387 $
—
—
56,035
61,354
12,163
272,376
431,928
5.00%
—%
6.25%
5.75%
4.71%
3.97%
—
8,324
57,500
—
50,000
220,137
4.61% $
435,961 $
34,700
—
8,019
55,564
—
16,840
216,507
331,630
4.75%
—%
7.50%
6.25%
—%
4.84%
4.66%
5.02%
(1) Total combined commitments of the guaranteed and unguaranteed lines of credit were $150,000,000 at December 31, 2019 and $100,000,000 at December 31, 2018.
As of December 31, 2019, our asset coverage was 173%.
Outstanding borrowings under the 2022 Notes, 2023 Notes, 2024 Notes and Notes payable - Securitization Trusts consisted of the following:
December 31, 2019
December 31, 2018
Principal balance
Unamortized deferred financing costs
Net carrying amount
Notes Due 2023 Notes Due 2024
$
57,500 $
63,250 $
Notes Payable-
Securitization Trusts
Notes Due 2022(1) Notes Due 2023
276,637 $
8,324 $
57,500 $
(1,465)
(1,896)
(4,261)
(305)
(1,936)
$
56,035 $
61,354 $
272,376 $
8,019 $
55,564 $
Notes Payable-
Securitization Trusts
220,137
(3,630)
216,507
(1) On July 29, 2019, the Company issued redemption notices to the holders of the 2022 Notes. The Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on the
redemption date of August 29, 2019 at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from July 1, 2019, through, but excluding, the redemption date.
At December 31, 2019 and December 31, 2018, the carrying amount of the Company’s borrowings under the Capital One lines of credit, Notes payable - related parties and Notes payable -
Securitization Trusts, approximates fair value due to their variable interest rates.
The fair values of the fixed rate 2023 Notes and 2024 Notes are based on the closing public share price on the date of measurement. On December 31, 2019, the closing price of the 2023 Notes was
$25.68 per note, or $59,064,000. On December 31, 2018, the closing price of the 2023 Notes was $25.00 per note, or $57,500,000. On December 31, 2019, the closing price of the 2024 Notes was
$25.94 per note, or $65,628,000. On December 31, 2018, the closing price of the 2022 Notes was $25.40 per note, or $8,457,000. These borrowings are not recorded at fair value on a recurring basis.
Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the year ended December 31, 2019 and 2018 was $20,415,000 and
$16,046,000, respectively.
Capital One Facilities
In May 2017, NSBF amended its Capital One facility to increase the facility from $50,000,000 to $100,000,000 and reduce the interest rate. The facility was amended again in June 2018 and the
portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, was reduced to Prime minus 0.75% (previously Prime minus 0.25%). The interest rate on
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the portion of the facility, collateralized by the non-guaranteed portion of SBA 7(a) loans, was reduced to Prime plus 0.25% (previously Prime plus 0.75%). The facility provides for a 55% advance
rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition, the amendment
extended the date on which the facility will convert to a term loan from May 16, 2017 to May 11, 2020 and extended the maturity date of the facility to May 11, 2022. In June 2019, the facility was
increased from $100,000,000 to $150,000,000.
At December 31, 2019, there was $30,000,000 outstanding under the guaranteed line of credit. No amounts were outstanding under the unguaranteed line of credit. At December 31, 2019 NSBF was
in full compliance with all applicable loan covenants.
For the years ended December 31, 2019, 2018 and 2017, interest expense including amortization of related deferred financing costs was $2,122,000, $1,473,000 and $1,188,000, respectively.
Notes Due 2023
On February 21, 2018, the Company closed a public offering of $50,000,000 in aggregate principal amount of its 2023 Notes. The 2023 Notes will mature on March 1, 2023 and may be redeemed in
whole or in part at any time or from time to time at Newtek’s option on or after March 1, 2020. The 2023 Notes bear interest at a rate of 6.25% per year payable quarterly on March 1, June 1,
September 1 and December 1, of each year, beginning June 1, 2018. In February 2018, the underwriters exercised their option to purchase an additional $7,500,000 in aggregate principal amount of
the 2023 Notes. Total net proceeds received after deducting underwriters’ discount and expenses was $55,176,000. The 2023 Notes are listed on the Nasdaq Global Market under the trading symbol
“NEWTI.” A portion of the proceeds were used to redeem the outstanding 2021 Notes. As a result of the redemption of the 2021 Notes, the Company recorded a $1,059,000 loss on extinguishment of
debt during the year ended December 31, 2018, equivalent to the balance of unamortized deferred financing costs as of the redemption date.
For the years ended December 31, 2019 and 2018 interest expense including amortization of related deferred financing costs was $4,065,000 and $3,483,000, respectively. No interest expense was
incurred during the year ended December 31, 2017.
Notes dues 2024
On July 25, 2019, the Company closed a public offering of $55,000,000 in aggregate principal amount of its 2024 Notes. The 2024 Notes will mature on August 1, 2024 and may be redeemed in
whole or in part at any time or from time to time at Newtek’s option on or after August 1, 2021. The 2024 Notes bear interest at a rate of 5.75% per year payable quarterly on August 1, November 1,
February 1 and May 1, of each year, beginning November 1, 2019. Total net proceeds received after deducting underwriters’ discount and expenses was $53,313,000. The 2024 Notes are listed on the
Nasdaq Global Market under the trading symbol “NEWTL” and were rated “A-“ by Egan-Jones. A portion of the proceeds were used to redeem the outstanding 2022 Notes. In August 2019, the
underwriters exercised their option to purchase an additional $8,250,000 in aggregate principal amount of the 2024 Notes resulting in an additional $8,003,000 in net proceeds. As a result of the
redemption of the 2022 Notes, the Company recorded a $251,000 loss on extinguishment of debt during the year ended December 31, 2019, equivalent to the balance of unamortized deferred
financing costs as of the redemption date.
For the year ended December 31, 2019 interest expense including amortization of related deferred financing costs was $1,701,000. No interest expense was incurred during the years ended December
31, 2018 and 2017.
Notes Due 2021
In April 2016, the Company and the Trustee, entered into the Second Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer
and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021. The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The
sale of the 2021 Notes generated proceeds of approximately $33,750,000, net of underwriter’s fees and expenses. In May 2016, the underwriters exercised their option to purchase $5,250,000 in
aggregate principal amount of notes for an additional $5,066,000 in net proceeds. The 2021 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other
outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2021 Notes; (iii) effectively subordinated to all
the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets
securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
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On March 22, 2018, the Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest
thereon from December 31, 2017, through, but excluding, the redemption date. As a result of the redemption of the 2021 Notes, the Company recorded a $1,059,000 loss on extinguishment of debt
during the year ended December 31, 2018, equivalent to the balance of unamortized deferred financing costs as of the redemption date.
For the years ended December 31, 2018 and 2017 interest expense including amortization of related deferred financing costs was $718,000 and $3,164,000. No interest expense was incurred during
the year ended December 31, 2019.
Notes Due 2022
In September 2015, the Company and the Trustee entered into the Base Indenture and the First Supplemental Indenture relating to the Company’s issuance, offer, and sale of $8,324,000, including the
underwriter’s partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022. The 2022 Notes are the Company’s direct unsecured obligations and rank: (i)
pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2022
Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants
security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s
subsidiaries. The 2022 Notes will mature on September 30, 2022 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after September 23, 2018, at
a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not
including the date fixed for redemption. Proceeds net of offering costs and expenses were $7,747,000. The Base Indenture, as supplemented by the First Supplemental Indenture, contains certain
covenants including covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as
modified by Section 61(a)(1) of the 1940 Act, to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by
Section 61(a)(1) of the 1940 Act, and to provide financial information to the holders of the 2022 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under
the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the Third Supplemental Indenture. The Base
Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2022 Notes may declare such 2022
Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. On August 29, 2019, the Company redeemed all $8,324,000 in
aggregate principal amount of the Notes on the redemption date of August 29, 2019 at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from July 1, 2019,
through, but excluding, the redemption date.
For the years ended December 31, 2019, 2018 and 2017, interest expense including amortization of related deferred financing costs was $469,000, $707,000 and $707,000, respectively.
Notes Payable - Securitization Trusts
Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the “Trust”) which is considered a variable
interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective
January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation
to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust’s assets and liabilities. NSBF reflects
the assets in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable - Securitization trusts on the Consolidated Statements of Assets and Liabilities.
In November 2016, NSBF completed its seventh securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the 2016-1 Trust. The 2016-1 Trust in turn
issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the assets in a private placement. The Class A and
Class B notes received an “A” and “BBB+” rating by S&P, respectively, and the final maturity date of the notes is February 2042. The Class A and Class B notes bear interest at a rate of 1 month
LIBOR plus 3.0% and 4.25%, respectively.
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In December 2017, NSBF completed its eighth securitization which resulted in the transfer of $76,188,000 of unguaranteed portions of SBA loans to the 2017-1 Trust. The 2017-1 Trust in turn issued
securitization notes for the par amount of $75,426,000, consisting of $58,111,000 Class A notes and $17,315,000 of Class B notes, against the assets in a private placement. The Class A and Class B
notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2043. The Class A and Class B notes bear interest at a rate of 1 month LIBOR plus
2.0% and 3.0%, respectively.
In October 2018, the 2013-1 Trust was terminated as a result of NSBF purchasing the 2013-1 Trust assets, with the 2013-1 Trust’s noteholders receiving the redemption price. Certain of the 2013-1
Trust’s assets were subsequently transferred to the 2018-1 Trust.
In November 2018, NSBF completed its ninth securitization which resulted in the transfer of $108,551,000 of unguaranteed portions of SBA loans to the 2018-1 Trust. The 2018-1 Trust in turn issued
securitization notes for the par amount of $108,551,000, consisting of $82,876,000 Class A notes and $25,675,000 of Class B notes, against the assets in a private placement. The Class A and Class B
notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2044.
In March 2019, the 2010-1 Trust was terminated as a result of NSBF purchasing the 2010-1 Trust assets, with the 2010-1 Trust’s noteholders receiving the redemption price.
In July 2019, the 2014-1 Trust was terminated as a result of NSBF purchasing the 2014-1 Trust assets, with the 2014-1 Trust’s noteholders receiving the redemption price.
In October 2019, NSBF completed its tenth securitization which resulted in the transfer of $118,920,000 of unguaranteed portions of SBA loans to the 2019-1 Trust, The 2019-1 Trust in turn issued
securitization notes for the par amount of $118,920,000, consisting of $93,540,000 of Class A notes and $25,380,000 Class B notes, against the assets in a private placement. The Class A and Class B
notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is December 2044. The Class A and Class B notes bear interest at a rate of LIBOR plus 1.83%
across both classes.
For the years ended December 31, 2019, 2018 and 2017, interest expense including amortization of related deferred financing costs and discount was $11,148,000, $8,748,000 and $5,537,000,
respectively.
At December 31, 2019 and 2018, the assets of the consolidated Trusts totaled $375,295,000 and $336,716,000, respectively. The liabilities of the consolidated Trusts totaled $276,637,000 and
$220,137,000, respectively.
Note Payable - Related Parties
In June 2015, the Company entered into the Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.
In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance had an interest rate equal to 1 month LIBOR (with a floor of 0.50%)
plus 6.0% or a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to the lesser of 1 month LIBOR plus
2.5% or the Prime Rate plus 1.5%.
At December 31, 2019, the Related Party RLOC interest rate was 4.71%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings from NMS at December 31,
2019 under the Related Party RLOC were $12,163,000.
For the years ended December 31, 2019, 2018 and 2017, interest expense was $911,000, $916,000 and $780,000, respectively.
F-234
Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:
December 31,
2020
2021
2022
2023
2024
Thereafter
NOTE 9—COMMITMENTS AND CONTINGENCIES:
Operating and Employment Commitments
Borrowings
30,000
—
—
69,663
63,250
276,637
439,550
$
$
The Company leases office space and other office equipment in several states under operating lease agreements which expire at various dates through 2027. Those office space leases which are for
more than one year generally contain scheduled rent increases or escalation clauses.
The following summarizes the Company’s obligations and commitments, as of December 31, 2019 for future minimum cash payments required under operating lease and employment agreements:
Year
2020
2021
2022
2023
2024
Thereafter
Total
Operating Leases
Employment Agreements (1)
Total
1,662 $
384 $
1,563
1,576
1,619
3,281
3,670
—
—
—
—
—
13,371 $
384 $
2,046
1,563
1,576
1,619
3,281
3,670
13,755
$
$
(1) Employment agreements with the Company’s named executive officers
Legal Matters
In the ordinary course of business, the Company and its wholly owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by
case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company is not currently involved in any litigation matters that are expected to have a
material impact on the Company’s financial condition.
As a result of a prior litigation with the Federal Trade Commission (the “FTC”), NMS voluntarily entered into, and is presently operating under, a Permanent Injunction with respect to certain of its
business practices.
Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBC. Maximum borrowings under the Sterling Receivable and Inventory Facility are $35,000,000. The Sterling
Receivable and Inventory Facility matures in August 2022 and automatically renews annually. At December 31, 2019, total principal owed by NBC was $25,802,000. In addition, the Company
deposited $750,000 to collateralize the guarantee. At December 31, 2019, the Company determined that it is not probable that payments would be required to be made under the guarantee.
The Company is a guarantor on the NBL Facility. Maximum borrowings under the NBL Facility are $75,000,000 with an accordion feature to increase maximum borrowings to $150,000,000. The
NBL Facility matures in July 2021. At December 31, 2019, total principal owed by NBL was $12,165,000. At December 31, 2019, the Company determined that it is not probable that payments
would be required to be made under the guarantee.
F-235
The Company is a guarantor on the Webster Facility, a term loan facility between NMS with Webster Bank with an aggregate principal amount up to $50,000,000. The Webster Facility matures in
November 2023. At December 31, 2019, total principal outstanding was $32,375,000. At December 31, 2019, the Company determined that it is not probable that payments would be required to be
made under the guarantee.
Unfunded Commitments
At December 31, 2019, the Company had $7,653,000 of unfunded commitments in connection with its SBA 7(a) non-affiliate investments related to portions of loans originated which are partially
funded. The Company will fund these commitments from the same sources it uses to fund its other investment commitments.
NOTE 10—FINANCIAL HIGHLIGHTS:
The financial highlights for the Company are as follows:
Per share data ¹
Net asset value at beginning of period
Net investment loss
Net realized gain on investments
Net unrealized appreciation on investments
Net unrealized depreciation on servicing assets
Change in deferred taxes
Net increase in net assets resulting from operations
Distributions to common stockholders
Stock-based compensation expense
Accretive effect of stock offerings (issuing shares above NAV per share)
Accretive effect of shares issued in connection with investments (issuing shares above NAV per share)
Accretive effect of shares issued in connection with DRIP (issuing shares above NAV per share)
Dilutive effect of restricted stock awards
Other ⁴
Net asset value at end of period
Per share market value at end of period
Total return based on market value ²
Total return based on average net asset value ² ³
Shares outstanding at end of period (in thousands)
Ratios/Supplemental Data:
Net assets at end of period
Ratio of expenses to average net assets
Ratio of net investment loss to average net assets
Portfolio turnover
Average debt outstanding
Average debt outstanding per share
Asset coverage ratio ⁵
December 31, 2019
December 31, 2018
December 31, 2017
Year Ended
$
15.19
$
15.08
$
(0.29)
2.61
0.24
(0.27)
(0.16)
2.13
(2.15)
0.03
0.51
—
0.01
(0.01)
(0.01)
(0.40)
2.31
0.36
(0.30)
(0.06)
1.91
(1.80)
0.02
0.04
—
0.01
(0.08)
0.01
$
$
15.70
$
15.19
$
22.65
$
17.55 %
17.48 %
20,530
17.44
$
4.06 %
12.67 %
18,919
$
322,225
$
287,445
$
21.29 %
(1.84)%
130.71 %
388,525
18.92
$
$
173 %
20.15 %
(2.65)%
130.41 %
279,254
14.76
$
$
185 %
$
$
F-236
14.30
(0.45)
2.27
0.75
(0.20)
(0.12)
2.25
(1.64)
0.05
0.02
0.01
—
—
0.09
15.08
18.49
26.60 %
16.92 %
18,457
278,329
19.20 %
(3.23)%
116.40 %
193,747
10.50
229 %
(1) Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2) Assumes dividends are reinvested.
(3) Total return based on average net asset value was calculated using the sum of ending net asset value plus dividends to stockholders during the period, divided by the beginning net asset value.
(4) Includes the impact of the different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based
on shares outstanding as of a period end or transaction date.
(5) Calculated based on $439,550,000, $337,501,000 and $221,007,000 of senior securities outstanding at December 31, 2019, 2018 and 2017, respectively.
NOTE 11—STOCK BASED COMPENSATION:
Stock Plan
The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards,
the Company measured the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation
expense over the requisite service period, which is generally the vesting term.
The Board approves the issuance of shares of restricted stock to employees and directors pursuant to the Equity Incentive Plan. These shares generally vest over a one to three year period from the
grant date. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances under the Equity Incentive Plan, net of shares
forfeited, if any, and the remaining shares of restricted stock available for issuance as of December 31, 2019.
Restricted Stock authorized under the plan (1)
Less net restricted stock granted during:
Year ended December 31, 2016
Year ended December 31, 2017
Year ended December 31, 2018
Year ended December 31, 2019
Restricted stock available for issuance as of December 31, 2019
1,500,000
(120,933)
(5,007)
(93,568)
(6,285)
1,274,207
(1) A maximum of 20% of total shares of common stock issued and outstanding, calculated on a fully diluted basis, not to exceed 3,000,000 shares, are available for awards of restricted stock and
stock options under the Equity Incentive Plan. No more than 50% of the shares of stock reserved for the grant of awards under the Equity Incentive Plan may be restricted stock awards at any time
during the term of the Equity Incentive Plan. No stock options have been granted under the Equity Incentive Plan.
As of December 31, 2019, there was $762,000 of total unrecognized compensation expense related to unvested restricted shares. This compensation expense is expected to be recognized over a
remaining weighted-average period of approximately 1.30 years as of December 31, 2019.
For the years ended December 31, 2019, 2018, and 2017, the Company recognized total stock-based compensation expense of $636,000, $585,000, and $963,000, respectively.
NOTE 12—COMMON STOCK:
ATM Program
On August 31, 2018, the Company entered into the 2017 ATM Equity Distribution Agreement which increased the maximum number of shares that the Company may offer and sell under its existing
ATM distribution agreement up to 4,400,000 shares of common stock from time to time through the ATM placement agents.
F-237
The following table summarizes the total shares sold and net proceeds received under the Second Amended and Restated 2017 ATM Equity Distribution Agreement:
Shares sold
Net weighted average price per share
Net proceeds
Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017
$
$
187,962
19.46 $
3,650 $
291,232
19.14 $
5,196 $
1,139,181
17.58
19,620
On July 8, 2019, the Company gave notice to terminate the 2017 ATM Equity Distribution Agreement, with such termination effective as of July 9, 2019. As of July 9, 2019, the Company had sold
1,618,375 shares of its common stock under the 2017 ATM Equity Distribution Agreement, and received net proceeds of $28,466,000. The Company paid the ATM placement agents $586,000 in
compensation.
On July 10, 2019, the Company entered into the 2019 ATM Equity Distribution Agreement. The 2019 ATM Equity Distribution Agreement provides that the Company may offer and sell up to
3,000,000 shares of common stock from time to time through the placement agents. The company paid the placement agents $617,000 in compensation.
