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, 2020
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
Common Stock, par value $0.02 per share
5.75% Notes due 2024
5.50% Notes due 2026
Trading Symbol(s)
NEWT
NEWTL
NEWTZ
Name of each exchange on which registered
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
x
Accelerated filer
Smaller reporting company
Emerging growth company
o
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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section
404(b) of the Sarbanes-Oxley Act (15 USC. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☐ No x
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 $357,118,000 as of the last business day of the registrant’s second
fiscal quarter of 2020, based on a closing price on that date of $18.22 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 26, 2021, there were 22,400,465 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 2021 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
Item
1.
1A.
1B.
2.
3.
4.
5.
6.
7.
Business
Risk Factors
Unresolved Staff Comments
Properties
Legal Proceedings
Mine Safety Disclosures
PART I
PART II
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.
9A.
9B.
10.
11.
12.
13.
14.
Consolidated Financial Statements and Supplementary Data
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Controls and Procedures
Other Information
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
PART III
15.
Exhibits and Financial Statement Schedules
Exhibits Index
Signatures
Financial Statements
Page
9
44
87
88
88
88
89
97
98
122
122
122
122
124
124
124
124
124
125
125
125
128
129
Table of Contents
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
2025 Notes
2026 Notes
Amended 2019 ATM Distribution Agreement
ASC
ASU
2017 ATM Equity Distribution Agreement
2019 ATM Equity Distribution Agreement
2020 ATM Equity Distribution Agreement
BDC
Board
Capital One
Code
DRIP
EBITDA
Equity Incentive Plan
Exchange Act
FASB
LIBOR
NAV
NBL Facility
Related Party RLOC
PLP
PPP
RIC
S&P
SBA
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, redeemed in February 2021
5.75% Notes due 2024
6.85% Notes due 2025
5.50% Notes due 2026
First Amendment and Supplement to the Equity Distribution Agreement, dated as of February 28, 2020, by and among the Company and the
placement agents
Accounting Standards Codification, as issued by the FASB
Accounting Standards Updates, as issued by the FASB
Second Amended and Restated Equity Distribution Agreement, dated August 31, 2018 by and among the Company and the placement agents
Equity Distribution Agreement, dated July 10, 2019 by and among the Company and the placement agents
Equity Distribution Agreement, dated June 25, 2020 by and among the Company and the placement agents
Business Development Company under the 1940 Act
The Company's board of directors
Capital One Bank, National Association
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 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
Paycheck Protection Program
Regulated investment company under the Code
Standard and Poor's
United States Small Business Administration
SBLC
SEC
SMB
Sterling
Sterling Receivable and Inventory Facility
Taxable Subsidiaries
Trustee
U.S. GAAP or GAAP
Small Business Lending Company
U.S. Securities and Exchange Commission
Small-and-medium sized businesses
Sterling National Bank
Loan and Security Agreement between NBC and Sterling, as lender, to fund accounts receivable and inventory financing arrangements
Companies formed by Newtek which are taxed as corporations for income tax purposes
U.S. Bank, National Association
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 former 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, dba Newtek Payment Systems, a controlled portfolio company
6
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 and our and their ability to achieve our respective objectives, including the potential impact of the novel strain of the
coronavirus known as “COVID-19”;
the impact of investments that we expect to make;
our informal relationships with third parties;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
our ability to access debt markets and equity markets;
our expected financings and investments;
•
•
•
•
•
•
•
•
•
• NSBF’s ability to maintain its license and PLP status under the SBA 7(a) program;
• NSBF’s ability to originate SBA 7(a) loans;
• NSBF’s ability to sell the guaranteed portions of SBA 7(a) loans at premiums;
competition with other entities and our affiliates for investment opportunities;
•
the adequacy of our cash resources and working capital;
•
the timing of cash flows, if any, from the operations of our portfolio companies;
•
the timing, form and amount of any dividend distributions;
•
the valuation of any investments in our portfolio companies, particularly those having no liquid trading market;
•
our ability to recover unrealized losses; and
•
the ability to enter into joint ventures or other financing arrangements.
•
•
•
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;
the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy;
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 regulatory structure and tax structure;
our ability to qualify for and maintain our tax treatment as a RIC under the Code, and as a BDC;
the impact of fluctuations in interest rates on our business including as a result of the decommissioning of LIBOR;
the future authorization or reauthorization of the PPP, and NSBF’s ability to participate in any such program;
•
•
•
•
•
•
•
•
•
• NSBF’s ability to comply with the laws, rules and guidance regarding the current or any reauthorized PPP;
• NSBF’s ability to comply with the laws, rules and guidance regarding the SBA 7(a) program;
•
•
the ability of NSBF’s SBA 7(a) borrowers to pay principal and interest, including after any deferment period granted by NSBF; and
the risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this report and in our filings with the SEC.
7
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.
8
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 platform, which we sometimes refer to as
an “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, SBA 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 our NewTracker® 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 United States. 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 2020, based on dollar lending volume, NSBF has
consistently been the largest non-bank SBA 7(a) lender, and as of December 31, 2020, is the third largest SBA 7(a) lender in the United States.
9
Newtek and its controlled portfolio companies use NewTracker®, our patented 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. In addition, NewTracker®
automatically pre-populates any necessary forms or 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 50% and 90% of the principal and interest due. NSBF has a
dedicated Senior Lending Team (as defined below) 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 approximately 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 $196,752,000 of SBA 7(a)
loans during 2020 and $517,692,000 of SBA 7(a) loans during 2019. As discussed below, one result of the uncertain economic impact to U.S. small businesses created by the COVID-19 pandemic
was that the Company temporarily shifted the focus of NSBF from originating SBA 7(a) loans to originating PPP loans beginning in March 2020 through June 30, 2020, which materially decreased
NSBF’s originations of SBA 7(a) loans during 2020. Further, in December 2020, Congress passed the Economic Aid Act (as defined below), which provides funding for PPP loans through March 31,
2021, and on January 11, 2021, the Company announced that NSBF would offer PPP loans through the end of the PPP. For more information, see “Item 7— Management’s Discussion and Analysis
of Financial Condition and Results of Operations — PPP Additional Rounds.” 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 Loan
Program Requirements (defined below) 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 ten 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.
10
NSBF has a dedicated capital markets team that sells the guaranteed portions of its SBA 7(a) loans and 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 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. 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 $1,000,000 or less, in order to maintain a diversified pool of loans that are dispersed both geographically and
among industries, with a goal of limiting NSBF’s exposure to regional and industry-specific economic downturns. Specifically, as of December 31, 2020, NSBF’s loan portfolio consisted of 2,347
loans originated across 50 states in 78 different industries as defined by the North American Industry Classification System (“NAICS”). The following charts summarize NSBF’s mix of investment
concentrations by industry and geography as of December 31, 2020 (in thousands):
Distribution by NAICS Code Description
NAICS Code Description
Food Services and Drinking Places
Truck Transportation
Professional, Scientific, and Technical Services
Amusement, Gambling, and Recreation Industries
Ambulatory Health Care Services
Repair and Maintenance
Specialty Trade Contractors
Fabricated Metal Product Manufacturing
Administrative and Support Services
Food Manufacturing
Other
Total
Distribution by State
State
Florida
California
New York
Texas
Connecticut
Pennsylvania
New Jersey
Illinois
North Carolina
Georgia
Other
Total
Number of Loans
Aggregate Balance ($)
Average Balance ($)
Percentage of Balance
285 $
90
207
111
125
109
114
43
96
26
1,141
2,347 $
36,343 $
30,673
26,433
25,062
20,354
17,638
17,173
15,127
13,679
13,173
204,743
420,398 $
128
341
128
226
163
162
151
352
142
507
179
179
8.6 %
7.3 %
6.3 %
6.0 %
4.8 %
4.2 %
4.1 %
3.6 %
3.3 %
3.1 %
48.7 %
100.0 %
Number of Loans
Aggregate Balance ($)
Average Balance ($)
Percentage of Balance
268 $
189
213
168
125
83
112
85
72
83
949
2,347 $
38,360 $
34,798
33,919
31,837
23,061
20,146
19,045
17,874
15,690
14,393
171,276
420,398 $
143
184
159
190
184
243
170
210
218
173
180
179
9.1 %
8.3 %
8.1 %
7.6 %
5.5 %
4.8 %
4.5 %
4.3 %
3.7 %
3.4 %
40.7 %
100.0 %
11
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:
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 ($)
Average Balance ($)
Percentage of Balance
2,132 $
35
179
1
2,347 $
353,373 $
13,251
53,408
366
420,398 $
166
379
298
366
179
84.0 %
3.2 %
12.7 %
0.1 %
100.0 %
The weighted average term to maturity and weighted average interest rate of NSBF’s loan portfolio as of December 31, 2020 was 14.6 years and 6.2%, respectively.
Receivables Financing, Inventory Financing and SBA 504 Lending
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 and also provides loan origination services to our joint venture (see
below).
Non-Conforming Commercial Lending
On November 27, 2018, the Company’s wholly-owned affiliate, Newtek Commercial Lending, Inc., and a wholly-owned affiliate of BlackRock TCP Capital Corp. (“BlackRock TCP”), Conventional
Lending TCP Holdings LLC, entered into a joint venture, NCL, governed by the Limited Liability Company Agreement for the JV. The Company and BlackRock TCP each committed to contribute
an equal share of equity funding to the JV and each have equal voting rights on all material matters, with the intent to deploy capital over the course of time with additional leverage supported by a
warehouse line of credit. The purpose of the JV was to originate commercial loans to middle-market companies as well as small businesses. Additionally, on April 29, 2019, the JV closed a $100
million senior-secured revolving credit facility, with a $100 million accordion feature, with Deutsche Bank. As a result of, among other things, the economic uncertainty caused by the COVID-19
pandemic, the JV ceased originating loans during 2020 and in December 2020, DB and the JV agreed to amend the facility to end the revolving period.
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.
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The CARES Act — Paycheck Protection Program
On March 27, 2020, Congress passed, and the President of the United States signed into law, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act provided an
over $2.00 trillion stimulus package to certain businesses and individuals affected by the COVID-19 pandemic, with subsidies to certain existing SBA 7(a) borrowers in which the SBA paid all
principal, interest, and fees on existing performing SBA 7(a) loans for six months beginning with such borrowers’ April 2020 payments. Among other things, the CARES Act allowed NSBF, as an
SBA 7(a) lender, to originate loans under the newly-established PPP as an expansion of the existing SBA Section 7(a) loan program through June 30, 2020. On July 4, 2020, the President of the
United States signed a bill to re-open the application window for the PPP until August 8, 2020. The first round of the PPP closed on August 8, 2020.
Under the PPP, SBA 7(a) lenders were automatically approved to extend 100% federally guaranteed PPP loans to certain small businesses for amounts up to 2.5 times of those businesses’ average
monthly payroll expenses (capped at $10 million). The interest rate on PPP loans is capped at 1.00%, and the loans are forgivable after an 8 up to a 24 week forgiveness period, provided that the
borrower uses the loans for eligible purposes (e.g., payroll/benefits (excluding employee compensation above $100,000), mortgage interest, rent and utilities) and maintains its payroll levels. The
amount of loan forgiveness will be reduced if the borrower reduces salaries or terminates employees during the forgiveness period.
As a result of the uncertain economic impact to U.S. small businesses created by the COVID-19 pandemic, the Company’s Executive Committee and Senior Lending Team temporarily shifted the
focus of NSBF from originating SBA 7(a) loans to originating PPP loans beginning in March 2020. On June 29, 2020, NSBF restarted its SBA 7(a) loan program and began accepting SBA 7(a) loan
applications. During the duration of the first round of PPP, NSBF funded approximately 10,570 PPP loans totaling $1.19 billion though the PPP. Pursuant to the PPP, the SBA reimbursed a lender
authorized to make a PPP loan at a rate, based on the balance of the financing outstanding at the time of disbursement of the PPP loan, of: (i) 5.00% for PPP loans of not more than $350,000; (ii)
3.00% for loans of more than $350,000 and less than $2,000,000; and (iii) 1.00% for loans of not less than $2,000,000.
On September 5, 2020, the Paycheck Protection Program Flexibility Act (the “new Act”) was signed into law and made significant changes to the PPP to provide additional relief for small businesses.
The new Act increased flexibility for small businesses that have been unable to rehire employees due to lack of employee availability or have been unable to operate as normal due to COVID-19
related restrictions. It extended the period that businesses have to use PPP funds to qualify for loan forgiveness to 24 weeks, up from 8 weeks under the original rules. The new Act also relaxed the
requirements that loan recipients must adhere to in order to qualify for loan forgiveness. In addition, the new Act extended the payment deferral period for PPP loans until the date when the amount of
loan forgiveness is determined and remitted to the lender. For PPP recipients who do not apply for forgiveness, the loan deferral period is 10 months after the applicable forgiveness period ends.
On December 27, 2020, the “The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (the “Economic Aid Act”) was enacted by Congress in order to provide additional
assistance to the hardest-hit small businesses, nonprofits, and venues that are struggling to recover from the impact of the COVID-19 pandemic. The Economic Aid Act provides funding for PPP
loans through March 31, 2021 and a second round of forgivable loans through the PPP for small businesses and nonprofits experiencing significant revenue losses, made programmatic improvements
to PPP, funds grants to shuttered venues, and enacted emergency enhancements to other SBA lending programs. This critical assistance will provide small business owners with the capital they need
to survive the pandemic and includes critical resources for the smallest businesses. The Economic Aid Act also provides additional subsidies to certain existing SBA 7(a) borrowers. Specifically,
under the Economic Aid Act, the SBA will pay an additional three months of payments of principal, interest, and fees on existing performing SBA 7(a) loans approved prior to March 27, 2020,
capped at $9,000 per borrower per month and new SBA 7(a) borrowers with loans approved from February 1, 2020 through September 30, 2021, will receive 5 months of payments of principal,
interest, and fees, capped at $9,000 per month. For PPP loans made on or after December 27, 2020, SBA will pay lenders fees based on the balance of the financing outstanding at the time of
disbursement of the loan, for processing PPP loans in the following amounts: (i) for loans of not more than $50,000, an amount equal to the lesser of fifty (50) percent or $2,500; (ii) five (5) percent
for loans of more than $50,000 and not more than $350,000; (iii) three (3) percent for loans of more than $350,000 and less than $2,000,000; and (iv) one (1) percent for loans of at least $2,000,000.
On January 11, 2021, the Company announced that NSBF would immediately begin offering PPP second draw loans to eligible business as well as first draw PPP loans through the end of the PPP, set
for March 31, 2021. See “Recent Developments - PPP Additional Rounds.” We continue to monitor legislative, regulatory, and supervisory developments related to the PPP, but there can be no
assurance that the PPP will be further reauthorized, or that NSBF will be qualified to participate in any further reauthorization.
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Controlled Portfolio Companies
In addition to our debt investments in portfolio companies through our business finance ecosystem, we also hold controlling interests in certain portfolio companies that, as of December 31, 2020,
represented approximately 33% of our total investment portfolio. Specifically, we hold controlling interests in NMS, Mobil Money, NTS, SBL, NBC, NBL, NCL, TAM, NPS, NIA, EWS, 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 across the United States. 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 2020, NMS processed merchant transactions with sales volumes of $4.4 billion.
NMS has a number of competitive advantages which we believe will enable it to effectively compete in this market. 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 and offers processing related 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 sales 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.
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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 moved its main data center in Scottsdale to a new facility
in Phoenix, which has resulted in a material reduction of NTS’ data center expense.
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. As part of the reorganization of the Company’s managed technology portfolio companies, as of January 1, 2021, IPM and SIDCO became subsidiaries of NTS.
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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). Additionally, on April 29, 2019, the JV closed a $100 million senior-secured revolving credit facility,
with a $100 million accordion feature, with Deutsche Bank. As a result of, among other things, the economic uncertainty caused by the COVID-19 pandemic, the JV ceased originating loans during
2020 and in December 2020, DB and the JV agreed to amend the facility to end the revolving period.
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.
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.
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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 and been de-certified and liquidated.
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 United States. 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 our web presence, www.newtekone.com, we believe
we are establishing ourselves as a preferred “go-to” provider for SMB financing and business solutions offered by NSBF and our controlled portfolio companies.
We market services through referrals from our strategic alliance partners such as Amalgamated Bank, Stifel Bank, Axiom Bank, 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, Transworld Business Advisors, Army Navy Federal Credit Union, Teachers Federal Credit Union, Nassau Federal Educators Federal Credit Union, Spire Federal Credit Union, 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.
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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 solutions 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.
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 United States. 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 2020, NSBF has consistently been the largest non-bank originator of SBA 7(a) loans by dollar
lending volume and is currently the third largest SBA 7(a) lender in the United States. 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 and we have the technology and infrastructure in place presently to do it cost effectively in all 50 states and across many industries.
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 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, funding of SBA 504 loans, which provide
financing of fixed assets such as real estate or equipment, and non-conforming (non-SBA) commercial loans. We believe that each of these market segments are underserved for SMBs and since we
are able to provide comprehensive financial and business solutions under one (the Newtek) platform, we beleive that 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:
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Internally Managed Structure and Significant Management Resources. We are internally managed by our Executive Committee 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. NewTracker® 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. NewTracker®
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. NewTracker® has been applied to all of the
business and financial solutions we offer directly or through our controlled portfolio companies.
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 2020 and 2019 we funded $196,752,000 and
$517,692,000, respectively, of SBA 7(a) loans, with 2020 originations being negatively impacted by the Executive Team’s and Senior Lending Team’s decision to focus on PPP loan referrals, and not
SBA 7(a) loan referrals, as a result of the COVID-19 pandemic. 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 our joint venture program, which funds non-conforming (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 solutions, 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 business
solutions 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 what we believe to be 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, when appropriate, review all compliance certificates and covenants and
regularly assess the financial and business conditions and prospects of portfolio companies. In addition, SBL is a third-party 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 SBL. SBL also services the loans
funded by NBL and our joint venture, and provides loan origination and closing services to NSBF pursuant to an SBA approved lender service provider agreement.
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 U.S. federal income taxes on any ordinary income or capital gains that we timely 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 (the “Annual Distribution Requirement”).
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.
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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.
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 2.25% to 2.75%
which enables us to generate rapid sales of the guaranteed portions of SBA 7(a) 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, 2020, 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.
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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.
In addition to the investment objectives described above, the Company temporarily shifted its debt investment strategy during the first half of 2020 to focus on PPP lending in response to the COVID-
19 pandemic. As such, the Company’s investment objectives relating to its PPP lending during fiscal 2020 may differ from the objectives described above. For more information, see “Item 7—
Management’s Discussion and Analysis of Financial Condition and Results of Operations — PPP Additional Rounds.”
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 following discussion relates to the Company’s investment selection process in connection with SBA 7(a) lending. The Company’s investment selection process for PPP lending during fiscal 2020
may differ from the process described below. For more information, see “Item 7— Management’s Discussion and Analysis of Financial Condition and Results of Operations — PPP Additional
Rounds.”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, commercial and investment bankers, entrepreneurs, 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
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, Stifel Bank,
Axiom Bank, 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, Transworld Business Advisors, Army Navy Federal Credit Union, Teachers Federal Credit Union,
Nassau Federal Educators Federal Credit Union, Spire Federal Credit Union, 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. NewTracker® 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.
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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 business and financial solutions of our subsidiaries and controlled portfolio companies 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 (authorized by section 7(a) of the Small Business Act, 15 U.S.C. 636(a)), in accordance with our credit and underwriting policy, which incorporates
by reference the applicable regulations and the SBA Standard Operating Procedures, Lender and Development Company Loan Program (“SOP 50 10”) (collectively, “SBA Loan Program
Requirements”) as they relate to the financing and servicing of such loans.
During the initial application process for a loan originated under the SBA 7(a) Program, a Newtek 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.
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;
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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 U.S. federal income tax returns of the principals of the applicant’s business for previous three years;
personal resumes 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 U.S. 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 U.S. 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, if required. 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.
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.
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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.
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.
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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%
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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 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.
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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
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.
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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;
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.
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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.
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.
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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 business and financial solution offered by NSBF and our controlled portfolio companies, to our controlled portfolio companies 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
1
2
3
4
5
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7
8
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 team will
review these investment ratings on a quarterly basis, and our Board will review and 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.
Rule 2a-5 under the 1940 Act was recently adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. We are evaluating the impact of
adopting Rule 2a-5 on the consolidated financial statements and intend to comply with the new rule’s requirements on or before the compliance date in September 2022.
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 business solutions 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;
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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;
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, 2020, 2019 and 2018, all of our revenue was derived from customers in the United States.
Human Capital including Senior Lending Team and Executive Committee
As an internally managed BDC, the long-term success of our Company depends on our people. Our team comprises experienced investment professionals, executive officers and treasury, finance, risk
management, administrative support, IT and human resources professionals.
The key members of our senior lending team (“Senior Lending Team”), many 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 Nicholas Leger, 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 seventeen years.
The retention of our Senior Lending Team and Executive Committee is material to the management of our business. The departure of key investment personnel could adversely affect our business
and cause us to lose current and potential investment opportunities. As such, we offer a competitive compensation and benefits structure that we believe is attractive to our current and prospective
professionals. As we hire and develop individuals, we take succession planning into account and have succession plans in place for each of our senior leaders.
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As of December 31, 2020 our workforce consisted of 110 professionals. We strive to continue to create a welcoming and inclusive work environment for our employees. We are committed to
recruiting, motivating. and developing a diversity of talent and to create an inclusive community where all individuals are welcomed, valued, respected, and heard. In order to support a culture of
learning, we provide many training opportunities for our employees to continue to build their skills and increase their effectiveness as members of a team, including offering a variety of external and
internal classes and training sessions as well as hands-on learning and one-on-one mentorship. We continue to encourage dialogue between managers and employees and have increased the frequency
of our communications with employees during the COVID-19 pandemic.
We are committed to fostering a workplace conducive to the open communication of any concerns regarding unethical, fraudulent or illegal activities. Feedback from employees on matters related to
their employment or our operations including its financial statement disclosures, accounting, internal accounting controls or auditing matters is greatly appreciated and helps to build a stronger
organization. Each director, officer, regular full-time, part-time and temporary employee of the Company has the ability to report confidentially under this whistleblower policy: (a) questionable or
improper accounting, internal controls, auditing matters, disclosure, or fraudulent business practices and (b) illegal or unethical behavior that has occurred, is ongoing, or is about to occur of an
applicable law, rule, regulation or policy of the Company. We protect the confidentiality of those making reports of possible misconduct to the maximum extent permitted by law. Our no retaliation
policy prohibits retaliation against those who report activities believed in good faith to be a violation of any law, rule, regulation or internal policy.
We maintain and ensure compliance of all directors, officers and employees to our Code of Business Conduct and Ethics (the “Code of Ethics”) which is acknowledged in writing on joining and
annually by all our employees, as a continued condition of employment. Our Code of Ethics establishes applicable policies, guidelines, and procedures that promote ethical practices and conduct by
the Company and all its employees, officers, and directors. Our Code of Ethics can be found on our website at http:/investor.newtekbusinessservices.com/corporate-governance.
We aim to provide a safe environment at work. During the COVID-19 pandemic, the safety of our employees, clients, customers, and vendors has been at the forefront of our decisions regarding
when it is safe for employees to return to work in the office. Accordingly, we have encouraged employees to work from home in regions where doing so is recommended by local guidance. Following
local and CDC guidance, we have made our offices accessible to those who prefer to work in the office, with restrictions and safety protocols in place, including limiting office capacity. For those
hesitant to return to the office, we have continued to support remote work as an option during the ongoing COVID-19 pandemic. In addition to protecting the physical safety of our employees, we
seek to promote a safe environment that is free of harassment or bullying. We do not tolerate discrimination and harassment of any kind including but not limited to sexual, gender identity, race,
religion, ethnicity, age, or disability, among others.
During the pandemic, we have encouraged employee health and wellness by being aware that employees need flexibility during this time and have different needs. We have made information and
services available to support employees. We emphasize employee engagement, particularly during the ongoing pandemic, by encouraging ongoing dialogue with managers, colleagues and leaders.
Communications have been more frequent during this time so that employees can stay connected and that we understand our employees’ diverse needs. We monitor our attrition and analyze reasons
for leaving the Company. We value employee feedback and make adjustments to employees’ needs and concerns as they are raised.
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.
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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 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. At a July 10, 2020 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). During 2020, 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. Prior to January 19, 2021, except for registered money market funds, we generally were prohibited from acquiring more than 3% of the voting stock of any registered
investment company, investing more than 5% of the value of our total assets in the securities of one investment company, or investing more than 10% of the value of our total assets in the securities
of more than one investment company without obtaining exemptive relief from the SEC. However, the SEC adopted new rules, which became effective on January 19, 2021, that allow us to acquire
the securities of other investment companies in excess of the 3%, 5% and 10% limitations without obtaining exemptive relief if we comply with certain conditions. 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.
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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.
In addition, on January 20, 2021, we applied for an order of the SEC pursuant to Section 6(c) of the 1940 Act granting an exemption from the provisions of Section 12(d)(3) to the extent necessary to
permit the Company to organize, acquire, and continue to wholly own the securities of an entity that will be an indirect wholly-owned portfolio company of the Company, that intends to operate as an
investment adviser (the “Adviser Subsidiary”) registered with the SEC under the Investment Advisers Act of 1940, as amended, which application is pending.
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 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.
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We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Prior to January 19, 2021, except for registered money market funds, we
generally were prohibited from acquiring more than 3% of the voting stock of any registered investment company, investing more than 5% of the value of our total assets in the securities of one
investment company, or investing more than 10% of the value of our total assets in the securities of more than one investment company without obtaining exemptive relief from the SEC. However,
the SEC adopted new rules, which became effective on January 19, 2021, that allow us to acquire the securities of other investment companies in excess of the 3%, 5% and 10% limitations without
obtaining exemptive relief if we comply with certain conditions. 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. BDCs generally must offer to make available to the issuer of the securities significant managerial assistance, except in circumstances where either (i) the BDC controls
such issuer of securities or (ii) the BDC 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 U.S. federal income tax purposes typically require us to limit the amount we invest with any one counterparty. Our management 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 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 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.
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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%. 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, 2020, we had an aggregate principal amount of senior securities outstanding of $457,931,000 and our asset coverage ratio was 174%.
Issuance of Shares Below Current Net Asset Value
At a special meeting of shareholders held on August 2, 2019, our stockholders authorized us to issue common stock at a discount from our NAV per share, effective for a period that expired on June
12, 2020. Under the approved proposal, our Board, subject to its fiduciary duties and regulatory requirements, had 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. At a special meeting of shareholders held on July 10, 2020, our stockholders authorized us to issue common stock at a discount from our NAV per
share, effective for a period expiring on the earlier of July 10, 2021, or the date of our 2021 annual meeting of stockholders. 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%. During the year ended December 31, 2020, 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.
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).
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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:
•
•
•
•
pursuant to Rule 13a-14 of the Exchange 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 Exchange 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 Exchange 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 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.
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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 SBA Loan Program Requirements 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 SBA Loan 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 NSBF’s 2018 examination by the SBA, NSBF entered into a voluntary agreement with the SBA pursuant to NSBF’s commitment to operate under the SBA Loan Program
Requirements. The agreement formalizes many of the actions previously taken by NSBF to strengthen its operational procedures as they relate to NSBF’s delegated lender authority. Consistent with
the terms of the agreement, NSBF has established a segregated restricted cash account in the amount of $10 million to account for potential post-purchase repairs and denials of guaranteed portions of
SBA 7(a) loans, and agreed to take certain actions to demonstrate the sufficiency of NSBF’s liquidity. NSBF also 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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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 ordinary income and net capital gains that
we recognized in preceding years, but were not distributed during such years, and on which we paid no corporate-level U.S. federal 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 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.
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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, 2020.
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 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.
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Income inclusion from a QEF will be “good income” for purposes of the 90% Income Test provided that they are derived in connection with an investment in stocks and securities or the QEF
distributes such income to us in the same taxable year to which the income is included in our income.
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.
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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.
An investment in our securities involves risks. The following is a summary of the principal risks that you should carefully consider before investing in our securities.
Risks Related to the Economy
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•
•
•
Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of our operations.
Economic recessions could impair our portfolio companies and harm our operating results.
Capital markets are currently experiencing disruption and instability and we cannot predict how long these conditions will continue. 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.
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.
Risks Related to Our Business and Structure
• 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.
• 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.
Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.
•
• 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.
If we are unable to source investments effectively, we may be unable to achieve our investment objective.
•
• Any failure on our part to maintain our status as a BDC would reduce our operating flexibility.
• We may experience fluctuations in our quarterly and annual results.
•
•
• 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.
Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.
Because we have received the approval of our stockholders, we are subject to 150% asset coverage beginning after July 26, 2018.
Risk Related to SBA Lending
• NSBF, our wholly-owned subsidiary, is subject to regulation by the SBA, which has specific risks.
• We have specific risks associated with SBA loans.
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Risks Related to U.S. Federal Income Tax
• We will be subject to corporate-level income tax if we are unable to maintain our qualification as a RIC or are unable to make the distributions required to maintain RIC tax treatment.
•
Because we intend to distribution 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 operations as a BDC will affect our ability to, and the way in which we, raise additional capital and make distributions.
Risks Related to Our Investments Generally
Our investments are very risky and highly speculative.
The lack of liquidity in our investments may adversely affect our business.
•
•
• 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.
• Defaults by our portfolio companies will harm our operating results.
•
•
Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.
If the assets securing the loans that we make decrease in value, then we may lack sufficient collateral to cover losses.
Risks Related to Our Securities
• Our common stock price may be volatile and may decrease substantially.
• Our shareholders may experience dilution upon repurchase of common shares.
•
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.
RISKS RELATED TO THE ECONOMY
Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of our operations.
Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control. These types of events have adversely affected and could
continue to adversely affect operating results for us and for our portfolio companies. For example, the COVID-19 pandemic has delivered a shock to the global economy. This outbreak has led and for
an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby, including a recession and a steep increase in
unemployment in the United States.
With respect to the U.S. credit markets, this outbreak has resulted in, and until fully resolved is likely to continue to result in, the following among other things: (i) government imposition of various
forms of shelter-in-place orders and the closing of “non-essential” businesses, resulting in significant disruption to the businesses of many middle-market loan borrowers including supply chains,
demand and practical aspects of their operations, as well as in lay-offs of employees, and, while these effects are hoped to be temporary, some effects could be persistent or even permanent; (ii)
increased draws by borrowers on revolving lines of credit; (iii) increased requests by borrowers for amendments and waivers of their credit agreements to avoid default, increased defaults by such
borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans; (iv) volatility and disruption of these markets including greater volatility in pricing and spreads and
difficulty in valuing loans during periods of increased volatility, and liquidity issues; and (v) rapidly evolving proposals and/or actions by state and federal governments to address problems being
experienced by the markets and by businesses and the economy in general which will not necessarily adequately address the problems facing the loan market and middle market businesses.
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While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with the view to partially or fully reopening their economies,
many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such
restrictions and business shutdowns in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that
recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such
as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, as of late December 2020, travelers from the United
States are not allowed to visit Canada, Australia or the majority of countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic
downturn. In addition, although the Federal Food and Drug Administration authorized vaccines for emergency use starting in December 2020, it remains unclear how quickly the vaccines will be
distributed nationwide and globally or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. The delay in distributing the
vaccines or spread of COVID variants could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19
pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely
affected by a prolonged recession in the United States and other major markets.
This outbreak is having, and any future outbreaks could have, an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the
ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a
borrower default, each of which could negatively impact the amount and quality of loans available for investment by us and returns to us, among other things. As of the date of this annual report on
Form 10-K, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental
actions will have or the full potential impact on us and our portfolio companies. Any potential impact to our results of operations will depend to a large extent on future developments and new
information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are
beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.
If the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies
may increase. In addition, collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors could decline, impairing their
ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in loan collateral and guarantor net worth could result in increased costs and reduced income
which would have a material adverse effect on our business, financial condition or results of operations. Additionally, oil prices collapsed to an 18-year low on supply glut concerns, as shutdowns
across the global economy sharply reduced oil demand while Saudi Arabia and Russia engaged in a price war. Central banks and governments have responded with liquidity injections to ease the
strain on financial systems and stimulus measures to buffer the shock to businesses and consumers. These measures have helped stabilize certain portions of the financial markets over the short term,
but volatility will likely remain elevated until the health crisis itself is under control (via fewer new cases, lower infection rates and/or verified treatments). There are still many unknowns and new
information is incoming daily, compounding the difficulty of modeling outcomes for epidemiologists and economists alike.
We cannot be certain as to the duration or magnitude of the economic impact of the COVID-19 pandemic in the markets in which we and our portfolio companies operate, including with respect to
travel restrictions, business closures, mitigation efforts (whether voluntary, suggested, or mandated by law) and corresponding declines in economic activity that may negatively impact the U.S.
economy and the markets for the various types of goods and services provided by U.S. middle market companies. Depending on the duration, magnitude and severity of these conditions and their
related economic and market impacts, certain portfolio companies may suffer declines n earnings and could experience financial distress, which could cause them to default on their financial
obligations to us and their other lenders.
We will also be negatively affected if our operations and effectiveness or the operations and effectiveness of a portfolio company (or any of the key personnel or service providers of the foregoing) is
compromised or if necessary or beneficial systems and processes are disrupted.