The following table summarizes the total shares sold and net proceeds received under the 2019 ATM Equity Distribution Agreement:
Shares sold
Net weighted average price per share
Net proceeds
Year Ended December 31, 2019
1,356,698
22.27
30,212
$
$
The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.
As of December 31, 2019, there were 1,353,256 shares of common stock available for sale under the 2019 ATM Equity Distribution Agreement.
Public Offering
In January 2017 the Company closed a public offering of 2,250,000 shares of its common stock at a public offering price of $15.25 per share. The Company also sold an additional 337,500 shares of
its common stock at a public offering price of $15.25 per share pursuant to the underwriter’s full exercise of the over-allotment option. Total proceeds net of underwriting discounts and offerings costs
were $37,042,000.
Investment in Mobil Money
During the year ended December 31, 2018, in connection with its investment in Mobil Money, the Company issued 10,966 restricted common shares valued at $200,000.
Investment in IPM
During the year ended December 31, 2017, in connection with its investment in IPM, the Company issued 60,490 restricted common shares valued at $1,000,000.
Investment in UCS
During the year ended December 31, 2017, in connection with its investment in UCS, the Company issued 28,741 restricted common shares valued at $500,000.
NOTE 13—EARNINGS PER SHARE:
The following table summarizes the calculations for the net increase in net assets resulting from operations per common share for the years ended December 31, 2019, 2018 and 2017:
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Table of Contents
Net increase in net assets resulting from operations
Weighted average shares outstanding
Net increase in net assets resulting from operations per common share
NOTE 14—LEASES:
December 31, 2019
December 31, 2018
December 31, 2017
$
$
41,135 $
19,326
2.13 $
35,678 $
18,714
1.91 $
38,976
17,327
2.25
Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with
remaining contractual terms up to 8 years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term
unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental
borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on
a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance
sheet.
The following table summarizes supplemental cash flow and other information related to our operating leases:
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)
Weighted-average remaining lease term - operating leases
Weighted-average discount rate - operating leases
Total lease costs (included in other general and administrative costs on the consolidated statements of operations)
The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2019:
Year Ended December 31,
2019
2018
2017
$
$
1,609
7.03 years
4.76%
n/a
n/a
n/a
n/a
n/a
n/a
941
$
1,238 $
1,094
Maturity of Lease Liabilities
2020
2021
2022
2023
2024
Thereafter
Total future minimum lease payments
Less: Imputed interest
Present value of future minimum lease payments
NOTE 15—DIVIDENDS AND DISTRIBUTIONS:
1,646
1,555
1,576
1,619
1,663
3,670
11,729
(1,832)
9,897
$
$
$
The Company’s dividends and distributions are recorded on the declaration date. The following table summarizes the Company’s dividend declarations and distributions during the years ended
December 31, 2019 and 2018.
F-239
Date Declared
Year ended December 31, 2019
February 15, 2019
May 1, 2019
August 21, 2019
October 10, 2019
Year ended December 31, 2018
January 18, 2018
May 11, 2018
August 23, 2018
October 29, 2018
Record Date
Payment Date
Amount Per Share
Cash Distribution
DRIP Shares
Issued
DRIP Shares
Value
March 15, 2019
June 14, 2019
March 29, 2019
June 28, 2019
September 20, 2019
September 30, 2019
December 16, 2019
December 30, 2019
March 20, 2018
June 15, 2018
September 17, 2018
December 18, 2018
March 30, 2018
June 29, 2018
September 28, 2018
December 28, 2018
$
$
$
$
$
$
$
$
0.40 $
0.46 $
0.58 $
0.71 $
0.40 $
0.42 $
0.48 $
0.50 $
7,355
8,482
10,899
14,034
7,202
7,637
8,544
9,051
12 $
12 $
14 $
16 $
10 $
9 $
21 $
21 $
220
260
300
347
168
178
414
339
During the years ended December 31, 2019 and 2018, an additional 12,200 and 11,200 shares valued at $267,000 and $211,000, respectively, were issued related to dividends on unvested restricted
stock awards.
NOTE 16—BENEFIT PLANS:
Defined Contribution Plan
The Company’s employees participate in a defined contribution 401(k) plan (the “Plan”) adopted in 2004 which covers substantially all employees based on eligibility. The Plan is designed to
encourage savings on the part of eligible employees and qualifies under Section 401(k) of the Code. Under the Plan, eligible employees may elect to have a portion of their pay, including overtime
and bonuses, reduced each pay period, as pre-tax contributions up to the maximum allowed by law. The Company may elect to make a matching contribution equal to a specified percentage of the
participant’s contribution, on their behalf as a pre-tax contribution. For the years ended December 31, 2019, 2018 and 2017, the Company matched 50% of the first 2% of employee contributions,
resulting in $131,000, $126,000 and $197,000 in expense, respectively.
NOTE 17—INCOME TAXES:
As a RIC, the Company must distribute substantially all of its respective net taxable income each tax year as dividends to its shareholders. Accordingly, no provision for federal income tax has been
made in the financial statements for the years ended December 31, 2019, 2018 and 2017.
Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in
accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-tax differences,
including the offset of net operating losses against net short-term gains and nondeductible meals and entertainment, have no impact on net assets. During the year ended December 31, 2019, the
Company decreased additional paid in capital by $290,000 and increased accumulated undistributed earnings by $290,000. During the year ended December 31, 2018, the Company decreased
additional paid in capital by $37,000 and increased accumulated undistributed earnings by $37,000.
Taxable income generally differs from net increase (decrease) in net assets for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses and
generally excludes unrealized appreciation (depreciation) on investments as investment gains and losses are not included in taxable income until they are realized.
F-240
The following table reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2019, 2018 and 2017:
Net increase in net assets
Net change in unrealized depreciation on investments
Net change in deferred tax liabilities
GAAP versus tax basis consolidation of subsidiaries
Other income (deductions/losses) for tax, not book
Other differences
Taxable income before deductions for distributions
December 31, 2019
December 31, 2018
December 31, 2017
$
$
41,135 $
35,678 $
482
3,164
1,329
(24)
(4,500)
(1,069)
1,077
926
1,029
(3,844)
41,586 $
33,797 $
38,976
(9,619)
2,179
1,210
181
(2,593)
30,334
The tax character of distributions paid during the years ended December 31, 2019, 2018 and 2017 were as follows:
Ordinary income
Long-term capital gains
Return of capital
December 31, 2019
December 31, 2018
December 31, 2017
$
37,709 $
4,187
—
32,499 $
1,034
—
24,866
4,068
—
The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and
distributions paid for the full year. Approximately 24% of the Company’s ordinary income was from qualified dividends. The actual tax characteristics of distributions to shareholders are reported to
shareholders annually on Form 1099-DIV.
The tax basis components of distributable earnings/(accumulated losses) and reconciliation to accumulated earnings/(deficit) on a book basis for the years ended December 31, 2019, 2018 and 2017
were as follows:
Undistributed ordinary income - tax basis
Undistributed net realized gains - tax basis
Net change in unrealized appreciation on investments
GAAP versus tax basis consolidation of subsidiaries
Other temporary differences
Total accumulated earnings - book basis
December 31, 2019
December 31, 2018
December 31, 2017
$
$
3,713 $
4,045 $
—
16,811
(887)
12,215
—
20,457
442
7,624
31,852 $
32,568 $
3,782
—
20,466
1,369
4,982
30,599
The differences between the components of distributable earnings on a tax basis and the amounts reflected in the consolidated statements of changes in net assets are primarily due to temporary book-
tax differences that will reverse in a subsequent period.
NOTE 18—SUPPLEMENTAL FINANCIAL DATA:
In accordance with the SEC’s Regulation S-X and GAAP, we are not permitted to consolidate any subsidiary or other entity that is not an investment company, including those in which we have a
controlling interest. We had one unconsolidated subsidiary that met at least one of the significance conditions under Rule 1-02(w) of Regulation S-X during certain periods presented for which we are
required, pursuant to Rule 3-09 of Regulation S-X, to attach separate financial statements as exhibits to the Form 10-K. Accordingly, the audited financial statements of NMS for the years ended
December 31, 2019 and 2018 and unaudited financial statements for the year ended December 31, 2017 have been attached as exhibits.
F-241
NOTE 19—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):
The following tables set forth certain unaudited consolidated quarterly statement of operations data from the eight quarters ended December 31, 2019. This information is unaudited, but in the opinion
of management, it has been prepared substantially on the same basis as the audited consolidated financial statements appearing elsewhere in this report, and all necessary adjustments, consisting only
of normal recurring adjustments, have been included in the amounts stated below. The consolidated quarterly data should be read in conjunction with the current audited consolidated statements and
notes thereto. The total of the quarterly EPS data may not equal to the full year results.
2019
Total investment income
Net investment loss
Net gain on investments
Net increase in net assets resulting from operations
Net increase in net assets resulting from operations per share
Net asset value per share at period end
2018
Total investment income
Net investment loss
Net gain on investments
Net increase in net assets resulting from operations
Net increase in net assets resulting from operations per share
Net asset value per share at period end
NOTE 20—SUBSEQUENT EVENTS:
Common Stock
March 31
June 30
September 30
December 31
Three Months Ended
13,764 $
(986) $
10,069 $
9,083 $
0.48 $
15.31 $
14,149 $
(1,079) $
9,757 $
8,678 $
0.45 $
15.33 $
16,021 $
(533) $
11,170 $
10,637 $
0.55 $
15.41 $
15,361
(3,021)
15,759
12,738
0.64
15.70
March 31
June 30
September 30
December 31
Three Months Ended
11,068 $
(2,773) $
10,885 $
8,112 $
0.44 $
15.05 $
11,404 $
(2,134) $
9,755 $
7,621 $
0.41 $
15.06 $
12,385 $
(1,446) $
13,830 $
12,384 $
0.66 $
15.28 $
14,658
(1,135)
8,696
7,561
0.40
15.19
$
$
$
$
$
$
$
$
$
$
$
$
From January 1, 2020 through March 13, 2020 the Company sold 290,046 shares of its common stock at a weighted average price of $21.47 per share under the 2019 ATM Equity Distribution
Agreement. Proceeds, net of offering costs and expenses were $6,228,000. As of March 13, 2020, there were 1,353,256 shares of common stock available for sale under the 2019 ATM Equity
Distribution Agreement.
Dividend Declaration
On February 5, 2020, the Company declared a quarterly cash dividend of $0.44 per share payable on March 31, 2020 to shareholders of record as of March 18, 2020. The dividend will be paid in cash
or shares of the Company's common stock through participation in the Company's DRIP, at the election of shareholders.
On February 28, 2020, we amended our 2019 ATM Equity Distribution Agreement to add UBS Securities LLC as a placement agent, effectively immediately.
F-242
Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Year Ended December 31, 2019
Portfolio Company
Type of Investment (1)
Amount of
Realized
Gain (Loss)
Amount of
Unrealized
Appreciation
(Depreciation)
Amount of Interest
or Dividends
Credited to Income
(3)
Fair Value at
December 31,
2018
Gross Additions
(4)
Gross
Reductions (5)
Fair Value at
December 31,
2019
Advanced Cyber Security Systems, LLC 50% Membership Interest (2)
$
Term Loan (3%) (2)
— $
—
Automated Merchant Services, Inc.
100% Common Stock (2)
CDS Business Services, Inc.
100% Common Stock (2)
Line of Credit (Prime + 2.5%) (6)
Term Loan (10%)
Newtek Technology Solutions, Inc.
100% Common Stock (2)
Line of Credit (10%)
Newtek Insurance Agency, LLC
100% Membership Interest(2)
PMTWorks Payroll, LLC
Small Business Lending, LLC
100% Membership Interest(2)
Term Loans (10%-12%)(2)
100% Membership Interest(2)
Term Loan (10%)
banc-serv Partners, LLC
100% Membership Interest (2)
International Professional Marketing, Inc. 100% Common Stock
SIDCO, LLC
Line of Credit (Prime + 0.5%)(6)
100% Membership Interest
Line of Credit (Prime + 0.5%)(6)
Newtek Merchant Solutions, LLC
100% Membership Interest
Titanium Asset Management, LLC
100% Membership Interest(2)
Term Loan (10%)(2)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— $
—
—
(2,000)
—
500
—
—
(622)
—
6,002
—
(286)
850
—
(1,170)
—
— $
—
— $
—
— $
—
— $
—
—
—
—
—
—
—
3,000
5,000
—
—
360
—
(2,000)
(360)
(1,000)
2,000
3,561
(1,500)
—
9,000
10,361
—
—
402
35
—
522
5,000
5,000
1,000
8,500
6,800
—
2,215
—
—
2,215
—
—
—
23
—
900
8
700
9
—
—
3,300
—
—
3,300
800
7,820
175
622
—
6,350
400
(622)
—
—
—
—
—
9,650
400
286
(286)
—
850
—
—
750
—
(800)
(1,170)
(75)
4,150
—
6,650
850
5,000
11,490
116,250
5,000
—
121,250
—
(316)
—
—
—
—
—
900
—
(510)
—
390
F-243
Portfolio Company
Type of Investment (1)
Amount of
Realized
Gain (Loss)
Amount of
Unrealized
Appreciation
(Depreciation)
Amount of Interest
or Dividends
Credited to Income
(3)
Fair Value at
December 31,
2018
Gross Additions
(4)
Gross
Reductions (5)
Fair Value at
December 31,
2019
Newtek Business Lending, LLC
100% Membership Interest(2)
Newtek Conventional Lending, LLC
50% Membership Interest
Mobil Money, LLC
100% Membership Interest
POS on Cloud, LLC
Excel WebSolutions LLC
Total Controlled Investments
Non-Control/Affiliate Investments
EMCAP Loan Holdings, LLC
Total Affiliate Investments
50.1% Membership Interest
Term Loan (10%)
Term Loans (10%)(2)
50% Membership Interest(2)
6.04% Membership Interest
—
—
—
—
—
—
—
630
1,853
770
—
—
—
—
—
8,445
18,008
(4,200)
22,253
822
375
—
24
—
—
—
16,123
—
16,123
2,980
770
—
3,750
—
—
—
—
775
—
—
—
—
—
—
—
775
—
—
$
$
$
— $
11,211
$
15,310
$
171,585
$
56,755
$
(12,523)
$
215,817
— $
— $
— $
$
11,211
111
15,421
$
$
1,000
172,585
$
$
— $
$
56,755
— $
$
(12,523)
1,000
216,817
This schedule should be read in connection with the Company’s Consolidated Financial Statements, including the Consolidated Schedule of Investments and Notes to the Consolidated Financial
Statements.
(1) The principal amount and ownership detail as shown in the Company’s Consolidated Schedule of Investments.
(2) Represents non-income producing security.
(3) Represents the total amount of interest, fees or dividends credited to income for the period.
(4) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and the exchange of one or more existing securities for one or
more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation.
(5) Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities.
Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.
(6) Index based floating rate debt investments bear interest at rate of Prime plus a contractual spread which typically resets monthly. At December 31, 2019, the Prime rate was 5.00%.
F-244
DESCRIPTION OF SECURITIES
Exhibit 4.2
As of December 31, 2019, Newtek Business Services Corp. (the “Company,” “we,” “our,” or “us”) had two classes of securities registered under Section 12 of the Securities Exchange Act of
1934, as amended: (1) our common stock and (2) our debt securities.
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form 10-K to which this Description of Securities is attached as an exhibit.
A. Common Stock, $0.02 par value per share
As of December 31, 2019, the authorized capital stock of Newtek Business Services Corp. consisted of 200,000,000 shares of stock, par value $0.02 per share, all of which are initially
designated as common stock. Our common stock is traded on the Nasdaq Global Market under the ticker symbol “NEWT.”
All shares of our common stock have equal rights as to earnings, assets, voting, and distributions and, when they are issued, will be duly authorized, validly issued, fully paid and non-
assessable. Distributions may be paid to the holders of our common stock if, as and when authorized by our Board and declared by us out of assets legally available therefor. Shares of our common
stock have no preemptive, conversion or redemption rights and are freely transferable, except where their transfer is restricted by federal and state securities laws or by contract. In the event of our
liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay all debts and other
liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time. Each share of our common stock is entitled to one vote on all
matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class or series of stock, the holders of our common stock will possess
exclusive voting power. There is no cumulative voting in the election of directors, which means that holders of a majority of the outstanding shares of common stock can elect all of our directors, and
holders of less than a majority of such shares will be unable to elect any director.
Under our charter, our Board is authorized to classify and reclassify any unissued shares of stock into other classes or series of stock without obtaining stockholder approval. Our charter also
provides that the Board, without any action by our stockholders, may amend the charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of
stock of any class or series that we have authority to issue.
Options and Restricted Stock
From time to time, at the discretion of the Compensation, Corporate Governance and Nominating Committee, the Company intends to grant stock options to the named executive officers and
other employees to create a clear and strong alignment between compensation and stockholder return and to enable the named executive officers and other employees to develop and maintain a stock
ownership position in the company that will vest over time and act as an incentive for the employee to remain with the Company. Stock options may be granted pursuant to the Newtek Business
Services Corp. 2014 Plan.
On May 10, 2016, the SEC issued order for exemptive relief that, with the stockholders’ approval we received on July 27, 2016, allows us to take certain actions that would otherwise be
prohibited by the 1940 Act, as
applicable to business development companies. Specifically, the SEC order permits us to (i) issue restricted stock awards to our officers, employees and directors and (ii) issue stock options to our
non-employee directors.
We also may in the future request exemptive relief to permit us to grant dividend equivalent right to our option holders. However, there is no assurance that we will receive any such
exemptive relief.
Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages
except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being
material to the cause of action. Our charter contains such a provision which eliminates directors’ and officers’ liability to the maximum extent permitted by Maryland law, subject to the requirements
of the 1940 Act.
Limitation on Liability of Directors and Officers; Indemnification and Advance of Expenses
Our charter authorizes us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any
individual who, while serving as our director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan
or other enterprise as a director, officer, partner or trustee, from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her
service in such capacity and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. Our bylaws obligate us, to the maximum extent permitted by Maryland law
and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as our director or officer and at our request, serves or has
served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee and who is made, or
threatened to be made, a party to the proceeding by reason of his or her service in that capacity from and against any claim or liability to which that person may become subject or which that person
may incur by reason of his or her service in any such capacity and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding. The charter and bylaws also
permit us to indemnify and advance expenses to any person who served a predecessor of us in any of the capacities described above and any of our employees or agents or any employees or agents of
our predecessor. In accordance with the 1940 Act, we will not indemnify any person for any liability to which such person would be subject by reason of such person’s willful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved in the conduct of his or her office.
Maryland law requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful in the defense of any
proceeding to which he or she is made, or threatened to be made, a party by reason of his or her service in that capacity. Maryland law permits a corporation to indemnify its present and former
directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made
a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (1)
was committed in bad faith or (2) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money, property or services or (c) in
the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under Maryland law, a
Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly
received unless, in either case, a court orders indemnification, and then only for expenses. In addition, Maryland law permits a corporation to advance reasonable expenses to a director or officer upon
the corporation’s receipt of (a) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the
corporation and (b) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was
not met.