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Any public health emergency, including the COVID-19 pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market
uncertainty could have a significant adverse impact on us and the fair value of our investments. Our valuations, and particularly valuations of private investments and private companies, are
inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that may not show the complete impact
of the COVID-19 pandemic and the resulting measures taken in response thereto. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.
Any public health emergency, including the COVID-19 pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic
market uncertainty could have a significant adverse impact on us and the fair value of our investments and our portfolio companies.
The extent of the impact of any public health emergency, including the COVID-19 pandemic, on our and our portfolio companies’ operational and financial performance will depend on many factors,
including the duration and scope of such public health emergency, the actions taken by governmental authorities to contain its financial and economic impact, the extent of any related travel
advisories and restrictions implemented, the impact of such public health emergency on overall supply and demand, goods and services, investor liquidity, consumer confidence and levels of
economic activity and the extent of its disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted. In addition,
our and our portfolio companies’ operations may be significantly impacted, or even temporarily or permanently halted, as a result of government quarantine measures, voluntary and precautionary
restrictions on travel or meetings and other factors related to a public health emergency, including its potential adverse impact on the health of any of our or our portfolio companies’ personnel. This
could create widespread business continuity issues for us and our portfolio companies.
Moreover, the COVID-19 pandemic has adversely impacted and is likely to further adversely impact our operations and the operations of our borrowers, customers, portfolio companies and business
partners. A number of factors impacting us or our borrowers, customers or business partners could materially adversely affect our business, results of operations, and financial condition, including but
not limited to:
•
•
•
•
•
•
•
increases in loan delinquencies, losses and charge-offs;
increases in borrowers seeking and being granted deferments of principal and interest payments, especially following the conclusion of the six months of payments made directly by the SBA
under provisions of the CARES Act, which could negatively impact cash flow from net interest and servicing payments normally available to the Company, during the deferment period;
collateral for loans, including real estate, may decline in value, which could cause loan losses to increase;
demand for our, and our portfolio companies’, business products and solutions may decline, making it difficult to grow or maintain our assets and income;
net worth and liquidity of the guarantors on our loans may decline, which could cause loan losses to increase;
our risk management policies and practices may be negatively impacted by among, other things, changes in the SBA 7(a) loan program, including changes to SBA rules, regulations and SBA
standard operating procedures;
cyber risk has increased as criminals have sought to take advantage of the changes of business practices necessitated by COVID-19.
These factors may also cause the valuation of our investments to differ materially from the values that we may ultimately realize. Our valuations, and particularly valuations of private investments
and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information. As a result,
our valuations may not show the completed or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. Any public health emergency, including the
COVID-19 pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse
impact on us and the fair value of our investments and our portfolio companies.
As of the date of this Form 10-K, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect
any governmental actions will have or the full potential impact on us and our portfolio companies. As the potential impact of COVID-19 is difficult to predict, the extent to which COVID-19 could
negatively affect our and our portfolio companies’ operating results or the duration of any potential business or supply-chain disruption, is uncertain. Any potential impact to our results of operations
will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to
contain COVID-19 or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.
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If the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies
may increase. In addition, collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors could decline, impairing their
ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in loan collateral and guarantor net worth could result in increased costs and reduced income
which would have a material adverse effect on our business, financial condition or results of operations.
Economic recessions or downturns, including as a result of the COVID-19 pandemic, could impair our portfolio companies and harm our operating results.
Many of our portfolio companies may be susceptible to economic slowdowns or recessions and may be unable to repay our debt
investments during these periods. The recent global outbreak of COVID-19 has disrupted economic markets, and the prolonged economic impact is uncertain. Some economists and major investment
banks have expressed concern that the continued spread of the virus globally could lead to a world-wide economic downturn. In the past, instability in the global capital markets resulted in disruptions
in liquidity in the debt capital markets, significant write-offs in the financial services sector, the re-pricing of credit risk in the broadly syndicated credit market and the failure of major domestic and
international financial institutions. In particular, in past periods of instability, the financial services sector was negatively impacted by significant write-offs as the value of the assets held by financial
firms declined, impairing their capital positions and abilities to lend and invest. In addition, continued uncertainty surrounding the impact of trade deals between Britain and the European Union
following the United Kingdom’s exit from the European Union and uncertainty between the United States and other countries, including China, with respect to trade policies, treaties, and tariffs,
among other factors, have caused disruption in the global markets. There can be no assurance that market conditions will not worsen in the future.
In an economic downturn, we may have non-performing assets or non-performing assets may increase, and the value of our
portfolio is likely to decrease during these periods. Adverse economic conditions may also decrease the value of any collateral securing our loans. A severe recession may further decrease the value of
such collateral and result in losses of value in our portfolio and a decrease in our revenues, net income, assets and net worth. Unfavorable economic conditions also could increase our funding costs,
limit our access to the capital markets or result in a decision by lenders not to extend credit to us on terms we deem acceptable. These events could prevent us from increasing investments and harm
our operating results.
The occurrence of recessionary conditions and/or negative developments in the domestic and international credit markets may
significantly affect the markets in which we do business, the value of our investments, and our ongoing operations, costs and profitability. Any such unfavorable economic conditions, including rising
interest rates, may also increase our funding costs, limit our access to capital markets or negatively impact our ability to obtain financing, particularly from the debt markets. In addition, any future
financial market uncertainty could lead to financial market disruptions and could further impact our ability to obtain financing.
These events could limit our investment originations, limit our ability to grow and negatively impact our operating results and
financial condition.
Global economic, political and market conditions may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.
The current worldwide financial markets situation, as well as various social and political tensions in the United States and around the world, may contribute to increased market volatility, may
negatively impact the secondary market for the sale of guaranteed portions of SBA 7(a) loans, may have long term effects on the United States and worldwide financial markets, and may cause
economic uncertainties or deterioration in the United States and worldwide. We monitor developments and seek to manage our investments in a manner consistent with achieving our investment
objective, but there can be no assurance that we will be successful in doing so.
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In August 2011 and then affirmed in August 2013, Standard & Poor’s Rating Services lowered its long term sovereign credit rating on the U.S. from “AAA” to “AA+”. Additionally, in January of
2012, Standard & Poor’s Rating Services lowered its long term sovereign credit rating for several large European countries. These ratings negatively impacted global markets and economic
conditions. Although U.S. lawmakers have taken steps to avoid further downgrades, U.S. budget deficit concerns and similar conditions in Europe, China and elsewhere have increased the possibility
of additional credit rating downgrades and worsening global economic and market conditions. The current political climate has also intensified concerns about a potential trade war between the
United States and China in connection with each country’s recent proposed tariffs on the other country’s products. There can be no assurance that current or future governmental measures to mitigate
these conditions will be effective. These conditions, government actions and future developments may cause interest rates and borrowing costs to rise, which may adversely affect our ability to access
debt financing on favorable terms and may increase the interest costs of our borrowers, hampering their ability to repay us. Continued or future adverse economic conditions could have a material
adverse effect on our business, financial condition and results of operations.
In October 2014, the Federal Reserve announced that it was concluding its bond buying program, or quantitative easing, which was designed to stimulate the economy and expand the Federal
Reserve’s holdings of long term securities, suggesting that key economic indicators, such as the unemployment rate, had showed signs of improvement since the inception of the program. The Federal
Reserve raised the Federal funds rate throughout the course of 2015 through 2018 and then pivoted in the fourth quarter of 2018 towards easier monetary policy and cut rates several times in 2019.
Most recently, in March 2020, in response to the recent global outbreak of COVID-19, the Federal Reserve announced a $700 billion quantitative easing program and further reduced the Federal
funds rate to near-zero. This development, along with the United States government’s credit and deficit concerns, concerns about financial stability in Europe and an economic slowdown in China,
could cause interest rates to be volatile, which may negatively impact our ability to access the debt and equity markets on favorable terms.
Capital markets are currently experiencing disruption and instability and we cannot predict how long these conditions will continue. 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.
In June 2016, the United Kingdom (the “UK”) held a referendum in which voters approved an exit from the European Union, or “Brexit,” and, accordingly, on February 1, 2017, the U.K. Parliament
voted in favor of allowing the U.K. government to begin the formal process of Brexit. The initial negotiations on Brexit commenced in June 2017. Brexit created political and economic uncertainty
and instability in the global markets (including currency and credit markets), and especially in the United Kingdom and the European Union, and this uncertainty and instability may last indefinitely.
On January 31, 2020, the UK ended its membership in the European Union. Under the terms of the withdrawal agreement negotiated and agreed between the UK and the European Union, the UK’s
departure from the European Union was followed by a transition period (the “Transition Period”), which ran until December 31, 2020 and during which the UK continued to apply European Union
law and was treated for all material purposes as if it were still a member of the European Union.
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On December 24, 2020, the European Union and UK governments signed a trade deal that became provisionally effective on January 1, 2021 and that now governs the relationship between the UK
and European Union (the “Trade Agreement”). The Trade Agreement implements significant regulation around trade, transport of goods and travel restrictions between the UK and the European
Union. Notwithstanding the foregoing, the longer term economic, legal, political and social implications of Brexit are unclear at this stage and are likely to continue to lead to ongoing political and
economic uncertainty and periods of increased volatility in both the UK and in wider European markets for some time. In particular, Brexit could lead to calls for similar referendums in other
European jurisdictions, which could cause increased economic volatility in the European and global markets. This mid- to long-term uncertainty could have adverse effects on the economy generally
and on our ability to earn attractive returns. In particular, currency volatility could mean that our returns are adversely affected by market movements. Potential decline in the value of the British
Pound and/or the Euro against other currencies, along with the potential further downgrading of the UK’s sovereign credit rating, could also have an impact on the performance of certain investments
made in the UK or Europe. There is continued concern about national-level support for the Euro and the accompanying coordination of fiscal and wage policy among European Economic and
Monetary Union member countries.
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.
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 United States. Although U.S.
lawmakers passed legislation to raise the federal debt ceiling on multiple occasions, including a suspension of the federal debt ceiling in August 2019, ratings agencies have lowered or threatened to
lower the long-term sovereign credit rating on the United States. Further, the federal debt ceiling is scheduled to come back into effect on August 1, 2021, unless Congress takes legislative action to
further extend or defer it.
The impact of this or any further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and
economic conditions. Absent further quantitative easing by the Federal Reserve, these developments could cause interest rates and borrowing costs to rise, which may negatively impact our ability to
access the debt markets on favorable terms. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political
and economic conditions could have a material adverse effect on our business, financial condition and results of operations.
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.
RISKS RELATED TO OUR BUSINESS AND STRUCTURE
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 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.
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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 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.
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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.
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.
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.
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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.
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:
1
Assumed Return on Our Portfolio
(net of expenses)
2
Corresponding net return to shareholders
(10)%
(29.51)%
(5)%
(17.12)%
0%
(4.73)%
5%
7.66%
10%
20.06%
(1)
Assumes $840,979,000 in total assets, $457,931,000 in debt outstanding, $339,353,000 in net assets as of December 31, 2020, and an average cost of funds of 3.50%. 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, 2020 total assets of at least 1.91%.
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, 2020, we had aggregate principal amount
of senior securities outstanding of $457,931,000, and our asset coverage was 174%.
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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.
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.
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. However, at a July 10, 2020 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 executive officers and employees, through the Adviser Subsidiary, are expected to manage other investment funds or accounts, including external parties, that operate in the same or a
related line of business as we do, which may result in significant conflicts of interest.
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We have applied for exemptive relief which, if granted, would allow us to acquire the Adviser Subsidiary. Our executive officers and employees, through the Adviser Subsidiary, are expected to
manage other investment funds that operate in the same or a related line of business as we do, and which funds may be invested in by us and/or our executive officers and employees. Accordingly,
they may have obligations to such other entities, the fulfillment of which obligations may not be in the interests of us or our stockholders. Our relationship with external parties may require us to
commit resources to achieving the external parties’ investment objectives, while such resources are currently solely devoted to achieving our investment objective. Our investment objective and
investment strategies may be very similar to those of external parties and it is likely that an investment appropriate for us or external parties would be appropriate for the other entity. Because the
Adviser Subsidiary may receive performance-based fee compensation from external parties, this may provide an incentive to allocate opportunities to external parties instead of us. Accordingly, we
and the Adviser Subsidiary will establish policies and procedures governing the allocation investment opportunities between us and external parties. We may be limited in or unable to participate in
certain investments based upon such allocation policy. Although we will endeavor to allocate investment opportunities in a fair and equitable manner, we may face conflicts in allocating investment
opportunities between us and external parties managed by the Adviser Subsidiary.
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 annual report. 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.
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.
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.
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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.
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.
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 are 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 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.
RISKS RELATED TO SBA LENDING
NSBF, our wholly-owned subsidiary, is subject to regulation by the SBA, which has specific risks.
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.
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Additionally, in connection with our 2018 examination by the SBA, NSBF 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 NSBF’s 2018 examination by the SBA, NSBF entered into a
voluntary agreement with the SBA. We have adopted the agreement pursuant to our commitment to operate under the SBA’s Loan Program Requirements and the agreement formalizes many of the
actions NSBF had previously taken to strengthen its operational procedures as they relate to NSBF’s delegated lender authority. Consistent with the terms of the agreement, NSBF established a
segregated restricted cash account in the amount of $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. NSBF also 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.
Curtailment of the government-guaranteed loan programs could adversely affect our results of operations.
Although the SBA 7(a) Program has been in existence since 1953, there can be no assurance that the federal government will maintain the SBA 7(a) program, or that it will continue to guarantee
loans at current levels. Furthermore, in an effort to support our communities during the pandemic, we are participating in the PPP under the CARES Act whereby loans to small businesses are made
and those loans are subject to the regulatory requirements that would require forbearance of loan payments for a specified time or that would limit our ability to pursue all available remedies in the
event of a loan default. If the borrower under the PPP loan fails to qualify for loan forgiveness, we may be at the heightened risk of holding these loans at unfavorable interest rates as compared to the
loans to customers that we would have otherwise extended credit. 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. 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.
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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 SBA 7(a) 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.
A governmental failure to fund the SBA 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 government shut down in January 2018 due to a lapse in appropriations, and the SBA closed all non-
disaster related programs and activities, including the SBA 7(a) program. The government could again fail to fund the SBA 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 failure to fund the SBA could adversely affect NSBF’s SBA 7(a) loan originations and our results of
operations.
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Moreover, due to what has been described as a technical drafting error, the CARES Act and the PPP did not initially create separate authorization levels for the SBA 7(a) program and the PPP, which
could have left the SBA 7(a) program temporarily unfunded. The error was corrected with the July 4, 2020 extension of the PPP through August 8, 2020; however, if the SBA 7(a) program were to
become unfunded, NSBF will not be able to originate SBA 7(a) loans until such funding is restored.
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.
As a participating lender in the SBA Paycheck Protection Program (“PPP”), the Company and NSBF are subject to additional credit risks and risks of litigation from NSBF’s customers or other
parties regarding NSBF’s processing of loans for the PPP and risks that the SBA may not fund some or all PPP loan guaranties.
On March 27, 2020, President Trump signed the CARES Act, which included a $349 billion loan program administered through the SBA referred to as the PPP. Under the PPP, small businesses and
other entities and individuals can apply for loans from existing SBA lenders and other approved regulated lenders that enroll in the program, subject to numerous limitations and eligibility criteria. On
or about April 16, 2020, the SBA notified lenders that the $349 billion earmarked for the PPP was exhausted. Congress approved additional funding for the PPP of approximately $320 billion on
April 24, 2020. NSBF is participating as a lender in the PPP. The PPP opened on April 3, 2020; however, because of the short timeframe between the passing of the CARES Act and the opening of
the PPP, there has been some ambiguity in the laws, rules and guidance regarding the operation of the PPP, which may expose the Company and NSBF to risks relating to noncompliance with the
PPP. During the duration of the PPP, NSBF funded approximately 10,570 PPP loans totaling $1.19 billion. Since the opening of the PPP, several large banks participating in the PPP have been subject
to litigation regarding the process and procedures that such banks have used in processing applications for the PPP. The Company and NSBF may be exposed to the risk of litigation, from both
customers and non-customers that approached the Company and NSBF regarding PPP loans, regarding its process and procedures used in processing applications for the PPP. If any such litigation is
filed against the Company or NSBF and is not resolved in a manner favorable to the Company or NSBF, it may result in significant financial liability or adversely affect the Company’s or NSBF’s
reputation. In addition, litigation can be costly, regardless of outcome. Any financial liability, litigation costs or reputational damage caused by PPP related litigation could have a material adverse
impact on our business, financial condition and results of operations.
Moreover, after the PPP launched, rules and guidance regarding the PPP were not readily available at the start of the program, and the SBA and other government agencies continue to release
additional rules and guidance that change or update the requirements and expectations of the regulatory agencies administering the PPP and regulating participating lenders. As of the date of this
report, there remains some ambiguity in the laws, rules, and guidance regarding the operation of the PPP, with a number of important aspects of the PPP where regulatory agencies have not provided
adequate or complete guidance, particularly with respect to process, procedures and criteria for forgiveness and servicing of PPP loans.
NSBF also has credit risk on PPP loans if a determination is made by the SBA that there is a deficiency in the manner in which a PPP loan was originated, funded, or serviced by NSBF, such as an
issue with the eligibility of a borrower to receive a PPP loan, which may or may not be related to the ambiguity in the laws, rules and guidance regarding the operation of the PPP or additional or new
laws, rules, and guidance. In the event of a loss resulting from a default on a PPP loan and a determination by the SBA that there was a deficiency in the manner in which the PPP loan was originated,
funded, or serviced by NSBF, the SBA may deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of any loss related to
the deficiency from the Company.
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In addition, in order to facilitate NSBF’s involvement as an authorized lender in the PPP, during the second quarter of 2020, NSBF entered into PPP loan participation agreements where NSBF
originated PPP loans and sold participating interests to four banks. See “PPP Loan Participations.” In accordance with the terms of the PPP participation agreements and SBA regulations and
guidance, NSBF, as the originating lender, must continue to hold the PPP loan note, the PPP loan documents and service the PPP loan (i.e., retain all servicing rights). Moreover, as the originating
lender, NSBF is the party responsible to the SBA with respect to all servicing actions, including requests for advance purchases and loan forgiveness, and will be the party eligible for the guarantee
purchase of the PPP loan. NSBF has agreed that it will repurchase from the Participants on demand the Participants’ Percentage of any outstanding principal and interest under the applicable PPP
Loan under certain standard representations and warranties, including in the event of a loss due to fraud, gross negligence or willful misconduct on the part of NSBF or any failure to recover under
the SBA guarantee as a result of any deficiency in documenting or servicing such PPP Loan by NSBF.
We could be adversely affected by weakness in the residential housing and commercial real estate markets.
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.
RISKS RELATED TO U.S. FEDERAL INCOME TAX
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 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. 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.
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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.
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 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 U.S. 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.
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.
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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 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.
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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.
LIBOR is the basic rate of interest used in lending transactions between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. We do
hold some floating rate debt investments that are tied to LIBOR.
The United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates LIBOR, announced that it will not compel panel banks to contribute to LIBOR after 2021. It is unclear if at that
time LIBOR will cease to exist or if new methods of calculating LIBOR will be established such that it continues to exist after 2021. Central banks and regulators in a number of major jurisdictions
(for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for interbank
offered rates (“IBORs”). To identify a successor rate for U.S. dollar LIBOR, the Alternative Reference Rates Committee (“ARRC”), a U.S.-based group convened by the U.S. Federal Reserve Board
and the Federal Reserve Bank of New York, was formed. The ARRC has identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR. SOFR is a measure of
the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. In addition, on March 25, 2020, the
FCA stated that although the central assumption that firms cannot rely on LIBOR being published after the end of 2021 has not changed, the outbreak of COVID-19 has impacted the timing of many
firms’ transition planning, and the FCA will continue to assess the impact of the COVID-19 outbreak on transition timelines and update the marketplace as soon as possible. Although SOFR appears
to be the preferred replacement rate for U.S. dollar LIBOR, at this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to
LIBOR that may be enacted in the United States, United Kingdom or elsewhere or, whether the COVID-19 outbreak will have further effect on LIBOR transition plans. Furthermore, on November
30, 2020, Intercontinental Exchange, Inc. (ICE) announced that the ICE Benchmark Administration Limited (IBA), a wholly-owned subsidiary of ICE and the administrator of LIBOR, will consider
extending the LIBOR transition deadline to June 30, 2023. The announcement was supported by the FCA and the U.S. Federal Reserve. Despite the announcement, regulators continue to emphasize
the importance of LIBOR transition planning.
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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 value of and/or transferability 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, in order to replace LIBOR with the new
standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these credit agreements
may bear interest at a lower interest rate, which could have an adverse impact on the value of our investments in these portfolio companies and, as a result on our results of operations.
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.
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.
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
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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, 2020, our three largest investments, NMS, NTS and NBL equaled approximately 13%, 4% and 5%, 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.
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.
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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.
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.
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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.
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 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 interest rate fluctuations affecting the value of securities in our portfolio.
Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.
In November 2020, the SEC adopted new rules regarding the ability of a BDC (or a registered investment company) to use derivatives and other transactions that create future payment or delivery
obligations. 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 adopted rules. 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 could either (i)
comply with the asset coverage requirements of the Section 18 of the 1940 Act when engaging in reverse repurchase agreements or (ii) choose to treat such agreements as derivative transactions
under the adopted rule. Under the adopted 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 requirements 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 sponsorships 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
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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.
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.
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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 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 litigation brought by the FTC in October 2012, 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.
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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 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.
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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 following an unauthorized third party misappropriating 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. For more information on risks relating to cybersecurity, see “Risks Related to Cybersecurity.”
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.
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.
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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. For more information on risks relating to cybersecurity, see “Risks Related to Cybersecurity.”
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.
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.
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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, 2020, total principal owed by NBC
was $18,411,000.
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.
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.
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As a result of a litigation brought by the FTC in October 2012, 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, 2020, our CEO beneficially owns and has shared voting power over approximately 5.3% 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 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;
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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 178,030,005 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 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.
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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.
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. If we amend our Bylaws to repeal the exemption from the Maryland Control Share Acquisition Act, the Maryland Control Shares Acquisition Act may make it more difficult for a third
party to obtain control of us and increase the difficulty of consummating such a transaction.
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The SEC staff has rescinded its position that, under the 1940 Act, an investment company may not avail itself of the Maryland Control Share Act. As a result, we may amend our bylaws to be subject
to the Maryland Control Share Acquisition Act only if our Board determines that it would be in our best interest.
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 1,321,000 shares, or approximately 6% of our total outstanding shares as of December 31, 2020. 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.
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 July 10, 2020, 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 (during the following 12 months), 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.
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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 NOTES
The 2024 Notes, the 2025 Notes and the 2026 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 July 2019 and February 2021, we issued $63,250,000 and $5,000,000 in aggregate principal amount of the 2024 Notes, respectively. In January 2021, we issued $115,000,000 in aggregate
principal amount of the 2026 Notes. In November 2020, we issued $5,000,000 in aggregate principal amount of the 2025 Notes and in January 2021 we issued an additional $10,000,000 in aggregate
principal amount of the 2025 Notes. 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 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:
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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)(2) 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)(2) 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
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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.
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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 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 August 1, 2021 and February 1, 2022, we may choose to redeem the 2024 Notes and 2026 Notes, respectively, especially if prevailing interest rates are lower than the interest rates on the
2024 Notes or 2026 Notes. In addition, we may choose to redeem the 2025 Notes at any time at our option. 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.
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.
On February 22, 2021, the Company redeemed all $57,500,000 in aggregate principal amount of the 2023 Notes on the redemption date at 100% of their principal amount ($25 per Note), plus the
accrued and unpaid interest thereon from December 31, 2020 through, but excluding, the redemption date.
The trading market or market value of our publicly traded debt securities may fluctuate.
The 2024 and 2026 Notes are new issues of debt securities listed on the Nasdaq Global Market under the symbols “NEWTL” and “NEWTZ,” 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:
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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;
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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.
RISKS RELATED TO CYBERSECURITY
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 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 against us or against a third-party that has access to our data or networks, a natural catastrophe, an industrial accident, failure of our disaster
recovery systems, or consequential employee error, could have an adverse effect on our ability to communicate or conduct business, negatively impacting our operations and financial condition. This
adverse effect can become particularly acute if those events affect our electronic data processing, transmission, storage, and retrieval systems, or impact the availability, integrity, or confidentiality of
our data.
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We and our portfolio companies depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures, our computer systems,
networks, and data, like those of other companies, could be subject to cyber-attacks and unauthorized access, use, alteration, or destruction, such as from physical and electronic break-ins or
unauthorized tampering. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary, and other information processed, stored in, and transmitted through our
computer systems and networks. Such an attack could cause interruptions or malfunctions in our operations, which could result in financial losses, litigation, regulatory penalties, client dissatisfaction
or loss, reputational damage, and increased costs associated with mitigation of damages and remediation. If unauthorized parties gain access to such information and technology systems, they may be
able to steal, publish, delete or modify private and sensitive information, including nonpublic personal information related to stockholders (and their beneficial owners) and material nonpublic
information. The systems we have implemented to manage risks relating to these types of events could prove to be inadequate and, if compromised, could become inoperable for extended periods of
time, cease to function properly or fail to adequately secure private information. Breaches such as those involving covertly introduced malware, impersonation of authorized users and industrial or
other espionage may not be identified even with sophisticated prevention and detection systems, potentially resulting in further harm and preventing them from being addressed appropriately. The
failure of these systems or of disaster recovery plans for any reason could cause significant interruptions in our and our portfolio companies’ operations and result in a failure to maintain the security,
confidentiality or privacy of sensitive data, including personal information relating to stockholders, material nonpublic information and other sensitive information in our possession.
A disaster or a disruption in the infrastructure that supports our business, including a disruption involving electronic communications or other services used by us or third parties with whom we
conduct business, or directly affecting our headquarters, could have a material adverse impact on our ability to continue to operate our business without interruption. Our disaster recovery programs
may not be sufficient to mitigate the harm that may result from such a disaster or disruption. In addition, insurance and other safeguards might only partially reimburse us for our losses, if at all.
Third parties with which we do business may also be sources of cybersecurity or other technological risk. We outsource certain functions and these relationships allow for the storage and processing
of our information, as well as client, counterparty, employee, and borrower information. While we engage in actions to reduce our exposure resulting from outsourcing, ongoing threats may result in
unauthorized access, loss, exposure, destruction, or other cybersecurity incident that affects our data, resulting in increased costs and other consequences as described above.
In addition, cybersecurity has become a top priority for regulators around the world, and some jurisdictions have enacted laws requiring companies to notify individuals of data security breaches
involving certain types of personal data. If we fail to comply with the relevant laws and regulations, we could suffer financial losses, a disruption of our businesses, liability to investors, regulatory
intervention or reputational damage.
We and our service providers are currently impacted by quarantines and similar measures being enacted by governments in response to the global COVID-19 pandemic, which are obstructing the
regular functioning of business workforces (including requiring employees to work from external locations and their homes). Policies of extended periods of remote working, whether by us or by our
service providers, could strain technology resources, introduce operational risks and otherwise heighten the risks described above. Remote working environments may be less secure and more
susceptible to hacking attacks, including phishing and social engineering attempts that seek to exploit the COVID-19 pandemic. Accordingly, the risks described above are heightened under current
conditions.
We and our portfolio companies are subject to risks associated with “phishing” and other cyber-attack.
Our business and the business of our portfolio companies relies upon secure information technology systems for data processing, storage and reporting. Despite careful security and controls design,
implementation and updating, ours and our portfolio companies’ information technology systems could become subject to cyber-attacks. Cyber-attacks include, but are not limited to, gaining
unauthorized access to digital systems (e.g., through “hacking”, malicious software coding, social engineering or “phishing” attempts) for purposes of misappropriating assets or sensitive information,
corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of service attacks on
websites (i.e., efforts to make network services unavailable to intended users). Our employees have been and expect to continue to be the target of fraudulent calls, emails and other forms of activities.
The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen information, misappropriation of assets, increased cybersecurity protection and
insurance costs, litigation and damage to our business relationships, regulatory fines or penalties, or other adverse effects on our business, financial condition or results of operations. In addition, we
may be required to expend significant additional resources to modify our protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security
risks related to cyber-attacks.
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Our and our service providers’ increased use of mobile and cloud technologies could heighten the risk of a cyber-attack as well as other operational risks, as certain aspects of the security of such
technologies may be complex, unpredictable or beyond their control. Our and other service providers’ reliance on mobile or cloud technology or any failure by mobile technology and cloud service
providers to adequately safeguard their systems and prevent cyber-attacks could disrupt their operations and result in misappropriation, corruption or loss of personal, confidential or proprietary
information. In addition, there is a risk that encryption and other protective measures against cyber-attacks may be circumvented, particularly to the extent that new computing technologies increase
the speed and computing power available.
Additionally, remote working environments may be less secure and more susceptible to cyber-attacks, including phishing and social engineering attempts that seek to exploit the COVID-19
pandemic. Accordingly, the risks associated with cyber-attacks are heightened under current conditions.
GENERAL RISK FACTORS
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.
There is uncertainty surrounding potential legal, regulatory and policy changes by new presidential administrations in the United States that may directly affect financial institutions and the
global economy.
As a result of the November 2020 elections in the United States, the Democratic Party gained control of both the Presidency and Senate from the Republican Party. Therefore, changes in federal
policy, including tax policies, and at regulatory agencies are expected to occur over time through policy and personnel changes, which may lead to changes involving the level of oversight and focus
on the financial services industry or the tax rates paid by corporate entities. The nature, timing and economic and political effects of potential changes to the current legal and regulatory framework
affecting financial institutions remain highly uncertain. Uncertainty surrounding future changes may adversely affect our operating environment and therefore our business, financial condition, results
of operations and growth prospects.
Certain historical data regarding our business properties, results of operations, financial condition and liquidity does not reflect the impact of the COVID-19 pandemic and related containment
measures and therefore does not purport to be representative of our future performance.
The information included in this Annual Report and our other reports filed with the SEC includes information regarding our business, properties, results of operations, financial condition and liquidity
as of dates and for periods before the impact of COVID-19 and related containment measures (including quarantines and government orders requiring the closure of certain businesses, limiting travel,
requiring that individuals stay at home or shelter in place and closing borders. This historical information therefore does not reflect the adverse impacts of the COVID-19 pandemic and the related
containment measures. Accordingly, investors are cautioned not to unduly rely on historical information regarding our businesses, properties, results of operations, financial condition or liquidity, as
that data does not reflect the adverse impact of COVID-19 and therefore does not purport to be representative of the future results of operations, financial condition, liquidity or other financial or
operating results of us, our properties or our business.
Government intervention in the credit markets could adversely affect our business.
The central banks and, in particular, the U.S. Federal Reserve, have taken unprecedented steps since the financial crises of 2008-2009 and the COVID-19 global pandemic. It is impossible to predict
if, how, and to what extent the United States and other governments would further intervene in the credit markets. Such intervention is often prompted by politically sensitive issues involving family
homes, student loans, real estate speculation, credit card receivables, pandemics, etc., and could, as a result, be contrary to what we would predict from an “economically rational” perspective.
85
Changes to United States tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.
As a result of the 2020 U.S. election, the Democratic Party currently controls the executive and legislative branches of government. Significant changes to U.S. trade policy may occur as a result of
the administration change, including the United States re-entering, withdrawing from or renegotiate various trade agreements or other actions that would change current trade policies of the United
States. We cannot predict which, if any, of these actions will be taken or, if taken, their effect on the financial stability of the United States. Such actions could have a significant adverse effect on our
business, financial condition and results of operations.
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, global health emergencies 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, global health emergencies and natural disasters are generally
uninsurable.
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.
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 which could adversely affect our business and results of operations. Additionally, new regulatory
initiatives related to ESG could adversely affect our business.
The effect of global climate change may impact the operations of our portfolio companies.
There may be evidence of global climate change. Climate change creates physical and financial risk and some of our portfolio companies may be adversely affected by climate change. For example,
the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could
increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of
energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies’ financial condition, through decreased
revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions.
In December 2015 the United Nations, of which the U.S. is a member, adopted a climate accord (the "Paris Agreement") with the long-term goal of limiting global warming and the short-term goal of
significantly reducing greenhouse gas emissions. On November 4, 2016, the past administration announced that the U.S. would cease participation in the Paris Agreement with the withdrawal taking
effect on November 4, 2020. However, on January 20, 2021, President Joseph R. Biden signed an executive order to rejoin the Paris Agreement. As a result, some of our portfolio companies may
become subject to new or strengthened regulations or legislation, which could increase their operating costs and/or decrease their revenues.
86
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
87
Table of Contents
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, 2020 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
Purpose
Approximate square feet
Lease expiration
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 elected not to renew the lease in Irvine, California upon its expiration in February 2021. We believe that our leased facilities are adequate to meet our current needs.
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 Part I, “Item 1A. Risk Factors” of this Annual Report on Form 10-K.
As a result of a litigation brought by the Federal Trade Commission (the “FTC”) in October 2012, 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.
88
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.
PART II
2019
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2020
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
$20.74
$23.83
$23.99
$23.73
$23.09
$18.84
$20.50
$19.82
Low
$17.23
$19.70
$20.21
$20.75
$7.59
$9.03
$16.73
$16.24
$15.31
$15.33
$15.41
$15.70
$15.00
$15.66
$15.13
$15.45
35%
55%
56%
51%
54%
20%
35%
28%
13%
29%
31%
32%
(49)%
(42)%
11%
5%
(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 26, 2021 was $26.86 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 26, 2021, there were approximately 89 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 Corp. However stockholders will not be required to deliver any money or otherwise bear personal liability or responsibility for such fees or expenses.
89
Stockholder transaction expenses:
1
Sales load (as a percentage of offering price)
2
Offering expenses borne by the Company (as a percentage of offering price)
3
Dividend reinvestment plan fees
4
Total stockholder transaction expenses (as a percentage of offering price)
5
Annual expenses (as a percentage of net assets attributable to common stock) :
6
Operating expenses
7
Interest payments on borrowed funds
8
Other expenses
9
Acquired funds fees and expenses
Total annual expenses
10
— %
— %
$
15.00
— %
12.45 %
5.27 %
0.02 %
— %
17.74 %
(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
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)
(5)
(6)
Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus supplement, if any.
The annualized expenses are based on the Company’s expenses and net asset value for the year ended December 31, 2020 and as of December 31, 2020.
“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.
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
(7)
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, 2020, including our
bank notes payable, 2024 Notes, 2023 Notes, 2025 Notes, Notes payable - related party and securitization notes payable.
(8)
(9)
“Other expenses” consist of estimated transfer agent expenses related to our dividend reinvestment plan.
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.
The holders of shares of our common stock indirectly bear the cost associated with our annual expenses.
(10)
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.
A stockholder would pay the following expenses on a $1,000 investment, assuming a 5% annual return
$
186 $
587 $
1,030 $
2,343
1 Year
3 Years
5 Years
10 Years
90
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 issue shares of common stock that are not subject to the registration requirements of the Securities Act in connection with the DRIP. During the years ended December 31, 2020, 2019, and 2018
we issued 50,900, 54,200, and 61,000 shares of common stock, respectively, valued at $810,000, $1,127,000, and $1,099,000, respectively to shareholders in connection with the DRIP.
We also issue shares of common stock that are not subject to the registration requirements of the Securities Act in connection with dividends on unvested restricted stock awards. During the years
ended December 31, 2020, 2019, and 2018 we issued an additional 12,400, 12,200, and 11,200 shares, respectively, valued at $228,000, $267,000, and $211,000, respectively, related to dividends on
unvested restricted stock awards.
During the year ended December 31, 2018, in connection with our investment in Mobil Money, we issued 10,966 shares of restricted common stock.
Distributions
In order to be subject to tax as a RIC, we must timely 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-level U.S. federal income 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% U.S. federal 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.”
91
The following table summarizes our dividend declarations and distributions through December 31, 2020:
(1)
Record Date
March 30, 2015
June 29, 2015
October 22, 2015
November 18, 2015
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 15, 2019
June 14, 2019
September 20, 2019
December 16, 2019
March 18, 2020
July 15, 2020
September 21, 2020
December 18, 2020
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 29, 2019
June 28, 2019
September 30, 2019
December 30, 2019
March 31, 2020
July 31, 2020
September 30, 2020
December 30, 2020
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
0.46
0.58
0.71
0.44
0.56
0.58
0.47
11.82
(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, 2020 and 2019, 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 2021 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, 2020 and 2019, we
issued 50,900 and 54,200 shares, respectively, of common stock to shareholders in connection with the DRIP.
92
The Company has a stock-based compensation plan as discussed in NOTE 11—STOCK BASED COMPENSATION. Securities authorized for issuance under equity compensation plans as of
December 31, 2020:
Plan Category
Equity compensation plans approved by security holders
Equity compensation plans not approved by security holders
(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))
None
None
2,776,845 shares
None
None
None
93
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, 2015 through December 31, 2020. The graph assumes that, on January 1, 2016, 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.
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, 2020, 2019, 2018, 2017, 2016, 2015,
2014, 2013, 2012, and 2011 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, 2020, 2019, 2018, 2017, 2016, 2015, 2014, and 2013 was audited by RSM US LLP and
information as of December 31, 2012, and 2011 was audited by our previous independent registered public accounting firm. RSM US LLP’s report on the senior securities table as of December 31,
2020 is attached as an exhibit to this Annual Report.
94
Total Amount Outstanding Exclusive of
Treasury Securities
(in thousands)
(2)
Asset Coverage
(3)
Ratio Per Unit
Involuntary Liquidation
(4)
Preference Per Unit
Average Market
(5)
Value Per Unit
Class and Year
Securitization Trust
(1)
Bank Notes Payable
Notes Payable Related Parties
December 31, 2020 $
2019
2018
2017
2016
2015
2014
2013
2012
2011
December 31, 2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
December 31, 2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
221,752 $
276,637
220,137
165,432
120,945
91,745
79,520
60,140
22,039
26,368
3,595 $
2,754
2,839
3,018
3,184
3,692
3,634
2,966
5,933
3,758
86,339
30,000
34,700
—
5,100
29,100
43,023
41,218
39,823
13,565
24,090
12,163
16,840
7,001
1,400
5,647
—
—
—
—
9,234
25,392
18,010
—
75,512
11,641
6,716
4,327
3,284
7,305
33,096
62,633
37,111
71,324
275,081
59,990
—
—
—
—
Notes due 2025
Notes due 2024
December 31, 2020
5,000
159,457
December 31, 2020
2019
63,250
63,250
12,605
12,044
95
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ 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
N/A
N/A
963
1,009
Notes due 2023
(6)
Notes due 2022
(7)
Notes due 2021
(8)
December 31, 2020
2019
2018
December 31, 2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
December 31, 2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
57,500
57,500
57,500
—
—
8,324
8,324
8,324
8,324
—
—
—
—
—
—
—
40,250
40,250
—
—
—
—
—
13,866
13,248
10,869
—
—
75,078
59,988
46,265
40,697
—
—
—
—
—
—
—
12,406
9,568
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
983
1,027
1,023
N/A
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
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
The Company issued $115 million aggregate principal amount of the 2026 Notes in January 2021 and $5 million of the additional 2024 Notes in February 2021, which is not reflected in this table.
Total amount of each class of senior securities outstanding at the end of the period presented.
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.
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.
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.
The Company redeemed all $57,500,000 in aggregate principal amount of the 2023 Notes on February 22, 2021.
The Company redeemed all $8,324,000 in aggregate principal amount of the 2022 Notes on August 29, 2019.
The Company redeemed all $40,250,000 in aggregate principal amount of the 2021 Notes on March 23, 2018.
96
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, 2020. The Consolidated
Financial Statements for each of the five years ended December 31, 2020 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
2020
2019
2018
2017
2016
92,201 $
60,216 $
31,985 $
33,619 $
1,634 $
1.51 $
1.59 $
2.05 $
671,188 $
840,979 $
451,782 $
501,626 $
339,353 $
21,970
59,295 $
64,914 $
(5,619) $
41,135 $
46,754 $
(0.29) $
2.13 $
2.15 $
659,044 $
797,411 $
431,928 $
475,185 $
322,226 $
20,530
49,515 $
57,003 $
(7,488) $
35,678 $
43,166 $
(0.40) $
1.91 $
1.80 $
541,096 $
653,341 $
331,630 $
365,896 $
287,445 $
18,919
38,914 $
46,795 $
(7,881) $
38,976 $
46,857 $
(0.45) $
2.25 $
1.64 $
456,689 $
519,611 $
216,252 $
241,282 $
278,329 $
18,457
30,965
40,225
(9,260)
27,305
36,565
(0.64)
1.88
1.53
345,224
401,450
171,242
192,356
209,094
14,624
$
$
$
$
$
$
$
$
$
$
$
$
$
97
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, and
nonconforming (non SBA) conventional loans, as well as PPP loans in the second and third quarters of 2020, 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 United States. 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 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 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
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.
98
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.
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, a nationally licensed SBA lender under the federal Section 7(a) loan program, 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.
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 2.25% to 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 what we believe are 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.
99
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. We may enter into new joint venture partnerships to create additional third-party capital to originate loans. 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.
On March 27, 2020, the CARES Act was signed into law in response to the COVID-19 pandemic and established the PPP. Specifically, the CARES Act included $349 billion to establish the PPP that
expanded the existing SBA Section 7(a) loan program until June 30, 2020 to provide 100% federally-backed loans to eligible businesses. Subsequently, on April 3, 2020, the SBA, in conjunction with
the U.S. Department of Treasury (the “Treasury”), adopted the PPP interim final rule (the “Regulations”) to implement the PPP and effectuate the expansion of the Section 7(a) loan program. The
Regulations established additional rules and requirements of the PPP, including loan forgiveness, and were amended from time to time to provide additional guidance and clarifications. Congress
approved additional funding for the PPP of approximately $320 billion on April 24, 2020. As a result of the uncertain economic impact to U.S. small businesses created by the COVID-19 pandemic,
the Company’s Executive Committee and Lending Team temporarily shifted the focus of NSBF from originating SBA 7(a) loans to originating PPP loans beginning in March 2020. During the year
ended December 31, 2020, NSBF funded approximately 10,500 PPP loans totaling $1.19 billion. On July 4, 2020, a bill was passed to re-open the application window for the PPP until August 8,
2020. The first round of PPP closed on August 8, 2020. See “Recent Developments - PPP Additional Rounds.” We continue to monitor legislative, regulatory, and supervisory developments related to
the PPP, but there can be no assurance that the PPP will be further reauthorized, or that NSBF will be qualified to participate in any further reauthorization.
COVID-19 Developments
In March 2020, the outbreak of COVID-19 was recognized as a pandemic by the World Health Organization. Shortly thereafter, the President of the United States declared a National Emergency
throughout the United States attributable to such outbreak. The outbreak has become increasingly widespread in the United States, including in the markets in which the Company operates. In
accordance with guidance from various state and local governments, the majority of the Company’s employees continue to work remotely, which has not impacted our ability to maintain operations,
including financial reporting systems, internal control over financial reporting and disclosure controls and procedures.
We have and continue to assess the impact of COVID-19 on our portfolio companies. We cannot predict the full impact of the COVID-19 pandemic, including its duration in the United States and
worldwide, the effectiveness of governmental responses designed to mitigate the strain to businesses and the economy, and the magnitude of the economic impact of the outbreak. The COVID-19
pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, cancellations of events and travel, significant reductions in
demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both globally and in
the United States. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.
While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with a view to partially or fully reopening their economies,
many cities world-wide have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These increases have led to the re-introduction
of restrictions and business shutdowns in certain states, counties and cities in the United States and globally and could continue to lead to the re-introduction of such restrictions and business
shutdowns elsewhere. Additionally, as of late December 2020, travelers from the United States were not allowed to visit Canada, Australia, or the majority of countries in Europe, Asia, Africa, and
South America. These continued travel restrictions may prolong the global economic downturn. In addition, although the Federal Food and Drug Administration authorized vaccines for emergency
use starting in December 2020, it remains unclear how quickly the vaccine will be distributed nationwide and globally or when “herd immunity” will be achieved and the restrictions that were
imposed to slow the spread of the virus will be lifted entirely. The delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic
levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global
100
economics may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the U.S. and other major markets.
Some economists and major investment banks have expressed concern that the continued spread of the virus globally could lead to a world-wide economic downturn.
As such, we are unable to predict the duration of any business and supply-chain disruptions, the extent to which COVID-19 will negatively affect our and our portfolio companies’ operating results or
the impact that such disruptions may have on our results of operations and financial condition. Though the magnitude of the impact remains to be seen, we expect our portfolio companies to
potentially be negatively impacted. We believe that certain negative impacts to our SBA 7(a) borrowers may have been muted, in part, due to provisions of the CARES Act that provided for six
months of principal, interest and fees to be paid by the SBA directly to NSBF beginning in April 2020. With the end of the SBA’s payment of principal, interest and fees on behalf of our SBA 7(a)
borrowers, we may see increases in loan delinquencies and borrowers requesting loan deferments. A deferment is the postponement of scheduled loan payments of principal and/or interest to a later
date. Generally, the amount deferred should not exceed six cumulative monthly payments or 20% of the original amount of loan, whichever is less. In addition, due to the COVID-19 pandemic, we
have experienced and may continue to experience a decline in SBA 7(a) loan originations and gains on sale from guaranteed portions of SBA 7(a) loans.
Moreover, COVID-19 has adversely impacted and is likely to further adversely impact our operations and the operations of our borrowers, customers, portfolio companies and business partners. For
example, as a result of the significant uncertainty due to COVID-19 we could experience declining values of other financial assets and other negative impacts on our financial position, including
possible constraints on liquidity and capital, as well as higher costs of capital. A number of factors impacting us or our portfolio companies, borrowers, customers or business partners could
materially adversely affect our business, results of operations, and financial condition, including but not limited to:
•
•
•
•
•
•
•
increases in loan delinquencies, losses and charge-offs;
increases in borrowers seeking and being granted deferments of principal and interest payments, which could negatively impact cash flow from net interest and servicing payments normally
available to the Company, during the deferment period;
collateral for loans, including real estate, may decline in value, which could cause loan losses to increase;
demand for our, and our portfolio companies’, business products and solutions may decline, making it difficult to grow or maintain our assets and income;
net worth and liquidity of the guarantors on our loans may decline, which could cause loan losses to increase;
our risk management policies and practices may be negatively impacted by among, other things, changes in the SBA 7(a) Program, including changes to SBA Loan Program Requirements;
cyber risk has increased as criminals have sought to take advantage of the changes of business practices necessitated by COVID-19.
We are continuing to assess what additional adverse financial and operational consequences may result from the global spread of COVID-19 and the associated economic turbulence, however, the
extent of such consequences remains uncertain as of the filing of this Form 10-K as we do not believe there have been comparable recent events that provide guidance as to the effect the spread of
COVID-19 as a global pandemic may have, and the ultimate impact of the outbreak is highly uncertain and subject to change.
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. In addition, under the PPP that
began in the second quarter of 2020, the SBA reimburses the Company for originating loans and such SBA reimbursements are included as interest income on PPP loans. Income earned in
connection with the PPP should not be viewed as recurring. The first round of PPP closed on August 8, 2020. Congress enacted the Economic Aid Act on December 27, 2020, which provides funding
for PPP loans through March 31, 2021. See “Recent Developments - PPP Additional Rounds.”
101
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 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, 2020, total principal owed by NBC was $18,411,000. In addition, the Company
deposited $750,000 to collateralize the guarantee. At December 31, 2020, 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
lenders’ commitments terminate in November 2022, with all amounts due under the NBL Facility maturing in November 2023. At December 31, 2020, total principal owed by NBL was $44,216,000.
At December 31, 2020, 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, 2020, total principal outstanding was $36,375,000. At December 31, 2020, the Company determined that it is not probable that payments would be required to be
made under the guarantee.
Newtek Conventional Lending, LLC (NCL)
We established 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). NCL provides non-conforming conventional commercial and industrial term loans to U.S. middle-market companies and small
businesses. Refer to NOTE 3—INVESTMENTS for selected financial information and a schedule of investments of NCL as of December 31, 2020.
Unfunded Commitments
At December 31, 2020, the Company had $3,263,000 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.
At December 31, 2020, NCL had $568,000 of unfunded commitments in connection with partial funding of certain of its non-conforming conventional commercial and industrial term loan
investments. NCL will fund 50% of the total unfunded commitments. NCL 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, 2020 and December 31, 2019, 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, 2020 and December 31, 2019 is $16,931,000 and $11,307,000, respectively.
102
Distribution by Business Type
As of December 31, 2020
Existing Business
Business Acquisition
Start-Up Business
Total
As of December 31, 2019
Existing Business
Business Acquisition
Start-Up Business
Total
Business Type
# of Loans
Balance
Average Balance
% of Balance
1,850 $
275
222
2,347 $
342,636 $
56,797
20,965
420,398 $
185
207
96
179
Business Type
# of Loans
Balance
Average Balance
% of Balance
1,892 $
273
230
2,395 $
349,320 $
58,155
22,221
429,696 $
185
207
96
179
Distribution by Borrower Credit Score
December 31, 2020
Credit Score
# of Loans
Balance
Average Balance
% of Balance
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, 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
19 $
61
316
704
717
462
65
3
2,347 $
4,038 $
16,435
64,564
119,077
125,217
82,507
8,451
109
420,398 $
213
269
204
169
175
179
130
36
179
Credit Score
# of Loans
Balance
Average Balance
% of Balance
4,315 $
18,296
69,265
126,797
124,725
77,646
8,528
124
429,696 $
216
277
201
169
176
177
131
41
179
20 $
66
344
749
709
439
65
3
2,395 $
103
81.5 %
13.5 %
5.0 %
100.0 %
81.3 %
13.5 %
5.2 %
100.0 %
1.0 %
3.9 %
15.4 %
28.3 %
29.8 %
19.6 %
2.0 %
— %
100.0 %
1.0 %
4.3 %
16.1 %
29.5 %
29.0 %
18.1 %
2.0 %
— %
100.0 %
Distribution by Primary Collateral Type
December 31, 2020
Commercial Real Estate
Machinery and Equipment
Accts Receivable and Inventory
Residential Real Estate
Other
Unsecured
Furniture and Fixtures
Liquid Assets
Total
December 31, 2019
Collateral Type
# of Loans
Balance
Average Balance
% of Balance
933 $
403
259
500
89
124
25
14
2,347 $
218,958 $
78,356
44,270
39,406
30,653
5,421
1,695
1,639
420,398 $
235
194
171
79
344
44
68
117
179
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
Distribution by Days Delinquent
962 $
420
507
255
105
104
28
14
2,395 $
225,434 $
82,725
41,713
39,380
32,380
4,362
2,674
1,026
429,696 $
234
197
82
154
308
42
96
73
179
December 31, 2020
Accrual
Current
31 to 60 days
61 to 90 days
91 days or greater
Non-accrual
Total
December 31, 2019
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
2,071 $
62
—
32
182
2,347 $
340,756 $
12,679
—
11,520
55,443
420,398 $
165
205
—
360
305
179
Delinquency Status
# of Loans
Balance
Average Balance
% of Balance
338,919 $
14,459
—
17,233
59,085
429,696 $
162
301
—
359
277
179
2,086 $
48
—
48
213
2,395 $
104
52.1 %
18.6 %
10.5 %
9.4 %
7.3 %
1.3 %
0.4 %
0.4 %
100.0 %
52.5 %
19.3 %
9.7 %
9.2 %
7.5 %
1.0 %
0.6 %
0.2 %
100.0 %
81.1 %
3.0 %
— %
2.7 %
13.2 %
100.0 %
78.8 %
3.4 %
— %
4.0 %
13.8 %
100.0 %
Results of Operations for the year ended December 31, 2020 and 2019
Set forth below is a comparison of the results of operations for the years ended December 31, 2020 and 2019. For a comparison of the results of operations for the years ended December 31, 2019 and
2018, see the Company's Form 10-K for the year ended December 31, 2019, as filed with the SEC on March 16, 2020.
Comparison of the year ended December 31, 2020 and 2019
Investment Income
(in thousands)
Investment income:
Interest income - PPP loans
Interest income - SBA 7(a) loans
Interest income - non-control investments
Dividend income
Servicing income
Other income
Total investment income
Interest Income
Year Ended December 31, 2020
Year Ended December 31, 2019
Change
$
$
37,743 $
26,652
403
13,556
11,154
2,693
92,201 $
— $
29,492
—
14,398
10,078
5,328
59,296 $
37,743
(2,840)
403
(842)
1,076
(2,635)
32,905
The Company began earning interest income from PPP loans in the second quarter of 2020 under the CARES Act, which allowed NSBF, as an SBA 7(a) lender, to originate loans under the newly-
established PPP. Under the PPP, current SBA 7(a) lenders were automatically approved to extend 100% federally guaranteed PPP loans to certain small businesses. During the year ended December
31, 2020, NSBF originated $1.19 billion of PPP loans resulting in $37,743,000 of fees generated. Pursuant to the PPP, the interest rate on PPP loans is capped at 1.0%. In addition, the SBA will
reimburse a lender authorized to make a PPP loan at a rate, based on the balance of the financing outstanding at the time of disbursement of the PPP loan, of: (i) 5% for PPP loans of not more than
$350,000; (ii) 3% for loans of more than $350,000 and less than $2,000,000; and (iii) 1% for loans of not less than $2,000,000. Such SBA reimbursements are included in Interest Income - PPP
Loans. Income earned in connection with the PPP should not be viewed as recurring. The first round of PPP closed on August 8, 2020. Congress enacted the Economic Aid Act on December 27,
2020, which provides funding for PPP loans through March 31, 2021. See “Recent Developments - PPP Additional Rounds.”
The decrease in interest income from SBA 7(a) loans was attributable to the decrease in the average Prime Rate in effect on our portfolio from 5.38% to 3.63% over the twelve month period. The
decrease was partially offset by $451,000 of interest income relating to the full payoff of a loan in non-accrual status during the second quarter of 2020, as well as the average outstanding accrual
portfolio of SBA non-affiliate investments increasing to $363,907,000 from $339,128,000 for the year ended December 31, 2020 and 2019, respectively. The increase in the average outstanding
accrual portfolio resulted from the origination of new SBA non-affiliate investments period over period.
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Dividend Income
Dividend income was earned from the following portfolio companies for the year ended December 31, 2020 and 2019:
(in thousands)
Newtek Merchant Solutions, LLC (NMS)
International Professional Marketing, Inc.
SIDCO, LLC
Mobil Money, LLC
Newtek Conventional Lending, LLC
Newtek Business Lending, LLC
EMCAP Loan Holdings, LLC
Total dividend income
Year Ended December 31, 2020
Year Ended December 31, 2019
Change
$
$
9,450 $
350
825
—
1,227
1,600
104
13,556 $
11,490 $
900
700
375
822
—
111
14,398 $
(2,040)
(550)
125
(375)
405
1,600
(7)
(842)
Dividend income is dependent on portfolio company earnings. Current year dividend income may not be indicative of future period dividend income, particularly in light of the COVID-19 pandemic.
See “COVID-19 Developments.”
The decrease in dividend income was driven by dividend income related to our payment processing portfolio company, NMS, decreasing $2,040,000 period over period due to COVID-19 pandemic-
related lower processing volumes. The decrease was offset by $1,600,000 of dividend income from NCL for year ended December 31, 2020, which stemmed from NCL’s achievement of profitability
in 2020 and positive net income for the year.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents the NSBF originated servicing portfolio and servicing income earned for the year ended December 31, 2020 and 2019:
(in thousands):
Total NSBF originated servicing portfolio
Total average NSBF originated portfolio earning servicing income
Total servicing income earned
Year Ended December 31, 2020
Year Ended December 31, 2019
Change
$
$
$
1,704,160 $
1,109,155 $
11,154 $
1,770,864 $
1,031,260 $
10,078 $
(66,704)
77,895
1,076
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 $77,895,000
period over period. The increase was attributable to an increase in SBA 7(a) non-affiliate investments period over period.
Other Income
Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA 7(a) loans. The decrease was
related to an decrease in legal, prepayment and packaging fees earned as a result of the lower volume of SBA 7(a) loans originated of $196,752,000 compared to $517,692,000 for the year ended
December 31, 2020 and 2019, respectively. As a result of the uncertain economic impact to U.S. small businesses created by the COVID-19 pandemic, the Company temporarily shifted the focus of
NSBF from originating SBA 7(a) loans to originating PPP loans beginning in March 2020 through the conclusion of round one of the PPP during 2020.
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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
Other general and administrative costs
Total expenses
Interest Expense
The following is a summary of interest expense by facility for the year ended December 31, 2020 and 2019:
(in thousands)
Notes payable - Securitization Trusts
Bank notes payable
Notes due 2022
Notes due 2023
Notes due 2024
Notes due 2025
Notes payable - related parties
Other
Total interest expense
Year Ended
December 31, 2020
Year Ended
December 31, 2019
Change
14,211 $
17,877
402
3,718
8,431
9,855
54
5,668
60,216 $
14,305 $
20,422
501
3,807
9,215
9,944
42
6,427
64,914 $
(94)
(2,545)
(99)
(89)
(784)
(89)
12
(759)
(4,698)
Year Ended December 31, 2020
Year Ended December 31, 2019
Change
7,853 $
1,436
—
4,064
4,057
37
430
—
17,877 $
11,148 $
2,122
469
4,065
1,701
—
911
6
20,422 $
(3,295)
(686)
(469)
(1)
2,356
37
(481)
(6)
(2,545)
$
$
$
$
The decrease in interest expense period over period is primarily related to the decrease from Notes payable - Securitization Trusts, Bank notes payable, and Notes payable - related parties. Interest on
Notes payable - Securitization Trusts decreased as a result of declining interest rates and principal balances year over year. The decreases in interest expense from Bank notes payable and Notes
payable - related parties were related to a decrease in the average outstanding balance and interest rates period over period. The decrease in interest expense related to our redemption of the 2022
Notes was offset by an additional $2,356,000 of interest from the issuance of $63,250,000 of 2024 Notes and $37,000 of interest from the issuance of $5,000,000 2025 Notes.
Origination and Loan Processing
The decrease in Origination and Loan Processing expenses was attributed to a decrease in SBA 7(a) loan fundings.
Net Realized Gains and Net Unrealized Appreciation and Depreciation
Net realized gains from SBA non-affiliate investments for the year ended December 31, 2020 and 2019 were $11,368,000 and $47,816,000, respectively, which included realized losses of $8,367,000
and $3,924,000, respectively.
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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
1
Average sale price as a percent of principal balance
December 31, 2020
December 31, 2019
# of Debt Investments
$ Amount
(in thousands)
# of Debt Investments
$ Amount
(in thousands)
Year Ended
239 $
225 $
— $
—
196,752
153,662
19,735
110.78 %
659 $
633 $
— $
—
517,692
394,248
51,740
111.16 %
(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.
As a result of the uncertain economic impact to U.S. small businesses created by the COVID-19 pandemic, the Company’s Executive Committee and Lending Team temporarily shifted the focus of
NSBF from originating SBA 7(a) loans to originating PPP loans beginning in March 2020, resulting in a lower volume of SBA 7(a) loans for the year ended December 31, 2020 compared to 2019.
Net Unrealized Appreciation (Depreciation) on Investments
(in thousands)
Net unrealized depreciation on SBA guaranteed non-affiliate investments
Net unrealized depreciation on SBA unguaranteed non-affiliate investments
Net unrealized (depreciation) appreciation on controlled investments
Change in deferred taxes
Total net unrealized (depreciation) appreciation on investments
Year Ended December 31, 2020
Year Ended December 31, 2019
Change
$
$
(795) $
(176)
(8,237)
999
(8,209) $
(225) $
(6,291)
11,211
(3,164)
1,531 $
(570)
6,115
(19,448)
4,163
(9,740)
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 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.
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Net Unrealized Appreciation (Depreciation) on Controlled Investments
Unrealized appreciation (depreciation) was derived from the following portfolio companies for the year ended December 31, 2020 and 2019:
(in thousands)
Newtek Merchant Solutions, LLC (NMS)
1
Newtek Technology Solutions, Inc. (NTS)
CDS Business Services, Inc.
1
International Professional Marketing, Inc.
1
SIDCO, LLC
PMTWorks Payroll, LLC
banc-serv Partners, LLC (BSP)
Small Business Lending, LLC
Newtek Insurance Agency, LLC
Newtek Conventional Lending, LLC
Titanium Asset Management LLC
Mobil Money, LLC
Total net unrealized (depreciation) appreciation on controlled investments
Year Ended December 31, 2020
Year Ended December 31, 2019
Change
$
$
(9,750) $
10,200
(6,660)
—
—
(150)
—
—
(65)
(827)
265
(1,250)
(8,237) $
5,000 $
500
(2,000)
850
(1,170)
(622)
(286)
6,002
—
1,853
(316)
—
10,441 $
(14,750)
9,700
(4,660)
(850)
1,170
472
286
(6,002)
(65)
(2,680)
581
(1,250)
(18,678)
(1)
On January 1, 2021, IPM and SIDCO became subsidiaries of NTS and as a result, the year ended December 31, 2020 valuation of NTS and related unrealized appreciation represents that of the
combined entity.
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, 2020 and 2019, we recognized a provision for deferred taxes of $999,000 and $3,164,000 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, 2020, our asset coverage was 174% based on $457,931,000 of aggregate principal amount of senior securities outstanding. On July 26, 2018, our shareholders approved the
application of the modified asset coverage requirement as set forth in Section 61(a)(2) of the 1940 Act. As a result, our minimum required asset coverage ratio decreased from 200% to 150%,
effective July 27, 2018.
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
July 8, 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.
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On July 10, 2019, the Company entered into the 2019 ATM Equity Distribution Agreement. The 2019 ATM Equity Distribution Agreement provided 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 June 24, 2020, we sold 1,716,517 shares of our common stock at a weighted average price
of $21.88 per share. Proceeds, net of offering costs and expenses were $37,554,000. On June 24, 2020, the Company terminated the 2019 ATM Equity Distribution Agreement. The Company paid the
ATM placement agents $758,000 in compensation.
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.
On June 25, 2020, the Company entered into the 2020 ATM Equity Distribution Agreement. The 2020 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, 2020, we sold 1,022,579 shares of our common stock at a weighted average
price of $17.95 per share. Proceeds, net of offering costs and expenses were $18,334,000. The company paid the placement agents $374,000 in compensation during the year ended December 31,
2020. As of December 31, 2020, there were 1,977,421 shares of common stock available for sale under the 2020 ATM Equity Distribution Agreement.
Debt Offerings
On November 27, 2020, the Company and Trustee entered into the Fifth Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the issuance, offer and sale of
$5 million aggregate principal amount of its 2025 Notes. The offering was consummated pursuant to the terms of a purchase agreement (the "Purchase Agreement") among the Company and an
accredited investor. The Purchase Agreement provided for the 2025 Notes to be issued to the purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act. The net proceeds
from the sale of the Notes were approximately $4.8 million, after deducting structuring fees and estimated offering expenses, each payable by the Company. The 2025 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 2025 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 Company exercised its option to issue up to $10 million of additional 2025 Notes to the purchaser, and issued $10 million in additional 2025
Notes to the purchaser in an exempt offering in January 2021. See Note 19 - Subsequent Events in the accompanying notes to the consolidated financial statements.
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 2019 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, 2020, the Company was in compliance with all covenants related to the 2024 Notes.
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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.
The 2023 Notes were scheduled to mature on March 1, 2023 and could 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 Company redeemed the 2023 Notes in February 2021. See NOTE 19—SUBSEQUENT EVENTS in
the accompanying notes to the consolidated financial statements
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.
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The Base Indenture, and each supplemental indenture thereto, 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 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 each supplemental indenture thereto. 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 Notes may declare such Notes immediately due and payable upon the occurrence of any event of
default after expiration of any applicable grace period. At December 31, 2020, the Company was in compliance with all covenants related to the Notes.
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. In April 2020, Capital One advised NSBF that it was establishing a reserve against the non-guaranteed borrowing base, which reserve effectively reduced the advance
rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates by 50%. On May 7, 2020, NSBF amended its existing line of credit with Capital One to, among other things, extend the
maturity date on which the credit facility will convert into a term loan for a period of three years to May 7, 2023, with the term loan maturing on May 7, 2025.
At December 31, 2020, there was $33,839,000 and $52,500,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At December 31, 2020, 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, 2020, the Related Party RLOC interest rate was 2.74%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings due to NMS at December 31,
2020 were $24,090,000.
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.
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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 an average rate of 1
month LIBOR plus 3.0% and 4.25%, respectively. Generally, in the event that the one-month LIBOR or Prime Rate becomes unavailable or otherwise unpublished, NSBF will select as a replacement
a comparable alternative index over which it has no direct control and which is readily verifiable, in accordance with the terms of the 2016-1 securitization transaction documents.
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. Generally, in the event that the one-month LIBOR or Prime Rate becomes unavailable or otherwise unpublished, NSBF will select as a replacement a comparable
alternative index over which it has no direct control and which is readily verifiable, in accordance with the terms of the 2017-1 securitization transaction documents.
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. Generally, in the event that the one-month LIBOR or Prime Rate becomes
unavailable or otherwise unpublished, NSBF will select as a replacement a comparable alternative index over which it has no direct control and which is readily verifiable, in accordance with the
terms of the 2018-1 securitization transaction documents.
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 an average rate of LIBOR
plus 1.83% across both classes. Generally, in the event that the one-month LIBOR or Prime Rate becomes unavailable or otherwise unpublished, NSBF will select as a replacement a comparable
alternative in accordance with the terms of the 2019-1 securitization transaction documents.
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PPP Loan Participations
Beginning in April 2020, NSBF engaged in the origination of PPP loans. This first round of PPP closed on August 8, 2020. During the duration of the first round of PPP during 2020, NSBF funded
approximately 10,570 PPP loans totaling $1.19 billion. To facilitate NSBF’s involvement as a lender in the PPP, during the second quarter of 2020, NSBF entered into PPP loan participation
agreements where NSBF originated PPP loans and sold 90% participating interests to UBS Bank USA (“UBS”), Stifel Bank (“Stifel”), Morgan Stanley Bank, N.A. (“Morgan Stanley”), and
Amalgamated Bank (“Amalgamated”), collectively, the “Participants.” The participations were sold at par due to the short term maturity of the loans. NSBF and the Participants share proportionally
in all interest and principal payments made on the loans. Subsequently, UBS, Stifel and Amalgamated amended their participation agreements with NSBF to allow the banks purchase up to 100%
participation interests in certain of the PPP loans originated by NSBF. In connection with the amendments, UBS, Stifel, and Amalgamated purchased the remaining 10% participation interests in their
participation loans, bringing their participation interests to 100%, while Morgan Stanley continues to hold 90% participation interests as of December 31, 2020. In total, during 2020, NSBF sold
participations in $1.19 billion of PPP loans and continues to hold the PPP loan notes and the PPP loan documents in order to service the loans. The servicing liability in connection with the PPP loans
was deemed immaterial. PPP loan origination fees are recognized as interest income on sale of PPP loan participations.