Certain Provisions of the Maryland General Corporation Law and Our Charter and Bylaws
The Maryland General Corporation Law and our charter and bylaws contain provisions that could make it more difficult for a potential acquirer to acquire us by means of a tender offer,
proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to
negotiate first with our Board. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the
negotiation of such proposals may improve their terms.
Classified Board of Directors
Our Board is divided into three classes of directors serving staggered three-year terms. The first expires in 2018, the second class expires in 2019, and the third class expires in 2020. Upon
expiration of their current terms, directors of each class will be elected to serve for three-year terms and until their successors are duly elected and qualify and each year one class of directors will be
elected by the stockholders. A classified board may render a change in control of us or removal of our incumbent management more difficult. We believe, however, that the longer time required to
elect a majority of a classified board of directors will help to ensure the continuity and stability of our management and policies.
Election of Directors
Our charter and bylaws provide that the affirmative vote of the holders of a plurality of the outstanding shares of stock entitled to vote in the election of directors cast at a meeting of
stockholders duly called and at which a quorum is present will be required to elect a director. Pursuant to our charter our Board may amend the bylaws to alter the vote required to elect directors.
Number of Directors; Vacancies; Removal
Our charter provides that the number of directors will be set only by the Board in accordance with our bylaws. Our bylaws provide that a majority of our entire Board may at any time
increase or decrease the number of directors. However, unless our bylaws are amended, the number of directors may never be less than one nor more than twelve. Our charter provides that, at such
time as we have at least three independent directors and our common stock is registered under the Securities Exchange Act of 1934, as amended, we elect to be subject to the provision of Subtitle 8 of
Title 3 of the Maryland General Corporation Law regarding the filling of vacancies on the board of directors. Accordingly, at such time, except as may be provided by the Board in setting the terms of
any class or series of preferred stock, any and all vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do
not constitute a quorum, and any director elected to fill a vacancy will serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and
qualifies, subject to any applicable requirements of the 1940 Act.
Our charter provides that a director may be removed only for cause, as defined in our charter, and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast in the election
of directors.
Action by Stockholders
Under the Maryland General Corporation Law, stockholder action can be taken only at an annual or special meeting of stockholders or (unless the charter provides for stockholder action by
less than unanimous written consent, which our charter does not) by unanimous written consent in lieu of a meeting. These provisions, combined with the requirements of our bylaws regarding the
calling of a stockholder-requested special meeting of stockholders discussed below, may have the effect of delaying consideration of a stockholder proposal until the next annual meeting.
Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals
Our bylaws provide that with respect to an annual meeting of stockholders, nominations of persons for election to the Board and the proposal of business to be considered by stockholders
may be made only (a) pursuant to our notice of the meeting, (b) by the Board or (c) by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice procedures
of our bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of persons for election to the
Board at a special meeting may be made only (1) pursuant to our notice of the meeting, (2) by the Board or (3) provided that the Board has determined that directors will be elected at the meeting, by
a stockholder who is entitled to vote at the meeting and who has complied with the advance notice provisions of the bylaws.
The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford our Board a meaningful opportunity to consider the qualifications of the proposed
nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by our Board, to inform stockholders and make recommendations about such
qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our bylaws do not give our Board any power to disapprove stockholder
nominations for the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of stockholder
proposals if proper procedures are not followed and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal
without regard to whether consideration of such nominees or proposals might be harmful or beneficial to us and our stockholders.
Calling of Special Meetings of Stockholders
Our bylaws provide that special meetings of stockholders may be called by our Board and certain of our officers. Additionally, our bylaws provide that, subject to the satisfaction of certain
procedural and informational requirements by the stockholders requesting the meeting, a special meeting of stockholders will be called by the secretary of the corporation upon the written request of
stockholders entitled to cast not less than a majority of all the votes entitled to be cast at such meeting.
Approval of Extraordinary Corporate Action; Amendment of Charter and Bylaws
Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, engage in a share exchange or engage in similar
transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a
Maryland corporation may provide in its charter for approval of
these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter generally provides for approval of charter amendments and
extraordinary transactions by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter. Our charter also provides that certain charter amendments, any proposal
for our conversion, whether by charter amendment, merger or otherwise, from a closed-end company to an open-end company and any proposal for our liquidation or dissolution requires the approval
of the stockholders entitled to cast at least a majority of the votes entitled to be cast on such matter. However, if such amendment or proposal is approved by a majority of our continuing directors (in
addition to approval by our Board), such amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The “continuing directors” are defined in our charter
as (1) our current directors, (2) those directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of our current directors
then on the Board or (3) any successor directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of continuing
directors or the successor continuing directors then in office. In any event, in accordance with the requirements of the 1940 Act, any amendment or proposal that would have the effect of changing the
nature of our business so as to cause us to cease to be, or to withdraw our election as, a BDC would be required to be approved by a majority of our outstanding voting securities, as defined under the
1940 Act.
Our charter and bylaws provide that the Board will have the exclusive power to make, alter, amend or repeal any provision of our bylaws. In a Special Meeting of Stockholders held on July
26, 2018, our stockholders rejected a proposal that would have allowed our stockholders to amend our bylaws.
No Appraisal Rights
Except with respect to appraisal rights arising in connection with the Control Share Act discussed below, as permitted by the Maryland General Corporation Law, our charter provides that
stockholders will not be entitled to exercise appraisal rights unless a majority of the Board shall determine such rights apply.
Control Share Acquisitions
The Maryland General Corporation Law provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by
a vote of two-thirds of the votes entitled to be cast on the matter (the “Control Share Act”). Shares owned by the acquirer, by officers or by directors who are employees of the corporation are
excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the
acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within one of
the following ranges of voting power:
•
•
•
one-tenth or more but less than one-third;
one-third or more but less than a majority; or
a majority or more of all voting power.
The requisite stockholder approval must be obtained each time an acquirer crosses one of the thresholds of voting power set forth above. Control shares do not include shares the acquiring
person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of control shares, subject to certain exceptions.
A person who has made or proposes to make a control share acquisition may compel the Board of the corporation to call a special meeting of stockholders to be held within 50 days of
demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses
of the meeting. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.
If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may redeem for fair
value any or all of the control shares, except those for which voting rights have previously been approved. The right of the corporation to redeem control shares is subject to certain conditions and
limitations, including compliance with the 1940 Act. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition
by the acquirer or of any meeting of stockholders at which the voting rights of the shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting
and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of
appraisal rights may not be less than the highest price per share paid by the acquirer in the control share acquisition.
The Control Share Act does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or
exempted by the charter or bylaws of the corporation. Our bylaws contain a provision exempting from the Control Share Act any and all acquisitions by any person of our shares of stock. There can
be no assurance that such provision will not be amended or eliminated at any time in the future. However, the SEC staff has taken the position that, under the 1940 Act, an investment company may
not avail itself of the Control Share Act. As a result, we will amend our bylaws to be subject to the Control Share Act only if the Board determines that it would be in our best interests and, after
notification, the SEC staff does not object to our determination that our being subject to the Control Share Act does not conflict with the 1940 Act.
Business Combinations
Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the
most recent date on which the interested stockholder becomes an interested stockholder (the “Business Combination Act”). These business combinations include a merger, consolidation, share
exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:
•
•
any person who beneficially owns 10% or more of the voting power of the corporation’s outstanding voting stock; or
an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the
then outstanding voting stock of the corporation.
A person is not an interested stockholder under this statute if the board of directors approved in advance the transaction by which the stockholder otherwise would have become an interested
stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions
determined by the board.
After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation
and approved by the affirmative vote of at least:
•
•
80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and
two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business
combination is to be effected or held by an affiliate or associate of the interested stockholder.
These super-majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash
or other consideration in the same form as previously paid by the interested stockholder for its shares.
The statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors before the time that the interested stockholder
becomes an interested stockholder. Our Board has adopted a resolution that any business combination between us and any other person is exempted from the provisions of the Business Combination
Act, provided that the business combination is first approved by Board, including a majority of the directors who are not interested persons as defined in the 1940 Act. This resolution may be altered
or repealed in whole or in part at any time; however, our Board will adopt resolutions so as to make us subject to the provisions of the Business Combination Act only if the Board determines that it
would be in our best interests and if the SEC staff does not object to our determination that our being subject to the Business Combination Act does not conflict with the 1940 Act. If this resolution is
repealed, or the Board does not otherwise approve a business combination, the statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any
offer.
Conflict with 1940 Act
Our bylaws provide that, if and to the extent that any provision of the Maryland General Corporation Law, including the Control Share Act (if we amend our bylaws to be subject to such
Act) and the Business Combination Act, or any provision of our charter or bylaws conflicts with any provision of the 1940 Act, the applicable provision of the 1940 Act will control.
B. Debt Securities
•
•
6.25% Notes due 2023 (the “2023 Notes”); and
5.75% Notes due 2024 (the “2024 Notes,” and together with the 2023 Notes, the “Notes”).
The 2023 Notes
In February 2018, we issued $50,000,000 in aggregate principal amount of 6.25% Notes due 2023 (the “2023 Notes”). In February 2018, we closed on an additional $7.5 million in aggregate
principal amount of the 2023 Notes pursuant to a fully-exercised overallotment option granted to the underwriters. The total net proceeds to us, after deducting underwriting discounts and offering
expenses, were approximately $55.17 million. As of December 31, 2019, the outstanding principal balance of the 2023 Notes was $57.5 million
The 2023 Notes were issued under a base indenture (the “Base Indenture”), dated September 23, 2015, by and between the Company and U.S. Bank National Association (the “Trustee”), as
supplemented by the third supplemental indenture, dated as of February 21, 2018 (the “Third Supplemental Indenture”). The 2023 Notes bear interest at a rate of 6.25% per year payable quarterly on
March 1, June 1, September 1, and December 1 of each year, commencing on June 1, 2018. The 2023 Notes will mature on March 1, 2023. The 2023 Notes may be redeemed in whole or in part at
any time or from time to time at our option on or after March 1, 2020. We have listed the 2023 Notes on The Nasdaq Global Select Market under the trading symbol “NEWTI.”
The 2024 Notes
In July 2019, we issued $55,000,000 in aggregate principal amount of 5.75% notes due 2024 (the “2024 Notes,” and together with the 2023 Notes, the “Notes”). In August 2019, we closed
on an additional $8.25 million in aggregate principal amount of the 2024 Notes pursuant to a fully-exercised overallotment option granted to the underwriters. The total net proceeds to us, after
deducting underwriting discounts and offering expenses, were approximately $61.3 million. As of December 31, 2019, the outstanding principal balance of the 2024 Notes was $63.25 million.
The 2024 Notes were issued under a base indenture (the “Base Indenture”), dated September 23, 2015, by and between the Company and U.S. Bank National Association (the “Trustee”), as
supplemented by the fourth supplemental indenture, dated as of July 29, 2019 (the “Fourth Supplemental Indenture”, and together with the Base Indenture and the Third Supplemental Indenture, the
“Indenture”). The 2024 Notes bear interest at a rate of 6.25% per year payable quarterly on February 1, May 1, August 1, and November 1 of each year, beginning on November 1, 2019. The 2024
Notes will mature on August 1, 2024. The 2024 Notes may be redeemed in whole or in part at any time or from time to time at our option on or after August 1, 2021. We have listed the 2024 Notes
on The Nasdaq Global Select Market under the trading symbol “NEWTL.”
General
The Indenture provides that any debt securities proposed to be sold may be issued under the Indenture in one or more series.
The Indenture does not limit the amount of debt securities that may be issued thereunder from time to time. Debt securities issued under the Indenture, when a single trustee is acting for all debt
securities issued under the Indenture, are called the “indenture securities.” The Indenture also provides that there may be more than one trustee thereunder, each with respect to one or more different
series of indenture securities. See “— Resignation of Trustee” below. At a time when two or more trustees are acting under the Indenture, each with respect to only certain series, the term “indenture
securities” means the one or more series of debt securities with respect to which each respective trustee is acting. In the event that there is more than one trustee under the Indenture, the powers and
trust obligations of each trustee will extend only to the one or more series of indenture securities for which it is trustee. If two or more trustees are acting under the Indenture, then the indenture
securities for which each trustee is acting would be treated as if issued under separate indentures.
Except as described under “— Events of Default” and “— Merger or Consolidation” below, the Indenture does not contain any provisions that give you protection in the event we issue a large
amount of debt or we are acquired by another entity.
We refer you to the applicable prospectus supplement for information with respect to any deletions from, modifications of or additions to the Events of Default or our covenants, as applicable,
that are described below, including any addition of a covenant or other provision providing event risk protection or similar protection.
We have the ability to issue indenture securities with terms different from those of indenture securities previously issued and, without the consent of the holders thereof, to reopen a previous
issue of a series of indenture securities and issue additional indenture securities of that series unless the reopening was restricted when that series was created.
Optional Redemption
The 2023 Notes and the 2024 may be redeemed in whole or in part at any time or from time to time at our option on or after March 1, 2020 and August 1, 2021, respectively, upon not less than 30
days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount of the Notes to be redeemed plus
accrued and unpaid interest payments otherwise payable thereon for the then-current quarterly interest period accrued to the date fixed for redemption.
You may be prevented from exchanging or transferring the Notes when they are subject to redemption. In case any Notes are to be redeemed in part only, the redemption notice will provide that,
upon surrender of such Note, you will receive, without a charge, a new Note or Notes of authorized denominations representing the principal amount of your remaining unredeemed Notes. Any
exercise of our option to redeem the Notes will be done in compliance with the 1940 Act.
If we redeem only some of the Notes, the trustee or, with respect to global securities, DTC will determine the method for selection of the particular Notes to be redeemed, in accordance with the
Indenture and in accordance with the rules of any national securities exchange or quotation system on which the Notes are listed. Unless we default in payment of the redemption price, on and after
the date of redemption, interest will cease to accrue on the Notes called for redemption.
Global Securities
Each Note will be issued in book-entry form and represented by a global security that we deposit with and register in the name of The Depository Trust Company, New York, New York, known as
DTC, or its nominee. A global security may not be transferred to or registered in the name of anyone other than the depositary or its nominee, unless special termination situations arise. As a result of
these arrangements, the depositary, or its nominee, will be the sole registered owner and holder of all the Notes represented by a global security, and investors will be permitted to own only beneficial
interests in a global security. For more information about these arrangements, see “Description of Notes — Book-Entry Procedures” below.
Termination of a Global Security
If a global security is terminated for any reason, interests in it will be exchanged for certificates in non-book-entry form (certificated securities). After that exchange, the choice of whether to hold
the certificated Notes directly or in street name will be up to the investor. Investors must consult their own banks or brokers to find out how to have their interests in a global security transferred on
termination to their own names, so that they will be holders.
Payment
We will pay interest to the person listed in the trustee’s records as the owner of the Notes at the close of business on a particular day in advance of each due date for interest, even if that person no
longer owns the Note on the
interest due date. That day, usually about two weeks in advance of the interest due date, is called the “record date.” Because we will pay all the interest for an interest period to the holders on the
record date, holders buying and selling the Notes must work out between themselves the appropriate purchase price. The most common manner is to adjust the sales price of the Notes to prorate
interest fairly between buyer and seller based on their respective ownership periods within the particular interest period. This prorated interest amount is called “accrued interest.”
Payments on Global Securities
We will make payments on the Notes so long as they are represented by a global security in accordance with the applicable policies of the depositary as in effect from time to time. Under those
policies, we will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in the global security. An indirect holder’s right to those
payments will be governed by the rules and practices of the depositary and its participants, as described under “Description of Notes — Book-Entry Procedures.”
Payments on Certificated Securities
In the event the Notes become represented by certificated securities, we will make payments on the Notes as follows. We will pay interest that is due on an interest payment date to the holder of
the Notes as shown on the trustee’s records as of the close of business on the regular record date. We will make all payments of principal and premium, if any, by check at the office of the applicable
trustee in New York, New York and/or at other offices that may be specified in the Indenture or a notice to holders against surrender of the Note.
Alternatively, at our option, we may pay any cash interest that becomes due on the Notes by mailing a check to the holder at his, her or its address shown on the trustee’s records as of the close of
business on the regular record date or by transfer to an account at a bank in the United States, in either case, on the due date.
Payment When Offices Are Closed
If any payment is due on the Notes on a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next business day in this situation
will be treated under the Indenture as if they were made on the original due date. Such payment will not result in a default under the Notes or the Indenture, and no interest will accrue on the payment
amount from the original due date to the next day that is a business day.
Book-entry and other indirect holders should consult their banks or brokers for information on how they will receive payments on the Notes.
Events of Default
You will have rights if an Event of Default occurs in respect of the Notes, as described later in this subsection. The term “Event of Default” in respect of the Notes means any of the following:
•
We do not pay the principal of (or premium, if any, on) any Note on its due date and such default is not cured within 5 days of its due date.
An Event of Default for the Notes does not necessarily constitute an Event of Default for any other series of debt securities issued under the same or any other Indenture. The trustee may withhold
notice to the holders of the Notes of any default, except in the payment of principal or interest, if it in good faith considers the withholding of notice to be in the best interests of the holders.
•
•
We do not pay interest on any Note when due, and such default is not cured within 30 days of its due date.
We remain in breach of any other covenant with respect to the Notes for 60 days after we receive a written notice of default stating we are in breach. The notice must be sent by either
the trustee or holders of at least 25.0% of the principal amount of the Notes.
•
•
We file for bankruptcy, or certain other events of bankruptcy, insolvency, or reorganization occur and, in the case of certain orders or decrees entered against us under any bankruptcy
law, such order or decree remains undischarged or unstayed for a period of 90 days.
On the last business day of each of twenty-four consecutive calendar months, the Notes have an asset coverage, as defined in the 1940 Act, of less than 100% after giving effect to any
exemptive relief granted to us by the SEC.
Remedies if an Event of Default Occurs
If an Event of Default has occurred and is continuing, the trustee or the holders of not less than 25% in principal amount of the Notes may declare the entire principal amount of all the Notes to be
due and immediately payable. This is called a declaration of acceleration of maturity. In certain circumstances, a declaration of acceleration of maturity may be canceled by the holders of a majority
in principal amount of the Notes if (1) we have deposited with the trustee all amounts due and owing with respect to the Notes (other than principal that has become due solely by reason of such
acceleration) and certain other amounts, (2) any other Events of Default have been cured or waived, and (3) we have deposited with the trustee a sum sufficient to pay all sums paid or advanced by
the trustee and the reasonable compensation, expenses, disbursements, and advances of the trustee, its agents, and counsel as required under the Indenture in connection with the rescinded Event of
Default.
The trustee is not required to take any action under the Indenture at the request of any holders unless the holders offer the trustee protection from expenses and liability reasonably satisfactory to it
(called an “indemnity”). If indemnity reasonably satisfactory to the trustee is provided, the holders of a majority in principal amount of the Notes may direct the time, method and place of conducting
any lawsuit or other formal legal action seeking any remedy available to the trustee. The trustee may refuse to follow those directions in certain circumstances. No delay or omission in exercising any
right or remedy will be treated as a waiver of that right, remedy or Event of Default.
Before you are allowed to bypass the trustee and bring your own lawsuit or other formal legal action or take other steps to enforce your rights or protect your interests relating to the Notes, the
following must occur:
•
you must give the trustee written notice that an Event of Default has occurred and remains uncured;
However, you are entitled at any time to bring a lawsuit for the payment of money due on your Notes on or after the due date.
•
•
•
the holders of at least 25% in principal amount of all the Notes must make a written request that the trustee take action because of the default and must offer the trustee indemnity,
security or both reasonably satisfactory to it against the cost and other liabilities of taking that action;
the trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity and/or security; and
the holders of a majority in principal amount of the Notes must not have given the trustee a direction inconsistent with the above notice during that 60-day period.
Book-entry and other indirect holders should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and how to declare or
cancel an acceleration of maturity.
Each year, we will furnish to the trustee a written statement of certain of our officers certifying that to their knowledge we are in compliance with the Indenture and the Notes, or else specifying
any default.
Waiver of Default
The holders of a majority in principal amount of the Notes may waive any past defaults other than a default:
•
in the payment of principal (or premium, if any) or interest; or
Merger or Consolidation
•
in respect of a covenant that cannot be modified or amended without the consent of each holder.
Under the terms of the Indenture, we are generally permitted to consolidate or merge with another entity. We are also permitted to sell all or substantially all of our assets to another entity.
However, we may not take any of these actions unless all the following conditions are met:
•
where we merge out of existence or convey or transfer our assets substantially as an entirety, the resulting entity must agree, in a supplemental indenture, to be legally responsible for
our obligations under the Notes and the Indenture;
Modification or Waiver
•
•
the merger or sale of assets must not cause a default on the Notes and we must not already be in default (unless the merger or sale would cure the default). For purposes of this no-
default test, a default would include an Event of Default that has occurred and has not been cured, as described under “Events of Default” above. A default for this purpose would also
include any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist for a specific period of time were disregarded; and
we must deliver to the trustee certain certificates and documents and an opinion of counsel.
There are three types of changes we can make to the Indenture and the Notes issued thereunder.
Changes Requiring Your Approval
First, there are changes that we cannot make to your Notes without your specific approval. The following is a list of those types of changes:
•
change the stated maturity of the principal of or interest on the Notes;
Changes Not Requiring Approval
•
•
•
•
•
•
reduce any amounts due on the Notes;
reduce the amount of principal payable upon acceleration of the maturity of a Note following a default;
change the place or currency of payment on a Note;
impair your right to sue for payment;
reduce the percentage of holders of Notes whose consent is needed to modify or amend the Indenture; and
reduce the percentage of holders of Notes whose consent is needed to waive compliance with certain provisions of the Indenture or to waive certain defaults.
The second type of change does not require any vote by the holders of the Notes. This type is limited to clarifications and certain other changes that would not adversely affect holders of the
Notes in any material respect.
Changes Requiring Majority Approval
Any other change to the Indenture and the Notes would require the following approval:
•
if the change affects only the Notes, it must be approved by the holders of a majority in principal amount of the Notes; and
In each case, the required approval must be given by written consent.
•
if the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders of a majority in principal amount of all of the series
affected by the change, with all affected series voting together as one class for this purpose.
The holders of a majority in principal amount of any series of debt securities issued under an indenture, voting together as one class for this purpose, may waive our compliance with some of our
covenants in that indenture.
However, we cannot obtain a waiver of a payment default or of any of the matters covered by the bullet points included above under “Description of Notes — Modification or Waiver — Changes
Requiring Your Approval.”
Further Details Concerning Voting
When taking a vote, we will use the following rules to decide how much principal to attribute to the Notes:
The Notes will not be considered outstanding, and therefore not eligible to vote, if we have deposited or set aside in trust money for their payment or redemption. The Notes will also not be
eligible to vote if they have been fully defeased as described later under “Description of Notes — Defeasance — Full Defeasance.”
We will generally be entitled to set any day as a record date for the purpose of determining the holders of the Notes that are entitled to vote or take other action under the Indenture. However, the
record date may not be more than 30 days before the date of the first solicitation of holders to vote on or take such action. If we set a record date for a vote or other action to be taken by holders of the
Notes, that vote or action may be taken only by persons who are holders of the Notes on the record date and must be taken within eleven months following the record date.
The trustee shall not be deemed to have notice of any default or Event of Default unless (i) written notice of any event which is in fact such a default is received by the trustee at the corporate trust
office of the trustee and such notice references the Notes and the Indenture or (ii), in the case of a Default or Event of Default in the payment of the principal of (or premium, if any) or interest, if any,
on any Notes, a responsible officer of the trustee has actual knowledge thereof.
Book-entry and other indirect holders should consult their banks or brokers for information on how approval may be granted or denied if we seek to change the Indenture or the Notes
or request a waiver.
Defeasance
The following defeasance provisions will be applicable to the Notes. “Defeasance” means that, by depositing with a trustee an amount of cash and/or government securities sufficient to pay all
principal and interest, if any, on the Notes when due and satisfying any additional conditions noted below, we will be deemed to have been discharged from our obligations under the Notes. In the
event of a “covenant defeasance,” upon depositing such funds and satisfying similar conditions discussed below we would be released from certain covenants under the Indenture relating to the
Notes. The consequences to the holders of the Notes would be that, while they would no longer benefit from certain covenants under the Indenture, and while the Notes could not be accelerated for
any reason, the holders of Notes nonetheless would be guaranteed to receive the principal and interest owed to them.
Covenant Defeasance
Under current U.S. federal income tax law and the Indenture, we can make the deposit described below and be released from some of the restrictive covenants in the Indenture under which the
Notes were issued. This is called “covenant defeasance.” In that event, you would lose the protection of those restrictive covenants but would gain the protection of having money and government
securities set aside in trust to repay your Notes. In order to achieve covenant defeasance, the following must occur:
•
Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes a combination of cash and U.S. government or U.S. government
agency notes or bonds that will, in the written opinion of a nationally recognized accounting firm, generate enough cash to make interest, principal and any other payments on the Notes
on their various due dates;
If we accomplish covenant defeasance, you can still look to us for repayment of the Notes if there were a shortfall in the trust deposit or the trustee is prevented from making payment. In fact, if one
of the remaining Events of Default occurred (such as our bankruptcy) and the Notes became immediately due and payable, there might be a shortfall. Depending on the event causing the default, you
may not be able to obtain payment of the shortfall.
•
we must deliver to the trustee a legal opinion of our counsel confirming that, under current U.S. federal income tax law, we may make the above deposit without causing you to be
taxed on the Notes any differently than if we did not make the deposit;
•
•
•
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, and a legal opinion and officers’
certificate stating that all conditions precedent to covenant defeasance have been complied with;
defeasance must not result in a breach or violation of, or result in a default under, the Indenture or any of our other material agreements or instruments;
no default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of default related to bankruptcy, insolvency, or reorganization
shall occur during the next 90 days.
Full Defeasance
If there is a change in U.S. federal income tax law, as described below, we can legally release ourselves from all payment and other obligations on the Notes (called “full defeasance”) if we put in
place the following other arrangements for you to be repaid:
•
Since the Notes are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of the Notes a combination of money and U.S. government or U.S. government
agency notes or bonds that will, in the written opinion of a nationally recognized accounting firm, generate enough cash to make interest, principal and any other payments on the Notes
on their various due dates;
If we ever did accomplish full defeasance, as described above, you would have to rely solely on the trust deposit for repayment of the Notes. You could not look to us for repayment in the unlikely
event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our lenders and other creditors if we ever became bankrupt or insolvent. If your Notes were
subordinated as described later under “Description of Notes — Indenture Provisions — Ranking,” such subordination would not prevent the trustee under the Indenture from applying the funds
available to it from the deposit referred to in the first bullet of the preceding paragraph to the payment of amounts due in respect of such Notes for the benefit of the subordinated debtholders.
•
•
•
•
we must deliver to the trustee a legal opinion confirming that there has been a change in current U.S. federal income tax law or an IRS ruling that allows us to make the above deposit
without causing you to be taxed on the Notes any differently than if we did not make the deposit. Under current U.S. federal income tax law the deposit and our legal release from the
Notes would be treated as though we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange for your Notes and
you would recognize gain or loss on the Notes at the time of the deposit;
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, and a legal opinion and officers’
certificate stating that all conditions precedent to defeasance have been complied with;
defeasance must not result in a breach or violation of, or constitute a default under, the Indenture or any of our other material agreements or instruments; and
no default or event of default with respect to the Notes shall have occurred and be continuing and no defaults or events of default related to bankruptcy, insolvency, or reorganization
shall occur during the next 90 days.
Other Covenants
In addition to any other covenants described in applicable prospectus supplement or accompanying prospectus, as well as standard covenants relating to payment of principal and interest,
maintaining an office where payments may be made or securities can be surrendered for payment, payment of taxes by the Company and related matters, the following covenants will apply to the
Notes:
•
We agree that for the period of time during which the Notes are outstanding, we will not violate Section 18(a)(1)(A) as modified by Section 61(a) of the 1940 Act or any successor
provisions, but giving effect to any exemptive relief granted to us by the SEC. Currently, these provisions generally prohibit us from incurring additional borrowings, including through
the issuance of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 150% after such borrowings. See “Risk Factors — Because we have
received the approval of our stockholders, we are subject to 150% asset coverage beginning after July 26, 2018” in this Form 10-K.
Form, Exchange and Transfer of Certificated Registered Securities
•
•
We agree that for the period of time during which Notes are Outstanding, pursuant to Section 18(a)(1)(B) as modified by Section 61(a) of the Investment Company Act or any
successor provisions thereto of the Investment Company Act, the Company will not declare any dividend (except a dividend payable in stock of the issuer), or declare any other
distribution, upon a class of the capital stock of the Company, or purchase any such capital stock, unless, in every such case, at the time of the declaration of any such dividend or
distribution, or at the time of any such purchase, the Company has an asset coverage (as defined in the Investment Company Act) of at least the threshold specified in Section 18(a)(1)
(B) as modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, as such obligation may be amended or
superseded, after deducting the amount of such dividend, distribution or purchase price, as the case may be, and in each case giving effect to (i) any exemptive relief granted to the
Company by the Commission, and (ii) any SEC no-action relief granted by the Commission to another business development company (or to the Company if it determines to seek such
similar no-action or other relief) permitting the business development company to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)
(1)(B) as modified by Section 61(a) of the Investment Company Act, as such obligation may be amended or superseded, in order to maintain such business development company’s
status as a regulated investment company under Subchapter M of the Code.
If, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the SEC, we agree to furnish to holders of
the Notes and the trustee, for the period of time during which the Notes are outstanding, our audited annual consolidated financial statements, within 90 days of our fiscal year end, and
unaudited interim consolidated financial statements, within 45 days of our fiscal quarter end (other than our fourth fiscal quarter). All such financial statements will be prepared, in all
material respects, in accordance with applicable U.S. GAAP.
If registered Notes cease to be issued in book-entry form, they will be issued:
•
only in fully registered certificated form;
Holders may exchange their certificated securities for Notes of smaller denominations or combined into fewer Notes of larger denominations, as long as the total principal amount is not changed and
as long as the denomination is equal to or greater than $25.
•
•
without interest coupons; and
unless we indicate otherwise, in denominations of $25 and amounts that are multiples of $25.
Holders may exchange or transfer their certificated securities at the office of the trustee. We have appointed the trustee to act as our agent for registering Notes in the names of holders transferring
Notes. We may appoint another entity to perform these functions or perform them ourselves.
Holders will not be required to pay a service charge to transfer or exchange their certificated securities, but they may be required to pay any tax or other governmental charge associated with the
transfer or exchange. The transfer or exchange will be made only if our transfer agent is satisfied with the holder’s proof of legal ownership.
We may appoint additional transfer agents or cancel the appointment of any particular transfer agent. We may also approve a change in the office through which any transfer agent acts.
If we redeem any of the Notes, we may block the transfer or exchange of those Notes selected for redemption during the period beginning 15 days before the day we mail the notice of redemption
and ending on the day of that mailing, in order to determine and fix the list of holders to prepare the mailing. We may also refuse to register
transfers or exchanges of any certificated Notes selected for redemption, except that we will continue to permit transfers and exchanges of the unredeemed portion of any Note that will be partially
redeemed.
If registered Notes are issued in book-entry form, only the depositary will be entitled to transfer and exchange the Notes as described in this subsection, since it will be the sole holder of the
Notes.
Resignation of Trustee
The trustee may resign or be removed with respect to the Notes provided that a successor trustee is appointed to act with respect to the Notes. In the event that two or more persons are acting as
trustee with respect to different series of Indenture securities under the Indenture, each of the trustees will be a trustee of a trust separate and apart from the trust administered by any other trustee.
Indenture Provisions — Ranking
The Notes will be designated as Senior Securities and, therefore, Senior Indebtedness under the Indenture. Senior Indebtedness is defined in the Indenture as the principal of (and premium, if any)
and unpaid interest on:
•
our indebtedness (including indebtedness of others guaranteed by us), whenever created, incurred, assumed or guaranteed, for money borrowed, that we have designated as “Senior
Indebtedness” for purposes of the Indenture and in accordance with the terms of the Indenture (including any Indenture securities designated as Senior Indebtedness), and
As unsecured obligations of the Company designated as Senior Indebtedness under the Indenture, the Notes will rank:
•
•
•
•
•
renewals, extensions, modifications and refinancings of any of this indebtedness.
pari passu, or equal, with any of our existing and future unsecured indebtedness;
senior to any of our future indebtedness that expressly provides it is subordinated to the Notes;
effectively subordinated, or junior, to all of our existing and future secured indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to
the extent of the value of the assets securing such indebtedness; and
structurally subordinated, or junior, to all existing and future indebtedness and other obligations of any of our subsidiaries or financing vehicles, if any.
NEWTEK BUSINESS SERVICES CORP.
_____________________________
EMPLOYMENT AGREEMENT WITH
BARRY SLOANE
_____________________________
PREAMBLE. This Employment Agreement (the “Agreement”) is entered into as of the 15th day of March 2020 (the “Effective Date”), by and between
NEWTEK BUSINESS SERVICES CORP. (the “Company”) and BARRY SLOANE (the “Executive”), effective immediately.
WHEREAS, the Executive is currently employed by the Company as Chief Executive Officer and President, and serves as Chairman of the Board of Directors;
and
WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1. Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a) “Board” shall mean the Board of Directors of the Company.
(b) “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of
the Company’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii) the
acquisition of the ability to control the election of a majority of the Board by any person or persons acting as a “group” (within the meaning of Section 13(d) of the
Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the Company by any person or by persons acting
as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the
“Continuing Directors”) who at the beginning of such period constitute the Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof,
provided that any individual whose election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the
Continuing Directors then in office shall be considered a Continuing Director. For purposes of defining Change in Control, the term “person” refers to an individual
or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not
specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this Section 1(b) shall not be treated as a Change in Control for purposes
of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under
section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”)
(c) “Common Stock” shall mean the shares of the Company’s common stock, par value of $0.02 per share.
(d) “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term
of the Agreement: (i) the requirement that the Executive move his personal residence, or perform his principal executive functions, more than fifty (50) miles from
his primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time;
(iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be
increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or
hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive
of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those
associated with his position on the Effective Date; (v) a failure to elect or reelect the Executive to the Board or as Chairman of the Board; (vi) a material diminution
or reduction in the Executive’s responsibilities or authority (including reporting responsibilities) in connection with his employment with the Company.
(e) “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform
stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered
“willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the
best interests of the Company.
(f) “Protected Period” shall mean the period that begins on the date six months before a Change in Control and ends on the earlier of six months
following the Change in Control or the expiration date of this Agreement.
(g) “Trigger Event” shall mean (i) the Executive’s voluntary termination of employment within ninety (90) days of an event that both occurs during
the Protected Period and constitutes Good Reason, or (ii) the termination by the Company or its successor(s) in interest, of the Executive’s employment for any
reason other than Just Cause during the Protected Period.
2. Employment. The Executive is employed as Chief Executive Officer and President of the Company. The Executive shall render such administrative and
management services for the Company and its subsidiaries and portfolio companies as are currently rendered and as are customarily performed by persons situated in
a similar executive capacity and consistent with the duties of the Chief Executive Officer and President as set forth in the Bylaws of the Company. The Executive
shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the Company and its subsidiaries and portfolio companies.
The Executive’s other duties shall be such as the Board may from time to time reasonably direct, including normal duties as an officer of the Company.
3. Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $700,000 per annum,
payable in cash not less frequently than monthly.
4. Cash Bonuses. The Board shall determine the Executive’s right to receive cash bonuses., Cash Bonuses shall be awarded annually based upon the
Executive’s and the Company’s annual performance pursuant to the Company’s policy.
5. Other Benefits.
(a) Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of
its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care
expenses, or (iii) other group benefits, including disability and life insurance plans.
(b) Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior
management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the
responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business
expenses which Executive shall incur in connection with his services under this Agreement upon substantiation of such expenses in accordance with the policies of
the Company.
6. Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment under this Agreement, for the period
commencing on the Effective Date and ending on March 15, 2021 or such earlier date as is determined in accordance with Section 11 (the “Term”).”
7. Loyalty; Noncompetition.
(a) During the period of his employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence, the
Executive shall devote substantially all his full business time, attention, skill, and efforts to the faithful performance of his duties hereunder; provided, however, from
time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, at the request of the Company
or which will not present, in the opinion of the Board, any conflict of interest with the Company or any of its subsidiaries or portfolio companies, nor unfavorably
affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. . During the Term of his employment under
this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company.
(b) Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of any
business dissimilar from that of the Company or, solely as a passive or minority investor, in any business, provided such investment does not: (i) constitute a conflict of
interest, (ii) violate laws or regulations applicable to the Company, including, without limitation, the Investment Company Act of 1940, or (iii) violate any rules or polices
promulgated by the Board.
8. Facilities and Staff. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for him to
perform his duties.
9. Vacation and Sick Leave. At such reasonable times according to Company policy, the Executive shall be entitled, without loss of pay, to absent himself
voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a) The Executive shall be entitled to an annual vacation in accordance with the policies that the Company periodically establishes for senior
management executives of the Company.
(b) The Executive shall not receive any additional compensation from the Company on account of his failure to take a vacation, and the Executive
shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Board.
(c) In addition to the aforesaid paid vacations, the Executive shall be entitled - to absent himself voluntarily from the performance of his
employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Board may in its discretion determine. Further, the
Board may grant to the Executive a leave or leaves of absence, with or without pay.
(d) In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Company
10. Indemnification. The Company shall, to the extent permitted by the Company’s Bylaws, indemnify and hold harmless Executive from any and all loss,
expense, or liability that Executive may incur due to his services for the Company as an officer and or a director of the Company or any of its subsidiaries or portfolio
companies (including any liability Executive may ever incur, as the result of severance benefits Executive collects pursuant to Sections 11 or 13), during the full
Term of this Agreement and shall at all times maintain adequate insurance for such purposes.
11. Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following
circumstances:
(a) Just Cause. The Board may, based on a good faith determination and only after giving the Executive written notice and a reasonable opportunity
to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive compensation or other benefits
for any period after termination for Just Cause.