A transfer of financial assets must meet the sale criteria under the accounting rules in ASC Topic 860, Transfers and Servicing, in order to be considered a sale instead of a secured borrowing. The
Company determined that the sale criteria are met and the Participants’ interests in the PPP loans are not held on the Company’s consolidated balance sheets. As stated in the PPP loan participation
agreements, the intention of the parties is for the participation agreements to be absolute and true sales and not secured borrowings. In accordance with the terms of the PPP loan participation
agreements and SBA regulations and guidance, NSBF, as the originating lender, retains all servicing rights and is the party responsible to the SBA with respect to all servicing actions, including
requests for advance purchases and loan forgiveness, and will be the party eligible for the guarantee purchase of the PPP loan. For the 100% participations, the entire financial asset is considered to
have been sold since a 100% ownership interest in the underlying asset’s cash flows has been sold to a third party and only the servicing rights remain with NSBF. For the 90% participations, the
transfers met all the conditions of a participating interest as defined by ASC 860 to potentially qualify for sale accounting including (i) there is a proportionate ownership interest in an entire financial
asset, (ii) all cash flows are divided proportionately among the participants, (iii) the parties’ rights are parri passu, and (iv) no party has the right to pledge or exchange the entire PPP loan unless all
participating interest holders agree. The Company obtained true sale opinions and concluded that legal isolation is met under ASC 860-10-45-5a. As required under ASC 860 for sale accounting, the
Company does not have an option or obligation to reacquire the assets, except for standard representations and warranties, such as in the event of fraud, gross negligence, or willful misconduct on the
part of the Company, or failure to meet the ongoing contractual obligations to service the PPP loans. Owners of participations in PPP loans also have credit protection in the form of a 100%
irrevocable government guarantee.
Congress enacted the Economic Aid Act on December 27, 2020, which, among other things, provides funding for PPP loans through March 31, 2021. See “Recent Developments - PPP Additional
Rounds.” We continue to monitor legislative, regulatory, and supervisory developments related to the PPP, but there can be no assurance that the PPP will be further reauthorized, or that NSBF will be
qualified to participate in any further reauthorization.
Cash Flows and Liquidity
As of December 31, 2020, the Company’s unused sources of liquidity consisted of $2,765,000 available through the Capital One facility; $6,217,000 available through notes payable with related
parties; and $2,073,000 in unrestricted cash.
Restricted cash of $49,352,000 as of December 31, 2020 is primarily held by NSBF. The majority, or $48,600,000 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.
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The Company generated and used cash as follows:
(in thousands)
Net cash provided by (used in) operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and restricted cash
Cash and restricted cash, beginning of period
Cash and restricted cash, end of period
Year Ended December 31, 2020
Year Ended December 31, 2019
$
$
17,763 $
(10)
465
18,218
33,207
51,425 $
(88,957)
(126)
90,940
1,857
31,350
33,207
During the year ended December 31, 2020, operating activities provided cash of $17,763,000, consisting primarily of (i) $1,356,710,000 of proceeds from the sale of SBA 7(a) guaranteed loan
investments, (ii) $61,976,000 of principal payments received from SBA non-affiliate investments and (iii) $19,221,000 in return of investment from controlled investments.
These increases were offset by (i) $1,389,763,000 of SBA 7(a) and PPP loan investments funded and (ii) $51,437,000 of investments in controlled portfolio companies, including $4,957,000 in NCL
and $40,285,000 in NBL.
Net cash used in financing activities was $465,000 consisting primarily of (i) $54,885,000 of principal payments related to securitization notes payable and (ii) $42,583,000 of dividend payments.
These uses were offset by (i) $25,571,000 of net proceeds from the sale of common shares under the 2019 ATM Equity Distribution Agreement and 2020 ATM Equity Distribution Agreement, (ii)
$56,339,000 of net borrowings under our bank notes payable, and (iii) net borrowings under the Related Party RLOC of $11,927,000.
Contractual Obligations
The following table represents the Company’s obligations and commitments as of December 31, 2020:
(in thousands)
Contractual Obligations
Bank notes payable
1
Securitization notes payable
1
Notes due 2023
1
Notes due 2024
1
Notes due 2025
Notes payable - related parties
Employment agreements
Operating leases
Totals
Total
2021
2022
Payments due by period
2023
2024
2025
Thereafter
$
$
86,339 $
221,752
57,500
63,250
5,000
24,090
403
10,132
468,466 $
— $
—
—
—
—
—
403
1,604
2,007 $
— $
—
—
—
—
—
—
1,576
1,576 $
86,339 $
—
57,500
—
—
24,090
—
1,619
169,548 $
— $
—
—
63,250
—
—
—
1,663
64,913 $
— $
—
—
—
5,000
—
—
1,708
6,708 $
—
221,752
—
—
—
—
—
1,962
223,714
(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.
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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:
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.
Rule 2a-5 under the 1940 Act was recently adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. We are evaluating the impact of
adopting Rule 2a-5 on the consolidated financial statements and intend to comply with the new rule's requirements on or before the compliance date in September 2022.
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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.
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, 2020 and December 31, 2019 approximates fair value as of those dates based on the markets in which we operate
and other conditions in existence on those reporting dates.
Valuation of Servicing Assets
The Company accounts for servicing assets in accordance with ASC 860-50 Transfers and Servicing - Servicing Assets and Liabilities. Servicing assets are measured at fair value at each reporting
date and the Company reports changes in the fair value of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions
including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgement is required to estimate the fair value of servicing assets and as such these assets
are classified as Level 3 in our fair value hierarchy.
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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.
In addition, under the PPP that began in the second quarter of 2020, the SBA reimburses the Company for originating loans. Such SBA reimbursements are included as interest income on PPP loans.
Such fees are accounted for under ASC-310 Receivables and deferred until the loan is sold to one of our PPP Participants. Income earned in connection with the PPP should not be viewed as
recurring. The first round of PPP closed on August 8, 2020. Congress enacted the Economic Aid Act on December 27, 2020, which provides for, among other things, funding for PPP loans through
March 31, 2021. See “Recent Developments - PPP Additional Rounds.”
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.
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 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 Company accrues excise tax, if any, on estimated excess taxable income as
taxable income is earned. For the years ended December 31, 2020 and 2019, no U.S. federal excise taxes were due.
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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 $11,406,000 and $12,405,000 at December 31, 2020 and December 31, 2019, 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.
New Accounting Standards
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,(“ASU 2020-04”). ASU 2020-04
provides optional expedients and exceptions for applying GAAP to contracts and transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be
discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications on a prospective basis. While the Company is currently assessing
the impact of ASU 2020-04, the Company does not expect the adoption to have a material impact on its consolidated financial statements.
In May 2020, the SEC adopted amendments to the financial disclosure requirements in Regulation S-X including the significance tests in the “significant subsidiary” definition in Rule 1-02(w),
Securities Act Rule 405, and Exchange Act Rule 12b-2 to improve their application and to assist registrants in making more meaningful determinations of whether a subsidiary or an acquired or
disposed business is significant. In addition, to address the unique attributes of investment companies and business development companies, the SEC updated the significance tests in Rule 1-02(w),
Securities Act Rule 405, and Exchange Act Rule 12b-2 by (i) revising the investment test to compare the registrant’s investments in and advances to the acquired or disposed business to the
registrant’s aggregate worldwide market value if available; (ii) revising the income test by adding a revenue component; (iii) expanding the use of pro forma financial information in measuring
significance; and (iv) conforming, to the extent applicable, the significance threshold and tests for disposed businesses to those used for acquired businesses. The amendment became effective
January 1, 2021; however, voluntary compliance with the final amendments will be permitted in advance of the effective date. No significant changes to our significant subsidiaries are expected.
In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs, (“ASU 2020-08”). This ASU clarifies that an
entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply ASU 2020-08 on a prospective basis as of the
beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption to have a material impact on its consolidated financial
statements since the Company does not have any convertible debt.
In November 2020, the SEC published Release No. IC-34084 Use of Derivatives by Registered Investment Companies and Business Development Companies and adopted rules amending Rule 18f-4
and Rule 6c-11. Under the newly adopted rules, BDCs that use derivatives will be subject to a value-at-risk leverage limit, a derivatives risk management program and testing requirements and
requirements related to board reporting. These new requirements will apply unless the BDC qualifies as a “limited derivatives user,” as defined under the adopted rules. Under the new 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, among other things, 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. Compliance is required by August 19, 2022. The Company does not expect the adoption to have a material impact on its consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 815), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the
general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The
standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption was permitted. The
Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements.
Rule 2a-5 under the 1940 Act was recently adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. We are evaluating the impact of
adopting Rule 2a-5 on the consolidated financial statements and intend to comply with the new rule's requirements on or before the compliance date in September 2022.
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Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of December 31, 2020.
Recent Developments
Common Stock
From January 1, 2021 through March 26, 2021 the Company sold 430,470 shares of its common stock at a weighted average price of $20.93 per share under the 2020 ATM Equity Distribution
Agreement. Proceeds, net of offering costs and expenses were $9,011,000. As of March 26, 2021, there were 1,546,951 shares of common stock available for sale under the 2020 ATM Equity
Distribution Agreement.
Issuance of Notes due 2025
On January 6, 2021 the Company completed an offering of $10 million aggregate principal amount of its 6.85% notes due 2025. The offering was consummated pursuant to the terms of a purchase
agreement dated November 27, 2020 among the Company and an accredited investor by a placement notice delivered to the purchaser prior to March 31, 2021. The purchase agreement provides for
the Notes to be issued to the Purchaser in a private placement. The net proceeds from the sale of the Notes were approximately $9.7 million, after deducting structuring fees and estimated offering
expenses, each payable by the Company. The Company used the net proceeds from the sale of the Notes to fund investments in debt and equity in accordance with its investment objectives and
strategies. Under the Purchase Agreement, the Company may, by mutual agreement of the parties, issue up to $15 million in aggregate principal amount of additional Notes by placement notice
delivered to the Purchaser after March 31, 2021 and before November 30, 2022.
Issuance of Notes due 2026 and Redemption of Notes due 2023
On January 22, 2021, the Company closed a public offering of $115,000,000 in aggregate principal amount of its 2026 Notes, including $15,000,000 in aggregate principal amount sold pursuant to a
fully-exercised overallotment option. The 2026 Notes will mature on February 1, 2026 and may be redeemed in whole or in part at any time or from time to time at Newtek’s option on or after
February 1, 2022. The 2026 Notes bear interest at a rate of 5.50% per year payable quarterly on February 1, May 1, August 1 and November 1, of each year, beginning May 1, 2021. Total net
proceeds received after deducting underwriters’ discount and expenses was $11,287,500. The 2026 Notes are listed on the Nasdaq Global Market under the trading symbol “NEWTZ.” A portion of
the proceeds were used to redeem the outstanding 2023 Notes, which occurred on February 22, 2021.
Issuance of Additional Notes due 2024
On February 16, 2021, the Company issued an additional $5,000,000 in aggregate principal amount of its 2024 Notes. The Notes are treated as a single series with the existing 2024 Notes and have
the same terms as the 2024 Notes outstanding prior to February 16, 2021. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing Notes. Upon issuance
of the Notes, the outstanding aggregate principal amount of the Company’s 5.75% Notes due 2024 increased to $68,250,000.
Dividends
On February 23, 2021, the Company declared a first quarter 2021 cash dividend of $0.50 per share, which is payable on March 31, 2021 to shareholders of record as of March 22, 2021.
PPP Additional Rounds
On December 27, 2020, the Economic Aid Act was enacted by Congress in order to provide additional assistance to the hardest-hit small businesses, nonprofits, and venues that are struggling to
recover from the impact of the COVID-19 pandemic. The Economic Aid Act provides funding for PPP loans through March 31, 2021 and a second round of forgivable loans through the PPP for
small businesses and nonprofits experiencing significant revenue losses, made programmatic improvements to PPP, funds grants to shuttered venues, and enacted emergency enhancements to other
SBA lending programs. This assistance will provide small business owners with the capital they need to survive the pandemic and includes critical resources for the smallest businesses. The
Economic Aid Act also provides additional subsidies to certain existing SBA 7(a) borrowers. Specifically, under the Economic Aid Act, the SBA will pay an additional three months of payments of
principal, interest, and fees on existing performing SBA 7(a) loans approved prior to March 27, 2020, capped at $9,000 per borrower per month and new SBA
120
7(a) borrowers with loans approved from February 1, 2020 through September 30, 2021, will receive 5 months of payments of principal, interest, and fees, capped at $9,000 per month. Beginning in
January 2021, NSBF began offering PPP Second Draw Loans to eligible business. Eligibility for PPP Second Draw loans is limited to small businesses that have no more than 300 employees and
demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 and 2020. PPP Second Draw loans have a maximum loan size of 2.5X average monthly payroll
costs, up to $2 million. In addition, small businesses assigned to the industry NAICS code 72 (Accommodation and Food Services) can receive PPP Second Draw loans equal to 3.5X average
monthly payroll costs in order to helps these businesses combat onerous State and local restrictions. Borrowers are eligible to receive full loan forgiveness if they spend at least 60 percent of their PPP
Second Draw loan on payroll costs over a time period of their choosing between 8 weeks and 24 weeks. In addition, NSBF is also offering PPP loans (first draw loans) through March 31, 2021. For
PPP loans made on or after December 27, 2020, SBA will pay lenders fees based on the balance of the financing outstanding at the time of disbursement of the loan, for processing PPP loans in the
following amounts: (i) for loans of not more than $50,000, an amount equal to the lesser of fifty (50) percent or $2,500; (ii) five (5) percent for loans of more than $50,000 and not more than
$350,000; (iii) three (3) percent for loans of more than $350,000 and less than $2,000,000; and (iv) one (1) percent for loans of at least $2,000,000.
As of the date of this filing, the PPP Extension Act of 2021 has been passed by Congress and the Senate and is pending signature by the President of the United States. The bill would extend the
deadline to submit PPP applications from March 31, 2021 to May 31, 2021.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Uncertainty with respect to the economic effects of the COVID-19 pandemic has introduced significant volatility in the financial markets, and the effect of the volatility could materially impact our
market risks, including those listed below.
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 $51,425,000 at December 31,
2020. 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, 2020, cash deposits in excess of
insured amounts totaled approximately $27,815,000.
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.
122
As of December 31, 2020 (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 Exchange 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.
123
(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, 2020. 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, 2020 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, 2020 based on the criteria in Internal Control — Integrated Framework (2013) issued by COSO.
(c) 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 2021 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 2021 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
The information required by Item 12 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2021 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 2021 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.
124
Table of Contents
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 2021 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.
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, 2020
318
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
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
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.
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).
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).
Fifth Supplemental Indenture, dated as of November 27, 2020, relating to the 6.85% Notes due 2025, by and between the Company and U.S. Bank, National Association, as
trustee (Incorporated by reference to Exhibit 4.2 to Newtek’s Current Report on Form 8-K, filed November 27, 2020).
Sixth Supplemental Indenture, dated as of January 6, 2021, relating to the 6.85% Notes due 2025, by and between the Company and U.S. Bank, National Association, as trustee
(Incorporated by reference to Exhibit 4.3 to Newtek’s Current Report on Form 8-K filed January 6, 2021).
Seventh Supplemental Indenture dated of January 22, 2021 between Newtek Business Services Corp. and U.S. Bank National Association, as trustee (Incorporated by reference
to Exhibit 4.1 to Newtek’s Current Report on Form 8-K filed January 22, 2021).
Form of 5.50 % Notes due 2026 (Incorporated by reference to Exhibit 4.2 to Newtek’s Current Report on Form 8-K filed January 22, 2021).
Eighth Supplement Indenture dated of February 16, 2021 between Newtek Business Services Corp. and U.S. Bank National Association, as trustee (Incorporated by reference
to Exhibit 4.3 to Newtek’s Current Report on Form 8-K filed February 16, 2021).
125
Table of Contents
4.11
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
10.9
10.10
10.11
10.17
10.18
10.19
10.20
10.21
10.22
10.23
Form of 5.75 % Notes due 2024 (Incorporated by reference to Exhibit 4.4 to Newtek’s Current Report on Form 8-K filed February 16, 2021).
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.
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).
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, 2021 filed herewith.
Employment Agreement with Michael A. Schwartz, dated March 15, 2021 filed herewith.
Employment Agreement with Peter Downs, dated March 15, 2021 filed herewith.
Omnibus Amendment No. 4 to Loan Documents, dated as of May 7, 2020, 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 (incorporated by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-K,
filed May 11, 2020).
126
Table of Contents
10.24
14.1
21.1
23.1
31.1
31.2
32.1
32.2
99.1
99.2
99.3
99.4
Employment Agreement by and between Newtek Business Services Corp. and Nicholas Leger dated as of February 5, 2021 (Incorporated by Reference to Exhibit 10.1 to
Newtek’s Current Report on Form 8-K filed February 8, 2021).
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.
Consent of Independent Registered Public Accounting Firm.
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.
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, 2020 (audited) 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.
Report of Independent Registered Public Accounting Firm on Supplemental Information filed herewith.
127
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 29, 2021
Date: March 29, 2021
NEWTEK BUSINESS SERVICES CORP.
By:
By:
/S/ BARRY SLOANE
Barry Sloane
Chief Executive Officer, President and Chairman of the Board
(Principal Executive Officer)
/S/ NICHOLAS LEGER
Nicholas Leger
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/ NICHOLAS LEGER
Nicholas Leger
/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
128
Date
March 29, 2021
March 29, 2021
March 29, 2021
March 29, 2021
March 29, 2021
March 29, 2021
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Table of Contents
Report of Independent Registered Public Accounting Firm
Consolidated Statements of Assets and Liabilities as of December 31, 2020 and 2019
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2020, 2019 and 2018
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018
Consolidated Schedules of Investments as of December 31, 2020 and 2019
Notes to Consolidated Financial Statements
PAGE NO.
F-1
F-3
F-4
F-5
F-6
F-7
F-290
129
See accompanying notes to consolidated financial statements.
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, 2020 and 2019, 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, 2020, 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, 2020 and 2019, and the
results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, 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.
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 SBA unguaranteed and guaranteed non-affiliate investments as of December 31, 2020 and 2019, by correspondence with the borrowers or by
other appropriate auditing procedures where replies from the borrowers were not received and with respect to controlled and non-controlled investments, by tracing to purchase agreements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the
audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter
below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.
Valuation of investments
As described in Notes 2, 3, 4 and 6 to the consolidated financial statements, the Company’s investments consist of privately held debt and equity instruments that lack observable market prices. All of
Company’s investments are measured at fair value using unobservable inputs and assumptions, and as such the Company’s investments as of December 31, 2020 are classified as level 3 within the
fair value hierarchy as described in Note 6. Determining the fair value of the Level 3 investments requires management to make significant judgments about the valuation methodologies (e.g. market
approach vs. income approach) and inputs and assumptions used in the fair value calculation, including, but not limited to, revenue and EBITDA multiples, market yields, discounts for lack of
marketability, underlying cash flows, and the impact of economic conditions brought about by the COVID-19 pandemic. As of December 31, 2020, total Level 3 investments had a fair value of $633.34
million.
We identified the valuation of investments as a critical audit matter because of the judgments necessary for management to select and apply valuation techniques and assumptions, the high degree of
auditor judgment involved, and the extensive audit effort involved in testing the valuations. Our audit procedures related to the valuation of the Company’s investments included the following, among
others:
Controlled and non-controlled investments
• We obtained an understanding of and evaluated the methods and significant assumptions management used to value the Company’s investment portfolio.
F-1
• We performed an evaluation of certain valuation inputs (e.g. portfolio company revenue and EBITDA) used in the Company’s December 31, 2019 valuations by comparing those key inputs
used in the prior year valuation to portfolio company 2019 audited financial statements and/or schedules prepared by the portfolio company for a sample of investments.
• We tested the completeness and accuracy of information used in the valuations through inspection of portfolio company financial statements and/or schedules prepared by the portfolio
company.
• We obtained management’s valuation analyses and considered the qualitative considerations made in determining each valuation, including, but not limited to, understanding portfolio
company outlook, underlying cash flows, macroeconomic factors, liquidity and leverage characteristics, and other factors. We then compared this information to the valuation calculation in
assessing the reasonableness of the fair value calculations.
• With the assistance of our valuation specialists, we evaluated the reasonableness of the methods and assumptions used by management, including the validity of observable market data used
in the valuation (e.g. comparable guideline public company multiples) as well as market yields (including discounts for lack of marketability). For certain investments, with the assistance of our
valuation specialists, we developed a range of independent enterprise value estimates and evaluated against the enterprise values determined by management. Additionally, we considered
the external specialist report engaged by management in valuing the Company’s certain privately held investments.
SBA unguaranteed non-affiliate investments – performing loans and non-performing loans
• We obtained an understanding of and evaluated the methods and assumptions management uses to value the SBA unguaranteed non-affiliate investments performing and non-performing
loans.
• We tested the completeness and accuracy of information used in the valuations by agreeing the total amount in the schedules to the trial balance.
• With the assistance of our valuation specialists, we evaluated the reasonableness of the methods and assumptions used by management in the valuation of performing loans (discount rate,
default rate, prepayment rate, cost of servicing, etc.) and performed a recalculation for a sample of loans to ensure validity of the valuation model.
• With the assistance of our valuation specialist, we evaluated the reasonableness of the methods and assumptions used by management in the valuation of non-performing loans (prepayment
rate, probability of default, time to liquidate and recovery rate).
Valuation of Servicing assets
As described in Notes 2, 5 and 6 to the consolidated financial statements, Servicing assets are measured at fair value. Company’s servicing assets are measured at fair value using unobservable
inputs and assumptions, and as such the Company’s servicing assets as of December 31, 2020 are classified as level 3 within the fair value hierarchy as described in Note 2. Determining the fair value
of the Level 3 servicing assets requires management to make significant judgments about the valuation methodologies and inputs and assumptions used in the fair value calculation, including, but not
limited to, servicing costs, default rate, prepayment rate, and the impact of economic conditions brought about by the COVID-19 pandemic. As of December 31, 2020, total Level 3 servicing assets had
a fair value of $26.06 million.
We identified the valuation of servicing assets as a critical audit matter because of the judgments necessary for management to select and apply valuation techniques and assumptions, the high degree
of auditor judgment involved, and the extensive audit effort involved in testing the valuations. Our audit procedures related to the valuation of the servicing assets included the following, among others:
• We obtained an understanding of and evaluated the methods and assumptions management uses to value the servicing assets.
• We tested the completeness and accuracy of information used in the valuations by agreeing the total principal balance of the loans sold in the schedules to the loan subledger.
• With the assistance of externally engaged valuation specialist, developed an independent estimate of fair value for servicing assets as of December 31, 2020.
• We evaluated the significant assumptions (e.g. discount rate, prepayment rate, default rate and cost of service) used by externally engaged valuation specialist for reasonableness.
/s/ RSM US LLP
We have served as the Company's auditor since 2013.
New York, New York
March 29, 2021
F-2
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
December 31, 2020
December 31, 2019
Investments, at fair value
ASSETS
SBA unguaranteed non-affiliate investments (cost of $420,400 and $429,697, respectively; includes $312,649 and $364,063,
respectively, related to securitization trusts)
SBA guaranteed non-affiliate investments (cost of $16,964 and $23,345, respectively)
Controlled investments (cost of $138,891 and $107,300, respectively)
Non-control investments (cost of $6,447 and $1,000, 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:
LIABILITIES AND NET ASSETS
Bank notes payable
Notes due 2023 (par: $57,500 as of December 31, 2020 and December 31, 2019, Note 8)
Notes due 2024 (par: $63,250 as of December 31, 2020 and December 31, 2019, Note 8)
Notes due 2025 (par: $5,000 and $0 as of December 31, 2020 and 2019, Note 8)
Notes payable - Securitization trusts (par: $221,752 and $276,637 as of December 31, 2020 and December 31, 2019, 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, 21,970 and 20,530 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.
$
$
$
$
$
407,748 $
17,822
239,171
6,447
671,188
2,073
49,352
52,730
6,112
26,061
6,933
26,530
840,979 $
86,339 $
56,505
61,774
4,735
218,339
24,090
2,133
8,697
11,406
27,608
501,626
—
439
316,629
22,285
339,353
840,979 $
15.45 $
417,223
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
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
2020
Year ended December 31,
2019
2018
Investment income
From non-affiliate investments:
Interest income - PPP loans
Interest income - SBA 7(a) loans
Servicing income
Other income
Total investment income from non-affiliate investments
From non-control investments:
Interest income
Dividend income
Total investment income from non-control investments
From controlled investments:
Interest income
Dividend 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 income (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 on controlled investments
Net unrealized depreciation on SBA guaranteed non-affiliate investments
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments
Net unrealized appreciation (depreciation) 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 income (loss) per share
Dividends and distributions declared per common share
Weighted average number of shares outstanding
F-4
See accompanying notes to consolidated financial statements.
$
$
$
$
$
$
37,743 $
24,719
11,154
2,693
76,309
403
104
507
1,933
13,452
15,385
92,201
14,211
17,877
402
3,718
8,431
9,855
54
—
5,668
60,216
31,985
11,368
—
—
(795)
(176)
(8,237)
999
(1,525)
1,634 $
33,619 $
1.59 $
1.51 $
2.05 $
21,146
— $
28,467
10,078
5,328
43,873
—
111
111
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)
46,754 $
41,135 $
2.13 $
(0.29) $
2.15 $
19,326
—
23,067
8,552
4,526
36,145
—
65
65
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)
43,166
35,678
1.91
(0.40)
1.80
18,714
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In Thousands)
Increase in net assets:
Net investment income (loss)
Net realized gain 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
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
Purchase of vested stock for employee payroll tax withholding
Restricted shares issued under Equity Incentive Plan, net of forfeitures
Net increase in capital activity
$
$
2020
Year Ended December 31,
2019
2018
31,985 $
11,368
(9,734)
33,619
(43,393)
810
567
—
(48)
25,572
26,901
—
17,127
322,226
339,353 $
21,970
51
1,382
—
(3)
10
1,440
(5,619) $
50,401
(3,646)
41,136
(41,895)
1,126
636
—
(92)
33,740
35,410
130
34,781
287,445
322,226 $
20,530
54
1,545
—
(4)
17
1,612
(7,488)
43,175
(9)
35,678
(33,533)
1,099
585
200
(109)
5,196
6,971
—
9,116
278,329
287,445
18,919
61
291
11
(6)
105
462
F-5
See accompanying notes to consolidated financial statements.
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:
$
33,619 $
41,135 $
35,678
2020
Year Ended December 31,
2019
2018
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 loans from affiliate
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
Principal received from non-control 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 provided by (used in) operating activities
Cash flows from investing activities:
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
8,237
971
1,525
—
(8,193)
—
54
—
1,893
(999)
402
(6,804)
(15,296)
(1,340,939)
(48,824)
(51,437)
—
—
1,356,710
—
—
61,976
625
9,849
—
19,221
1,342
—
(1,557)
(1,138)
(6,884)
6,587
(3,175)
(2)
17,763
(10)
56,339
25,571
11,927
—
(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)
(126)
(4,700)
33,740
(4,678)
—
(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)
(627)
34,700
5,196
9,839
57,500
F-6
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Proceeds from Notes due 2024
Proceeds from Notes due 2025
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 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 under dividend reinvestment plan
2020
Year Ended December 31,
2019
2018
—
5,000
—
—
(54,885)
—
(42,583)
(856)
(48)
465
18,218
33,207
51,425 $
1,588 $
— $
810 $
63,250
—
—
(8,324)
(62,507)
118,920
(40,769)
(3,899)
(93)
90,940
1,857
31,350
33,207 $
2,540 $
— $
1,126 $
—
(40,250)
—
(53,938)
108,551
(32,433)
(3,951)
(109)
85,105
10,812
20,538
31,350
2,367
200
1,099
$
$
$
$
F-7
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
110 Brick House Rd, Laurens, SC
29360
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
12/31/2030
$
11.3 $
11.3 $
10.3
— %
M2 Lumber LLC
Inter-Insurance Agency Services,
Ltd. and Universal Casualty Risk
Ret
LV Nails & SPA, LLC
TNJ Products, Inc.
LEILA ZAMIRI, DDS, INC.
Moran Tax & Accounting LLC
Tissue Plus LLC F/K/A Soft
Touch Tissue &Paper, LLC
Seven C's Manufacturing, Inc
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
The Spot Bar & Restaurant LLC (#)
Hawthorne Food Company dba
Eastern Standard Provis
(#)
Leila Zamiri, DDS, Inc
Performance Online, Inc
George Family Cremation and
Burial LLC
Lightstat Inc.
Eppy's Tool & Equipment
Warehouse, Inc
Trident E&P, LLC
NDRS Construction Inc.dba
Disaster
Shlama Two LLC dba Village
Park Daycare
Educare Early Intervention,
Corporation
Bourque Sales and Service Inc.
Vacation Link of Florida, Inc.,
Island Vacation and Cruises, Inc
Petroleum Equipment &
Services, Inc.
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
United Security Specialists, Inc.
(#)
Term Loan
Prime plus 2.75%
12/31/2030
Term Loan
Prime plus 2.75%
12/31/2030
Term Loan
Prime plus 2.75%
12/31/2030
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
12/31/2030
Prime plus 2.75%
12/31/2045
Prime plus 2.75%
Prime plus 2.75%
12/31/2045
12/31/2030
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/31/2045
Term Loan
Prime plus 2.75%
12/31/2045
Term Loan
Prime plus 2.75%
12/31/2030
Term Loan
Prime plus 2.75%
12/30/2030
Term Loan
Prime plus 2.75%
3/30/2031
Term Loan
Prime plus 2.75%
12/30/2030
Term Loan
Prime plus 2.75%
12/30/2030
Term Loan
Prime plus 2.75%
12/30/2030
Term Loan
Prime plus 2.75%
12/30/2045
Food Manufacturing
Food Services and Drinking
Places
Insurance Carriers and Related
Activities
Personal and Laundry Services
Merchant Wholesalers, Durable
Goods
380 N Broadway, Jericho, NY
11753
10050 S Eastern Ave, Henderson,
NV 89052
4912 N Lincoln Ave, Ste 101,
Chicago, IL 60625
5828 Cherry Ave., Long Beach,
CA 90805
128 N Franklin St, Brazil, IN
47834
491 Hammond St, Bangor, ME
4401
3895 Corsair St, Reno, NV 89502 Miscellaneous Manufacturing
10540 State Rte 195, Killeen, TX
76542
117 Beaver St, Waltham, MA
2452
5828 Cherry Ave, Long Beach,
CA 90805
1550 Melissa Ct, Corona, CA
92879
1260 W Mission Ave, Escondido,
CA 92029
22 W West Hill Rd, Barkhamsted,
CT 6063
809 East 42nd St, Brooklyn, NY
11210
320 Circle of Progress, Pottstown,
PA 19464
18730 Cortez Blvd, Brooksville,
FL 34601
7440 Broadway, Merrillville, IN
46410
4557 S Calumet Ave, Chicago, IL
60653
9160 Linwood Ave, Shevport, LA
71106
501 N Wymore Rd, Winter Park,
FL 32789
5631 Silverado Way, Anchorage,
AK 99518
275 Saratoga Ave. Ste 200, Santa
Clara, CA 95050
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Miscellaneous Manufacturing
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Construction of Buildings
Social Assistance
Motor Vehicle and Parts Dealers
Ambulatory Health Care Services Term Loan
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Term Loan
Term Loan
Prime plus 2.75%
12/30/2030
Prime plus 2.75%
12/30/2045
Prime plus 2.75%
12/30/2030
Term Loan
Prime plus 2.75%
12/30/2030
Term Loan
Prime plus 2.75%
12/30/2030
F-8
See accompanying notes to consolidated financial statements.