(b) Without Just Cause. The Board may, by written notice to the Executive, immediately terminate his employment for a reason other than Just
Cause. In such event, the Executive shall be entitled to a total severance payment (the “Severance Payment”) equal to two (2) times the sum of (i) Executive’s Annual
Base Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the
immediately preceding fiscal year. The first $500,000 of the Severance Payment shall be paid in a lump sum to the Executive within thirty (30) days after Executive’s
termination of employment. The remaining amount of the Severance Payment shall be paid in equal installments over a six (6) month period following the
Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment
Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii). In the event that, pursuant to the above, any of the
Installment Payments will be paid after April 1 of the year following the year of termination and the total amount of any such Installment Payments which will be
paid after April 1 exceeds the lesser of: (i) twice the Executive’s then Annual Base Compensation; or (ii) twice the Code Section 401(a)(17) limit in effect for the
year of termination, the portion of any such Installment Payments that exceeds the foregoing threshold shall be accumulated and paid in the seventh (7 th ) month
following the date of termination of employment, but only to the extent necessary to comply with the six (6) month delay rule pertaining to “specified employees”
under Treasury Regulations Section 1.409A-3(i)(2).
(c) Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case
the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a
termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to
participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of
termination of employment, subject to any restrictions as may be required under Code Section 409A
(d) Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this
Agreement, upon at least 60 days’ prior written notice to the Board of Directors, in which case the Executive shall receive only his compensation, vested rights, and
Executive benefits up to the date of Executive’s last day of employment.
(e) Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to Executive’s death or disability that
results in collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the compensation and
benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason.
(f) Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the Executive is
willing and able to execute such extension and continue performing services, then the Executive’s employment shall be terminated by the Company effective as of
the expiration of the Term, in which event Executive shall be entitled to a Severance Payment equal to one (1.0) times the sum of (i) Executive’s Annual Base
Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately
preceding fiscal year. The first $500,000 of the Severance Payment shall be paid in a lump sum to the Executive within thirty (30) days after his termination of
employment. The remaining amount of the Severance Payment shall be paid in equal installments over a six (6) month period following the Executive’s termination
of employment in Installment Payments. Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)
(2)(iii). In the event that, pursuant to the above, any of the Installment Payments will be paid after April 1 of the year following the year of termination and the total
amount of any such Installment Payments which will be paid after April 1 exceeds the lesser of: (i) twice the Executive’s then current base salary; or (ii) twice the
Code Section 401(a)(17) limit in effect for the year of termination, the portion of any such Installment Payments that exceeds the foregoing threshold shall be
accumulated and paid in the seventh (7th) month following the date of his termination of employment, but only to the extent necessary to comply with the six
(6) month delay rule pertaining to “specified employees” under Treasury Regulations Section 1.409A-3(i)(2).
(g) Acceleration of Equity Awards. All (a) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan
of the Company, (b) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Company, and (c) other equity and equity
equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards
shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s
termination pursuant to Sections 11(b), (c), (e) and (f) hereof.
12. No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment
or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent
employment.
13. Change in Control. Notwithstanding any provision herein to the contrary, if a Trigger Event occurs during the Protected Period, the Executive shall be
paid an amount equal to two (2) times the executive’s Annual Base Compensation plus (ii) the amount of all compensation paid to Executive under Section 4 hereof
with respect to the immediately preceding fiscal year (the “Change in Control Payment”). If the Trigger Event occurs during the portion of the Protected Period that
is prior to the date of the Change in Control, the Change in Control Payment shall be payable in the same manner as provided for under Section 11(b) herein upon a
termination without Just Cause. If the Trigger Event occurs during the portion of the Protected Period that is on or after the date of the Change in Control, the Change
in Control Payment shall be paid in a lump sum within ten (10) days of Executive’s termination of employment.
14. Covenants.
(a) Definitions. For purposes of this Agreement:
(i) Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of
the Executive’s employment hereunder.
(ii) Covered Customer. The term “Covered Customer” shall mean (A) during the Term, any customer, merchant, independent sales agency (ISA),
independent sales organization (ISO), alliance partner or any intermediary of the Company or its portfolio companies and (B) after the Term, as of the end of the
Term, a Covered Customer of the Company or its portfolio companies within the prior three years.
(iii) Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the
Term, any business in which the Company was engaged as of the end of the Term.
(iv) Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which,
as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense
and/or efforts in connection with preparing to do business therein.
(b) Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason,
whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual
relationships between the Company or its subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for hire, any
person who is employed by the Company or its subsidiaries or portfolio companies, without the express written consent of the Company; or (iii) other than on behalf
of the Company or its subsidiaries or portfolio companies, solicit any Covered Customer in connection with the engagement, by any person or entity, in any Covered
Business in any Covered State.
(c) Confidentiality. The Executive will not, at any time whether during or after his termination of employment, (i) disclose to anyone, without proper
authorization from the Company, or (ii) use, for his or another’s benefit, any confidential or proprietary information of the Company or any parent or subsidiary of
the Company, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists, brand formulations, training
and operations manuals, products or price strategies, mergers, acquisitions, and/or Company personnel issues.
(d) Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected
and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall
be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are
reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced.
Accordingly, the Executive agrees that if Executive breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i)
to damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose
of preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in
addition to any other relief to which the Company may be entitled under this Agreement.”
15. Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal
legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the
Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions,
provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten
(10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or
expenses incurred by the Executive.
16. Successors and Assigns.
(a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which shall acquire, directly
or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.
(b) Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or
delegating his rights or duties hereunder without first obtaining the written consent of the Company.
17. Corporate Authority. Company represents and warrants that the execution and delivery of this Agreement by it has been duly and properly authorized by
the Board and that when so executed and delivered this Agreement shall constitute the lawful and binding obligation of the Company.
18. Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein
otherwise specifically provided.
19. Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether
as to its validity, construction, capacity, performance or otherwise.
20. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof.
21. Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the
entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22. Tax Matters. All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In
addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply
with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or
benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation
from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption),
such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to
the extent required by Code Section 409A.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
NEWTEK BUSINESS SERVICES CORP.
By: /s
Salvatore Mulia, Chairman
Compensation, Corporate Governance and
Nominating Committee
EXECUTIVE
By: /s
Barry Sloane, CEO & President
116238/2
NEWTEK BUSINESS SERVICES CORP.
_____________________________
EMPLOYMENT AGREEMENT WITH
MICHAEL A. SCHWARTZ
_____________________________
PREAMBLE. This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 15th day of March 2020 (the “Effective Date”), by and
between NEWTEK BUSINESS SERVICES CORP. (the “Company”) and MICHAEL A. SCHWARTZ (the “Executive”).
WHEREAS, the Executive is currently employed by the Company as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary; and
WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1. Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a) “Board” shall mean the Board of Directors of the Company.
(b) “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of
the Company’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii) the
acquisition of the ability to control the election of a majority of the Board by any person or persons acting as a “group” (within the meaning of Section 13(d) of the
Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management or policies of the Company by any person or by persons acting
as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during any period of two consecutive years, individuals (the
“Continuing Directors”) who at the beginning of such period constitute the Board (the “Existing Board”) cease for any reason to constitute at least two-thirds thereof,
provided that any individual whose election or nomination for election as a member of the Existing Board was approved by a vote of at least two-thirds of the
Continuing Directors then in office shall be considered a Continuing Director. For purposes of defining Change in Control, the term “person” refers to an individual
or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not
specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined in this Section 1(b) shall not be treated as a Change in Control for purposes
of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under
section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”).
(c) “Common Stock” shall mean shares of the Company’s common stock, par value $0.02 per share.
(d) “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term
of the Agreement: (i) the requirement that the Executive move his personal residence, or perform his principal executive functions, more than fifty (50) miles from
his primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time;
(iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be
increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or
hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive
of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those
associated with his position on the Effective Date; or (v) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting
responsibilities) in connection with his employment with the Company.
(e) “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform
stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered
“willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the
best interests of the Company.
2. Employment. The Executive is employed as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary of the Company. The Executive
shall render such administrative and management services for the Company, its subsidiaries and portfolio companies as are currently rendered and as are customarily
performed by persons situated in a similar executive capacity and consistent with the duties of a Chief Legal Officer and Chief Compliance Officer as set forth in the
Bylaws of the Company. The Executive shall report to the Chief Executive Officer in his role as Chief Legal Officer. The Executive shall report to the Board in his
role as Chief Compliance Officer. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the business of the
Company and its subsidiaries. The Executive’s other duties shall be such as the Chief Executive Officer or Board may from time to time reasonably direct, including
normal duties as an officer of the Company.
3. Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $360,000 per annum,
payable in cash not less frequently than monthly.
4. Cash Bonuses. The Chief Executive Officer shall determine the Executive’s right to receive cash bonuses. Cash bonuses shall be awarded annually based
upon the Executive’s and the Company’s annual performance pursuant to the Company’s policy.
5. Other Benefits.
(a) Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of
its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care
expenses, or (iii) other group benefits, including disability and life insurance plans.
(b) Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior
management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the
responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business
expenses which he shall incur in connection with his services under this Agreement upon substantiation of such expenses in accordance with the policies of the
Company.
6. Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on March 15, 2021 or such earlier date as is determined in accordance with Section 11 (the
“Term”).”
7. Loyalty; Noncompetition.
(a) During the period of Executive’s employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence,
the Executive shall devote substantially all of Executive’s full business time, attention, skill, and efforts to the faithful performance of Executive’s duties hereunder;
provided, however, from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, at the
request of the Company or which will not present in the opinion of the Board any conflict of interest with the Company or any of its subsidiaries or portfolio
companies, nor unfavorably affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. During the
Term of Executive’s employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the
Company.
(b) Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of
any business dissimilar from that of the Company or, solely as a passive or minority investor, in any business, provided such investment does not: (i) constitute a
conflict of interest, (ii) violate laws or regulations applicable to the Company, including, without limitation, the Investment Company Act of 1940, or (iii) violate any
rules or polices promulgated by the Board.
8. Standards. The Executive shall perform his duties under this Agreement in accordance with such reasonable standards as the Chief Executive Officer may
establish from time to time. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for him to
perform his duties.
9. Vacation and Sick Leave. At such reasonable times according to Company policy the Executive shall be entitled, without loss of pay, to absent himself
voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a) The Executive shall be entitled to an annual vacation in accordance with the policies that the Company periodically establishes for senior
management Executives of the Company.
(b) The Executive shall not receive any additional compensation from the Company on account of his failure to take a vacation, and the Executive
shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Chief Executive Officer.
(c) In addition to the aforesaid paid vacations, the Executive shall be entitled to absent himself voluntarily from the performance of his employment
with the Company for such additional periods of time and for such valid and legitimate reasons as the Chief Executive Officer may in his discretion determine.
Further, the Chief Executive Officer may grant to the Executive a leave or leaves of absence with or without pay.
(d) In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Company.
10. Indemnification. The Company shall, to the extent permitted by the Company’s Bylaws, indemnify and hold harmless Executive from any and all loss,
expense, or liability that he may incur due to his services for the Company as an officer and or a director of the Company or any of its subsidiaries or portfolio
companies (including any liability Executive may ever incur as the result of severance benefits Executive collects pursuant to Sections 11 or 13), during the full Term
of this Agreement and shall at all times maintain adequate insurance for such purposes.
11. Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following
circumstances:
(a) Just Cause. The Chief Executive Officer may, based on a good faith determination and only after giving the Executive written notice and a
reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive
compensation or other benefits for any period after termination for Just Cause.
(b) Without Just Cause. The Chief Executive Officer may, by written notice to the Executive, immediately terminate Executive’s employment for a
reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment equal to one (1) times the sum of (i) Executive’s Annual Base
Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately
preceding fiscal year (the “Severance Payment”). The Severance Payment shall be paid in equal installments over a twelve (12) month period following the
Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment
Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii).
(c) Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case
the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a
termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to
participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of
termination of employment, subject to any restrictions as may be required under Code Section 409A
(d) Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this
Agreement, upon at least 60 days’ prior written notice to the Chief Executive Officer, in which case the Executive shall receive only his compensation, vested rights,
and Executive benefits up to the date of Executive’s last day of employment.
(e) Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to Executive’s death or a disability that
results in Executive’s collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the
compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good
Reason.
(f) Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the
Executive is willing and able to execute such extension and continue performing services (the “Non-Renewal”), then the Executive’s employment shall be terminated
by the Company effective as of the expiration of the Term, in which event Executive shall be entitled to fifty percent (50%) times the Severance Payment (the “Non-
Renewal Payment”). The Non-Renewal Payment shall be paid in equal installments over the six (6) month period following the Executive’s termination of
employment, payable in accordance with the Company’s regularly scheduled payroll. However, if the Non-Renewal occurs following a Change in Control, the Non-
Renewal Payment shall be paid in a lump sum within thirty (30) days of Executive’s termination of employment.
(g) Acceleration of Equity Awards. All: (i) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan
of the Company, (ii) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Company, and (iii) other equity and equity
equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards
shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s
termination pursuant to Sections 11(b), (c), (e) or (f) hereof.
12. No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment
or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent
employment.
13. Change in Control. Notwithstanding any provision in this Agreement to the contrary, if Executive’s employment is terminated following a Change of
Control: (i) by the Company or its successor in interest for any reason other than Just Cause, or (ii) by the Executive for Good Reason, the Executive shall be paid the
Severance Payment in a lump sum within thirty (30) days of Executive’s termination of employment.
14. Covenants.
(a) Definitions. For purposes of this Agreement:
(i) Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of
the Executive’s employment hereunder.
(ii) Covered Customer. The term “Covered Customer” shall mean (A) during the Term, any customer, merchant, independent sales agency (ISA),
independent sales organization (ISO), alliance partner, referral partner or any intermediary of the Company or its portfolio companies and (B) after the Term, as of
the end of the Term, a Covered Customer of the Company or its portfolio companies within the prior three years.
(iii) Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the
Term, any business in which the Company was engaged as of the end of the Term.
(iv) Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which,
as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense
and/or efforts in connection with preparing to do business therein.
(b) Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason,
whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual
relationships between the Company or its subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for hire, any
person who is employed by the Company or its subsidiaries or portfolio companies, without the express written consent of the Company; or (iii) other than on behalf
of the Company or its subsidiaries or portfolio companies, solicit any Covered Customer in connection with the engagement, by any person or entity, in any Covered
Business in any Covered State.
(c) Confidentiality. The Executive will not, at any time whether during or after his termination of employment, (i) disclose to anyone, without proper
authorization from the Company, or (ii) use, for his or another’s benefit, any confidential or proprietary information of the Company or any subsidiary of the
Company, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists, brand formulations, training and
operations manuals, products or price strategies, mergers, acquisitions, and/or Company personnel issues.
(d) Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected
and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall
be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are
reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced.
Accordingly, the Executive agrees that if he breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to
damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of
preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in
addition to any other relief to which the Company may be entitled under this Agreement.
15. Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal
legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the
Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions,
provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten
(10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or
expenses incurred by the Executive.
16. Successors and Assigns.
(a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which shall acquire, directly
or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.
(b) Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or
delegating his rights or duties hereunder without first obtaining the written consent of the Company.
17. Corporate Authority. Company represents and warrants that the execution and delivery of this Agreement by it has been duly and properly authorized by
the Board and that when so executed and delivered this Agreement shall constitute the lawful and binding obligation of the Company.
18. Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein
otherwise specifically provided.
19. Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether
as to its validity, construction, capacity, performance or otherwise.
20. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof.
21. Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the
entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22. Tax Matters. All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In
addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply
with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or
benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation
from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption),
such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to
the extent required by Code Section 409A.
[signatures on following page]
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
NEWTEK BUSINESS SERVICES CORP.
By: /s
Barry Sloane, Chief Executive Officer
EXECUTIVE
By: /s
Michael A. Schwartz
1
NEWTEK SMALL BUSINESS FINANCE, LLC
_____________________________
EMPLOYMENT AGREEMENT WITH
PETER DOWNS
_____________________________
PREAMBLE. This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 15th day of March 2020 (the “Effective Date”), by and
between NEWTEK SMALL BUSINESS FINANCE, LLC (the “Company”) and PETER DOWNS (the “Executive”).
WHEREAS, the Executive is currently employed by the Company as President; and
WHEREAS, the Company is a wholly owned consolidated subsidiary of Newtek Business Services Corp. (“Parent”) and Executive serves as Chief Lending
Officer of Parent; and
WHEREAS, the parties desire by this writing to set forth the employment relationship of the Company and the Executive as of the Effective Date.
NOW, THEREFORE, it is AGREED as follows:
1. Defined Terms
When used anywhere in the Agreement, the following terms shall have the meaning set forth herein.
(a) “Board” shall mean the Board of Managers of the Company.
(b) “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or power to vote more than 25% of
Company’s or Parent’s voting shares by any person or persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (ii)
the acquisition of the ability to control the election of a majority of the Company’s Board or Parent board of directors (“Parent Board”) by any person or persons
acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), (iii) the acquisition of a controlling influence over the management
or policies of the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv)
during any period of two consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the Parent Board (the “Existing
Board”) cease for any reason to constitute at least two-thirds thereof, provided that any individual whose election or nomination for election as a member of the
Existing Board was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director. For purposes of
defining Change in Control, the term “person” refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole
proprietorship, unincorporated organization or any other form of entity not specifically listed herein. Notwithstanding the foregoing, a Change in Control as defined
in this Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it constitutes a “change in control event” within the meaning of
Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury
Regulations”).
(c) “Common Stock” shall mean shares of Parent’s common stock, par value $0.02 per share.
(d) “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in writing during the term
of the Agreement: (i) the requirement that the Executive move his personal residence, or perform his principal executive functions, more than fifty (50) miles from
his primary office as of the Effective Date; (ii) a material reduction in the Executive’s Annual Base Compensation as the same may be increased from time to time;
(iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be
increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or
hereafter becomes a participant, or the taking of any action by the Company which would directly or indirectly reduce any of such benefits or deprive the Executive
of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from those
associated with his position on the Effective Date; or (v) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting
responsibilities) in connection with his employment with the Company.
(e) “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform
stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered
“willful” unless Executive has acted, or failed to act, with an absence of good faith and without a reasonable belief that Executive’s action or failure to act was in the
best interests of the Company.
2. Employment. The Executive is employed as President of the Company. The Executive shall render such administrative and management services for the
Company, its Parent and Parent’s subsidiaries and portfolio companies as are currently rendered and as are customarily performed by persons situated in a similar
executive capacity and consistent with the duties of a President as set forth in the Amended and Restated Operating Agreement of the Company. The Executive shall
report to the Chief Executive Officer and the Board. The Executive shall also promote, by entertainment or otherwise, as and to the extent permitted by law, the
business of the Company and its Parent. The Executive’s other duties shall be such as the Chief Executive Officer or Board may from time to time reasonably direct,
including normal duties as an officer of the Company.
3. Annual Base Compensation. The Company agrees to pay the Executive during the term of this Agreement a salary at the rate of $550,000 per annum,
payable in cash not less frequently than monthly.
4. Cash Bonuses. The Chief Executive Officer shall determine the Executive’s right to receive cash bonuses. Cash bonuses shall be awarded annually based
upon the Executive’s and the Company’s annual performance pursuant to the Company’s policy.
5. Other Benefits.
(a) Participation in Retirement, Medical and Other Plans. The Executive shall participate in any plan that the Company maintains for the benefit of
its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care
expenses, or (iii) other group benefits, including disability and life insurance plans.
(b) Executive Benefits; Expenses. The Executive shall participate in any fringe benefits which are or may become available to the Company’s senior
management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are commensurate with the
responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business
expenses which he shall incur in connection with his services under this Agreement upon substantiation of such expenses in accordance with the policies of the
Company.
6. Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on March 15, 2021 or such earlier date as is determined in accordance with Section 11 (the
“Term”).”
7. Loyalty; Noncompetition.
(a) During the period of Executive’s employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of absence,
the Executive shall devote substantially all of Executive’s full business time, attention, skill, and efforts to the faithful performance of Executive’s duties hereunder;
provided, however, from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations, at the
request of the Company or Parent, or which will not present in the opinion of the Board any conflict of interest with the Company or Parent and any of Parent’s
subsidiaries or portfolio companies, nor unfavorably affect the performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or
regulation. During the Term of Executive’s employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business
affairs or interests of the Company or Parent.
(b) Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock or other securities of
any business dissimilar from that of the Company or Parent, or, solely as a passive or minority investor, in any business, provided such investment does not: (i)
constitute a conflict of interest, (ii) violate laws or regulations applicable to the Company or Parent, including, without limitation, the Investment Company Act of
1940, or (iii) violate any rules or polices promulgated by the Board.
8. Standards. The Executive shall perform his duties under this Agreement in accordance with such reasonable standards as the Chief Executive Officer may
establish from time to time. The Company will provide Executive with the working facilities and staff customary for similar executives and necessary for him to
perform his duties.
9. Vacation and Sick Leave. At such reasonable times according to Company policy the Executive shall be entitled, without loss of pay, to absent himself
voluntarily from the performance of his employment under this Agreement, all such voluntary absences to count as vacation time; provided that:
(a) The Executive shall be entitled to an annual vacation in accordance with the policies that the Company periodically establishes for senior
management Executives of the Company.
(b) The Executive shall not receive any additional compensation from the Company on account of his failure to take a vacation, and the Executive
shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Chief Executive Officer.
(c) In addition to the aforesaid paid vacations, the Executive shall be entitled to absent himself voluntarily from the performance of his employment
with the Company for such additional periods of time and for such valid and legitimate reasons as the Chief Executive Officer may in his discretion determine.
Further, the Chief Executive Officer may grant to the Executive a leave or leaves of absence with or without pay.
(d) In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Company.
10. Indemnification. The Company and Parent shall, to the extent permitted by the Company’s Operating Agreement and Parent’s Bylaws, indemnify and
hold harmless Executive from any and all loss, expense, or liability that he may incur due to his services for the Company as an officer and or a director of the
Company, Parent or any Parent’s subsidiaries or portfolio companies (including any liability Executive may ever incur as the result of severance benefits Executive
collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times maintain adequate insurance for such purposes.
11. Termination and Termination Pay. Subject to Section 13 hereof, the Executive’s employment hereunder may be terminated under the following
circumstances:
(a) Just Cause. The Chief Executive Officer may, based on a good faith determination and only after giving the Executive written notice and a
reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to receive
compensation or other benefits for any period after termination for Just Cause.
(b) Without Just Cause. The Chief Executive Officer may, by written notice to the Executive, immediately terminate Executive’s employment for a
reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment equal to one (1) times the sum of (i) Executive’s Annual Base
Compensation in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately
preceding fiscal year (the “Severance Payment”). The Severance Payment shall be paid in equal installments over a twelve (12) month period following the
Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment Payments”). Each Installment
Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii).
(c) Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case
the Executive shall be entitled to receive the Severance Payment payable in the same manner and on the same basis as provided for under Section 11(b) herein upon a
termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits which the Executive would have been eligible to
participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of
termination of employment, subject to any restrictions as may be required under Code Section 409A
(d) Resignation by Executive without Good Reason. The Executive may voluntarily terminate employment with the Company during the term of this
Agreement, upon at least 60 days’ prior written notice to the Chief Executive Officer, in which case the Executive shall receive only his compensation, vested rights,
and Executive benefits up to the date of Executive’s last day of employment.
(e) Death, or Disability. If the Executive’s employment terminates during the Term of this Agreement due to Executive’s death or a disability that
results in Executive’s collection of any long-term disability benefits, the Executive (or the beneficiaries of Executive’s estate) shall be entitled to receive the
compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good
Reason.
(f) Non-Renewal Payment. If the Term of this Agreement is not extended for at least one (1) additional year in circumstances in which the
Executive is willing and able to execute such extension and continue performing services (the “Non-Renewal”), then the Executive’s employment shall be terminated
by the Company effective as of the expiration of the Term, in which event Executive shall be entitled to fifty percent (50%) times the Severance Payment (the “Non-
Renewal Payment”). The Non-Renewal Payment shall be paid in equal installments over the six (6) month period following the Executive’s termination of
employment, payable in accordance with the Company’s regularly scheduled payroll. However, if the Non-Renewal occurs following a Change in Control, the Non-
Renewal Payment shall be paid in a lump sum within thirty (30) days of Executive’s termination of employment.
(g) Acceleration of Equity Awards. All: (i) outstanding and unvested options to purchase Common Stock granted to Executive under any equity plan
of the Parent, (ii) unvested shares of restricted Common Stock awarded to the Executive under any equity plan of the Parent, and (iii) other equity and equity
equivalent awards then held by the Executive, shall be accelerated in full, and thereafter all such options, shares of restricted Common Stock and other equity awards
shall be immediately vested and exercisable for such period of time as provided for by the specific agreements governing each such award, upon Executive’s
termination pursuant to Sections 11(b), (c), (e) or (f) hereof.
12. No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment
or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent
employment.
13. Change in Control. Notwithstanding any provision in this Agreement to the contrary, if Executive’s employment is terminated following a Change of
Control: (i) by the Company or its successor in interest for any reason other than Just Cause, or (ii) by the Executive for Good Reason, the Executive shall be paid the
Severance Payment in a lump sum within thirty (30) days of Executive’s termination of employment.
14. Covenants.
(a) Definitions. For purposes of this Agreement:
(i) Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date and ending two (2) years after the termination of
the Executive’s employment hereunder.
(ii) Covered Customer. The term “Covered Customer” shall mean (A) during the Term, any customer, merchant, independent sales agency (ISA),
independent sales organization (ISO), alliance partner, referral partner or any intermediary of the Company or Parent or Parent’s portfolio companies and (B) after the
Term, as of the end of the Term, a Covered Customer of the Company or Parent or Parent’s portfolio companies within the prior three years.
(iii) Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the Company is engaged and (B) after the
Term, any business in which the Company was engaged as of the end of the Term.
(iv) Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and (B) after the Term, any state (1) in which,
as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense
and/or efforts in connection with preparing to do business therein.
(b) Non-Interference. The Executive covenants and agrees that Executive will not at any time during the Restrictive Period for whatever reason,
whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual
relationships between the Company or Parent or Parent’s subsidiaries or portfolio companies and any of their Covered Customers or employees; (ii) hire, or solicit for
hire, any person who is employed by the Company or Parent or Parent’s subsidiaries or portfolio companies, without the express written consent of the Company or
Parent; or (iii) other than on behalf of the Company or Parent or Parent’s subsidiaries or portfolio companies, solicit any Covered Customer in connection with the
engagement, by any person or entity, in any Covered Business in any Covered State.
(c) Confidentiality. The Executive will not, at any time whether during or after his termination of employment, (i) disclose to anyone, without proper
authorization from the Company or Parent, or (ii) use, for his or another’s benefit, any confidential or proprietary information of the Company or Parent or any
subsidiary or portfolio company of Parent, which may include trade secrets, business plans or outlooks, financial data, marketing or sales programs, customer lists,
brand formulations, training and operations manuals, products or price strategies, mergers, acquisitions, and/or Company or Parent personnel issues.
(d) Blue Pencil; Equitable Relief. The provisions contained in this Section 14 as to the time periods, scope of activities, persons or entities affected
and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall
be deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are
reasonable and necessary for the protection of the Company and that the Company will be irrevocably damaged if such covenants are not specifically enforced.
Accordingly, the Executive agrees that if he breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to
damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of
preventing the breach or threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy, in
addition to any other relief to which the Company may be entitled under this Agreement.
15. Reimbursement for Litigation Expenses.
In the event that any dispute arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal
legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to defend against any action taken by the
Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions,
provided that the Executive shall obtain a final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten
(10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or
expenses incurred by the Executive.
16. Successors and Assigns.
(a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company or Parent which shall acquire,
directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company.
(b) Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or
delegating his rights or duties hereunder without first obtaining the written consent of the Company.
17. Corporate Authority. Company and Parent represent and warrant that the execution and delivery of this Agreement has been duly and properly
authorized by their respective Board and board of directors and that when so executed and delivered by them that this Agreement shall constitute the lawful and
binding obligations of the Company and Parent.
18. Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein
otherwise specifically provided.
19. Applicable Law. Except to the extent preempted by Federal law, the laws of the State of New York shall govern this Agreement in all respects, whether
as to its validity, construction, capacity, performance or otherwise.
20. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof.
21. Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in writing by the parties, shall constitute the
entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters.
22. Tax Matters. All payments or benefits provided under this Agreement are subject to any applicable employment or tax withholdings or deductions. In
addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply
with, Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or
benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account of Employee’s separation
from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption),
such payments or benefits shall be paid no earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to
the extent required by Code Section 409A.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written.
[signatures on following page]
NEWTEK SMALL BUSINESS FINANCE, LLC
By: /s
Barry Sloane, Chief Executive Officer
NEWTEK BUSINESS SERVICES CORP.
By: /s
Barry Sloane, Chief Executive Officer
EXECUTIVE
By: /s
Peter Downs
1
NEWTEK BUSINESS SERVICES CORP.
SUBSIDIARIES
Name of Company
State of Incorporation/Organization
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
The Whitestone Group, LLC
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana Bidco, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire Partners, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.
Newtek Business Services Holdco 3, Inc.
Newtek Business Services Holdco 4, Inc.
Newtek Business Services Holdco 5, Inc. (formerly Banc Serv
Acquisition Co, Inc.)
Newtek Business Services Holdco 6, Inc.
CCC Real Estate Holdings, LLC
Newtek LSP Holdco, LLC
NBSH Holdings, LLC
Exponential Business Development Co., Inc.
Newtek Commercial Lending, Inc.
New York
New York
New York
District of Columbia
New York
Louisiana
Louisiana
Louisiana
Louisiana
New York
New York
Florida
New York
New York
New York
New York
New York
New York
Delaware
New York
New York
New York
New York
Report of Independent Registered Public Accounting Firm on Supplemental Information
To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries
Our audits of Newtek Business Services Corp. and Subsidiaries’ (the Company) consolidated financial statements and internal control over financial reporting referred to in our reports dated March
16, 2020 (appearing herein), and our audits of the consolidated financial statements referred to in our reports dated March 18, 2019, March 16, 2018, March 13, 2017, March 15, 2016 and March 31,
2015 (not appearing herein), expressed unqualified opinions.
The senior securities table as of December 31, 2019, 2018, 2017, 2016, 2015, 2014, and 2013 included in Part II, Item 5 of the December 31, 2019 Annual Report on Form 10-K of the Company,
under the caption “Senior Securities” (Senior Securities Table) has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Senior
Securities Table is the responsibility of the Company's management. Our audit procedures included determining whether the Senior Securities Table reconciles to the financial statements or the
underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Senior Securities Table. In forming our
opinion on the Senior Securities Table, we evaluated whether the Senior Securities Table, including its form and content, is presented in conformity with instructions to Form N-2.
In our opinion, the Senior Securities Table for the years ended December 31, 2019, 2018, 2017, 2016, 2015, 2014 and 2013, when considered in relation to the basic consolidated financial statements
taken as a whole, presents fairly, in all material respects, the information set forth therein.
/s/ RSM US LLP
New York, New York
March 16, 2020
Exhibit 31.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Barry Sloane, certify that:
1. I have reviewed this annual report on Form 10-K of Newtek Business Services Corp. (the “registrant”).
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal
quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit
committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 16, 2020
/S/ BARRY SLOANE
Barry Sloane
Principal Executive Officer
Exhibit 31.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Christopher Towers, certify that:
1. I have reviewed this annual report on Form 10-K of Newtek Business Services Corp. (the “registrant”).
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal
quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit
committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 16, 2020
/S/ CHRISTOPHER TOWERS
Christopher Towers
Principal Financial Officer
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Exhibit 32.1
In connection with the Annual Report on Form 10-K for the year ended December 31, 2019 (the “Report”) of Newtek Business Services Corp. (the “Company”), as filed with the Securities and
Exchange Commission on the date hereof, I, Barry Sloane, as Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley
Act of 2002, that, to the best of my knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Company.
Date: March 16, 2020
/S/ BARRY SLOANE
Barry Sloane,
Principal Executive Officer
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Exhibit 32.2
In connection with the Annual Report on Form 10-K for the year ended December 31, 2019 (the “Report”) of Newtek Business Services Corp. (the “Company”), as filed with the Securities and
Exchange Commission on the date hereof, I, Christopher Towers, as Principal Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Company.
Date: March 16, 2020
/S/ CHRISTOPHER TOWERS
Christopher Towers,
Principal Financial Officer
Newtek Merchant Solutions, LLC and Subsidiary (A Wholly-owned Subsidiary of NBSH Holdings, LLC) Consolidated Financial Statements and Independent Auditor’s Report December 31, 2019
Newtek Merchant Solutions, LLC and Subsidiaries Index Years Ended December 31, 2019 Pages Independent Auditor’s Report ................................................................................................................... 1 Consolidated Financial Statements Consolidated Balance Sheet .......................................................................................................................... 2 Consolidated Statement of Income ............................................................................................................... 3 Consolidated Statement of Changes in Member’s Equity ............................................................................ 4 Consolidated Statement of Cash Flows ........................................................................................................ 5 Notes to Consolidated Financial Statements ............................................................................................ 6-14
INDEPENDENT AUDITOR’S REPORT To the Board of Directors and Stockholder of Newtek Merchant Solutions, LLC and Subsidiaries We have audited the accompanying consolidated financial statements of Newtek Merchant Solutions, LLC and Subsidiaries (“NMS”), a wholly-owned subsidiary of NBSH Holdings LLC, which comprise the consolidated balance sheets as of December 31, 2019, and the related consolidated statements of income, changes in member’s equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentatio
of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Newtek Merchant Solutions, LLC and Subsidiaries as of December 31, 2019, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Melville, New York March 5, 2020 1
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Balance Sheet December 31, 2019 Assets Current assets: Cash$ 11,315,071 Accounts receivable 3,050,996 Prepaid expenses and other current assets 206,970 Inventory 134,271 Total current assets 14,707,308 Fixed assets, net 489,434 Restricted cash 645,678 Customer merchant accounts, net 2,426,669 Due from related parties 170,750 Notes receivable - related party 12,162,501 Goodwill 13,813,812 Total assets $ 44,416,152 Liabilities and Member's Equity Current liabilities: Accounts payable and accrued expenses$ 2,934,732 Residuals payable 1,036,716 Chargeback reserves 1,501,856 Due to related parties 513,563 Bank notes payable, current 3,500,000 Total current liabilities 9,486,867 Bank notes payable, long-term, net (Note 6) 28,303,968 Total liabilities 37,790,835 Member's equity 6,625,317 Total liabilities and member's equity $ 44,416,152 See notes to consolidated financial statements. 2
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Income Year Ended December 31, 2019 Revenues Electronic payment processing$ 35,167,736 Expenses Electronic payment processing costs 13,338,482 Salaries and benefits 6,087,635 Professional fees 771,450 Depreciation and amortization 1,874,519 Other general and administrative costs 1,419,858 Total expenses 23,491,944 Income from operations 11,675,792 Interest expense, net (1,802,585) Interest income - related parties 910,595 Gain on sale of merchant portfolio 500,000 Total other expenses (391,990) Net income $ 11,283,802 See notes to consolidated financial statements. 3
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Changes in Member’s Equity Year Ended December 31, 2019 Member's Equity Balance, January 1, 2019 $ 12,861,813 Net income 11,283,802 Distributions (17,520,298) Balance, December 31, 2019 $ 6,625,317 See notes to consolidated financial statements. 4
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Cash Flows Year Ended December 31, 2019 Cash flows from operating activities: Net income $ 11,283,802 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,874,519 Amortization of deferred financing costs 150,413 Changes in operating assets and liabilities: Accounts receivable (289,054) Prepaid expenses and other current assets (34,468) Inventory (51,763) Accounts payable and accrued expenses 1,210,780 Due to/from related parties 37,071 Net cash provided by operating activities 14,181,300 Cash flows from investing activities: Purchase of customer merchant accounts (217,252) Net repayments received from related party note 4,677,499 Purchase of fixed assets (140,698) Net cash provided by investing activities 4,319,549 Cash flows used in financing activities: Dividends paid to shareholder (17,520,298) Principal payments to Webster Bank (2,625,000) Deferred financing costs paid (6,000) Net cash used in financing activities (20,151,298) Net decrease in cash and restricted cash (1,650,449) Cash and restricted cash, beginning of year 13,611,198 Cash and restricted cash, end of year $ 11,960,749 Supplemental disclosure of cash flow activities Interest paid $ 1,469,486 See notes to consolidated financial statements. 5
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 1. Organization, Basis of Presentation and Description of Business Newtek Merchant Solutions, LLC (“NMS”) was organized as a limited liability company (“LLC”) under the laws of the State of Wisconsin and is a wholly-owned subsidiary of NBSH Holdings, LLC (“NBSH”). NBSH was organized on November 1, 2018 under the laws of the State of New York and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”) which was incorporated on June 5, 2015 under the laws of the State of New York and is a wholly- owned subsidiary of Newtek Business Services Corp. (“Newtek”). The accompanying consolidated financial statements include the accounts of NMS and its wholly- owned subsidiary, UPSWI Sales (“UPS Sales”), which are collectively hereinafter referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. The Company markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other noncash forms of payment. 2. Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant
changes in the near term relate to the determination of the reserve for chargeback losses. Recently Adopted Accounting Pronouncements The Company adopted ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard ("ASC 606") and ASC Subtopic 340-40: "Other Assets and Deferred Costs - Contracts with Customers" on January 1, 2019. The Company elected the modified retrospective transition method. The cumulative impact of adopting Topic 606 was immaterial and no adjustments to the opening balance of member’s equity were recorded. Prior to the adoption of ASC 606, the Company presented payments made to certain third parties, including interchange fees and fees paid to payment networks, as a component of operating expenses. For periods beginning on and after January 1, 2019, the Company presents revenue net of these third-party payments. This change in presentation had the effect of reducing the Company’s revenues and operating expenses by the same amounts. The adoption of ASC 606 had no effect on any other line items in the Company’s consolidated financial statements. 6
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Financial Instruments The Company’s financial instruments include cash, accounts receivable, notes receivable from related party, accounts payable, residuals payable and bank notes payable. The carrying amount of cash, accounts receivable, accounts payable and residuals payable approximate fair value due to their short-term maturities. The carrying amounts of notes receivable from related party and bank notes payable approximate fair value due to the variable interest rate they carry. Cash Invested cash is held exclusively at financial institutions of high credit quality. As of December 31, 2019, cash deposits in excess of insured amounts totaled approximately $11,162,000. Restricted Cash Under the terms of the processing agreements between NMS and its processing banks, NMS maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account. The following table provides a reconciliation of cash and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. 2019 2018 Cash$ 11,315,071 $ 13,026,644 Restricted cash 645,678 584,554 Total cash and restricted cash$ 11,960,749 $ 13,611,198 Accounts Receivable Accounts receivable represent amounts owed to the Company by third parties for electronic payment processing and related residuals. The Company estimates losses on accounts receivable based on known troubled accounts and historical experience of losses incurred. The Company determined no reserve for uncollectible accounts was necessary at December 31, 2019. Inventory Inventory consists primarily of equipment to be installed in merchant locations to enable the merchants to process electronic transactions. Inventory is
stated at the lower of cost or net realizable value, which is determined on a FIFO (first in-first out) basis. Fixed Assets Fixed assets, which are comprised of terminals, software, telephone systems, computer equipment, leasehold improvements, automobile and website, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets ranging from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which is generally three to five years, or lease term. 7
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Software Development Costs The Company capitalizes certain software development costs for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while application stage projects are capitalized. The latter costs are typically employee and/or consulting services directly associated with the development of the internal use software. Software and website costs are included in fixed assets in the accompanying consolidated balance sheets. Amortization commences once the software and website costs are ready for their intended use and are amortized using the straight-line method over the estimated useful life, typically three years. Goodwill and Customer Merchant Accounts Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over an estimated useful life of 30 or 66 months (See Note 5). The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows
and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment. Revenue Recognition Effective January 1, 2019, revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when or as the Company satisfies a performance obligation Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Revenue is primarily derived from electronic payment processing and related fee income. 8
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Electronic payment processing and fee income Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa®, American Express® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. The Company's performance obligations are to stand ready to provide holistic electronic payment processing services consisting of a series of distinct elements that are substantially the same and have the same pattern of transfer over time. The Company’s promise to its customers is to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. The Company allocates the variable fees charged to the day in which it has the contractual right to bill under the contract. Revenues and electronic payment processing costs were lower than the amounts that would have been presented if not for the effect of the new revenue accounting standard by approximately $88,179,000 each, respectively, for the year ended December 31, 2019. ASC 606 requires that the Company determine for each customer arrangement whether revenue should be recognized at a point in time or
over time. For the year ended December 31, 2019 substantially all of the Company’s revenues were recognized over time. ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company’s most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. Interest Income Interest income from a related party is recorded on an accrual basis, when earned, based on the current lending rate in place. Reserve for Losses on Merchant Accounts Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical
experience and other relevant factors. 9
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments, including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required. Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third- party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income. During the year ended December 31, 2019, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor. Income Taxes The Company and its subsidiaries are treated as flow-through entities for federal and state income tax purposes. Under present income tax laws, the Company is not subject to federal or state income taxes. The member is responsible for taxes on their respective share of
the Company’s net income or losses. The Company reviews uncertain tax positions taken, or expected to be taken, in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. Management of the Company is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time. The Company has reviewed the open tax years in major jurisdictions and concluded there is no tax liability, interest, or penalties resulting from unrecognized tax benefits relating to uncertain income tax positions taken, or expected to be taken, in future tax returns. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through March 5, 2020, the date these consolidated financial statements were available to be issued. 10
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2019: 2019 Terminals$ 1,280,974 Software 870,713 Telephone systems 152,049 Computer equipment 120,849 Leasehold improvements 97,150 Automobile 24,576 Website 14,705 2,561,016 Less: accumulated depreciation and amortization (2,071,582) $ 489,434 Depreciation and amortization expense related to fixed assets for the year ended December 31, 2019 was approximately $213,000. 4. Goodwill The carrying value of goodwill at December 31, 2019 is approximately $13,814,000. The Company performed a qualitative assessment on goodwill to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2019 and that no further assessment was required. There were no changes to the carrying value of goodwill during the year ended December 31, 2019. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts was approximately $2,427,000 at December 31, 2019. Customer merchant accounts are amortized over an estimated useful life of 30 to 66 months, as appropriate. Total amortization expense of customer merchant accounts using the straight-line method is included in depreciation and amortization in the accompanying consolidated statements of income and was approximately $1,661,000 for the year ended December 31, 2019. 11
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Total expected amortization expense for the next five fiscal years and thereafter is as follows: Years Ending December 31, 2020 1,361,986 2021 567,796 2022 333,690 2023 150,343 2024 12,853 $ 2,426,669 In November 2018, the Company sold a portion of its merchant portfolio to Elavon Inc. (“Elavon”). The Company sold substantially all of its merchants processing on the Elavon platform for $7,500,000 with an additional $500,000 contingent payment to be made in November 2019 if the sold portfolio achieves certain volume requirements and the Company boards 200 new merchants on the Elavon platform. During 2018, as a result of the sale, the Company recorded a gain on sale of approximately $5,581,000 broken down as follows: Sale price$ 7,500,000 Payments to agents (1,480,561) Carrying value of Elavon portfolio (438,107) Gain on sale$ 5,581,332 During 2019, the Company recorded a gain on sale of $500,000 as a result of the satisfying the requirements for the contingent payment. 6. Bank Notes Payable, Net In November 2018, the Company entered into a Credit and Guarantee Agreement (the “Webster Agreement”), which extended a term loan for $35,000,000 (the “Webster Term Loan”) and a revolving line of credit (the “Webster RLOC” combined with the Webster Term Loan, the “Webster Facility”) with maximum borrowings of $15,000,000 for a total commitment of $50,000,000. All assets of the Company are pledged as collateral under the Webster Agreement and is guaranteed by Newtek. The Webster Facility provides for monthly interest payments and quarterly principal payments beginning April 2019, with total remaining principal due at maturity. The Webster Facility matures in November 2023. Borrowings under the Webster Facility are classified either as a “Base Rate Loan” or a “LIBOR Rate
Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to LIBOR plus 2.5%, and each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to the Prime Rate plus 1.5%. The effective interest rate at December 31, 2019 was 4.71%. 12
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 The Webster Agreement requires certain restrictive covenants for which the Company was in compliance as of December 31, 2019. Total interest expense, excluding amortization of deferred financing costs, for the year ended December 31, 2019 was approximately $1,714,000. Amortization of deferred financing costs for the year ended December 31, 2019 was approximately $150,000 and is included in interest expense on the consolidated statements of income. The remaining amount of unamortized deferred financing costs incurred by the Company related to the Webster Facility was approximately $571,000 at December 31, 2019. Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2019: 2019 Principal$ 32,375,000 Unamortized deferred financing costs (571,032) Net carrying amount$ 31,803,968 Debt principal payments are as follows: Years Ending December 31, 2020$ 3,500,000 2021 3,500,000 2022 4,812,500 2023 20,562,500 $ 32,375,000 7. Notes Receivable – Related Party The Company has extended a line of credit to Newtek. The Company had approximately $12,163,000 outstanding on its revolving line of credit with Newtek, at December 31, 2019. The line, which matures in November 2023, allows for maximum borrowings of $50,000,000 (subject to availability) and bears interest at a rate equal to that in effect under the Company’s Webster Facility, at any given time. The Company recorded related party interest income of approximately $911,000 during the year ended December 31, 2019. At December 31, 2019 there was approximately $64,000, in accrued interest income included in prepaid expenses and other current assets on the consolidated balance sheet. 8. Related Party Transactions The Company has related party transactions with Newtek and various portfolio
companies of Newtek, including Automated Merchant Services, Inc. (“AMS”), Newtek Technology Solutions, Inc. (“NTS”) and PMTWorks Payroll, LLC (“PMT”). During the year ended December 31, 2019, the Company incurred residual expenses totaling approximately $145,000 from AMS and NTS, managed technology services costs of approximately $398,000 from NTS, and payroll processing costs of approximately $22,000 from PMT. 13
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2019 were approximately $373,000. The Company subleases office space from Newtek in Lake Success, NY. The rent payment is based upon an allocation of headcount in the Lake Success office space. Rent expense for the years ended December 31, 2019 was approximately $232,000. 9. Commitments and Contingencies Operating Commitments The Company leases office spaces under non-cancelable operating leases. The following summarizes the Company’s obligations and commitments, as of December 31, 2019 for future minimum cash payments required under operating leases: Years Ending December 31, Operating Leases 2020$ 52,978 $ 52,978 Total rent expense for the year ended December 31, 2019 was approximately $288,000. The Company has a Merchant ISO Agreement with a sponsor bank. Under the terms of the Merchant ISO Agreement, NMS is required to pay monthly minimum fees of $15,000 during the term of the agreement. The agreement renews automatically annually. Litigation As a result of prior litigation with the Federal Trade Commission, NMS voluntarily entered into, and is presently operating under, a permanent injunction with respect to certain of its business practices. 14
Newtek Merchant Solutions, LLC and Subsidiaries (A Wholly-owned Subsidiary of NBSH Holdings, LLC) Consolidated Financial Statements and Independent Auditor’s Report December 31, 2018
Newtek Merchant Solutions, LLC and Subsidiaries Index Years Ended December 31, 2018 Pages Independent Auditor’s Report ................................................................................................................ 1-2 Consolidated Financial Statements Consolidated Balance Sheets ........................................................................................................................ 3 Consolidated Statements of Income .............................................................................................................. 4 Consolidated Statements of Changes in Member’s Equity ........................................................................... 5 Consolidated Statements of Cash Flows ....................................................................................................... 6 Notes to Consolidated Financial Statements ............................................................................................ 7-14
INDEPENDENT AUDITOR’S REPORT To the Board of Directors and Stockholder of Newtek Merchant Solutions, LLC and Subsidiaries We have audited the accompanying consolidated financial statements of Newtek Merchant Solutions, LLC and Subsidiaries (“NMS”), a wholly-owned subsidiary of Newtek Business Services Corporation, which comprise the consolidated balance sheets as of December 31, 2018, and the related consolidated statements of income, c hanges in member’s equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1
Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Newtek Merchant Solutions, LLC and Subsidiaries as of December 31, 2018, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. New York, New York March 26, 2019 2
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Balance Sheets December 31, 2018 Assets Current assets: Cash $ 13,026,644 Accounts receivable 2,761,942 Prepaid expenses and other current assets 172,502 Inventory 82,508 Total current assets 16,043,596 Fixed assets, net 562,140 Restricted cash 584,554 Customer merchant accounts, net 3,884,484 Due from related parties 264,145 Notes receivable - related party 16,840,000 Goodwill 13,813,812 Total assets $ 51,992,731 Liabilities and Member's Equity Current liabilities: Accounts payable and accrued expenses $ 2,274,793 Residuals payable 951,331 Chargeback reserves 1,050,352 Due to related parties 569,887 Bank notes payable, current 2,625,000 Total current liabilities 7,471,363 Bank notes payable, long-term, net (Note 6) 31,659,555 Total liabilities 39,130,918 Member's equity 12,861,813 Total liabilities and member's equity $ 51,992,731 See notes to consolidated financial statements. 3
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Income Year Ended December 31, 2018 Revenues Electronic payment processing $ 121,578,712 Expenses Electronic payment processing costs 99,390,347 Salaries and benefits 6,157,199 Professional fees 704,449 Depreciation and amortization 1,655,109 Loss on debt extinguishment 1,286,111 Other general and administrative costs 1,166,354 Total expenses 110,359,569 Income from operations 11,219,143 Interest expense, net (2,524,228) Interest income - related parties 835,543 Gain on sale of merchant portfolio 5,581,332 Net income $ 15,111,790 See notes to consolidated financial statements. 4
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Changes in Member’s Equity Year Ended December 31, 2018 Member's Equity Balance, January 1, 2018 $ 9,178,479 Net income 15,111,790 Distributions (11,428,456) Balance, December 31, 2018 $ 12,861,813 See notes to consolidated financial statements. 5
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Net income $ 15,111,790 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,655,109 Amortization of deferred financing costs 177,409 Loss on debt extinguishment 1,286,111 Gain on sale of merchant portfolio (5,581,332) Changes in operating assets and liabilities: Restricted cash (86,334) Accounts receivable 375,263 Prepaid expenses and other current assets 18,064 Inventory (10,728) Accounts payable and accrued expenses 282,686 Due to/from related parties 114,049 Net cash provided by operating activities 13,342,087 Cash flows from investing activities: Purchase of customer merchant accounts (2,494,907) Net proceed from sale of Elavon portfolio 6,019,439 Net advances under related party note (10,729,999) Purchase of fixed assets (275,606) Net cash used in investing activities (7,481,073) Cash flows used in financing activities: Dividends paid to shareholder (11,428,456) Proceeds from bank debt 35,000,000 Principal payments to Goldman Sachs (30,498,694) Prepayment penalty paid to Goldman Sachs (800,000) Deferred financing costs paid (737,150) Net cash used in financing activities (8,464,300) Net decrease in cash (2,603,286) Cash, beginning of year 15,629,930 Cash, end of year $ 13,026,644 Supplemental disclosure of cash flow activities Interest paid $ 2,250,498 See notes to consolidated financial statements. 6
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 1. Organization, Basis of Presentation and Description of Business NBSH Holdings, LLC (“NBSH”), was organized on November 1, 2018 under the laws of the State of New York and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”) which was incorporated on June 5, 2015 under the laws of the State of New York and is a wholly-owned subsidiary of Newtek Business Services Corp. (“Newtek”). NBSH, along with its wholly-owned subsidiaries, Newtek Merchant Solutions, LLC (“NMS”) (formerly Universal Processing Services of Wisconsin, LLC), and Premier Payments LLC (“Premier”), are hereinafter referred to as the “Company”. On December 31, 2018, Premier was merged with and into NMS. Prior to November 1, 2018, NMS and Premier were wholly-owned subsidiaries of Holdco. The consolidated statements of income, member’s equity and cash flows include the results of NMS and Premier for the whole year as they were under common ownership. NMS and Premier market credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other noncash forms of payment. The accompanying consolidated financial statements include the accounts of NBSH and its wholly- owned subsidiaries, NMS and Premier as of and for the year ended December 31, 2018 as if the ownership structure was in place on January 1, 2018 due to common ownership. All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. 2. Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant changes in the near term relate to the determination of the reserve for chargeback losses. Financial Instruments The Company’s financial instruments include cash, accounts receivable, notes receivable from related party, accounts payable, residuals payable and bank notes payable. The carrying amount of cash, accounts receivable, accounts payable and residuals payable approximate fair value due to their short-term maturities. The carrying amounts of notes receivable from related party and bank notes payable approximate fair value due to the variable interest rate they carry. Cash Invested cash is held exclusively at financial institutions of high credit quality. As of December 31, 2018, cash deposits in excess of insured amounts totaled approximately $12,542,000. 7
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 Restricted Cash Under the terms of the processing agreement between NMS and its processing banks, NMS maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account. Accounts Receivable Accounts receivable represent amounts owed to the Company by third parties for electronic payment processing and related residuals. The Company estimates losses on accounts receivable based on known troubled accounts and historical experience of losses incurred. The Company determined no reserve for uncollectible accounts was necessary at December 31, 2018. Inventory Inventory consists primarily of equipment to be installed in merchant locations to enable the merchants to process electronic transactions. Inventory is stated at the lower of cost or net realizable value, which is determined on a FIFO (first in-first out) basis. Fixed Assets Fixed assets, which are comprised of terminals, telephone systems, furniture and fixtures, software, computer equipment, internally developed software, automobile, website and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets ranging from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which is generally three to five years, or lease term. Software Development Costs The Company capitalizes certain software development costs for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while application stage projects are capitalized. The latter costs are typically employee and/or consulting services
directly associated with the development of the internal use software. Software and website costs are included in fixed assets in the accompanying consolidated balance sheets. Amortization commences once the software and website costs are ready for their intended use and are amortized using the straight-line method over the estimated useful life, typically three years. Goodwill and Customer Merchant Accounts Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over an estimated useful life of 30 or 66 months (See Note 5). The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the 8
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment. Revenue Recognition Revenue is primarily derived from electronic payment processing and related fee income. Electronic payment processing and fee income Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. Interest Income Interest income from a related party is recorded on an accrual basis, when earned, based on the current lending rate in place. Reserve for Losses on Merchant Accounts Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be
resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical experience and other relevant factors. The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments, including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required. Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, including interchange fees, Visa®, MasterCard® and Discover® dues and assessments, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. Two of the most significant components of electronic payment processing costs include interchange and assessment costs, which are set by the credit card associations. Interchange costs are passed on to the entity issuing the credit card used in the transaction and assessment costs are retained by the credit card associations. Interchange and assessment fees are billed primarily as 9
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 a percentage of dollar volume processed and, to a lesser extent, as a per transaction fee. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income. During the year ended December 31, 2018, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor. Income Taxes The Company and its subsidiaries are treated as flow-through entities for federal and state income tax purposes. Under present income tax laws, the Company is not subject to federal or state income taxes. The member is responsible for taxes on their respective share of the Company’s net income or losses. The Company reviews uncertain tax positions taken, or expected to be taken, in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. Management of the Company is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time. The Company has reviewed the open tax years in major jurisdictions and concluded there is no tax liability, interest, or penalties resulting from
unrecognized tax benefits relating to uncertain income tax positions taken, or expected to be taken, in future tax returns. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through March 26, 2019, the date these consolidated financial statements were available to be issued. 10
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2018: Terminals $ 1,217,267 Telephone systems 62,828 Computer equipment 116,171 Leasehold improvements 97,150 Software 807,621 Automobile 24,576 Furniture and fixtures 80,000 Website 14,705 2,420,318 Less: accumulated depreciation and amortization (1,858,178) $ 562,140 Depreciation and amortization expense related to fixed assets for the year ended December 31, 2018 was approximately $374,000. 4. Goodwill The carrying value of goodwill at December 31, 2018 is approximately $13,814,000. The Company performed a qualitative assessment on goodwill to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2018 and that no further assessment was required. There were no changes to the carrying value of goodwill during the year ended December 31, 2018. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts was approximately $3,884,000 at December 31, 2018. Customer merchant accounts are amortized over an estimated useful life of 30 to 66 months, as appropriate. Total amortization expense of customer merchant accounts using the straight-line method is included in depreciation and amortization in the accompanying consolidated statements of income and was approximately $1,281,000 for the year ended December 31, 2018. In 2018, the Company purchased approximately $2,495,000 of customer accounts from its outside sales agents and certain employees. Total purchases from employees were approximately $129,000. The purchase prices were based on contractual or agreed multiples of average monthly residuals.