691.5
67.5
215.0
75.0
18.0
350.0
550.0
87.5
875.0
156.3
262.5
102.3
375.0
261.0
691.5
67.5
215.0
75.0
18.0
350.0
550.0
87.5
875.0
156.3
262.5
102.3
375.0
261.0
583.2
56.9
187.3
76.2
19.3
393.9
508.1
91.1
739.1
175.9
222.1
91.6
370.8
220.2
87.5
250.0
58.8
143.0
400.0
421.3
116.5
87.5
250.0
58.8
143.0
400.0
421.3
116.5
74.1
267.5
49.5
160.9
419.5
361.2
98.3
0.17 %
0.02 %
0.06 %
0.02 %
0.01 %
0.12 %
0.15 %
0.03 %
0.22 %
0.05 %
0.07 %
0.03 %
0.11 %
0.06 %
0.33 %
0.02 %
0.08 %
0.01 %
0.05 %
0.12 %
0.11 %
0.03 %
Term Loan
Prime plus 2.75%
12/30/2030
1,250.0
1,250.0
1,131.4
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
12/30/2045
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Administrative and Support
Services
Term Loan
Term Loan
Prime plus 2.75%
12/30/2045
145.8
421.8
145.8
421.8
164.0
474.8
Prime plus 2.75%
12/30/2030
1,250.0
1,250.0
1,161.9
Prime plus 2.75%
12/30/2030
1,000.0
1,000.0
843.5
Ambulatory Health Care Services Term Loan
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/30/2045
454.7
454.7
Prime plus 2.75%
12/30/2030
1,000.0
1,000.0
Bourque Sales and Service Inc
Center of New England Primary
Care Inc
Perfect Game Incorporated
Real Estate Personnel, Inc., Tara
Matta and Sara Pierce
Center of New England Primary
Care Inc, North Providence
Urgent Care
SDI Black 011, LLC
Bojax Auto Collision Inc
Khangri Sourcing Inc.
Litchy Electric L.L.C.
The Mattress Center "LLC"
E R Kilpatrick, LLC dba
Jefferson Street True Value
Sondra Gayle Insurance Agency
Inc.
Pittman Holdings LLC DBA
Maple Bourbon
Title2Land,LLC
Spectrum Dynamics, Inc dba
Clean Water Works
Summerfield Farm, Inc
SLCP Transport, LLC
Terry A. Humphreys dba Tiki
Torch Liquors
NetLevel5 LLC dba Moutain Air
Duct
KCL Business Service Inc.
Southeastern Esthetics Institute,
LLC and Pura Medical Spa,
Corp, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
UBIF 86 CO dba UBREAKIFIX (#)
9160 Linwood Ave, Shreveport,
LA 71106
775 Center of New New England
Blvd, Coventry, RI 2816
850 Twixt Town Rd NE, Cedar
Rapids, IA 52402
1758 Emerson St, Denver, CO
80218
775 Centre of New England Blvd,
Coventry, RI 2816
1091 YONKERS AVE,
YONKERS, NY 10704
4706 Fernlee Ave., Royal Oak,
MI 48073
6021 129th. Ave SE, Bellevue,
WA 98006
4495 W Hacienda Ave, #2, Las
Vegas, NV 89118
960 Los Vallecitos Blvd, San
Marcos, CA 92069
212 Greenwood St, La Grande,
OR 97850
2107 Veterans Memorial Blvd,
Metaire, LA 70002
1116 E Main St, Richmond, VA
23219
11851 Wentling Ave, Baton
Rouge, LA 70816
27727 Dalton Bluff Court, Katy,
TX 77494
24 Baker Rd, Pittstown, NJ 8867
111 Brentwood Drive, College
Station, TX 77840
101 Dallas St., Talihima, OK
74571
4724 Poleplant Drive, Colorado
Springs, CO 80918
1042 San Fernando Rd., San
Fernando, CA 91340
1644 Main St Ste 1, Columbia,
SC 29201
1539 Town Center Drive,
Lakeland, FL 33803
Repair and Maintenance
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/29/2045
Term Loan
Prime plus 2.75%
12/29/2030
Specialty Trade Contractors
Furniture and Home Furnishings
Stores
Merchant Wholesalers, Durable
Goods
Insurance Carriers and Related
Activities
Food Services and Drinking
Places
Real Estate
Professional, Scientific, and
Technical Services
Support Activities for Agriculture
and Forestry
Term Loan
Prime plus 2.75%
12/29/2030
Term Loan
Prime plus 2.75%
12/29/2030
Term Loan
Prime plus 2.75%
12/28/2030
Term Loan
Prime plus 2.75%
12/24/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 2.75%
12/23/2045
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/23/2030
Food and Beverage Stores
Administrative and Support
Services
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 2.75%
12/23/2030
Term Loan
Prime plus 6.5%
12/23/2030
Educational Services
Term Loan
Prime plus 2.75%
12/23/2030
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/23/2030
F-9
See accompanying notes to consolidated financial statements.
0.05 %
0.14 %
0.34 %
0.25 %
0.15 %
0.25 %
0.10 %
0.05 %
0.03 %
0.01 %
0.04 %
— %
— %
511.7
858.4
348.9
157.9
86.0
18.9
126.0
7.4
12.3
343.8
187.5
100.0
22.5
143.8
7.5
12.5
343.8
187.5
100.0
22.5
143.8
7.5
12.5
12.5
58.8
61.1
12.5
16.2
12.5
581.3
57.3
12.5
58.8
61.1
12.5
16.2
12.5
581.3
57.3
12.3
66.1
53.3
12.3
14.1
12.3
515.6
48.2
— %
0.02 %
0.02 %
— %
— %
— %
0.15 %
0.01 %
Term Loan
Prime plus 2.75%
12/23/2045
112.5
112.5
126.5
0.04 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Chris' Angels Cleaning Service
LLC
ASIL Ventures, LLC
(#)
(#)
US Dedicated LLC
Price Educational Services, LLC
dba Manthnasium of South OKC (#)
(#)
Lynch Mining LLC
(#)
N.W.F.F., Inc.
N.W.F.F., Inc. and Environmental
Contracting Solutions, Inc.
(#)
(#)
Tahzoo LLC
REST Enterprises Inc dba
Upstyled Properties
Allied Molded Products, LLC,
Clancy 15 LLC, and Crusader
5088, LLC
Code 3 Apps LLC.
Katie Cox & Co. LLC
RJL Texas International
Corporation
Neeld Rentals Inc dba Mills True
Value Hardware
AccountPics, LLC
Yu Chun Chic Naeng Myun
Restaurant Inc.
Giant Development Inc and
Crabtree Development Corp
Pumpkin Patch Child Care and
Early Education Center, LLC
Yinlink International Inc
R. LInda D. Herrera and Edgar E
Herrera dba Integral Delivery
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Horne Chiropractic Center, P.A (#)
2090 Dunwoody Club Drive,
Sandy Springs, GA 30350
444 N Michigan Ave, Ste 1200,
Chicago, IL 60611
13410 SE 26th Cir, Vancouver,
WA 98683
10740 S May Ave, Oklahoma
City, OK 73170
7262 West Hunt Hwy, Queen
Creek, AZ 85142
687 E. Central Ave, Sutherlin, OR
97479
687 E Central Ave, Sutherlin, OR
97479
1015 7th St NW, Washington, DC
20001
1440 W Taylor St Unit 595,
Chicago, IL 60607
1145 13th Ave East, Palmetto, FL
34221
843 Tempted Ways Dr,
Longmont, CO 80504
6605 Longshore ST, Ste 240,
Dublin, OH 43017
17401 Triton,, Schertz, TX 78154
205 Clinton Blvd, Clinton, MS
39056
903 S WW White Rd, San
Antonio, TX 78220
1159 Kapiolani Blvd, Honolulu,
HI 96814
509 Pylon Dr, Ste 110, Raleigh,
NC 27606
310 Grove Beach Rd N,
Westbrook, CT 6498
2 Corporate Drive, Suiite A, East
Windsor, NJ 8512
3100 Delaware Ave, Des Moines,
IA 50313
3820 Mountain Rd, Stes B & C,
Pasadena, MD 21122
Administrative and Support
Services
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 6.5%
12/22/2030
12.5
4.3
12.5
4.3
12.3
4.2
— %
— %
Term Loan
Prime plus 2.75%
12/22/2030
218.8
218.8
184.1
0.05 %
Educational Services
Term Loan
Prime plus 2.75%
12/21/2030
Mining (except Oil and Gas)
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/21/2045
Term Loan
Prime plus 2.75%
12/21/2045
Term Loan
Prime plus 2.75%
12/21/2030
Term Loan
Prime plus 2.75%
12/18/2030
Term Loan
Prime plus 2.75%
12/18/2030
8.4
364.5
43.8
775.0
775.0
15.0
8.4
364.5
43.8
775.0
775.0
15.0
7.4
383.0
47.9
684.4
653.9
15.7
— %
0.11 %
0.01 %
0.20 %
0.19 %
— %
Miscellaneous Manufacturing
Publishing Industries (except
Internet)
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/18/2030
204.3
204.3
171.9
0.05 %
Term Loan
Prime plus 2.75%
12/18/2030
Term Loan
Prime plus 2.75%
12/18/2030
7.5
7.5
7.5
7.5
6.3
6.3
— %
— %
Term Loan
Prime plus 2.75%
12/18/2030
275.0
275.0
247.7
0.07 %
Term Loan
Prime plus 2.75%
12/18/2030
Term Loan
Prime plus 2.75%
12/18/2045
Term Loan
Prime plus 2.75%
12/18/2030
12.0
80.0
15.0
12.0
80.0
15.0
10.1
87.6
12.6
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/18/2030
1,250.0
1,250.0
1,101.2
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/18/2045
Term Loan
Prime plus 2.75%
12/18/2030
Truck Transportation
Term Loan
Prime plus 2.75%
12/18/2045
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/18/2030
115.0
125.0
225.0
100.0
115.0
125.0
225.0
100.0
123.0
113.7
241.4
84.2
F-10
See accompanying notes to consolidated financial statements.
— %
0.03 %
— %
0.32 %
0.04 %
0.03 %
0.07 %
0.02 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
927 E 10th St, Fairmont, MN
56031
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
12/18/2045
51.8
51.8
58.2
0.02 %
Last Touch LLC
Splashlight Photographic &
Digital Studios LLC ,Splashlight
Technologies
(#)
(#)
People United of Louisiana LLC (#)
Flower City Customs Inc.
(#)
Anthony Connelly Holdings LLC (#)
Carolina Roofing Siding Painting
LLC
Savannah Area Language &
Culture Exchange, LLC
(#)
(#)
David M. Benson LLC
Signature Graphic LLC
McFarlin, LLP
Highstar Travel Group, LLC
Vege Investments, LLC dba
Sunoco Homestead
Last Minute Effects Inc.
Droplette Marketing Co
Vector Utilities LLC
Efficient, Fast & Good Cleaning
Services Inc
Corple Enterprisees Inc
Accommodating Financial & Tax
Services, LLC
Aeromax Industries Inc
Jamali LLC dba Saahten
TJ Pant LLC and Tailored
Cartage LLC
Premium Marketing Co. Inc. dba
Vera Moore Cosmetics
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
75 Varick St, 3rd Floor, New
York, NY 10013
1401 Hudson Lane, Monroe, LA
71201
1805 Tebor Rd, Unit 4, Webster,
NY 14580
7260 Dean Martin Drive, Ste 800,
Las Vegas, NV 89118
204 Depot St, Camponbello, SC
29322
6 Dovetail Crossing, Savannah,
GA 31419
1422 Euclid Ave, Cleveland, OH
44115
14425 N 79th St, Ste B,
Scottsdale, AZ 85260
4 Park Plz Ste 1025, Irvine, CA
92614
2869 Wilshire Drive, Ste 204,
Orlando, FL 32835
26400 SW 177th Ave,
Homestead, FL 33031
1016 Hamline Place, Burbank,
CA 91504
6481 Orangethorpe Ave. Ste. 12,
Buena Park, CA 90620
8501 San Gabriel Drive, Laredo,
TX 78045
2444 NW 177th Terrace, Miami
Gardens, FL 33056
17887 US Hwy 380 West,
Ponder, TX 76259
1642 Ralston Circle, Toledo, OH
43623
1310 Ranchers Legacy Trail, Fort
Worth, TX 76126
2741 Raceway Fairfield West,
Pensacola, FL 32505
25993 US 12, Sturgis, MI 49091
4 Shadow Lane, Woodbury, NY
11797
Educational Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Gasoline Stations
Motion Picture and Sound
Recording Industries
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Administrative and Support
Services
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Transportation Equipment
Manufacturing
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/18/2030
1,250.0
1,250.0
1,060.4
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/18/2030
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/17/2030
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/17/2030
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/17/2045
Term Loan
Prime plus 6.5%
12/16/2030
Term Loan
Prime plus 6.5%
12/16/2030
Term Loan
Prime plus 2.75%
12/16/2030
210.4
0.06 %
150.0
10.5
250.0
15.0
12.5
12.5
85.0
150.0
10.5
250.0
15.0
12.5
12.5
85.0
132.8
8.8
15.8
12.3
12.3
71.6
Term Loan
Prime plus 2.75%
12/16/2030
175.0
175.0
147.3
Term Loan
Prime plus 2.75%
12/16/2030
Term Loan
Prime plus 6.5%
12/16/2030
Term Loan
Prime plus 2.75%
12/15/2030
Term Loan
Prime plus 2.75%
12/14/2030
22.5
12.5
15.0
6.8
22.5
12.5
15.0
6.8
18.9
12.3
13.0
6.1
Term Loan
Prime plus 2.75%
12/14/2030
375.0
375.0
358.5
0.11 %
Term Loan
Prime plus 2.75%
12/14/2030
Term Loan
Prime plus 2.75%
12/14/2030
Term Loan
Prime plus 2.75%
12/14/2045
7.5
62.5
42.3
7.5
62.5
42.3
6.6
53.0
46.5
Term Loan
Prime plus 2.75%
12/14/2030
175.0
175.0
147.3
0.31 %
0.04 %
— %
— %
— %
— %
0.02 %
0.04 %
0.01 %
— %
— %
— %
— %
0.02 %
0.01 %
0.04 %
— %
0.02 %
0.01 %
Term Loan
Prime plus 6.5%
12/11/2030
Truck Transportation
Term Loan
Prime plus 2.75%
12/11/2030
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
12/11/2030
F-11
See accompanying notes to consolidated financial statements.
12.5
86.3
22.5
12.5
86.3
22.5
12.3
84.1
19.4
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Shattered Prism LLC
Donald W. Harris dba Bowman
Creek Mini Storage
LTD Broadband, LLC
(#)
(#)
(#)
Just In Time Refrigeration LLC (#)
Inner Beauty Salon and Suite
LLC
(#)
M-Den, Inc
LBR Partners LLC dba Techy
HWH Unlimited, Inc.
Zebra House Coffee, LLC
Tortuga Backpacks LLC
CashLine Solutions, LLC
Northeast Coverages Inc. and
Southeast Coverages Inc.
Travel with Love, LLC dba Style
& The Storyteller
Robert F. Johnson, Jr., dba R.
Johnson Craftsmanship
Paradise RV Sales and Rentals
LLC
Combs Creative LLC
Perez Law Office, PLLC
Indecon Builders Inc
Pacific Contours Corp
SME Business Services LLC
Tina D. Coker DBA Diane's
Accounting Service
Moxie Marketing, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
3333 Broadway, New York, NY
10031
1625 US-59 N, Linden, TX
75563
69 Teahouse St, Las Vegas, NV
89138
6400 EDNA TAYLOR PKWY,
MONONA, WI 53716
825 Beecher St SW, Atlanta, GA
30310
315 S. Main St, Ann Arbor, MI
48104
16430 Good Hearth Blouvard,
Clermont, FL 34711
43386 Business Park Drive,
Temecula, CA 92590
1001 S El Camino Real, San
Clemente, CA 92672
340 South Lemon Ave, 7616,
Walnut, CA 91789
467741 E 1050 Rd, Sallisaw, OK
74955
910 Franklin Ave, Ste 210,
Garden City, NY 11530
8465 W Sahara Ave, Ste 111, Las
Vegas, NV 89117
346 Spring Garden Rd, Milford,
NJ 8848
7960 Dorchester Rd, North
Charleston, SC 29418
157 Antler Ridge Circle,,
Nashville, TN 37214
80 N McClintock Dr, Chandler,,
AZ 85226
1382 Valencia Ave, Ste N, Tustin,
CA 92780
5340 E Hunter Ave, Anaheim,
CA 92807
930 Chesaco Ave, Rosedale, MD
21237
119 E Haywood St, England, AR
72046
51 Lee Dr, Palm Coast, FL 32137
Motion Picture and Sound
Recording Industries
Term Loan
Prime plus 2.75%
12/11/2030
Warehousing and Storage
Term Loan
Prime plus 6.5%
12/11/2030
7.5
12.5
7.5
12.5
7.9
12.3
Telecommunications
Term Loan
Prime plus 2.75%
12/10/2030
1,250.0
1,250.0
1,138.4
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/10/2045
Personal and Laundry Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
12/10/2045
Term Loan
Prime plus 2.75%
12/10/2030
1,150.0
1,150.0
1,106.1
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/9/2030
233.0
65.0
233.0
65.0
239.9
73.1
45.0
75.0
45.0
50.0
12.0
45.0
75.0
45.0
50.0
12.0
38.0
78.5
37.9
42.1
10.1
5.0
10.0
6.9
5.5
67.5
50.0
5.0
10.0
6.9
5.5
67.5
50.0
4.9
9.8
5.8
5.4
75.9
42.1
— %
— %
0.34 %
0.07 %
0.02 %
0.33 %
0.01 %
0.02 %
0.01 %
0.01 %
— %
— %
— %
— %
— %
0.02 %
0.01 %
0.29 %
0.01 %
— %
Term Loan
Prime plus 2.75%
12/7/2030
170.0
170.0
178.0
0.05 %
Term Loan
Prime plus 2.75%
12/9/2030
Term Loan
Prime plus 2.75%
12/9/2030
Term Loan
Prime plus 2.75%
12/8/2030
Term Loan
Prime plus 2.75%
12/7/2030
Specialty Trade Contractors
Term Loan
Prime plus 6.5%
12/4/2030
Term Loan
Prime plus 6.5%
12/4/2030
Term Loan
Prime plus 2.75%
12/4/2030
Term Loan
Prime plus 6.5%
12/4/2030
Term Loan
Prime plus 2.75%
12/4/2045
Term Loan
Prime plus 2.75%
12/4/2030
Real Estate
Food Services and Drinking
Places
Nonstore Retailers
Administrative and Support
Services
Insurance Carriers and Related
Activities
Professional, Scientific, and
Technical Services
Rental and Leasing Services
Performing Arts, Spectator Sports,
and Related Industries
Professional, Scientific, and
Technical Services
Construction of Buildings
Transportation Equipment
Manufacturing
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
F-12
See accompanying notes to consolidated financial statements.
Term Loan
Prime plus 2.75%
12/4/2030
975.0
975.0
988.5
Term Loan
Prime plus 2.75%
12/3/2030
Term Loan
Prime plus 6.5%
12/3/2030
22.5
12.5
22.5
12.5
18.9
12.3
Term Loan
Prime plus 2.75%
12/3/2030
125.0
125.0
105.2
0.03 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Staffhink Limited dba Owl Drone
Services
American Retail Properties, Inc.
Jonathan J Klaczik LLC dba
Veterans Fence Company
Segreti Law Office, A
Professional Corporation
Hartley S Johnson & Son, Inc.
dba Mark T. Wendell Tea
LIAISON STAINLESS INC
The Alder SmokeHouse LLC
Flex Beauty Labs, LLC
Ellis Apex LLC dba Inage360
Marietta
Next Level Detailing, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Dearly LOved Counseling, L.L.C (#)
Kendra Leigh Boyer, CPA
Craniologie, LLC
Thompson Enterprises of Florida
LLC dba TCBY FROZEN
YOGURT
Prosperity Tool, Inc
Green Farm Inc dba Farmers
Outlet
The Number Masters
Italian Heritage Tile and Stone
Inc
T.S.I.-VA, LLC and Alpha
Business Services Inc.
Master Printing and Signs Corp
& Artishirt Co.
Modutech Marine Inc
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Paws For Health of Florida LLC (#)
4283 Deerfield Hills Rd,
Colorado Springs, CO 80916
125 Main St 2nd Floor, Reading,
MA 1867
7417 Dover Lane, Parma, OH
44130
350 10th Ave,Ste 1000, San
Diego, CA 92101
14a Craig Rd, Acton, MA 1720
630 James Lee Dr NW, Suwanee,
GA 30024
1055 Virginia Ave, North Bend,
OR 97459
7512 Dr. Phillip Blvd, Orlando,
FL 32819
2060 Franklin Way SE, Ste 150,
Marietta, GA 30067
3235 Odeon Way, Ste 201-203,
Acworth, GA 30102
14052 N Dale Mabry Hwy, Ste
215, Tampa, FL 33618
5068 Dupont Court E, Santa
Rosa, CA 95409
225 Wall St, Ste 102A, Vail, CO
81657
14543 SW 5th St, Pembroke
Pines, FL 33027
2006 National Guard Drive, Plant
City, FL 33563
1018 W SR 424 Ste 100,
Longwood, FL 32750
3325 Highland St, Grove City,
OH 43123
4725 Morgan Territory Rd,
Clayton, CA 94517
2525 Pointe Center Court, Ste
200, Dumfries, VA 22026
386 Squire Rd, Revere, MA 2151
2218 Marine View Drive,
Tacoma, WA 98422
4588 Ashton Rd, Sarasota, FL
34233
Data Processing, Hosting, and
Related Services
Term Loan
Prime plus 2.75%
12/3/2030
Real Estate
Term Loan
Prime plus 2.75%
11/30/2030
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Merchant Wholesalers,
Nondurable Goods
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
11/27/2030
Term Loan
Prime plus 2.75%
11/27/2030
Term Loan
Prime plus 2.75%
11/27/2030
Term Loan
Prime plus 2.75%
11/25/2030
Term Loan
Prime plus 2.75%
11/25/2030
Term Loan
Prime plus 6.5%
11/24/2030
Term Loan
Prime plus 2.75%
11/24/2030
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/24/2030
Social Assistance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
11/24/2030
Term Loan
Prime plus 6.5%
11/20/2030
General Merchandise Stores
Term Loan
Prime plus 6.5%
11/20/2030
Food and Beverage Stores
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
11/20/2030
Term Loan
Prime plus 2.75%
11/19/2045
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Printing and Related Support
Activities
Transportation Equipment
Manufacturing
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 6.5%
11/19/2030
Term Loan
Prime plus 2.75%
11/18/2030
Term Loan
Prime plus 2.75%
11/18/2030
Term Loan
Prime plus 2.75%
11/17/2030
Term Loan
Prime plus 2.75%
11/10/2045
Term Loan
Prime plus 2.75%
11/9/2030
Term Loan
Prime plus 2.75%
11/5/2030
F-13
See accompanying notes to consolidated financial statements.
5.3
22.5
22.5
18.8
40.0
75.0
11.3
12.5
92.3
7.5
12.5
12.5
12.5
14.7
300.0
12.5
17.4
78.8
109.5
200.9
400.0
57.5
5.3
22.5
22.5
18.8
40.0
75.0
11.3
12.5
92.3
7.5
12.5
12.5
12.5
14.7
300.0
12.5
17.4
78.8
109.5
200.9
400.0
57.5
4.9
19.0
20.2
15.9
34.0
63.1
11.8
12.3
78.1
6.3
12.3
12.3
12.3
12.4
335.4
12.3
14.6
66.3
92.2
218.5
418.9
48.5
— %
0.01 %
0.01 %
— %
0.01 %
0.02 %
— %
— %
0.02 %
— %
— %
— %
— %
— %
0.10 %
— %
— %
0.02 %
0.03 %
0.06 %
0.12 %
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Protek Pest Control Inc, Protek
Nurseries LLC & Protek
Irrigation LLC
GoodGuyS Enterprises Inc dba
Goodguys;Good Guy
Enterprises;Good Guys
(#)
(#)
Supersonic Cleaning Services Inc (#)
Third Day Lubes, Inc.
(#)
Marcus Horn dba Versatile Styles
and Cuts
(#)
RYAN & CONLON, LLP
Shades of U, Inc. dba Diva by
Cindy
Snow Lodge, LLC
VIP Lawn Care Services LLC
dba VIP Services
KTF Consulting Corp
The Hall at the Yard LLC dba
The Hall on the Yard
Hazleton Oil & Environmental,
Inc
South Park Hardware, LLC
7PSolutions, LLC
Babys on Broadway LLC
Blakeslee Arpaia Chapman, Inc
and Chapman Construction
Services, LLC
Resolve Tech Solutions Inc
BulkMore LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Mister Dexters LTD dba Shuga's
(#)
Mister Dexters LTD dba Shuga's
Heriz Gallery Inc dba Pineville
Rug Gallery
Alliance Heating & Air
Conditioning, Inc.
(#)
(#)
(#)
8712 60th Terrace South, Lake
Worth, FL 33467
Administrative and Support
Services
Term Loan
Prime plus 2.75%
11/4/2030
52.5
52.5
46.1
0.01 %
Term Loan
Prime plus 2.75%
11/4/2030
500.0
500.0
523.6
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
10/29/2030
10/28/2030
Term Loan
Prime plus 2.75%
10/15/2045
38.5
22.4
10.5
38.5
22.4
10.5
33.0
23.4
11.2
Term Loan
Prime plus 2.75%
10/14/2030
521.8
521.8
439.2
Term Loan
Prime plus 2.75%
10/9/2045
Term Loan
Prime plus 2.75%
10/8/2045
Term Loan
Prime plus 2.75%
10/8/2030
Term Loan
Prime plus 2.75%
10/6/2030
89.9
49.9
18.9
74.5
89.9
49.9
18.9
74.5
96.4
55.1
16.1
78.1
Term Loan
Prime plus 2.75%
4/2/2031
253.9
253.9
218.2
Term Loan
Prime plus 2.75%
9/25/2045
1,081.9
1,081.9
1,203.3
Administrative and Support
Services
Administrative and Support
Services
1071 Serpentine Lane,
Pleasanton, CA 94566
36 Seitz Terrace, Arlington, NY
12603
450 GA- 53, Calhoun, GA 30701 Repair and Maintenance
2018 24th Ave, Meridian, MS
39301
2 Wall St, Apt 710, New York,
NY 10005
15212 Hanover Pike, Upperco,
MD 21155
115 County Rd 725, Sweeny, TX
77480
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Health and Personal Care Stores
3875 Fay Blvd, Cocoa, FL 32927
2471 N Geneva Terrace, Chicago,
IL 60614
1412 Alden Rd, Orlando, FL
32803
300 Tamaqua St, Hazleton, PA
18201
16074 South Park Ave, South
Holland, IL 60473
136 North Van Buren St,
Nashville, IN 47448
47 East Broadway, Little Falls,
MN 56345
200 North Branford Rd, Branford,
CT 6405
15851 Dallas Pkwy, Ste 1103,
Addison, TX 75001
12741 Ocean Gateway, Ocean
City, MD 21842
702 S. Cascade Ave, Colorado
Springs, CO 80903
702 S Cascade Ave, Colorado
Springs, CO 80903
Accommodation
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Building Material and Garden
Equipment and Supplies Dealers
Merchant Wholesalers, Durable
Goods
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
9/25/2045
Term Loan
Prime plus 2.75%
9/25/2030
Term Loan
Prime plus 2.75%
9/25/2030
Construction of Buildings
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/24/2030
Term Loan
Prime plus 2.75%
9/24/2030
Term Loan
Prime plus 2.75%
11/18/2030
Term Loan
Prime plus 2.75%
8/28/2045
Term Loan
Prime plus 2.75%
8/28/2030
312 Main St, Pineville, NC 28134 Textile Product Mills
10 Brookfield Ave, Bridgeport,
CT 6610
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/6/2045
Term Loan
Prime plus 2.75%
4/6/2030
F-14
See accompanying notes to consolidated financial statements.
73.8
49.4
74.1
370.4
741.0
149.1
57.3
180.4
98.6
726.1
73.8
49.4
74.1
370.4
741.0
149.1
57.3
180.4
98.6
726.1
83.0
41.8
63.8
358.2
674.5
130.2
60.9
151.6
105.8
607.0
0.15 %
0.01 %
0.01 %
— %
0.13 %
0.03 %
0.02 %
— %
0.02 %
0.06 %
0.35 %
0.02 %
0.01 %
0.02 %
0.11 %
0.20 %
0.04 %
0.02 %
0.04 %
0.03 %
0.18 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Electronics and Appliance Stores
Term Loan
Prime plus 2.75%
4/3/2030
325.1
325.1
270.4
0.08 %
Terry and Tammy Jacobsen, Inc
dba Appliance Recycling
Terry & Tammy Jacobsen,
Inc.dba Appliance Recycling
Outlet
Profit Stewards, LLC
AOC Key Solutions, Inc
Caplan Home Care, LLC
JS Randhawa, Inc. dba Deli
Delicious 34, SK Randhawa Inc.
HSR Inc
Montana Custom Log Homes,
Inc.
Blackwater Diving LLC
Suburban Transmission of
Northern Illinois, Inc.
Tomco Inc. dba Rental City dba
Tomco Equiptment Sales
Dunaway and Hart, Inc
Supermarket Source, Inc
Kris-Leigh Catered Living at
Severna Park,LLC
Patoruzu Inc dba Sharkey's Cuts
for Kids
Firefly Developement LLC dba
Firefly Earthworks
Coffeestamp LLC
Mid Ohio Hospitality, LLC dba
Bucks Bar and Grill
Forest Scientific Corporation
Kanga Lean, Inc. dba F45
Training Trinity
Integrated Equipment Inc;
Intergrated Elastomers Inc
Stretch of NW Georgia, LLC dba
Stretch Zone
Signet Media dba Signet Media
inc.
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
10105 Airport Way, Snohomish,
WA 98296
10105 Airport Way, Snohomish,
WA 98296
458 Schuylkill Rd, Phoenixville,
PA 19460
14420 Albemarle Point Place, Ste
200, Chantilly, VA 20151
6029 Berkshire Lane, Dallas, TX
75225
570 W Olive Ave,, Merced, CA
95348
2036 US Hwy 93 North, Victor,
MT 59875
112 Forrest Rd, Morgan City, LA
70380
1714 E Oakton St, Des Plaines,
IL 60018
Electronics and Appliance Stores
Term Loan
Prime plus 2.75%
4/3/2045
Repair and Maintenance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
4/2/2030
Term Loan
Prime plus 2.75%
4/2/2030
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
4/1/2045
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/31/2030
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
3/31/2045
Support Activities for Mining
Term Loan
Prime plus 2.75%
3/30/2030
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/27/2045
Term Loan
Prime plus 2.75%
3/27/2030
Term Loan
Prime plus 2.75%
3/26/2030
Term Loan
Prime plus 2.75%
3/24/2030
Term Loan
Prime plus 2.75%
3/20/2030
Term Loan
Prime plus 2.75%
6/20/2030
Term Loan
Prime plus 2.75%
3/19/2045
Term Loan
Prime plus 2.75%
3/17/2030
Real Estate
Merchant Wholesalers, Durable
Goods
Nursing and Residential Care
Facilities
6470 State St, Saginaw, MI 48603 Rental and Leasing Services
575 Harkrider St, Conway, AR
72032
2741 West 76th St, Hialeah, FL
33016
831 Richie Hwy, Severna Park,
MD 21146
18121 Tuckerton Rd, Ste 130,
Cypress, TX 77433
4810 Vicksburg St, Dallas, TX
75207
2511 S Jefferson Ave, St. Louis,
MO 63104
192 E Main St, Mansfield, OH
44904
Personal and Laundry Services
Specialty Trade Contractors
Food Services and Drinking
Places
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers, Durable
Goods
668 Elm St, Tionesta, PA 16353
3139 Little Rd Space A-5, Trinity,
FL 34655
5701 Brittmoore Rd, Houston,
TX 77041
1430 Towne Lake Parkway, Ste
26100, Woodstock, GA 30189
630 S 1st St, San Jose, CA 95113
Term Loan
Prime plus 2.75%
3/17/2045
226.5
226.5
252.9
Term Loan
Prime plus 2.75%
3/17/2030
Term Loan
Prime plus 2.75%
6/16/2030
71.2
55.0
71.2
55.0
74.0
48.0
Term Loan
Prime plus 2.75%
3/13/2045
1,238.7
1,238.7
1,383.1
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/13/2030
Prime plus 2.75%
3/13/2030
14.0
327.5
14.0
327.5
11.6
340.2
F-15
See accompanying notes to consolidated financial statements.
839.8
41.7
722.5
868.5
95.0
361.8
352.0
148.2
21.4
47.5
201.9
504.3
12.9
294.9
4.3
839.8
41.7
722.5
868.5
95.0
361.8
352.0
148.2
21.4
47.5
201.9
504.3
12.9
294.9
4.3
863.0
35.7
670.3
906.8
85.5
397.7
311.0
163.7
17.7
39.4
209.7
523.9
10.8
299.1
3.9
0.25 %
0.01 %
0.20 %
0.27 %
0.03 %
0.12 %
0.09 %
0.05 %
0.01 %
0.01 %
0.06 %
0.15 %
— %
0.09 %
— %
0.07 %
0.02 %
0.01 %
0.41 %
— %
0.10 %
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Astoria-Pacific Inc
Mark Allen Taylor dba Taylor
Auction
Rapid Trucking and
Native Fields Landscaping LLC
and My Two Girls LLC
GQ Investments LLC
C3 Capital, Inc
Quarles Service Systems, Inc.
Blue Dot Trading Inc
The Ugly Mug's Coffee and Tea
Inc.
Peter & Suzanne Scott, Inc.,
Phillip Showen & Bryan Phelan
KR Enterprises, Inc. dba Carriage
Inn
Outcome Driven Innovation dba
Spracht; Celltek, ODI, ODI
Security
Advans IT Services, Inc.
Big Brand Management LTD.
CO. dba Ivox Media
Minifox Inc. dba Pho Hoa and
Jazen Tea
Jones Roger Sherman Inn, Inc.
dba Jones Roger Sherman Inn
Chet Lemon Enterprises, Inc. dba
All American Sports
14th State Learning, LLC dba
Sylvan Learning, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
LCSM Logistics Inc
Toju Bay Inc. dba Fiesta
Americana Restaurand and Club (#)
(#)
Custom Garages
(#)
15130 SE 82nd Dr, Clackamas,
OR 97015
20 & 68 Westfield Rd, Nicholls,
GA 31554
4225 W Capitol Ave, West
Sacramento, CA 95691
73 Taylor Rd, Wharton, NJ 7885
5772 Miami Lakes Drive, Miami
Lakes, FL 33014
10010 North Hampton Cove
Lane, Indianapolis, IN 46236
1740 September Ave, Memphis,
TN 38116
3100 NW 72nd Ave, Miami, FL
33122
1390 Broadway Ste C,
Placerville, CA 95667
2342 NY- 37, Port Covington, NY
12937
1065 Tower Hill Rd, North
Kingstown, RI 2852
974 Commercial St, Palo Alto,
CA 94303
65 Boston Post Rd W Ste 390,
Marlborough, MA 1752
512 E 11th St, Houston, TX
77008
10624 South Eastern Ave Stes R
& S, Hendersen, NV 89502
195 Oenoke Ridge, New Canaan,
CT 6840
1544 Lane Park Cut off, Tavares,
FL 32778
1 Market Pl #10, Essex Junction,
VA 5452
15735 Spectrum Drive, Addison,
TX 75001
1622-1624 N. Mannheim Rd,
Stone Park, IL 60165
110 2nd Ave South, Pacheco, CA
94553
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
3/13/2030
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/13/2030
Truck Transportation
Administrative and Support
Services
Electrical Equipment, Appliance,
and Component Manufacturing
Nonstore Retailers
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/13/2045
Term Loan
Prime plus 2.75%
12/13/2045
Term Loan
Prime plus 2.75%
3/12/2030
Term Loan
Prime plus 2.75%
3/11/2030
Term Loan
Prime plus 2.75%
3/10/2045
Term Loan
Prime plus 2.75%
3/10/2030
Term Loan
Prime plus 2.75%
3/9/2030
Term Loan
Prime plus 2.75%
3/6/2030
Accommodation
Term Loan
Prime plus 2.75%
3/6/2045
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
3/6/2030
Other Information Services
Term Loan
Prime plus 2.75%
3/6/2030
Real Estate
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/6/2030
Term Loan
Prime plus 2.75%
3/5/2030
Term Loan
Prime plus 2.75%
6/4/2030
118.7
132.0
753.2
531.3
142.5
537.9
95.0
53.4
36.2
133.0
316.1
364.3
118.1
63.0
71.2
28.8
118.7
132.0
753.2
531.3
142.5
537.9
95.0
53.4
36.2
133.0
316.1
364.3
118.1
63.0
71.2
28.8
123.4
116.9
841.1
547.7
118.3
531.4
99.7
44.4
30.1
130.4
328.2
302.4
98.1
59.4
60.2
29.9
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/3/2031
207.3
207.3
216.7
Educational Services
Term Loan
Prime plus 2.75%
3/2/2030
Couriers and Messengers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/28/2030
Term Loan
Prime plus 2.75%
2/28/2045
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/28/2030
48.3
80.2
450.0
131.0
48.3
80.2
450.0
131.0
40.6
66.6
489.2
113.8
F-16
See accompanying notes to consolidated financial statements.
0.04 %
0.03 %
0.25 %
0.16 %
0.03 %
0.16 %
0.03 %
0.01 %
0.01 %
0.04 %
0.10 %
0.09 %
0.03 %
0.02 %
0.02 %
0.01 %
0.06 %
0.01 %
0.02 %
0.14 %
0.03 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Breakers Electric, LLC dba
Merrill Sports
Crux Solutions LLC dba
Waddell's Riverside Funeral
Directors
GRSC, Inc.
Feras Alshadaida dba Allura
Dairy
M & L ENTERPRIZES, LLC
(#)
(#)
(#)
(#)
(#)
Abe Chahrour Investment, LLC (#)
Bora Enterprises, LLC
Skimino Enterprises LLC
Bell Oak LLC dba Bell Oak
Academy & Paradise Strategics
LLC
Sherwood Sporthorses Inc.
Alex Roit Chiropractic, P. C
Little Feet Academy of
Jacksonville, LLC
(#)
(#)
(#)
(#)
(#)
(#)
Romo Medical Equiptment LLC (#)
All Modes Transportation &
Logistics LLC
Lesher Transportation and
Shipping, LLC
Red Rock Government Serviice,
LLC
Shaw, Ltd dba Fitness 1440
North Coventry
(#)
(#)
(#)
(#)
Damiano Global Corp.
Fortson Janitorial Inc
2'N1 Home and lawn LLC dba
N1 Home an Lawn LLC
A1 Radon Services, LLC
Thisaflycloset, LC
(#)
(#)
(#)
(#)
(#)
13600 Mustang Drive, Mead, CO
80542
6938 Westover St, Houston, TX
77087
1643 NW Dove Ct, Stuart, FL
34994
8809 N Grove Ave, Rancho
Cucamonga, CA 91730
2401 Wrightsville Ave,
Wilmington, NC 28403
4001 S Wayne Rd, Wayne, MI
48154
44255-B Fremont Blvd,, Fremont,
CA 94538
197 Ewell Rd, Williamsburg, VA
23188
7215 Waelti Drive, Melbourne,
FL 32940
20502 Forestview, Magnolia, TX
77355
55 Northern Blvd, Ste 103, Great
Neck, NY 11021
10265 Normandy Blvd,
Jacksonville, FL 32221
3453 North Panam Expressway,
San Antonio, TX 78219
4313 Collingtree Drive,
Rockledge, FL 32955
116 North Austin St, Oak Grove,
MO 64075
45240 Business Court, Sterling,
VA 20166
54-58 Glocker Way, Pottstown,
PA 19465
333 Birch Hills Dr, Rochester,
NY 14622
462-482 Chattahoochee St,
Cornelia, GA 30531
1300 Ridenour Blvd, Kennesaw,
GA 30152
9980 Dell Rd, Eden Prairie, MN
55347
12408 Kingsview St, Bowie, MD
20721
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/27/2030
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/27/2045
Construction of Buildings
Term Loan
Prime plus 2.75%
2/27/2030
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/26/2030
Food and Beverage Stores
Administrative and Support
Services
Truck Transportation
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
2/26/2030
Term Loan
Prime plus 2.75%
2/25/2045
Term Loan
Prime plus 2.75%
2/21/2030
Term Loan
Prime plus 2.75%
2/21/2030
Social Assistance
Term Loan
Prime plus 2.75%
2/21/2045
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/21/2046
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/19/2030
Term Loan
Prime plus 2.75%
2/17/2045
8.2
— %
9.9
79.9
21.2
57.1
47.1
21.9
12.0
70.7
374.1
205.3
18.8
46.6
9.9
79.9
21.2
57.1
47.1
21.9
12.0
70.7
374.1
205.3
18.8
46.6
85.0
19.0
49.4
49.0
24.4
10.0
58.8
376.7
229.6
15.6
47.8
Social Assistance
Merchant Wholesalers, Durable
Goods
Support Activities for
Transportation
Truck Transportation
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Nonstore Retailers
Administrative and Support
Services
Waste Management and
Remediation Services
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
2/14/2030
471.5
471.5
391.4
Term Loan
Prime plus 6.5%
2/14/2030
Term Loan
Prime plus 2.75%
2/13/2030
11.9
13.5
11.9
13.5
11.4
12.8
Term Loan
Prime plus 2.75%
2/13/2030
161.7
161.7
149.2
Term Loan
Prime plus 2.75%
2/13/2030
Term Loan
Prime plus 2.75%
2/10/2030
57.3
47.1
57.3
47.1
50.3
39.1
Term Loan
Prime plus 2.75%
2/5/2045
106.0
106.0
118.4
Term Loan
Prime plus 6.5%
2/3/2030
Term Loan
Prime plus 2.75%
1/31/2030
Term Loan
Prime plus 6.5%
1/30/2030
11.9
84.1
11.8
11.9
84.1
11.8
11.4
69.8
11.3
0.03 %
0.01 %
0.01 %
0.01 %
0.01 %
— %
0.02 %
0.11 %
0.07 %
— %
0.01 %
0.12 %
— %
— %
0.04 %
0.01 %
0.01 %
0.03 %
— %
0.02 %
— %
F-17
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
1/30/2030
Rental and Leasing Services
Term Loan
Prime plus 2.75%
1/30/2045
Nonstore Retailers
Term Loan
Prime plus 2.75%
1/30/2030
Real Estate
Term Loan
Prime plus 2.75%
7/30/2030
39.4
277.0
20.8
181.8
39.4
277.0
20.8
181.8
32.7
286.9
19.1
151.5
Term Loan
Prime plus 2.75%
1/30/2045
312.2
312.2
317.2
Adorable Home Heath Care LLC (#)
3 Fat Labs Inc. and Energy
Conservation Solution Inc.
(#)
AA WST LLC
Daftarnow Inc dba Venture X
Parsippany
Spinnaker PSL Inc., Spinnaker
Subs- N-Shine& Spinnaker Vero
Inc
Codame Enterprises LLC dba
Firehouse Subs
Havana Knights LLC
Amina Financial Solutions LLC
dba Expat Tax Solutions
(#)
(#)
(#)
(#)
(#)
(#)
Affinity Integrated Solutions Inc. (#)
Affinity Integrated Solutions Inc (#)
Align Sports Management, LLC (#)
Emmalina LLC
Motorsport Imagery, Inc
Lyon Cubs LLC dba Dayton
Valley Learning Center
VetMed LLC
Jordi X Kellogg, M.D.,P.C
Luster Custom Homes LLC
CV Flores LLC dba A All
Animal Control
Global Information Technology,
Inc
Nick's Country Kitchen, LLC
Bearwaters Brewing Company
Pecos Entertainment LLC dba
State Theater
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
6110 W Capitol Drive,
Milwaukee, WI 53216
2001 S County Rd 400 W,
Greencastle, IN 46135
321 White Dogwood Lane,
Ocoee, FL 34761
8 Campus Drive. Ste 105,
Parsippany, NJ 7054
6967 Hancock Drive, Port St
Lucie, FL 34952
1547 Main St, Dunedin, FL
34698
65 Lindsey Lane, Havana, FL
32333
1433 Chestnut St, Macon, GA
31201
115 Pomona Drive, Greensboro,
NC 27402
115 Pomona Drive, Greensboro,
NC 27407
15822 Caminito Cantaras, Del
Mar, CA 92014
3602 Rock Bay Drive, Louisville,
KY 40245
16362 Cherokee Rd, Brooksville,
FL 34601
357 Dayton Valley Rd, Dayton,
NV 89403
908 4th Ave, Decatur, AL 35601
9200 SE 91st Ave STE 340,
Happy Valley, OR 97086
18801 North Thompson Peak
Parkway, Ste 240, Scottsdale, AZ
85255
2140 E Southlake Blvd L-503,
Southlake, TX 76092
1 Cragwood Rd, Ste 101, South
Plainfield, NJ 7080
3 Flanders Rd, Bethlehem, CT
6751
101 Park St, Canton, NC 28716
421 South Oak St, Pecos, TX
79772
Printing and Related Support
Activities
Food Services and Drinking
Places
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Administrative and Support
Services
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/29/2030
Term Loan
Prime plus 2.75%
1/27/2030
Term Loan
Prime plus 2.75%
1/24/2030
Term Loan
Prime plus 2.75%
1/23/2045
Term Loan
Prime plus 2.75%
1/23/2030
Term Loan
Prime plus 2.75%
1/22/2030
Term Loan
Prime plus 2.75%
5/21/2030
Apparel Manufacturing
Term Loan
Prime plus 2.75%
1/17/2030
Social Assistance
Term Loan
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
Prime plus 2.75%
1/16/2045
1/10/2030
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
1/10/2030
Construction of Buildings
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Motion Picture and Sound
Recording Industries
Term Loan
Prime plus 2.75%
1/10/2030
Term Loan
Prime plus 2.75%
1/9/2030
Term Loan
Prime plus 2.75%
12/31/2029
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
F-18
See accompanying notes to consolidated financial statements.
0.01 %
0.08 %
0.01 %
0.04 %
0.09 %
0.02 %
0.01 %
— %
0.09 %
0.05 %
0.01 %
— %
0.01 %
0.05 %
0.02 %
0.01 %
0.01 %
— %
0.13 %
0.09 %
0.08 %
0.04 %
99.1
37.0
19.7
295.5
210.8
21.1
6.2
21.1
165.3
82.0
58.6
43.3
5.2
528.3
282.8
253.3
123.6
99.1
37.0
19.7
295.5
210.8
21.1
6.2
21.1
165.3
82.0
58.6
43.3
5.2
528.3
282.8
253.3
123.6
82.3
33.3
16.3
305.8
175.0
17.6
5.8
18.8
171.6
68.1
48.6
36.0
4.5
438.6
298.0
273.0
128.4
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Kwik Stop dba Dilpreet Hundai
Jauchem & Meeh Inc.dba
Gregory Meeh Design;Jermy
Chernick Design
VIP Construction Group Inc.
Kiddie Garden Child
Development Center, LLC
Spinnaker Vero Inc.
Larry J. Frick dba L & S
Trucking
Home Decor Liquidators, LLC
dba Home Decor Outlets;Home
Decor Mattress
Vance Ewing LLC
Mankamana Holdings, LLc dba
Perfect Brow Art, Mankamana
Holdings, LLC
Irony LLC dba Mulberry’s
Garment Care
QXC Communications, Inc
Tatoo Tony's Under My Skin
LLC
Pro-Tek Pest Control, Inc, Pro-
Tek Nurseries, LLC, Pro-Tek
Irrigation
313 Air Duck LLC dba Jouny
Cleaning Services, M & J
Restoration Emerge
313 Air Duct LLC Dba Jouny
Cleaning Services, M & J
Restoration Emerge
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
American Landscaping Company (#)
American Landscaping Company
and Ground Effects Landscaping,
LLC
(#)
Watearth Inc
Protek Pest Control, Inc. Pro-tek
Nurseries LLC, Pro-Tek
Irrigation
A Family Member Homecare
Group Inc, A Family Member
Homecare Holdings
(#)
(#)
(#)
Gasoline Stations
Term Loan
Prime plus 2.75%
12/30/2044
238.0
238.0
245.0
0.07 %
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/30/2029
256.0
256.0
239.7
1001 Sacramento Ave, West
Sacramento, CA 95605
524 Sackett St, Brooklyn, NY
11217
3332 W Mulberry Drive,
Mequon, WI 53092
2809 W. Atkinson Ave,
Milwaukee, WI 53209
983 12th St, Vero Beach, FL
32960
157571 E Wausau Ave, Wausau,
WI 54403
Construction of Buildings
Term Loan
Prime plus 2.75%
12/30/2029
Social Assistance
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
12/30/2044
Term Loan
Prime plus 2.75%
12/30/2044
Truck Transportation
Term Loan
Prime plus 2.75%
12/30/2029
8780 Pershall Rd, Hazelwood,
MO 63042
22940 Harlan Ln, St. Robert, MO
65584
Furniture and Home Furnishings
Stores
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/30/2029
Term Loan
Prime plus 2.75%
12/30/2029
7302 Kirby Ave, Lubbock, TX
79424
2579 Fairview Ave North,
Roseville, MN 55113
4541 N Dixie Hwy, Boca Raton,
FL 33431
73 Memorial Parkway, Atlantic
Highlands, NJ 7716
Gasoline Stations
Term Loan
Prime plus 2.75%
12/27/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/27/2029
Telecommunications
Term Loan
Prime plus 2.75%
12/27/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/27/2044
58.2
42.3
775.8
46.1
930.6
104.7
128.0
977.4
488.8
98.4
58.2
42.3
775.8
46.1
930.6
104.7
128.0
977.4
488.8
98.4
60.4
45.6
779.8
41.4
804.1
108.8
119.5
817.3
405.0
109.8
0.07 %
0.02 %
0.01 %
0.23 %
0.01 %
0.24 %
0.03 %
0.04 %
0.24 %
0.12 %
0.03 %
8712 60th Terrace South, Lake
Worth, FL 33467
Administrative and Support
Services
25150 W Warren Ave., Dearborn
Heights, MI 48127
Administrative and Support
Services
25150 W Warren Ave., Dearborn
Heights, MI 48127
6151 S St, Anchorage, AK 99518
6151 A St, Anchorage, AK 99518
3371 Glendale Blvd Ste 208, Los
Angeles, CA 90039
Administrative and Support
Services
Administrative and Support
Services
Administrative and Support
Services
Professional, Scientific, and
Technical Services
8712 60TH TER South, Lake
Worth, FL 33467
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2029
173.4
173.4
151.7
0.04 %
Term Loan
Prime plus 2.75%
12/27/2029
150.8
150.8
135.0
0.04 %
Term Loan
Prime plus 2.75%
12/27/2044
Term Loan
Prime plus 2.75%
12/27/2029
Term Loan
Prime plus 2.75%
12/27/2044
Term Loan
Prime plus 2.75%
12/27/2029
245.9
300.4
636.1
43.5
245.9
300.4
636.1
43.5
261.0
290.5
695.3
36.1
0.08 %
0.09 %
0.20 %
0.01 %
Term Loan
Prime plus 2.75%
12/27/2044
140.2
140.2
153.4
0.05 %
11788 Sample Rd, Coral Springs,
FL 33065
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/27/2044
117.0
117.0
120.9
0.04 %
F-19
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
K&S Hardware LLC dba Gopher
Ace
Icebox Cafe L.C. and Icebox
Pantry, LLC
Bhatti LLC 2, Bhatti LLC
Ink! Coffee Company
Synergistic-Designs, LLC
Richwood Enterprises, LLC,
Richwood Transport LLC,
Richwood Transport
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.
The Lamkin Group LLC and
National Championship
Enterprises LLC
Shaddai Aesthetics Inc
Romain Tower Inc.
Chris Farley DVM PA. dba
Farley Veterinary Clinic
Freedom Enterprises, Inc
La Tradicion Cubana Inc
Freedom Enterprises, Inc
Macon Arts Center LLC
ACC International LLC
MBK IT Services Inc.
Kuros, LLC
Kuros, LLC
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
1865 Wayzata Blvd, Long Lake,
MN 55356
219 NE 3rd St, Hallendale Beach,
FL 33009
1451 Coral Ridge Ave, Coralville,
IA 52241
2851 Larimer St, Denver, CO
80205
493 Wilson Mill Rd, New
Wilmington, PA 16142
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
2564 Branch St, Middleton, WI
53562
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
12/27/2029
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
Term Loan
Prime plus 2.75%
12/24/2029
58.2
418.5
105.1
483.1
7.0
58.2
418.5
105.1
483.1
7.0
55.9
366.2
89.7
400.3
5.8
0.02 %
0.11 %
0.03 %
0.12 %
— %
Term Loan
Prime plus 2.75%
12/24/2029
328.4
328.4
295.8
0.09 %
2301 N Marginal Rd, Cleveland,
OH 44114
512 E 11th 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
Truck Transportation
Rental and Leasing Services
Heavy and Civil Engineering
Construction
Professional, Scientific, and
Technical Services
901 Lily Creek Rd, Ste 102,
Louisville, KY 40243
706 W. 34th St, Austin, TX 78705 Personal and Laundry Services
215 S Persimmon St, Tomball,
TX 77375
6487 Taft St, Hollywood, FL
33024
2431 14th Ave SE, Watertown,
SD 57201
9357 S.W. 40th St, Miami, FL
33165
2431 14th Ave SE, Watertown,
SD 57201
4570 Pio Nono Ave, Macon, GA
31206
200 N Furnace St, Birdsboro, PA
19508
626 Trailwood Ct., Garland, TX
75043
21221 Baron Lake Drive,
Cedaredge, CO 81413
21221 Baron Lake Drive,
Cedaredge, CO 81413
Truck Transportation
Food Services and Drinking
Places
Administrative and Support
Services
Miscellaneous Store Retailers
Nonstore Retailers
Accommodation
Accommodation
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
12/23/2029
12/20/2029
Term Loan
Prime plus 2.75%
12/20/2044
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Prime plus 6.5%
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
Term Loan
Prime plus 2.75%
12/19/2029
Term Loan
Prime plus 2.75%
11/19/2045
F-20
See accompanying notes to consolidated financial statements.
491.1
147.8
328.8
622.3
17.6
888.1
12.6
302.7
11.8
204.7
617.8
317.2
20.1
82.3
491.1
147.8
328.8
622.3
17.6
888.1
12.6
302.7
11.8
204.7
617.8
317.2
20.1
82.3
427.4
163.7
356.5
516.5
14.6
887.2
13.0
261.9
11.2
220.0
668.6
321.2
20.9
92.1
0.13 %
0.05 %
0.11 %
0.15 %
— %
0.26 %
— %
0.08 %
— %
0.06 %
0.20 %
0.09 %
0.01 %
0.03 %
0.13 %
Term Loan
Prime plus 2.75%
12/19/2044
391.0
391.0
436.1
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
United Capital Group LLC
GDIM Enterprises Inc dba
AAMCO
Nebulos, LLC
RWBB LLC
New Casa Technologies, LLC
Premier Gaming Solutions Inc
(#)
(#)
(#)
(#)
(#)
(#)
Skyfall LLC dba EZ Self Storage (#)
The Burlington Academy of
Learning LLC
Sago Technologies Inc. dba Jak
Ecig
(#)
(#)
HADD Corp
Signco America LP & Sparkle
corporation Inc.
J and K Project Management
Consultants LLC
J and K Project Management
Consultants dba A. C. T.
Construction
(#)
(#)
(#)
(#)
Farain Saremi dba USA Produce (#)
Dr Steven J Seidel
The Crane Guys, LLC
Math Enrichment, LLC
Jen Macias LLC dba Duende
Nulane Entertainment LLC
Essex Indoor Golf Center LLC
The Floor Covering Warehouse,
Inc
WURA LLC dba Dickey's
Barbecue Pit
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Belle Properties Northwest, Inc.
(#)
23022 La Cadena Dr, Laguna
Hills, CA 92653
1657 Whiskey Rd., Aiken, SC
29803
5428 Twilight Way, Parker, CO
80134
4120 7th Ave, Kenosha, WI
53140
7928 S 70th Lane, Laveen, AZ
85339
17 South Grand Ave, Pasadena,
CA 91105
2705 US Hwy 45 North,
Henderson, TN 38340
10 Covey Rd, Burlington, CT
6013
785 Woodfern Drive, Hampshire,
IL 60140
364 Rugby Rd, Cedarhurst, NY
11516
7938 Wright Rd, Houston, TX
77041
350 Mc Donnell St, Lewisville,
TX 75057
350 Mc Donnell St, Lewisville,
TX 75057
461 G St, Los Banos, CA 93635
42 Campeau Place, Bergenfield,
NJ 7621
14480 Alondra Blvd, La Mirada,
CA 90638
1009 E Capitol Expressway, San
Jose, CA 95121
2301 NW Thurman St, Portland,
OR 97210
4100 W. Alameda Ave # 300,
Burbank, CA 91505
23 Saybrook Rd, Essex, CT 6426
112 Orchard St, Stamford, CT
6902
4325 E. University Drive, Ste 40,
Prosper, TX 75078
223 Ave B, Snohomish, WA
98290
Term Loan
Prime plus 2.75%
12/19/2029
299.7
299.7
263.0
0.08 %
Merchant Wholesalers, Durable
Goods
Repair and Maintenance
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Truck Transportation
Amusement, Gambling, and
Recreation Industries
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
Term Loan
Prime plus 2.75%
12/19/2029
Term Loan
Prime plus 2.75%
12/18/2029
Real Estate
Term Loan
Prime plus 2.75%
12/18/2044
Social Assistance
Merchant Wholesalers,
Nondurable Goods
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 6.5%
12/17/2029
18.5
58.2
15.6
7.6
10.5
143.9
47.5
218.8
11.8
18.5
58.2
15.6
7.6
10.5
143.9
47.5
218.8
11.8
16.9
54.0
14.0
6.4
10.9
160.5
49.3
226.9
11.2
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
12/16/2044
1,229.6
1,229.6
1,371.6
Construction of Buildings
Term Loan
Prime plus 2.75%
12/16/2044
308.2
308.2
342.1
Construction of Buildings
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/16/2029
Term Loan
Prime plus 2.75%
12/16/2044
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/13/2029
193.4
467.2
75.6
193.4
467.2
75.6
199.8
495.0
62.8
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/13/2029
1,174.9
1,174.9
1,060.9
Term Loan
Prime plus 2.75%
12/13/2029
187.5
187.5
155.4
Educational Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/13/2029
Term Loan
Prime plus 2.75%
12/13/2029
Term Loan
Prime plus 2.75%
12/13/2029
Term Loan
Prime plus 2.75%
12/13/2044
Term Loan
Prime plus 2.75%
12/13/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/12/2044
F-21
See accompanying notes to consolidated financial statements.
7.5
7.0
73.3
236.1
85.7
129.1
7.5
7.0
73.3
236.1
85.7
129.1
6.2
5.8
65.9
263.3
73.6
138.6
— %
0.02 %
— %
— %
— %
0.05 %
0.01 %
0.07 %
— %
0.40 %
0.10 %
0.06 %
0.15 %
0.02 %
0.31 %
0.05 %
— %
— %
0.02 %
0.08 %
0.02 %
0.04 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Abylex, Inc and Worpex LLC
Joyner5, Inc.dba British Swim
School
(#)
(#)
(#)
(#)
(#)
Stockton TRI Industries, LLC
CCD Construction Services LLC
dba Clearwater Outdoor Design,
CCD
Professional Plumbing Services
of Nela, LLC
Vaughn Chiropractic, PLLC dba
Catalyst Chiropractic and Rehab (#)
Chambers Funeral Home &
Crematorium PA & Riverdale
Park Crematory, LLC
Ciel Du Mel LLC dba Lala's
Creamery
Helping Hands Group Daycare
dba Dawn to Dusk Learning and
Child Care
SLCP Transport, LLC dba
Aamco
Elita 7, LLC and Behavioral
Nutrition Inc.
(#)
(#)
(#)
(#)
(#)
DB Talak LLC
Scott's Hardware, Inc., dba
Medford Inc
(#)
(#)
Bay Area Metal Fabricarion LLC (#)
The Stout Group LLC
Glen Lamb dba Lambs Tree And
Plant Health Care
Ohanyan LLC dba Nestle Toll
House Caf'e By Chip
Mazhar Family, Inc dba Edible
Arrangements
Wolf Pack, LLC
Eagle Eye Truck Lines LLC and
Eagle Eye Logistics LLC
(#)
(#)
(#)
(#)
(#)
(#)
7473 Reese Rd #2, Sacramento,
CA 95828
1000 Settlers Landing Court,
Wake Forest, NC 27587
2141 E Anderson St, Stockton,
CA 95205
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
12/12/2044
Term Loan
Prime plus 2.75%
12/12/2029
93.8
20.9
93.8
20.9
85.7
17.4
Term Loan
Prime plus 2.75%
12/12/2044
1,089.6
1,089.6
1,159.9
0.03 %
0.01 %
0.34 %
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/11/2044
110.7
110.7
117.0
0.03 %
175 W Borgfeld Drive, San
Antonio, TX 78260
99 Plum St, West Monroe, LA
71292
10904 Baltimore St NE, Blaine,
MN 55449
5801 Cleveland Ave, Riverdale,
MD 20737
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
1603
2018 SE 6th Ave, Portland, OR
97214
200 Tuckerton Rd, Medford, NJ
8055
510 -512 Stone Rd, Benicia, CA
94510
10850 NW 138th St, Hialeah
Gardens, FL 33018
413 Pond Meadow Rd,
Westbrook, CT 6498
14006 Riverside Drive, Store No.
9270, Sherman Oaks, CA 91423
601 Portion Rd, Store #17, Lake
Ronkonkoma, NY 11779
939 South 25th East, Ste. 115,
Ammon, ID 83406
560 56th St SW, Grand Rapids,
MI 49548
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/11/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/11/2029
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/11/2044
Term Loan
Prime plus 2.75%
12/10/2029
Social Assistance
Term Loan
Prime plus 2.75%
12/10/2044
Repair and Maintenance
Nursing and Residential Care
Facilities
Specialty Trade Contractors
Building Material and Garden
Equipment and Supplies Dealers
Fabricated Metal Product
Manufacturing
Heavy and Civil Engineering
Construction
Administrative and Support
Services
Food Services and Drinking
Places
Nonstore Retailers
Management of Companies and
Enterprises
Term Loan
Prime plus 2.75%
12/10/2029
Term Loan
Prime plus 2.75%
12/9/2029
Term Loan
Prime plus 2.75%
12/6/2044
Term Loan
Prime plus 6.5%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
16.8
38.6
295.1
15.4
38.4
58.2
285.1
151.5
11.8
127.3
223.4
17.5
39.5
62.8
16.8
38.6
295.1
15.4
38.4
58.2
285.1
151.5
11.8
127.3
223.4
17.5
39.5
62.8
16.2
32.1
329.2
13.4
41.0
54.0
269.5
169.0
11.2
113.7
198.4
15.7
35.2
52.7
185.8
866.4
— %
0.01 %
0.10 %
— %
0.01 %
0.02 %
0.08 %
0.05 %
— %
0.03 %
0.06 %
— %
0.01 %
0.02 %
0.05 %
0.26 %
Term Loan
Prime plus 2.75%
3/6/2030
211.8
211.8
Truck Transportation
Term Loan
Prime plus 2.75%
12/6/2029
1,025.4
1,025.4
F-22
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Natalie Enterprise Inc
Used Tire Express 1, Corp
Standard Capital Corp
Clearwater Engineering Inc
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
American Bio Source, LLC dba
Dieselgreen Fuels
(#)
(#)
(#)
Codorado, Inc. dba Dentalmart
Alice's Tea Cup, ATC !! LLC and
ATC 111, LLC
Haversack Holdings LLC
Roots'n Shoots, LLC
Kanti Group Inc, Marina 84
Sport Bar & Grill LLC and Pub
52 Sports
Ultra Flow Dispense, LLC
(#,^)
(#)
(#)
(#)
(#)
(#)
Ford Custom Renovation LLC
(#,^)
Fullmer's Landscaping, Inc.
B.S Carrier LLC and United
Truck & Trailer Repair LLC
Hurricane Group, Inc.dba Crate
Club Group
(#)
(#)
(#)
S&C Cookies, Inc
A&N Design Studios Inc dba
Door3 Business Application
Best Choice Meats, Inc,
(#,^)
(#)
(#,^)
2500 Grand Ave, Billings, MT
59102
437 N. Battlefield, Chesapeake,
VA 23320
2349 Wessington Drive, Virginia
Beach, VA 23456
301 N River St, Derby, KS 67037
400 West Village Way #3009,
Smyrna, GA 30008
2050 Capital Circle NE Ste B,
Tallahassee, FL 32308
1 Ackerman Ave, Clifton, NJ
7011
5401 Mitchelldale St, Ste B4,
Houston, TX 77092
1750 W Lake St, Chicago, IL
60612
2522 N Hwy 287, Decatur, TX
76234
10 Glorieta Rd, Sante Fe, NM
87508
102 W 73rd St, New York, NY
10023
7930 W Kenton Circle, Ste 260,
Huntersville, NC 28078
86 Boston Rd, Chelmsford, MA
1824
2440 Wesr State Rd 84, Fort
Lauderdale, FL 33312
820 Prospect Hill Rd, Windsor,
CT 6095
405 Broadway St, Muncy, PA
17756
9547 W Third St, Dayton, OH
45417
3716 Garman Rd, Salem, VA
24153
101 San Patricio Ave, Ste 860,
Guaynabo, PR 968
1969 Jericho Turnpike, East
Northport, NY 11731
22 Cortlandt St, New York, NY
10007
12646 S Springfield Ave, Alsip,
IL 60803
Administrative and Support
Services
Motor Vehicle and Parts Dealers
Insurance Carriers and Related
Activities
Transportation Equipment
Manufacturing
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Waste Management and
Remediation Services
Merchant Wholesalers, Durable
Goods
Food Manufacturing
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Construction of Buildings
Administrative and Support
Services
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/5/2029
Term Loan
Prime plus 6.5%
12/5/2029
18.9
80.3
11.8
18.9
80.3
11.8
19.6
69.9
11.3
Term Loan
Prime plus 2.75%
12/5/2029
549.3
549.3
490.3
Term Loan
Prime plus 2.75%
12/4/2029
Term Loan
Prime plus 2.75%
12/3/2029
Term Loan
Prime plus 2.75%
11/29/2029
Term Loan
Prime plus 2.75%
11/27/2029
20.9
58.2
46.2
73.3
20.9
58.2
46.2
73.3
18.9
48.3
38.3
62.0
Term Loan
Prime plus 2.75%
11/27/2029
431.5
431.5
379.2
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
53.7
9.7
255.9
115.6
9.9
53.7
9.7
255.9
115.6
9.9
55.7
8.1
216.0
95.8
8.2
Term Loan
Prime plus 2.75%
11/27/2029
142.6
142.6
120.2
Term Loan
Prime plus 2.75%
11/26/2029
Term Loan
Prime plus 2.75%
11/26/2029
Term Loan
Prime plus 2.75%
11/26/2029
Truck Transportation
Term Loan
Prime plus 2.75%
11/25/2029
Other Information Services
Term Loan
Prime plus 2.75%
11/25/2029
Term Loan
Prime plus 2.75%
11/22/2029
96.8
7.6
177.7
218.5
46.6
52.2
96.8
7.6
177.7
218.5
46.6
52.2
81.0
6.4
154.8
210.6
38.6
43.4
Term Loan
Prime plus 2.75%
11/22/2029
113.3
113.3
100.2
Term Loan
Prime plus 2.75%
11/22/2044
1,321.1
1,321.1
1,412.3
F-23
See accompanying notes to consolidated financial statements.