These merchant accounts are being amortized over 66 months. Total expected amortization expense for the next five fiscal years and thereafter is as follows: 11
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 Years Ending December 31, 2019 $ 1,593,606 2020 1,306,648 2021 525,699 2022 304,833 2023 134,746 Thereafter 18,952 $ 3,884,484 In November 2018, the Company sold a portion of its merchant portfolio to Elavon Inc. (“Elavon”). The Company sold substantially all of its merchants processing on the Elavon platform for $7,500,000 with an additional $500,000 contingent payment to be made in November 2019 if the sold portfolio achieves certain volume requirements and the Company boards 200 new merchants on the Elavon platform. As a result of the sale, the Company recorded a gain on sale of approximately $5,581,000 broken down as follows: Sale price $ 7,500,000 Payments to agents (1,480,561) Carrying value of Elavon portfolio (438,107) Gain on sale $ 5,581,332 6. Bank Notes Payable, Net In June 2015, the Company entered into a Credit and Guarantee Agreement (the “Goldman Agreement”) with Goldman Sachs Bank USA which extended a multi draw term loan facility (the “Goldman Facility”) up to an aggregate principal amount of $38,000,000. In June 2017, the Company amended the terms of the Agreement to extend the term of the Facility to June 2021 as well as increase the aggregate principal amount of the Goldman Agreement to $50,000,000. In November 2018, the Company entered into a Credit and Guarantee Agreement (the “Webster Agreement”), which extended a term loan for $35,000,000 (the “Webster Term Loan”) and a revolving line of credit (the “Webster RLOC” combined with the Webster Term Loan, the “Webster Facility”) with maximum borrowings of $15,000,000 for a total commitment of $50,000,000. The proceeds from the Webster Term Loan were used to pay all outstanding principal under the Goldman Facility. As a result, the Company recognized a loss on debt
extinguishment of approximately $1,286,000 consisting of $800,000 of prepayment penalties and $486,000 of unamortized deferred financing costs in connection with the extinguishment of the Goldman Agreement. All assets of the Company are pledged as collateral under the Webster Agreement and is guaranteed by Newtek. The Webster Facility provides for monthly interest payments and quarterly principal payments beginning April 2019, with total remaining principal due at maturity. The Webster Facility matures in November 2023. Borrowings under the Webster Facility are classified either as a “Base Rate Loan” or a “LIBOR Rate Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to LIBOR plus 2.5%, and 12
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to the Prime Rate plus 1.5%. The effective interest rate at December 31, 2018 was 4.84%. The Webster Agreement requires certain restrictive covenants for which the Company was in compliance as of December 31, 2018. Total Interest expense, excluding amortization of deferred financing costs, for the year ended December 31, 2018 was approximately $2,380,000. Deferred financing costs incurred by the Company related to the Webster Facility were approximately $737,000 during the year ended December 31, 2018. Amortization of deferred financing costs for the year ended December 31, 2018 was approximately $177,000 and is included in interest expense on the consolidated statements of income. Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2018: Principal $ 35,000,000 Unamortized deferred financing costs (715,445) Net carrying amount $ 34,284,555 Debt principal payments for the next five fiscal years and thereafter is as follows: Years Ending December 31, 2019 $ 2,625,000 2020 3,500,000 2021 3,500,000 2022 4,812,500 2023 20,562,500 $ 35,000,000 7. Notes Receivable – Related Party The Company has extended a line of credit to Newtek. The Company had approximately $16,840,000 outstanding on its revolving line of credit with Newtek, at December 31, 2018. The line, which matures in November 2023, allows for maximum borrowings of $50,000,000 (subject to availability) and bears interest at a rate equal to that in effect under the Company’s Webster Facility, at any given time. The Company recorded related party interest income of approximately $836,000 during the year ended December 31, 2018. At December 31, 2018 there was approximately $48,000, in accrued
interest income included in prepaid expenses and other current assets on the consolidated balance sheet. 8. Related Party Transactions During the year ended December 31, 2018, the Company incurred residual expenses totaling approximately $153,000 from several related parties. During the year ended December 31, 2018, the Company incurred costs for managed technology services of approximately $246,000 from Newtek Technology Solutions, Inc. 13
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 During the year ended December 31, 2018, the Company incurred payroll processing costs of approximately $25,000 from PMTWorks Payroll, LLC. Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2018 were approximately $558,000. The Company subleases office space from Newtek in Lake Success, NY. The rent payment is based upon an allocation of headcount in the Lake Success office space. Rent expense for the years ended December 31, 2018 was approximately $204,000. In 2018, the Company purchased approximately $129,000 of customer accounts from certain employees. The purchase prices were based on contractual or agreed multiples of average monthly residuals. These merchant accounts are being amortized over 66 months. 9. Commitments and Contingencies Operating Commitments The Company leases office spaces under non-cancelable operating leases. The following summarizes the Company’s obligations and commitments, as of December 31, 2018 for future minimum cash payments required under operating leases: Years Ending December 31, Operating Leases 2019 $ 56,239 2020 52,978 $ 109,217 Total rent expense for the year ended December 31, 2018 was approximately $262,000. In August 2018, the Company entered into a new Merchant ISO Agreement with a new sponsor bank. Under the terms of the Merchant ISO Agreement, NMS is required to pay monthly minimum fees of $15,000 during the term of the agreement. The Company exceeded the required monthly minimum amount under the agreement for the year ended December 31, 2018. The agreement renews automatically annually. Litigation As a
result of prior litigation with the Federal Trade Commission, NMS voluntarily entered into, and is presently operating under, a permanent injunction with respect to certain of its business practices. 14
Universal Processing Services of Wisconsin, LLC (A Limited Liability Company) and Subsidiary Financial Statements Year Ended December 31, 2017
Universal Processing Services of Wisconsin, LLC and Subsidiary Index Year Ended December 31, 2017 Pages Financial Statements Balance Sheet ................................................................................................................................................ 1 Statement of Income ..................................................................................................................................... 2 Statement of Changes in Member’s Deficit .................................................................................................. 3 Statement of Cash Flows .............................................................................................................................. 4 Notes to Financial Statements .................................................................................................................. 5-12
Universal Processing Services of Wisconsin, LLC and Subsidiary Balance Sheet December 31, 2017 Assets Current Assets: Cash $ 14,066,253 Accounts receivable 2,695,154 Prepaid expenses and other current assets 172,236 Inventory 71,780 Total current assets 17,005,423 Fixed assets, net 425,621 Customer merchant accounts, net 760,011 Restricted cash 498,220 Due from related parties 103,460 Notes receivable - related party 6,110,001 Goodwill 1,908,495 Total assets $ 26,811,231 Liabilities and Member's Deficit Liabilities: Current Liabilities: Accounts payable and accrued expenses $ 1,834,704 Residuals payable 903,690 Due to related parties 585,939 Chargeback reserves 782,908 Total current liabilities 4,107,241 Bank note payable, net of deferred financing costs 29,856,879 Total liabilities 33,964,120 Commitments and contingencies (Note 9) Member's deficit (7,152,889) Total liabilities and member's deficit $ 26,811,231 See notes to financial statements. 1
Universal Processing Services of Wisconsin, LLC and Subsidiary Statement of Income Year Ended December 31, 2017 Revenue: Electronic payment processing $ 111,271,839 Expenses: Electronic payment processing costs 91,087,057 Electronic payment processing costs - related parties 4,374,094 Salaries and benefits 4,964,662 Professional fees 441,012 Depreciation and amortization 707,883 Other general and administrative costs 1,099,876 Total expenses 102,674,584 Income from operations 8,597,255 Interest expense (2,065,729) Interest income - related party 588,922 Interest expense, net (1,476,807) Net income $ 7,120,448 See notes to financial statements. 2
Universal Processing Services of Wisconsin, LLC and Subsidiary Statement of Changes in Member’s Deficit Year Ended December 31, 2017 Member's Deficit Balance, January 1, 2017 $ (5,621,394) Net income 7,120,448 Distributions to member (8,651,943) Balance, December 31, 2017 $ (7,152,889) See notes to financial statements. 3
Universal Processing Services of Wisconsin, LLC and Subsidiary Statement of Cash Flows Year Ended December 31, 2017 Cash flows from operating activities: Net income $ 7,120,448 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 707,883 Amortization of deferred financing costs 193,743 Changes in operating assets and liabilities: Restricted cash 89,487 Accounts receivable 419,900 Prepaid expenses and other current assets 90,830 Inventory 173,720 Accounts payable, accrued expenses and other current liabilities (1,633,711) Due to/from related parties 335,537 Net cash provided by operating activities 7,497,837 Cash flows used in investing activities: Purchase of customer merchant accounts (62,029) Net advances under notes receivable - related party (5,610,001) Purchase of fixed assets (237,846) Net cash used in investing activities (5,909,876) Cash flows from financing activities: Distributions to member (8,651,943) Proceeds from bank note payable 13,500,000 Deferred financing costs paid (268,393) Net cash provided by financing activities 4,579,664 Net increase in cash 6,167,625 Cash, beginning of year 7,898,628 Cash, end of year $ 14,066,253 Supplemental disclosure of cash flow information Interest paid $ 1,701,199 See notes to financial statements. 4
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 1. Organization, Description of Business, and Basis of Presentation Universal Processing Services of Wisconsin, LLC (“UPS-WI”), was organized as a limited liability company (“LLC”) under the laws of the State of Wisconsin and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”). As UPS-WI is a limited liability company, the liability of Holdco is limited to its capital account. UPS-WI and its wholly-owned subsidiary, UPSWI Sales, LLC (“UPS Sales”) are collectively hereinafter referred to as the “Company”. The Company markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other non-cash forms of payment. 2. Significant Accounting Policies Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the reserve for chargeback losses. Financial Instruments The Company’s financial instruments include cash, accounts receivable, accounts payable and accrued expenses, residuals payable, notes receivable from a related party and a bank note payable. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses and
residuals payable approximate fair value due to their short term maturities. The carrying amounts of notes receivable from a related party and bank note payable approximate fair value due to the variable interest rate they carry. Cash The Company maintains cash balances at financial institutions of high credit quality. As of December 31, 2017, cash deposits in excess of insured amounts totaled approximately $13,555,000. Restricted Cash Under the terms of the processing agreement between UPS-WI and its processing banks, UPS-WI maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account for certain merchants. 5
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Inventory Inventory consists primarily of equipment to be installed in merchant locations to enable them to process electronic transactions. Inventory is stated at the lower of cost or market, which is determined on a FIFO (first in-first out) basis. Fixed Assets Fixed assets, which are comprised of telephone systems, software, website, computer equipment, credit card terminals, trucks and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which generally is three to five years, or lease term. Goodwill and Customer Merchant Accounts Goodwill is not amortized but is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over 66 months as discussed in Note 5. The Company considers the following to be some examples of indicators that may trigger an impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair market value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash
flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long- term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusion on impairment. Revenue Recognition Electronic Payment Processing Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services as a percentage of each transaction dollar plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. Interest Income Interest income is recorded on an accrual basis, when earned, based on the current lending rate in place. 6
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Reserve for Losses on Merchant Accounts Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical experience and other relevant factors. The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments, including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required. Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, including interchange fees, Visa®, MasterCard® and Discover® dues and assessments, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. Two of the most significant components of electronic processing expenses include interchange and assessment costs, which are set by the
credit card associations. Interchange costs are passed on to the entity issuing the credit card used in the transaction and assessment costs are retained by the credit card associations. Interchange and assessment fees are billed primarily as a percentage of dollar volume processed and, to a lesser extent, as a per transaction fee. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s statement of income. During the year ended December 31, 2017, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor. Income Taxes The Company is a limited liability company (“LLC”) and therefore pays no corporate taxes. The Company’s income, instead, passes through to its member. Accordingly, no liability for Federal, State and/or local income taxes has been recorded in the accompanying financial statements. As a wholly-owned subsidiary of Holdco, the Company evaluated its tax positions at year end, and based on its analysis, determined that there were no uncertain tax positions. The Company’s U.S. Federal and State income tax returns prior to fiscal 2014 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. 7
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through March 13, 2018, the date these financial statements were available to be issued. 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2017: Accumulated Depreciation Net Book Cost and Amortization Value Telephone systems $ 62,828 $ 51,110 $ 11,718 Software 651,156 441,975 209,181 Leasehold improvements 97,150 65,804 31,346 Computer equipment 96,796 87,796 9,000 Terminals 285,214 142,137 143,077 Trucks 24,576 3,277 21,299 Website 5,205 5,205 - Totals $ 1,222,925 $ 797,304 $ 425,621 Depreciation and amortization expense related to fixed assets for the year ended December 31, 2017 was approximately $214,000. 4. Goodwill The carrying value of goodwill at December 31, 2017 is approximately $1,908,000. The Company performed a qualitative assessment to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2017 and no further assessment was required. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts is approximately $760,000 which consists of approximately $2,806,000 of gross costs, net of accumulated amortization of approximately $2,046,000 at December 31, 2017. Customer merchant accounts are being amortized over 66 months. Total amortization expense of customer merchant accounts using the sum of the year’s digits was approximately $494,000. Total expected amortization expense for the next five fiscal years and thereafter is as follows: 8
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Year Ending December 31, 2018 $ 371,530 2019 242,330 2020 121,287 2021 22,884 2022 1,980 Thereafter - $ 760,011 6. Bank Note Payable, Net of Deferred Financing Costs In June 2015, the Company, Newtek Technology Solutions, Inc. (“NTS”) and Premier Payments LLC (“Premier”), all subsidiaries of Holdco, collectively as “Borrowers” entered into a Credit and Guarantee Agreement (the “Agreement”) with Goldman Sachs Bank USA which extended a multi draw term loan facility (the “Facility”) up to an aggregate principal amount of $38,000,000. In June 2017, the Company amended the terms of the Agreement to extend the term of the Facility to June 2021 as well as increase the aggregate principal amount of the Facility to $50,000,000. Furthermore, the amendment of the Agreement added banc-serv Partners, LLC (“banc-serv”) and Small Business Lending, LLC (“SBL”), which are both owned by Holdco’s parent, Newtek Business Services Corp. (“Newtek”), as Borrowers. Concurrent with the increase in the aggregate principal balance, the Company borrowed an additional $18,000,000 under the Facility. The total outstanding balance under the Facility as of December 31, 2017 was $40,000,000. The Borrowers are collectively liable for the outstanding balance under the Facility. All assets of the Borrowers are pledged as collateral under the Agreement and the Facility is guaranteed by Newtek. The Facility provides for monthly/quarterly interest only payments with total principal due at maturity. The Facility matures in June 2021. Borrowings under the facility are classified either as a “Base Rate Loan” or a “LIBOR Rate Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 6%, and each Base
Rate Loan shall bear interest on the outstanding balance at a rate equal to (y) the greater of the Prime Rate or 350 basis points, plus (z) 5%. The effective interest rate at December 31, 2017 was 7.69%. The Company may make principal payments within 24 months of the closing date and pay a prepayment premium based on a percentage of the principal outstanding as defined in the Agreement. After 24 months, principal may be repaid under no penalty. The Agreement requires certain restrictive covenants for which the Company is in compliance with as of December 31, 2017. At December 31, 2017, the Company had approximately $30,499,000 of total borrowings outstanding under the Facility. Interest expense and amortization of deferred financing costs for the year ended December 31, 2017 was approximately $2,085,000. Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2017: Principal $ 30,498,694 Unamortized deferred financing costs (641,815) Net carrying amount $ 29,856,879 9
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 7. Notes Receivable – Related Party The Company had $6,110,000 outstanding on its revolving line of credit with Newtek, at December 31, 2017. The line, which matures in June 2021, allows for maximum borrowings of $50,000,000 and bears interest at a rate equal to that in effect under the Company’s Facility, at any given time. The Company recorded related party interest income of approximately $589,000 during the year ended December 31, 2017. At December 31, 2017 there was approximately $85,000 in accrued interest income under the line. 8. Related Party Transactions The Company earned electronic payment processing revenue of approximately $91,000 from Premier. The Company incurred residual expenses totaling approximately $3,922,000 from several related parties. In addition, the Company incurred gateway fees of approximately $121,000 from Secure Cyber Gateway Services, LLC, and breach insurance costs of approximately $332,000 from Newtek Insurance Agency, LLC, which are included in electronic payment processing costs – related parties on the statement of income. Salaries and overhead costs of approximately $147,000 charged from NTS are included in salaries and benefits. Payroll processing costs of approximately $21,000 from PMTWorks Payroll, LLC and managed technology services of approximately $161,000 from NTS are included in other general and administrative costs. At December 31, 2017, total amounts due to and due from related parties are approximately $586,000 and $103,000, respectively. Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2017, were approximately $407,000. During the
year ended December 31, 2017, the Company purchased approximately $66,000 of customer merchant accounts from a related party. The Company’s parent, Holdco, and Newtek are both guarantors of the Facility with Goldman Sachs Bank USA. 9. Commitments and Contingencies Operating Commitments The Company entered into noncancellable operating leases for office facilities with future rentals as follows: Year Ending December 31, 2018 $ 54,543 2019 56,239 2020 52,978 $ 163,760 10
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 Total rent expense for the year ended December 31, 2017 was approximately $288,000. Under the amended terms of a Service Agreement, amended terms of a Merchant Program Processing Agreement, amended terms of a Preferred Card Agreement, and amended terms of a Marketing Agreement, UPS-WI is required to pay minimum fees of $4,200,000 in total under these agreements during the period January 1, 2017 through December 31, 2017. The term of the Service agreement was extended to December 31, 2018. The Merchant Program Processing Agreement initial term was extended to November 30, 2018 and renews automatically each year. The Marketing Agreement initial term was extended to May 31, 2018 and renews automatically each two years for two year terms. The Preferred Card Agreement initial term was extended to April 30, 2018 and renews automatically for six-month terms. Under the terms of an Independent Sales Organization Agreement and Member Services Provider Agreement between UPS-WI and one of their sponsoring banks, UPS-WI is required to pay monthly minimum fees of $10,000 during the term of the agreement. The Company exceeded the monthly minimum required amount under the agreement for the year ended December 31, 2017. The agreement renews automatically annually. Under the amended terms of a Processing Services Agreement between UPS-WI and one of their front-end processors, UPS-WI is required to pay a quarterly minimum of $68,000 during the term of the amended agreement. The Company’s fee payments for the 12-month period ended December 31, 2017, exceeded the minimum required amount under these agreements. The agreement expires July 2018. Litigation In 2013, the Federal Trade Commission (the “FTC”) amended an existing complaint in the
matter Federal Trade Commission v. WV Universal Management, LLC et al., in the United States District Court for the Middle District of Florida (the “Court”), to add UPS-WI as an additional defendant on one count of providing substantial assistance in violation of the Telemarketing Sales Rule. On November 18, 2014, the Court issued an Order granting the FTC’s motion for summary judgment against UPS-WI on the single count. Subsequently, the FTC filed motions for a permanent injunction and equitable monetary relief against UPS-WI and the other remaining defendants. Prior to the Court hearing on the motions, UPS-WI and the FTC reached a settlement on the FTC’s motion for a permanent injunction. On May 19, 2015, the Court entered an equitable monetary judgment against UPS-WI for $1,735,000. The $1,735,000 was fully expensed in 2014 by UPS-WI. On June 14, 2016, the United States Court of Appeals for the Eleventh Circuit vacated the Court’s order awarding joint and several liability for equitable monetary relief in the amount of $1,735,000 against UPS-WI, and remanded the case to the Court for findings of fact and conclusions of law as to whether and why UPS-WI should be jointly and severally liable for restitution, and in what amount, if any. On October 26, 2016, the Court entered an equitable monetary judgment against UPS-WI for $1,735,000. On December 13, 2017, the United States Court of Appeals for the Eleventh Circuit affirmed the Court’s order awarding joint and several liability for equitable monetary relief against UPS-WI. UPS-WI intends to file a petition for a writ of certiorari requesting that the United States Supreme Court review the judgment. In September 2014, UPS-WI instituted an action against a former independent sales agent in Wisconsin state court for, among other things, breach of contract. The former sales agent answered 11
Universal Processing Services of Wisconsin, LLC and Subsidiary Notes to Financial Statements Year Ended December 31, 2017 the complaint and filed counterclaims against UPS-WI. Following UPS-WI’s successful appeal of several of the court’s rulings, the action has been assigned to a new judge for further proceedings. UPS-WI intends to vigorously pursue its claims against the former sales agent and defend the counterclaims asserted. 12