0.01 %
0.02 %
— %
0.14 %
0.01 %
0.01 %
0.01 %
0.02 %
0.11 %
0.02 %
— %
0.06 %
0.03 %
— %
0.04 %
0.02 %
— %
0.05 %
0.06 %
0.01 %
0.01 %
0.03 %
0.42 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Insurance Carriers and Related
Activities
Nonstore Retailers
Merchant Wholesalers,
Nondurable Goods
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
11/22/2029
Term Loan
Prime plus 2.75%
11/22/2029
Term Loan
Prime plus 2.75%
11/22/2029
Term Loan
Prime plus 2.75%
11/22/2044
Term Loan
Prime plus 2.75%
11/22/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/21/2029
11.1
17.8
173.4
427.7
218.8
4.2
11.1
17.8
173.4
427.7
218.8
4.2
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/21/2029
Prime plus 2.75%
3/21/2030
118.3
118.3
1537 W 79th St, Chicago, IL
60620
15218 Penn Hills Lane, Houston,
TX 77062
119 West 57th St, Ste 300, New
York, NY 10019
308 Glenwood Rd, Swainsboro,
GA 30401
610 East Main St, Swainsboro,
GA 30401
6041 Hammond School Rd,
Salisbury, MD 21804
2902 North University Drive,
Coral Springs, FL 33065
209 N Main St, Breckenridge, CO
80424
8101 NW 10th St, Oklahoma
City, OK 73127
504 Fairfax Ave, Nashville, TN
37212
1731 Prevatt Rd, Dothan, AL
36301
30 South Ivey Lane, Orlando, FL
32811
30 South Ivey Lane, Orlando, FL
32811
290 Pratt St, Meriden, CT 6450
181 Shunpike Rd, Cromwell, CT
6416
1836 Kathleen Rd, Lakeland, FL
33805
92 Town Line Rd, Fulton, NY
13069
717 Oregon St, Oshkosh, WI
54902
ZUMI LLC dba Allstate
Insurance
(#,^)
Cum Laude Enterprises, LLC
(#)
Peanut Butter & Co Inc
Place Vendome Holding Co.
Inc.dba R&F Marketing
Place Vendome Holding Co
Inc.dba R&F Marketing
Weeping Willow Kennel Inc
Coral Springs Family Wellness
LLC
Semplice Cafe LLC
Cobb Roofing LLC
Pen's Electric Company
The Rollin' Trapp LLC
AMH Construction, Inc.
AMH Construction, Inc.
Cable Management LLC
AD Learning Group, LLC dba
The Learning Experience & AD
Learning NH
Ryan & Selena LLC dba Head of
the Class Learning Center
Lindsley Excavating LLC
MToxins Venom Lab LLC
Champions Of Diversity Media
Inc dba Champions of Diversity:
Politics
SSH Princeton LLC dba
Stumpy's Hatchet House of
Princeton
Winning Sales Plan Inc
(#,^)
(#)
(#)
(#,^)
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/21/2029
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 6.5%
11/21/2029
Term Loan
Prime plus 2.75%
11/21/2029
Construction of Buildings
Term Loan
Prime plus 2.75%
11/20/2044
Construction of Buildings
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
11/20/2029
Term Loan
Prime plus 2.75%
11/20/2029
Social Assistance
Term Loan
Prime plus 2.75%
11/18/2029
Social Assistance
Term Loan
Prime plus 2.75%
11/18/2044
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/15/2029
Term Loan
Prime plus 2.75%
11/15/2044
5100 Transamerica Drive,
Columbus, OH 43228
Administrative and Support
Services
Term Loan
Prime plus 2.75%
11/15/2044
745 Alexander Rd, Ste 1-3,
Princeton, NJ 8540
17811 Fairhaven Gateway,
Cypress, TX 77433
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%
11/14/2029
F-24
See accompanying notes to consolidated financial statements.
11.4
16.5
143.7
409.7
202.7
4.3
99.1
14.2
42.0
11.3
6.7
290.5
67.1
112.7
106.3
462.5
168.2
102.4
— %
— %
0.04 %
0.12 %
0.06 %
— %
0.03 %
— %
0.01 %
— %
— %
0.09 %
0.02 %
0.03 %
0.03 %
0.14 %
0.05 %
0.03 %
77.2
0.02 %
72.7
48.0
0.02 %
0.01 %
16.6
50.7
11.9
7.4
270.2
69.4
127.2
128.2
439.8
178.3
99.9
71.3
87.6
46.2
16.6
50.7
11.9
7.4
270.2
69.4
127.2
128.2
439.8
178.3
99.9
71.3
87.6
46.2
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Ninth Avenue, LLC
Sean McNamara
Rockin Robin Music Lessons
LLC
The Pinnacle Development
Group Inc dba The Goddard
School
(#)
(#)
(#,^)
(#)
HH Wireless Connect LLC
(#,^)
NJ Floats, Inc
SSD Designs LLC
Adrienne's Gourmet Foods,
Imagine Baking, Inc
James Richard Farkas Jr. dba Lil
Black Bear Inn
Ameen Enterprises, LLC dba
Bargain Town
Steven French dba French
Woodworking
Adrienne's Gourmet Foods,
Imagine Baking Inc
Potomac Nail Spa Corporation
Two Roses Salon 1, Inc.dba
National Fluid Power Institute
and NFPI
Airbar Inc
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Integrated Vascular Services LLC (#,^)
East River Plumbing, LLC
Link Recreational, Inc
Link Recreational, Inc
WE MAKE DIFFERENCES,
LLC
Lake Pontchartrain Properties,
LLC
21 Air, LLC, 21 Cargo Inc, JW
Aviation LLC, Freighter 27044
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Empire Mall, 5000 W Empire
Place, Room 916, Sioux Falls, SD
57106
5639 Wood Lane, Allentown, PA
18106
9029 Hwy 6, Ste 160, Missouri
City, TX 77459
105 Springside Drive, Akron, OH
44333
48267 Deer Trail Drive, Canton,
MI 48187
327 Route 202/206, Bedminster
Township, NJ 7921
486 Vance St, Forest City, NC
28043
1034 Hancock St, Sandusky, OH
44870
8072 State Rd 46 East, Nashville,
TN 47448
1111 E Washington St,
Stephenville, TX 76401
1101 Horizon Drive Ste 101,
Fairfield, CA 94533
1034 Hancock St, Sandusky, OH
44870
14901 Potomac Town Place,,
Woodbridge, VA 22191
908 S Jefferson St, Amarillo, TX
79101
5 N Station Plaza, Great Neck,
NY 11021
1452 Franklin Ave, Salem, OR
44460
997 E Loop, Priest River, ID
83856
304 Business Hwy 53, Minong,
WI 54859
304 Business Hwy 53, Minong,
WI 54859
1380 Main St, Waltham, MA
2451
6001-6201 France Rd, New
Orleans, LA 70126
3650 NW 82 Ave, Doral, FL
33166
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/14/2030
Nonstore Retailers
Term Loan
Prime plus 6.5%
11/14/2029
Educational Services
Term Loan
Prime plus 2.75%
11/14/2029
Social Assistance
Term Loan
Prime plus 6.5%
11/14/2029
Electronics and Appliance Stores
Computer and Electronic Product
Manufacturing
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
11/12/2029
Term Loan
Prime plus 2.75%
2/12/2046
Term Loan
Prime plus 2.75%
1/12/2030
Food Manufacturing
Term Loan
Prime plus 2.75%
11/12/2029
Accommodation
Term Loan
Prime plus 2.75%
11/12/2044
Gasoline Stations
Term Loan
Prime plus 2.75%
11/12/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/12/2044
Food Manufacturing
Term Loan
Prime plus 2.75%
11/12/2044
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/12/2029
59.5
11.7
8.6
11.7
7.6
145.7
328.8
489.6
107.3
115.6
61.4
399.1
49.2
59.5
11.7
8.6
11.7
7.6
145.7
328.8
489.6
107.3
115.6
61.4
399.1
49.2
51.1
11.1
7.2
11.1
6.3
163.3
299.7
475.4
111.1
117.1
68.5
445.2
41.1
0.02 %
— %
— %
— %
— %
0.05 %
0.09 %
0.14 %
0.03 %
0.03 %
0.02 %
0.13 %
0.01 %
Educational Services
Term Loan
Prime plus 2.75%
11/12/2029
365.3
365.3
330.9
0.10 %
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/8/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
11/8/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/8/2044
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/7/2044
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/7/2029
Term Loan
Prime plus 2.75%
11/7/2029
20.4
74.0
49.1
386.8
792.0
5.9
20.4
74.0
49.1
386.8
792.0
5.9
16.9
61.8
52.7
419.2
668.5
5.8
— %
0.02 %
0.02 %
0.12 %
0.20 %
— %
Accommodation
Term Loan
Prime plus 2.75%
11/7/2044
1,133.7
1,133.7
1,264.6
0.37 %
Air Transportation
Term Loan
Prime plus 2.75%
11/6/2029
961.7
961.7
797.0
0.23 %
F-25
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Sunburst Trout Farm, LLC
C&P Trading and Sales Inc
(#,^)
(#,^)
11900 Marshfield Station Inc
(#,^)
Guru Kirpa, Inc
(#,^)
Jessie's Radiator and Automotive (#,^)
Fave Realty, Inc.
Kerzner Contracting Corp
ABC Sandblasting, LLC
Dub Industries LLC
The Committed Pig LLC
L& F Gullo Service Corp
D & H Construction Services,
Inc.
Automotive Solutions, LLC
Sunburst Trout Farm, LLC
Automotive Standard, LLC
MJ Group, Inc
Maine Service Corp
Mariscos El Oceano, Inc.
BGB Leasing Inc and BGB
Leasing Co.
Paul Wintner dba P & R Props
Blue Agave & Brothers, LLC
dba Blue Apachie Mexican
Restaurant
Lightning Strike Distributing,
LLC dba Jedidiah's Jerky &
Gourmet Snack
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
314 Industrial Park Drive,
Waynesville, NC 28786
950 Peninsula Corporate Circle
Ste 3016, Boca Raton, FL 33487
11900 S Marshfield Ave, Calumet
Park, IL 60827
3006 New Castle Ave, New
Castle, DE 19720
1777 N Ventura Ave, Ventura, CA
93001
217-84 Hempstead Ave, Jamaica,
NY 11429
1620 Ocean Ave, Bohemia, NY
11716
14029 56th St NW, Williston, ND
58801
4112 Veiled Falls Drive,
Pflugerville, TX 78660
28 West Park Place, Morristown,
NJ 7090
520 Main St, Westbury, NY
11590
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
26691 Loma Verde, Mission
Viejo, CA 92691
59-24 55th St, Maspeth, NY
11378
5960 S Archer Ave, Chicago, IL
60638
50 Industrial Park Rd, Princeton,
KY 42445
23901 Calabasas Rd, Calabasas,
CA 91302
Fishing, Hunting and Trapping
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
10/31/2044
Term Loan
Prime plus 2.75%
10/31/2029
228.3
230.0
228.3
230.0
251.2
190.8
Gasoline Stations
Term Loan
Prime plus 2.75%
10/31/2044
1,229.9
1,229.9
1,332.6
Gasoline Stations
Term Loan
Prime plus 2.75%
10/31/2044
Repair and Maintenance
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/31/2029
Nonstore Retailers
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
Term Loan
Prime plus 2.75%
10/31/2029
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
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/31/2044
Term Loan
Prime plus 2.75%
10/31/2029
Term Loan
Prime plus 2.75%
10/31/2029
Term Loan
Prime plus 2.75%
10/31/2044
191.8
14.9
114.8
103.4
226.8
65.2
261.7
160.8
128.7
292.7
62.0
135.3
19.6
114.9
123.3
191.8
14.9
114.8
103.4
226.8
65.2
261.7
160.8
128.7
292.7
62.0
135.3
19.6
114.9
123.3
Truck Transportation
Term Loan
Prime plus 2.75%
10/30/2029
1,066.1
1,066.1
0.07 %
0.06 %
0.39 %
0.06 %
— %
0.04 %
0.03 %
0.06 %
0.02 %
0.08 %
0.04 %
0.03 %
0.09 %
0.02 %
0.04 %
— %
0.04 %
0.04 %
0.28 %
0.01 %
198.0
13.8
128.1
85.8
194.1
61.1
271.5
133.3
112.4
312.5
64.4
145.7
16.4
119.2
134.8
964.2
42.9
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
10/30/2029
905 Savoy Rd, Youngsville, LA
70592
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/30/2029
9912 Arizona Dr, Mohave Valley,
AZ 86440
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
10/30/2029
F-26
See accompanying notes to consolidated financial statements.
51.7
80.4
59.7
51.7
80.4
59.7
68.0
0.02 %
50.7
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
BGB Leasing Co.
Plastic Depot, Inc
OWL Inc,
Corple Enterprises, Inc
Perisseia Physicians LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Proximo Consulting Services Inc (#,^)
Marnon Vending LLC dba
Naturals 2 Go San Antonio
(#,^)
Landmark Ventures USA, Inc
iLoka Inc. dba NewCloud
Networks
Four Ace Electrical Services
Corporation
Diamond Solutions LLC
Jbang LLC, WM Bang LLC,
Bang Investments LLC
IV Purpose Inc
Sultan's Palace L.L.C.
Fimac Inc dba American
Educational Services
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#)
(#,^)
(#,^)
James Clark and Company, Inc.
Pyle Garage Doors OKC, INC
dba Precision Door Service OKC (#,^)
(#)
Todd's Car Wash, LLC
Roughcut LLC
UNIQUE PAVER
INSTALLATIONS, INC.
Owens Family and Cosmetic
Dentistry PLLC
(#,^)
(#,^)
(#,^)
(#,^)
Pine Mountain Residential LLC (#)
50 Industrial Park Rd, Princeton,
KY 42445
363 East Alondra Blvd, Gardena,
CA 90248
5300 S Orange Blossom Trail,
Orlando, FL 32839
17887 US-380, Ponder, TX
76259
1644 Lebanon Rd, Lawrenceville,
GA 30043
2500 Plaza 5, Jersey City, NJ
7311
6713 Biscay Hbr, San Antonio,
TX 78249
475 Park Ave S, 25th Floor, New
York, NY 10016
160 Inverness Drive W, Ste 150,
Englewood, CO 80112
3723 Far Niente Way,
Sacramento, CA 95834
8321 E Gelding Drive, Scottsdale,
AZ 85260
125 Westchester Ave, White
Plains, NY 10601
1489 Fulton St, Brooklyn, NY
11216
8125 West Sahara Ave, Ste 300,
Las Vegas, NV 89117
26300 La Alameda, Ste 200,
Mission Viejo, CA 92691
8885 Haven Ave, Ste 120,
Rancho Cucamonga, CA 91730
8860 S Sunnylane Rd, Oklahoma
City, OK 73135
5505 Johnston St, Lafayette, LA
70506
41540 National Rd, Belmont, OH
43718
4930 Mars Hill Rd, Bogart, GA
30622
403 E College St, Pulaski, TN
38478
10240 Cosmopolitan Circle,
Parker, CO 80134
Truck Transportation
Plastics and Rubber Products
Manufacturing
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
10/30/2044
Term Loan
Prime plus 2.75%
10/30/2029
Term Loan
Prime plus 2.75%
10/28/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
10/28/2029
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/28/2044
Prime plus 2.75%
10/28/2029
Nonstore Retailers
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
10/28/2029
Term Loan
Prime plus 2.75%
10/25/2029
Term Loan
Prime plus 2.75%
10/25/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/25/2029
Machinery Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/25/2029
Term Loan
Prime plus 2.75%
11/25/2029
Term Loan
Prime plus 2.75%
12/25/2029
Term Loan
Prime plus 2.75%
10/24/2029
Term Loan
Prime plus 2.75%
10/23/2029
Term Loan
Prime plus 6.5%
10/22/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
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
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 6.5%
10/16/2029
F-27
See accompanying notes to consolidated financial statements.
88.3
145.4
198.2
147.2
392.5
68.9
7.3
96.5
91.9
11.0
11.7
69.6
35.4
19.6
20.7
11.6
13.5
337.3
442.5
20.8
249.1
11.6
88.3
145.4
198.2
147.2
392.5
68.9
7.3
96.5
91.9
11.0
11.7
69.6
35.4
19.6
20.7
11.6
13.5
337.3
442.5
20.8
249.1
11.6
98.5
120.7
164.3
145.4
402.5
57.1
6.7
80.0
95.3
9.3
9.7
68.8
31.0
17.2
17.4
11.1
11.2
376.2
459.0
18.4
216.3
11.1
0.03 %
0.04 %
0.05 %
0.04 %
0.12 %
0.02 %
— %
0.02 %
0.03 %
— %
— %
0.02 %
0.01 %
0.01 %
0.01 %
— %
— %
0.11 %
0.14 %
0.01 %
0.06 %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
(#)
Powerlift Dumbwaiters, Inc
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
(#)
(#,^)
Q2 Ventures, LLC
Paketo LLC dba West Loop UPS
Store
Heart and Vascular Associates of
Tampa, LLC
A Child's Dream Educational
Center LLC
DG Business Solutions, Inc
A Child's Dream Educational
Center LLC
Atlantic Pacific Hospitality
Solutions Inc dba North Beach
Bistro
SPIRE Manufacturing Solutions
LLC
Meldi Maa, Inc dba The River
Complex
Joseph P Fusco DDS PC
In Power Motors, LLC, In-Power
Motors II LLC, In-Power Motors
III LLC
International Protection Group,
LLC
AV Strategy, Inc
50 Taps, LLC dba Colorado
Taproom & Grill
Crown Waste Corp
Zima Dining Inc. dba Country
Kitchen
Hoagie Barmichaels Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Universe Appliance Repairs Inc.
(#,^)
2444 Georgia Slide Rd,
Georgetown, CA 95634
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
Machinery Manufacturing
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 6.5%
10/16/2029
Term Loan
Prime plus 2.75%
2/11/2031
General Merchandise Stores
Term Loan
Prime plus 6.5%
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%
10/8/2029
Couriers and Messengers
Term Loan
Prime plus 2.75%
10/4/2029
17 David Blvd, Tampa, FL 33606 Ambulatory Health Care Services Term Loan
4127 NW 34th St, Gainsville, FL
32605
Term Loan
Prime plus 2.75%
9/30/2044
Prime plus 2.75%
9/30/2029
Social Assistance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/30/2029
11008 Rene St, Lenexa, KS 66215
4127 NW 34th St, Gainesville, FL
32605
725 Atlantic Blvd, Atlantic
Beach, FL 32233
1440 Newport Rd, Colorado
Springs, CO 80916
74 S Main St, Woonsocket, RI
2895
77 N Centre Ave, Rockville
Centre, NY 11570
2301 W. Buckeye Rd, Phoenix,
AZ 85009
481 8th Ave Ste 1130, New York,
NY 10001
9468 American Eagle Way Ste
100, Orlando, FL 32837
19539 Hess Rd Ste Ste #101,
Parker, CO 80134
1 Plainview Rd, Bethpage, NY
11714
1497 N Mt. Vernon Ave, Colton,
CA 92324
1101 River Rd, New Windsor, NY
12553
3790 Merrick Rd, Seaford, NY
11783
Social Assistance
Term Loan
Prime plus 2.75%
9/30/2044
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
9/30/2044
Term Loan
Prime plus 2.75%
9/30/2044
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/30/2029
Motor Vehicle and Parts Dealers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/30/2044
Term Loan
Prime plus 2.75%
9/30/2029
Rental and Leasing Services
Food Services and Drinking
Places
Waste Management and
Remediation Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
9/27/2029
Term Loan
Prime plus 2.75%
9/27/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2044
F-28
See accompanying notes to consolidated financial statements.
11.3
292.7
11.6
145.7
163.1
15.2
759.1
175.8
209.9
177.3
8.6
996.0
416.6
60.6
612.4
75.3
242.6
70.7
45.7
57.5
110.7
575.7
11.3
292.7
11.6
145.7
163.1
15.2
759.1
175.8
209.9
177.3
8.6
996.0
416.6
60.6
612.4
75.3
242.6
70.7
45.7
57.5
110.7
575.7
10.8
257.3
11.1
123.3
162.2
12.9
765.9
146.4
175.9
189.3
7.2
1,111.0
451.1
50.3
630.9
73.1
219.8
59.6
41.0
59.6
110.3
576.6
— %
0.08 %
— %
0.04 %
0.05 %
— %
0.23 %
0.04 %
0.05 %
0.06 %
— %
0.33 %
0.13 %
0.01 %
0.19 %
0.02 %
0.06 %
0.02 %
0.01 %
0.02 %
0.03 %
0.17 %
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Wagner & Sons Inc
Aztec Machine & Repair Inc,
Cranrd & Material
Double H Services, LLC, C&T
Oil Field Services, LLC and
Brian S. Holma
Titan Laser Screed Concrete
Services, LLC
Zmetra Clearspan Structures
LLC
Universe Appliance Repairs Inc.
Cherry and Candlewood Inc dba
Aamco
Stiegelbauer Associates Inc.
Santa Fe Flooring LLC
Adam's Construction & General
Contracting LLC
Anderson's Outdoor Adventures,
LLC
Byler, Wolfe, Lutsch and
Kampfer CPAs, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Quality Machine of Iowa, Inc
(#,^)
Luv 2 Play Nor Cal, LLC
Flamingo Bowl, Inc
Unified Utility Services LLC
Standard Real Estate Services
LLC
Payne's Enviromental Service,
LLC dba Bamaco
Host Marketing, LLC
Vancole Investments, Inc. dba
Smoothie King #913 &;Dream
Development
Win Health Institute, LLC
Natalie Hart LLC dba Lady of
Luxury &dba Country Sugar
Events
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#)
(#,^)
(#,^)
(#)
22365 Alydar Drive, Lexington
Park, MO 20653
1715 N 1st St, Bloomfield, NM
87413
3721 North 162nd St, Garber, OK
73701
8908 Wildlife Lane, Sanford, FL
32771
2 Old Worcester Rd, Webster, MA
1571
3790 Merrick Rd, Seaford, NY
11783
3029 South St, Long beach, CA
90805
63 Flushing Ave Unit 342,
Brooklyn, NY 11205
3711 Paseo Del Norte NE,
Albuquerque, NM 87113
7808 N Custer Rd, Freesoil, MI
49411
4060 SW County Rd 232, Bell,
FL 32619
360 East State St, Salem, OH
44460
1040 4th Ave, Audubon, IA
50025
82 Clarksville Rd, Folsom, CA
95682
3301 N 23rd St, McAllen, TX
78501
206 Frankie Lane, Ladson, SC
29456
500 West Silver Spring Drive, Ste
K 200,, Glendale, WI 53217
5617 Causeway Blvd, Tampa, FL
33619
206 Bell Lane, Ste B, West
Monroe, LA 71291
876 Virginia Ave, Hapeville, GA
30354
711 E Valley Rd, Basalt, CO
81621
1702 Fawn Gate St, San Antonio,
TX 78248
Nonstore Retailers
Term Loan
Prime plus 2.75%
9/27/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2044
Support Activities for Mining
Term Loan
Prime plus 2.75%
9/27/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2029
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
9/27/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2044
Specialty Trade Contractors
Furniture and Related Product
Manufacturing
Construction of Buildings
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Heavy and Civil Engineering
Construction
Real Estate
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/27/2029
Term Loan
Prime plus 2.75%
9/26/2029
Term Loan
Prime plus 2.75%
9/26/2029
Term Loan
Prime plus 2.75%
9/25/2029
Term Loan
Prime plus 2.75%
9/25/2044
Term Loan
Prime plus 2.75%
9/25/2029
Term Loan
Prime plus 2.75%
9/25/2029
Term Loan
Prime plus 2.75%
9/24/2029
Term Loan
Prime plus 2.75%
9/20/2044
Term Loan
Prime plus 6.5%
9/19/2029
Term Loan
Prime plus 2.75%
9/18/2044
Term Loan
Prime plus 6.5%
9/18/2029
Term Loan
Prime plus 2.75%
9/17/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/17/2029
17.1
698.1
956.2
45.6
428.7
604.8
424.0
182.8
462.5
63.8
20.5
52.4
61.7
105.0
188.7
154.8
11.6
511.5
11.6
11.0
6.8
17.1
698.1
956.2
45.6
428.7
604.8
424.0
182.8
462.5
63.8
20.5
52.4
61.7
105.0
188.7
154.8
11.6
511.5
11.6
11.0
6.8
14.3
713.8
866.3
39.3
478.2
537.9
473.0
152.0
402.3
55.7
20.6
51.4
63.9
89.3
172.5
172.5
11.0
522.7
11.0
9.1
6.0
— %
0.21 %
0.26 %
0.01 %
0.14 %
0.16 %
0.14 %
0.04 %
0.12 %
0.02 %
0.01 %
0.02 %
0.02 %
0.03 %
0.05 %
0.05 %
— %
0.15 %
— %
— %
— %
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/17/2029
52.8
52.8
49.0
0.01 %
F-29
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Game Station, Inc.
Bay Bowl Inc dba Shasta Lanes
The Steel Method LLC dba
Sneeze It
Oak Park Social LLC
New Flow Plumbing and Rooter
Inc.
ACSS CPA, LLC
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
Prime Precision Machining, LLC (#,^)
Prime Precision Machining, LLC (#,^)
Family Insight, P.C.
Miami Squeeze Inc dba Miami
Squeeze, LLC
Covert Recordings LLC
Body on Cue Health and Fitness
LLC
Eco Electric LLC
Philly Games Inc.dba Queen &
Rock Game Cafe
SVT Masonry Limited Liability
Company
Thawk LLC
No Push Backs, LLC
Dog House Sportfishing Charters
Inc
3C Consumer Network &
Designs LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#)
(#,^)
Double Scoop Ice Cream, LLC (#,^)
Camror LTD dba Jersey Mike's
(#,^)
The BMF Media Group LLC
Crown Heights Bunch O Bagels
& More Inc & 361 Bagel
Holding LLC
(#,^)
(#,^)
2917 1st Ave SE, Cedar Rapids,
IA 52402
11093 Black Marble Way,
Redding, CA 96003
250 Passaic Ave Ste 200,
Fairfield, NJ 7004
14691 W 11 Mile Rd, Oak Park,
MI 48237
6718 Katherin Ave, Van Nuys,
CA 91405
1016 S Texas Blvd, Weslaco, TX
78599
845 Mandoline Ave, Madison
Heights, MI 48071
845 Mandoline Ave, Madison
Heights, MI 48071
3433 Brambleton Ave, Ste 104A,
Roanoke, VA 24018
18315 W. Dixie Hwy, North
Miami Beach, FL 33160
31-65 138th St Apartment 3K,
Flushing, NY 11354
129 A Orpha Drive, Middlebury,
IN 46840
5380 Cameron St, Las Vegas, NV
89118
607-609 S 2nd St, Philadelphia,
PA 19147
1208 Houghton Lane,
Bennington, VT 5201
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
2970 Stonecrest Pass, Lithonia,
GA 30038
5946 Meijer Drive, Cincinnati,
OH 45150
50 West 23rd St, 7th floor, New
York, NY 10010
361 Troy Ave, Brooklyn, NY
11213
Rental and Leasing Services
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Real Estate
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
9/16/2029
Term Loan
Prime plus 2.75%
9/13/2044
Term Loan
Prime plus 2.75%
9/12/2029
Term Loan
Prime plus 2.75%
7/12/2045
Term Loan
Prime plus 2.75%
9/12/2029
Term Loan
Prime plus 2.75%
9/12/2044
Term Loan
Prime plus 2.75%
9/11/2044
Term Loan
Prime plus 2.75%
9/11/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/11/2029
Prime plus 2.75%
9/11/2029
Rental and Leasing Services
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Food Services and Drinking
Places
Specialty Trade Contractors
Administrative and Support
Services
Personal and Laundry Services
Scenic and Sightseeing
Transportation
Real Estate
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/11/2029
Term Loan
Prime plus 2.75%
9/6/2029
Term Loan
Prime plus 2.75%
9/5/2029
Term Loan
Prime plus 2.75%
9/5/2029
Term Loan
Prime plus 2.75%
9/5/2029
Term Loan
Prime plus 2.75%
8/30/2029
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 2.75%
8/29/2029
Term Loan
Prime plus 2.75%
8/29/2044
Term Loan
Prime plus 2.75%
1/29/2030
18.5
526.7
154.0
133.5
43.6
39.2
267.9
200.8
226.6
105.4
10.8
41.1
60.7
57.0
63.5
7.5
11.2
11.5
13.6
94.7
81.5
18.5
526.7
154.0
133.5
43.6
39.2
267.9
200.8
226.6
105.4
10.8
41.1
60.7
57.0
63.5
7.5
11.2
11.5
13.6
94.7
81.5
16.9
586.9
128.1
137.4
36.6
41.1
278.8
176.4
226.5
94.2
10.9
34.8
50.3
47.5
62.5
6.2
10.6
10.9
11.9
98.9
84.6
— %
0.17 %
0.04 %
0.04 %
0.01 %
0.01 %
0.08 %
0.05 %
0.07 %
0.03 %
— %
0.01 %
0.01 %
0.01 %
0.02 %
— %
— %
— %
— %
0.03 %
0.02 %
0.08 %
Term Loan
Prime plus 2.75%
8/29/2029
340.6
340.6
281.8
Food and Beverage Stores
Term Loan
Prime plus 2.75%
8/29/2029
36.3
36.3
37.6
0.01 %
F-30
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Esquire Mini Mart LLC &
Morgan Store Building LLC
Groton Bowling Center and
Entertainment Inc
HRS2, LLC
DB Talak LLC
Khari E. J. Myers dba Khari
Imagery & 190 Minerva LLC
Linsey Schwertdfeger,, Inc.
Blue Eagle Transport Inc.,Golden
Eagle Tran and Green Eagle
Transport
The Hometown Welcome
Program, Inc & Fredric Anthony
Gushwa
Maryland Urgent Care, Inc.
ADA Internacional Inc
Crystal S. Prado dba Crystal
Clear Accounting
The Pet Stop, LLC
Elite Motors LLC
PJT Logistics, Inc.
JLT Foods, LLC
SRJ construction Corp
MS Integrated Psychotherapy &
Counseling, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
12595 S Somerton Ave, Yuma,
AZ 85365
27 Kings Hwy, Groton, CT 6340
5410 Pipers Creek Court, Sugar
Land, TX 77479
2018 SE 6th Ave, Portland, OR
97214
190 Minerva St, Tonawanda, NY
14150
740 Dennery Rd, San Diego, CA
92154
377 Boston Post Rd, Milford, CT
6460
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
106 South Washington St,
Pleasantville, IA 50225
1046-1050 Orange Ave, West
Haven, CT 6516
2-4 Commerce Way, Auburn, NY
13021
3294 Long Meadow Court, West
Bloomfield Township, MI 48324
8358 W Oakland Park Blvd.
#203E, Sunrise, FL 33351
1157 Main St, Clifton, NJ 7011
Food and Beverage Stores
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
8/29/2029
Term Loan
Prime plus 2.75%
8/29/2044
Nonstore Retailers
Term Loan
Prime plus 2.75%
8/28/2029
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/28/2029
Term Loan
Prime plus 2.75%
8/28/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/28/2029
46.5
930.1
209.9
80.1
58.8
64.3
46.5
930.1
209.9
80.1
58.8
64.3
44.2
979.4
203.5
82.9
65.5
54.5
0.01 %
0.29 %
0.06 %
0.02 %
0.02 %
0.02 %
Couriers and Messengers
Term Loan
Prime plus 2.75%
8/28/2029
416.9
416.9
365.3
0.11 %
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/27/2029
Ambulatory Health Care Services Term Loan
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
8/27/2044
Prime plus 2.75%
8/26/2029
Prime plus 6.5%
8/26/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/23/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
8/23/2029
Truck Transportation
Term Loan
Prime plus 2.75%
8/23/2029
Food Manufacturing
Term Loan
Prime plus 2.75%
8/23/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/23/2029
88.4
45.1
20.4
2.9
6.8
79.4
45.3
19.5
10.4
67.3
16.5
84.0
88.4
45.1
20.4
2.9
6.8
79.4
45.3
19.5
10.4
67.3
16.5
84.0
80.1
48.3
16.9
2.8
5.8
82.2
47.0
16.2
8.9
61.3
17.0
87.0
0.02 %
0.01 %
— %
— %
— %
0.02 %
0.01 %
— %
— %
0.02 %
— %
0.03 %
0.05 %
— %
The Roux Southern Kitchen, LLC (#,^)
MB Nursery LLC dba The
Garden Center
Metro R Services Inc. and Metal
& Roof Supplies, Inc.
Auto Unique LLC
(#,^)
(#,^)
(#,^)
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Term Loan
252 FM 3162, Sandia, TX 78383
15562 HWY-South, Whitehouse,
TX 75791
20 Universal Place, Carlstadt, NJ
7072
305 W Main St, Mayo, FL 32066 Motor Vehicle and Parts Dealers
Repair and Maintenance
Prime plus 2.75%
8/22/2029
Prime plus 2.75%
8/22/2029
Prime plus 2.75%
8/21/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
8/21/2029
8/20/2044
175.7
12.0
175.7
12.0
166.9
13.4
F-31
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
William Martinez dba Bad Ass
Coffee of Hawaii
Signature Rooms, Inc.
Accent Home Services LLC dba
Benjamin Franklin Plumbing of
Kansas City
AJN Innovations LLC dba
Burgerim
American Healthy Vending, Inc
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
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
Genecco Produce, Inc. & Leo
Genecco & Sons, Inc.
Joseph Centonze dba Off Kilter
Kilts
St. Francis Home Health Inc
Humd, LLC dba La Rosa
Chicken and Grill
Gray Rock Quarry, LLC and
William E Dailey III
La Mount Group LLC
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
Living Spring Home Health Inc.
(#,^)
14101 Main St, Ste 4101,
Hesperia, CA 92345
2066 Route 112, Medford, NY
11763
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Prime plus 2.75%
8/19/2029
7748 Troost Ave, Kansas City,
MO 64131
6704 Main St, Miami Lakes, FL
33014
5951 NW 151 St, Hialeah, FL
33014
135 Clove Branch Rd, Hopewell
Junction, 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
6437
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
27603 Parkway Rd, Easton, MD
21601
1850 Rochester Rd, Canadaigua,
NY 14424
27720 Ave Scott, Santa Clarita,
CA 91355
5246 SW 8th St 103B, Coral
Gables, FL 33134
3111 N. University Drive, Coral
Springs, FL 33065
54 West Milton Rd, Milton, VT
5468
3111 Princeton Rd, Hamilton, OH
45011
18350 Kedzie Ave Ste 204,
Homewood, IL 60430
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/15/2029
Term Loan
Prime plus 2.75%
2/15/2031
Nonstore Retailers
Term Loan
Prime plus 2.75%
8/15/2029
Educational Services
Term Loan
Prime plus 2.75%
8/14/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/13/2029
Term Loan
Prime plus 2.75%
8/12/2029
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Food and Beverage Stores
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
8/8/2029
Term Loan
Prime plus 6.5%
8/7/2029
Term Loan
Prime plus 2.75%
8/2/2029
Term Loan
Prime plus 2.75%
8/2/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/31/2044
Air Transportation
Merchant Wholesalers,
Nondurable Goods
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
7/31/2029
Term Loan
Prime plus 2.75%
7/31/2029
Term Loan
Prime plus 2.75%
7/31/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2029
Prime plus 2.75%
1/31/2030
Mining (except Oil and Gas)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2044
Term Loan
Prime plus 2.75%
7/31/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
7/31/2029
F-32
See accompanying notes to consolidated financial statements.
20.8
153.0
102.0
109.8
96.4
15.6
13.6
70.3
20.8
153.0
102.0
109.8
96.4
15.6
13.6
70.3
17.7
158.5
95.0
93.0
85.5
13.0
11.2
58.4
17.7
11.5
6.8
113.5
317.7
518.1
707.5
4.7
67.6
128.3
440.6
229.8
121.7
17.7
11.5
6.8
113.5
317.7
518.1
707.5
4.7
67.6
128.3
440.6
229.8
121.7
14.7
10.9
5.6
117.6
320.1
454.8
667.4
3.9
55.9
111.3
410.9
190.1
110.5
0.01 %
0.05 %
0.03 %
0.03 %
0.03 %
— %
— %
0.02 %
0.04 %
— %
— %
— %
0.03 %
0.09 %
0.13 %
0.20 %
— %
0.02 %
0.03 %
0.12 %
0.06 %
0.03 %
Term Loan
Prime plus 2.75%
3/9/2030
165.4
165.4
145.5
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Social Assistance
Term Loan
Prime plus 2.75%
7/31/2044
96.0
96.0
101.8
0.03 %
Canyon Lake Kids Academy,
LLC
Quick and Quality Services dba
Bella Roma Pasta & Pizza &
Farshad
Dant A Sandras, D.D.S. LLC
Jbelis Stop N' Go, LLC dba
Planet Smoothie
Platt & Associates, LLC dba Flag
Staff Apparel, Platt & Associates,
LL
Grad Street LLC
Aeromax Industries, Inc, HITM,
Inc and TMCB LLC
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
Hardrock Alpha Enterprises,
LLC
700 Services Inc.dba 700 Credit
Repair
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Lawrence Adeyemo & Co LLC (#)
Ameritube, LLC
JDM2 Water Station LLC
Bonfire Hot Yoga LLC
(#,^)
(#,^)
(#,^)
Baton Rouge Cargo Services Inc (#,^)
The Bean Coffee Co. LLC
Garage Floor Coating of
MN.com,LLC
(#)
(#,^)
130 Charter Oak Drive, Canyon
Lake, TX 78133
28940 Golden Lantern, Laguna
Niguel, CA 92677
13373 Hwy 3235, Larose, LA
70373
2565 E 17th St, Ammons, ID
83406
288 North Industrial Park Drive,
Liberty, MS 39645
2437 Corinth Ave Apt 130, Los
Angeles, CA 90064
9027 Canoga Ave, Canoga Park,
CA 91301
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/30/2029
Prime plus 2.75%
7/30/2029
Apparel Manufacturing
Term Loan
Prime plus 2.75%
7/30/2044
Nonstore Retailers
Transportation Equipment
Manufacturing
Term Loan
Prime plus 6.5%
7/30/2029
Term Loan
Prime plus 2.75%
7/30/2044
Term Loan
Prime plus 2.75%
7/29/2044
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/26/2029
Prime plus 2.75%
7/26/2029
E 2947 H-44, Traunik, MI 49891 Gasoline Stations
936 Roosevelt Trail Unit 1 & 2,
Windham, ME 4062
739 NE MLK Blvd, 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
5101 Stine Rd, Bakersfield, CA
93313
1201 N Goliad St, Rockwall, TX
75087
209-34 112 Ave, Queens Village,
NY 11429
1000 North Hwy 77, Hillsboro,
TX 76645
125 Chestnut Hill Drive, York,
PA 17408
3665 SW Hall Blvd, Beaverton,
OR 97005
6013 McRaven Rd, Jackson, MS
39209
112 South Main St, Spring Hill,
KS 66083
6701 West 23rd St, St. Louis
Park, MN 55426
Nonstore Retailers
Real Estate
Amusement, Gambling, and
Recreation Industries
Health and Personal Care Stores
Nursing and Residential Care
Facilities
Amusement, Gambling, and
Recreation Industries
Credit Intermediation and Related
Activities
Professional, Scientific, and
Technical Services
Primary Metal Manufacturing
Educational Services
Support Activities for
Transportation
Food Services and Drinking
Places
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/26/2029
Term Loan
Prime plus 2.75%
7/26/2044
Term Loan
Prime plus 2.75%
7/25/2029
Term Loan
Prime plus 2.75%
7/24/2044
Term Loan
Prime plus 2.75%
7/19/2029
Term Loan
Prime plus 2.75%
7/19/2029
Term Loan
Prime plus 6.5%
7/19/2029
Term Loan
Prime plus 2.75%
7/18/2029
Term Loan
Prime plus 2.75%
7/18/2029
Term Loan
Prime plus 2.75%
7/18/2029
Term Loan
Prime plus 2.75%
7/17/2044
Term Loan
Prime plus 6.5%
7/17/2029
Term Loan
Prime plus 2.75%
7/16/2044
F-33
See accompanying notes to consolidated financial statements.
10.3
197.1
17.7
55.0
7.3
770.8
53.1
8.2
5.4
13.5
399.7
48.9
98.1
14.2
6.8
9.2
108.9
188.5
7.4
286.4
11.5
976.1
10.3
197.1
17.7
55.0
7.3
770.8
53.1
8.2
5.4
13.5
399.7
48.9
98.1
14.2
6.8
9.2
108.9
188.5
7.4
286.4
11.5
976.1
9.2
169.1
14.9
60.1
6.9
775.2
57.3
8.3
4.9
11.2
445.4
50.6
107.3
12.1
5.6
8.7
112.8
173.7
6.3
296.9
10.8
992.6
— %
0.05 %
— %
0.02 %
— %
0.23 %
0.02 %
— %
— %
— %
0.13 %
0.01 %
0.03 %
— %
— %
— %
0.03 %
0.05 %
— %
0.09 %
— %
0.29 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Bouquet Canyon Kennels
Adam Family Bowl Inc
(#,^)
(#,^)
Beacon Metal Fabricators, Inc.
(#,^)
Last Touch, LLC
D DeGregoria LLC dba The UPS
Store 4235 Massapequa
Menskha Inc
(#,^)
(#,^)
(#)
Nash-Delphia LLC
Advance Transit LLC
Anderson Companies LLC
Port Huron Ophthalmology,
PLLC dba Black River Optical
Kim Howard Corp dba NPN
Machine Tools
Jian Yang and Kanger House
LLC
Nevada Recycling and Salvage
LTD, AMCB LLC
Sundown Audio, LLC
Balboa Fashion LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Baobab Asset Management LLC (#,^)
Southern Specialties
Transportation LLC
(#,^)
Richmond Street Partners, LLC (#,^)
Crestview Ridge Farms LLC
(#,^)
K & K Restaurant LLC
Big Picture Group LLC
5161 LLC
Upul's Travel Service & Tours
Inc
(#,^)
(#,^)
(#,^)
(#,^)
29973 Bouquet Canyon Rd, Santa
Clarita, CA 91390
1504 Chestnut St, Mishawaka, IN
46545
5425-D Hamilton Ave, Cleveland,
OH 44114
1612 Jackson St, Spirit Lake, IA
51360
4940 Merrick Rd, Massapequa
Park, NY 11762
88 High St, Mountclair, NJ 7042
2135 Gallatin Pike N, Store 4,
Madison, TN 37115
574-614 Tonnelle Ave, Jersey
City, NJ 7307
3015 S White Horse Pike,
Hammonton, NJ 8037
1033 River St, Port Huron, MI
48060
9130 Wayfarer Ln, Houston, TX
77075
48 Horse Hill Rd, Cedar Knolls,
NJ 7927
1085 Telegraph St, Reno, NV
89502
514 West 21St St, Newton, NC
28658
1016 S. Towne Ave, Unit 123,
Los Angeles, CA 90021
2 Greenwich Office Park, Ste
260, Greenwich, CT 6831
116 Toledo Drive, Lafayette, LA
70506
200 E Chestnut St, Chicago, IL
60611
1172 Co Rd 956, Ashland, OH
44805
6607 S Central Ave, Phoenix, AZ
85042
935 N La Jolla, Los Angeles, CA
90046
1478 E Mountain Drive, Santa
Barbara, CA 93108
654 Shoppers Lane, Covina, CA
91723
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
7/16/2044
Term Loan
Prime plus 2.75%
7/16/2044
Term Loan
Prime plus 2.75%
7/12/2029
Term Loan
Prime plus 2.75%
7/11/2044
Term Loan
Couriers and Messengers
Ambulatory Health Care Services Term Loan
Clothing and Clothing
Accessories Stores
Transit and Ground Passenger
Transportation
Administrative and Support
Services
Term Loan
Term Loan
Term Loan
Ambulatory Health Care Services Term Loan
Fabricated Metal Product
Manufacturing
Nursing and Residential Care
Facilities
Merchant Wholesalers, Durable
Goods
Computer and Electronic Product
Manufacturing
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 6.5%
7/10/2029
7/10/2029
Prime plus 2.75%
7/2/2029
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2029
Prime plus 2.75%
6/28/2029
Prime plus 2.75%
6/27/2029
294.5
130.0
63.1
99.4
71.4
11.5
13.4
746.0
203.1
13.4
197.2
107.5
294.5
130.0
63.1
99.4
71.4
11.5
13.4
746.0
203.1
13.4
197.2
107.5
294.8
137.9
58.8
101.6
60.8
10.8
12.2
827.9
222.7
12.2
206.7
97.9
Prime plus 2.75%
6/28/2044
1,222.1
1,222.1
1,308.9
Prime plus 2.75%
6/28/2044
887.4
887.4
955.0
Apparel Manufacturing
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2029
Truck Transportation
Clothing and Clothing
Accessories Stores
Crop Production
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Nonstore Retailers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2044
Term Loan
Prime plus 2.75%
6/28/2044
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2029
F-34
See accompanying notes to consolidated financial statements.
6.7
45.8
131.0
87.4
526.0
131.8
137.2
566.7
251.7
6.7
45.8
131.0
87.4
526.0
131.8
137.2
566.7
251.7
6.1
41.5
134.3
79.9
579.3
148.2
124.6
584.4
228.6
0.09 %
0.04 %
0.02 %
0.03 %
0.02 %
— %
— %
0.24 %
0.07 %
— %
0.06 %
0.03 %
0.39 %
0.28 %
— %
0.01 %
0.04 %
0.02 %
0.17 %
0.04 %
0.04 %
0.17 %
0.07 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Upul's Travel Service & Tours
Inc
Good News Cafe, LLC
NJ Floats Inc
(#,^)
(#,^)
(#,^)
Ailky Corporation & Wyspen
(#,^)
Pawfection Pet Services LLC
(#,^)
Boucherie US Inc
Tim's Truck Capital & Auto
Sales, Inc
S & T Hardware Inc
Moon Landscaping, Inc, Moon
Group, Inc moon Nursery, Inc,
Moon Site
Shooter's Gun Club, LLC
BB Services, LLC
Crescent Event Productions, Inc
Selective Automotive &
Accessories Group, Inc
Tekoa Enterpises, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Soft Touch Tissue & Paper LLC (#,^)
RWBB Enterprises, LLC
Lynx Inspection Technologies
LLC
JFK Transportation Inc
Child Care Ventures LLC dba
Childcare Adventures ELC
All-City Towing LLC, Jeffrey
James Piller
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Soft Touch Tissue & Paper LLC (#)
Paradise Towing & Recovery Inc (#,^)
654 Shopping Lane, Covina, CA
91723
694 Main St South, Woodbury,
CT 6798
66 Twin Oaks Rd, Bridgewater,
NJ 8807
352 Bedford St, Lakeville, MA
2347
177 W Cottonwood Ln, Ste 12,
Casa Grande, AZ 85122
251 Little Falls Drive,
Wilmington, DE 19807
904 Suncook Valley Hwy, Epsom,
NH 3234
2300 Nooseneck Hill, Coventry,
RI 2816
145 Moon Rd, Chesapeake City,
MD 21915
2429 Iowa St Stes B, C and D,
Lawrence, KS 66046
580 39 Rd, Palisade, CO 81526
1327 Wood Branch Drive,
Charlotte, NC 28273
2221 Pelham Parkway, Pelham,
AL 35124
1033 Cannon Bridge Rd,
Cordova, SC 29039
1491 Hammond St, Bangor, ME
4401
4120 7th Ave, Kenosha, WI
53140
8101 Miller Rd 2, Houston, TX
77049
4 Mechanic St, Natick, MA 1760
3542 Glendale Ave, Toledo, OH
43614
1213 W Mallory Ave,
Milwaukee, WI 53221
1491 Hammond, Bangor, MA
4401
1115 S Homer Blvd, Sanford, NC
27330
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/28/2044
Term Loan
Prime plus 2.75%
6/28/2044
Ambulatory Health Care Services Term Loan
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/27/2029
Term Loan
Prime plus 2.75%
6/27/2029
343.5
244.1
172.6
43.6
9.4
343.5
244.1
172.6
43.6
9.4
Term Loan
Prime plus 2.75%
6/27/2029
1,077.8
1,077.8
Term Loan
Prime plus 2.75%
6/27/2029
Term Loan
Prime plus 2.75%
6/27/2044
190.2
196.7
190.2
196.7
Term Loan
Prime plus 2.75%
6/27/2029
1,128.4
1,128.4
1,125.1
Personal and Laundry Services
Food Services and Drinking
Places
Motor Vehicle and Parts Dealers
Building Material and Garden
Equipment and Supplies Dealers
Merchant Wholesalers,
Nondurable Goods
Amusement, Gambling, and
Recreation Industries
Truck Transportation
Administrative and Support
Services
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
4/27/2030
6/27/2029
Term Loan
Prime plus 2.75%
6/27/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/26/2029
Truck Transportation
Term Loan
Prime plus 2.75%
6/26/2029
Paper Manufacturing
Food Services and Drinking
Places
Support Activities for Mining
Transit and Ground Passenger
Transportation
Social Assistance
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
6/26/2044
Term Loan
Prime plus 2.75%
6/26/2044
Term Loan
Prime plus 2.75%
6/26/2044
Term Loan
Prime plus 2.75%
6/26/2029
Term Loan
Prime plus 2.75%
6/26/2044
Term Loan
Prime plus 2.75%
6/26/2029
Paper Manufacturing
Term Loan
Prime plus 2.75%
12/26/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/25/2029
F-35
See accompanying notes to consolidated financial statements.
358.5
262.6
197.2
39.6
8.6
978.7
199.3
224.8
0.11 %
0.08 %
0.06 %
0.01 %
— %
0.29 %
0.06 %
0.07 %
0.33 %
0.05 %
0.03 %
0.09 %
0.06 %
0.01 %
0.08 %
0.02 %
0.19 %
0.03 %
0.04 %
0.10 %
0.03 %
0.03 %
174.0
103.7
313.3
223.7
51.7
229.9
74.3
564.1
93.0
144.0
362.3
104.9
95.1
174.0
103.7
313.3
223.7
51.7
229.9
74.3
564.1
93.0
144.0
362.3
104.9
95.1
162.2
96.7
292.6
214.7
49.0
262.6
82.7
644.5
87.3
152.3
356.3
110.3
94.2
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Vanchoc Transport Inc
Spartan Technology Solutions,
Inc
Worldwide Capital Management
Inc.
Professional Tire Limited
Liability Company
567 Logistics, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Paradise Towing & Recovery Inc (#,^)
Krsto, LLC dba Italian Butter
Breadsticks
(#,^)
Sweets By Karla LLC
Scissor Kids Inc
Peninsula Self Defense LLC
Small Batch Creations Inc. dba
The Office Bar & Grill
Port Diesel L.L.C.
LuLuBelle's Mountain Banana
Bread LLC
William Rose Inc
Campuscuts LLC
Central Texas Hygiene, LLC.
International Institute for
Learning Inc.
Beck's Pub & Grill LLC
Zion Motors Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
Bader Furniture Company Inc.
(#,^)
Bonadi Inc. dba Polished Salon
(#)
American Demolition, Inc
JLM Consulting LP
(#,^)
(#,^)
137 3rd St, Brooklyn, NY 11231
125 Venture Blvd, Spartanburg,
SC 29306
6 Venture Ste 305, Irvine, CA
92618
6655 Country Rd 32, Norwich,
NY 13815
1924 Ruffin Mill Rd, Colonial
Heights, VA 23834
1115 S. Horner Blvd, Sanford, NC
27330
34683 Nova Dr, Clinton Twp, MI
48035
3273 South John Young Parkway,
Kissimmee, FL 34746
63 Hebron Ave, Ste F,
Glastonbury, CT 6033
2766 Bay Rd, Redwood City, CA
94063
295 E WASHINGTON AVE,
SUNNYVALE, CA 94086
3212 Alex Trask Drive, Castle
Hayne, NC 28429
1063 Carousel Rd, Lake
Arrowhead, CA 92352
1 Grace Cove Rd, New
Shoreham, RI 2807
930 Robtrice Ct, Edmond, OK
73430
10201 McKalla Place, Austin, TX
78758
110 E 59th St ,31st floor, New
York, NY 10022
N6630 WI-49, Weyauwega, WI
54983
6949 Wall Triana Hwy, Madison,
AL 35757
704 N Liberty St, Shamokin, PA
17872
9858 W Sample Rd, Coral
Springs, FL 33065
401 N Kuner Rd, Brighton, CO
80601
3981 E Dunrobin Dr., Springfield,
MO 65809
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Repair and Maintenance
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
6/25/2029
Term Loan
Prime plus 2.75%
6/25/2044
Term Loan
Prime plus 2.75%
6/25/2029
Term Loan
Prime plus 2.75%
6/25/2044
Term Loan
Prime plus 2.75%
6/25/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/25/2044
39.0
477.0
129.8
136.2
44.7
71.7
39.0
477.0
129.8
136.2
44.7
71.7
37.6
511.3
117.9
147.8
42.1
81.8
Food Manufacturing
Term Loan
Prime plus 2.75%
6/24/2044
186.3
186.3
205.5
Food Manufacturing
Term Loan
Prime plus 2.75%
6/24/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/24/2029
Educational Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/21/2029
Term Loan
Prime plus 2.75%
6/21/2029
Repair and Maintenance
Term Loan
Prime plus 6.5%
6/21/2029
11.5
14.5
4.7
54.3
11.4
11.5
14.5
4.7
54.3
11.4
10.4
13.3
4.4
49.4
11.8
Food Manufacturing
Term Loan
Prime plus 2.75%
12/21/2045
250.0
250.0
272.6
Term Loan
Prime plus 2.75%
6/19/2029
268.5
268.5
243.8
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/21/2044
Personal and Laundry Services
Administrative and Support
Services
Educational Services
Food Services and Drinking
Places
Motor Vehicle and Parts Dealers
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 6.5%
6/21/2029
Term Loan
Prime plus 2.75%
6/20/2029
Term Loan
Prime plus 2.75%
6/19/2044
Term Loan
Prime plus 2.75%
6/19/2044
Term Loan
Prime plus 2.75%
6/19/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/17/2029
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/17/2029
Term Loan
Prime plus 2.75%
6/17/2029
F-36
See accompanying notes to consolidated financial statements.
85.4
6.8
77.5
85.4
6.8
77.5
85.9
7.1
70.4
68.4
59.3
6.7
11.4
174.0
17.7
68.4
59.3
6.7
11.4
174.0
17.7
76.0
64.2
7.0
11.8
182.4
16.1
0.01 %
0.15 %
0.03 %
0.04 %
0.01 %
0.02 %
0.06 %
— %
— %
— %
0.01 %
— %
0.08 %
0.03 %
— %
0.02 %
0.07 %
0.02 %
0.02 %
— %
— %
0.05 %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Comarco Quality Pork Products
Inc, Comarco Pork Products of
FL LLC
Kego 2 LLC dba Jon Smith Subs
80025
A & S Services LLC dba Kona
Ice of Troy
Law Office of Paula Padilla
PLLC
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
J&A Elliott Company
Neely Motorsports, Inc dba Earl's
Store #1;Earl's Performance
Plumbing
Throop Family Holding Inc dba
Klamath Basin Metals and
Supply
Johnny's Boy LLC
Allison K. Chipak dba Still
Photography
Skin Beauty Bar Inc
Jamestown Quick Stop LLC
Preferred Manufacturing Services
Inc
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
Oasis Senior Advisors Franchise
Systems, LLC
(#,^)
Evoke Growth Advisory LLC
G.S.A.T. Restoration Inc. dba
Paul Davis Restoration &
Remodeling
(#,^)
(#,^)
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
501 Jackson St, Camden, NJ 8104 Food Manufacturing
2001 W. Southlake Blvd Ste 143,
Southlake, TX 76092
3888 Lightner Rd, Vandalia, OH
45377
2211 E Highland Ave Ste 130,
Phoenix, AZ 85016
199-211 Central Ave, Orange, NJ
7080
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
1118 Thornberry Dr, Clarksville,
TN 37043
Nonstore Retailers
Nonstore Retailers
Truck Transportation
Personal and Laundry Services
Motor Vehicle and Parts Dealers
Motor Vehicle and Parts Dealers
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/14/2029
277.7
277.7
267.5
Term Loan
Prime plus 2.75%
11/14/2029
Term Loan
Prime plus 2.75%
6/14/2044
Term Loan
Prime plus 6.5%
6/13/2029
Term Loan
Prime plus 2.75%
6/12/2029
Term Loan
Prime plus 2.75%
6/11/2044
Term Loan
Prime plus 2.75%
6/11/2029
Term Loan
Prime plus 2.75%
6/11/2029
Term Loan
Prime plus 2.75%
6/10/2029
Term Loan
Prime plus 6.5%
6/10/2029
Term Loan
Prime plus 2.75%
6/7/2029
98.4
43.9
4.6
213.8
96.8
223.5
68.2
182.8
11.4
9.4
98.4
43.9
4.6
213.8
96.8
223.5
68.2
182.8
11.4
9.4
91.8
48.7
4.7
217.3
107.5
208.7
62.7
177.9
11.8
9.8
0.08 %
0.03 %
0.01 %
— %
0.06 %
0.03 %
0.06 %
0.02 %
0.05 %
— %
— %
15825-15827 Hawthorne Blve,
Lawndale, CA 90260
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/7/2044
236.4
236.4
260.0
0.08 %
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
3097 24th Ave, Hudsonville, MI
49426
4261 Business Drive, Cameron
Park, CA 95682
24870 Burnt Pine Drive, Bonita
Springs, FL 34134
2600 Brookwood Way Drive,
Unit 311, Rolling Meadows, IL
60008
1450 Oakbrook Dr, Norcross, GA
30093
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/7/2029
Term Loan
Prime plus 2.75%
6/7/2044
Term Loan
Prime plus 6.5%
6/6/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/6/2029
Term Loan
Prime plus 2.75%
6/5/2044
35.8
99.4
11.4
4.7
68.2
35.8
99.4
11.4
4.7
68.2
34.1
108.6
11.8
4.3
73.7
0.01 %
0.03 %
— %
— %
0.02 %
0.13 %
Food and Beverage Stores
Fabricated Metal Product
Manufacturing
Lessors of Nonfinancial
Intangible Assets (except
Copyrighted Works)
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/5/2029
425.1
425.1
445.4
Term Loan
Prime plus 2.75%
6/4/2029
272.5
272.5
281.6
0.08 %
Term Loan
Prime plus 2.75%
6/3/2029
6.7
6.7
6.1
— %
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/31/2029
104.5
104.5
97.0
0.03 %
F-37
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
V & M Transportation LLC
Martin Inventory Management,
LLC
Morey Publishing LLC
SSD Designs, LLC
Aspen Welding LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Inside & Out Maintenance LLC (#,^)
AGR, Inc
(#,^)
Brooklyn Breakfast Shop LLC
(#,^)
Canela Media Inc
PD Financial LLC
SV Enterprise LLC dba Haagen-
Dazs
MCM Design LLC
Top Notch Roofing, Inc
2820 US HWY 98 N LLC dba
Total Package Car Wash
McGuckin & Pyle Inc
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#)
(#,^)
Clowers Trucking By Faith LLC (#)
Gratitude Training, LLC
ES&A, INC., A LAW
CORPORATION
Bloomquist Communications Inc.
dba FastSigns
Anchor Up Fitness and Nutrition,
LLC
Kappa Investments LLC dba
Buddy's Home Furnishings
Covalent Holding LLC
BD Branson Victorian LLC dba
Branson Surrey Inn
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1307 27th St Apt B, North
Bergen, NJ 7047
304 1/2 Main St, Edgefield, SC
29824
575 Underhill Blvd, Ste 216,
Syosset, NY 11791
486 Vance St, Forest City, NC
28043
28803 US-6, Rifle, CO 81650
1698 SW Pancoast St, Port St
Lucie, FL 34987
2-255555 Kaumualii Hwy,
Kalaheo, HI 96741
7707 S IH 35 Frontage Rd #730,
Austin, TX 78744
2715 Palomino Circle, La Jolla,
CA 92037
364 Parsippany Rd, Unit 7-B,
Parsippany, NJ 7054
1885 Briargate Pkwy, Space D-
413, Colorado Springs, CO 80920
5926 Vinings Vintage Way,
Mableton, GA 30126
46 Cherry St, Milton, VT 5468
2820 US Hwy 98 N, Lakeland,
FL 33805
120 Corporate Ln, New Bern, NC
28562
705 E Brookwood PL, Valdosta,
GA 31601
1901 N Federal Hwy, Ste 212,
Pompano Beach, FL 33062
1003 Bishop St, Honolulu, HI
96813
131 East Trinity Place, Decatur,
GA 30030
2464 US-29, Pensacola, FL
32505
365 Lowe's Drive, Ste H,
Danville, VA 24540
18 West Chestnut St,Unit 2F,
Chicago, IL 60610
430 a/k/a 450 South Hwy 165,
Branson, MO 65616
Term Loan
Prime plus 2.75%
5/31/2029
Term Loan
Prime plus 2.75%
5/31/2029
Term Loan
Prime plus 2.75%
5/31/2029
Term Loan
Prime plus 2.75%
5/30/2044
Term Loan
Prime plus 2.75%
5/30/2044
Term Loan
Prime plus 2.75%
5/30/2029
Term Loan
Prime plus 2.75%
5/29/2044
Term Loan
Prime plus 2.75%
5/29/2029
11.7
44.4
55.6
415.8
399.4
89.0
770.8
4.4
11.7
44.4
55.6
415.8
399.4
89.0
770.8
4.4
Term Loan
Prime plus 2.75%
5/29/2029
105.6
105.6
Truck Transportation
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Chemical Manufacturing
Fabricated Metal Product
Manufacturing
Administrative and Support
Services
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/28/2044
Term Loan
Prime plus 2.75%
8/24/2029
Term Loan
Term Loan
Prime plus 6.5%
Prime plus 2.75%
5/23/2029
5/23/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/23/2029
Machinery Manufacturing
Term Loan
Prime plus 2.75%
5/23/2044
Truck Transportation
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Miscellaneous Manufacturing
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 6.5%
5/23/2029
Term Loan
Prime plus 2.75%
5/22/2029
Term Loan
Prime plus 2.75%
5/22/2029
Term Loan
Prime plus 2.75%
5/21/2029
Rental and Leasing Services
Term Loan
Prime plus 2.75%
5/17/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
5/17/2029
Accommodation
Term Loan
Prime plus 2.75%
5/17/2029
F-38
See accompanying notes to consolidated financial statements.
35.7
82.5
8.8
109.3
118.6
301.1
11.2
68.2
35.7
82.5
8.8
109.3
118.6
301.1
11.2
68.2
13.3
18.0
385.6
219.8
227.0
13.3
18.0
385.6
219.8
227.0
Term Loan
Prime plus 2.75%
5/22/2029
100.0
100.0
10.6
46.2
50.8
470.4
439.0
81.3
868.4
4.2
99.2
40.4
75.1
9.1
101.9
123.2
331.1
11.6
62.0
91.5
12.3
17.4
351.4
214.8
237.8
— %
0.01 %
0.01 %
0.14 %
0.13 %
0.02 %
0.26 %
— %
0.03 %
0.01 %
0.02 %
— %
0.03 %
0.04 %
0.10 %
— %
0.02 %
0.03 %
— %
0.01 %
0.10 %
0.06 %
0.07 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
CJNR LLC dba Chenney Bear
Cafe, Elma Lodge & Suites,
Parkhurst Motel
Cut To The Chase 502 LLC
AMP Trucking Inc
Two Pie Lovers LLC dba Pizza
Outpost
The Lobster Pot Inc
Aloha To Go LLC
Crystal D. Walls dba Crystal's
Cleaning Service
Blue Country Firearms LLC
NYM Solutions Inc.dba NYM
Solutions, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#)
Folklore Music Exchange LLC
(#,^)
EPIFAB,LLC
Global Enterprises LLC dba
Verdi Pizza
(#,^)
(#,^)
Life View Prenatal Imagery, LLC (#,^)
Mark Garvin dba Tipsy Canyon
Winery
(#,^)
Art Amore Studios, LLC
Modern Trousseau, LLC
DeVega Juice Co, - East Cobb,
LLC dba Clean Juice Johnson
Ferry
Midlothian Hardware, Inc dba
Grills True Value
Sona USA, Inc
Pellegrin Marine Transportation,
LLC
ASM Partners LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Jones Roger Sherman Inn, Inc.
(#,^)
208 East Main St, Elma, WA
98541
6903 Lakegreen Ct, Louisville,
KY 40291
1030 Gettysburg Ave, Clovis, CA
93161
302 E. Millitary Hwy U1122,
Brackettville, TX 78832
119 Hope St, Bristol, RI 2809
5903 Seminole Blvd, Seminole,
FL 33772
26 Cooper Rd, Byhalia, MS
38611
221 N Main St, Kingsfisher, OK
73750
12150 SW 128th St CT Ste 209,
Miami, FL 33186
617 Tennessee Ave, Charleston,
WV 25302
1341 Brooks St Unit D, Ontario,
CA 91762
3111 S Valley View Blvd, Las
Vegas, NV 89102
312 79th Ave North, Myrtle
Beach, SC 29572
150 Upper Joe Creek Rd,
Manson, WA 98831
6507 Jester Blvd, Ste #107,
Austin, TX 78750
125 Bradley Rd, Woodbridge, CT
6525
1205 Johnson Ferry Rd Ste 124,
Marietta, GA 30068
475 West 147th St, Midlothian, IL
60445
15280 NW 79th Ct Ste 109,
Miami Lakes, FL 33016
117 Country Village Drive,
Raceland, LA 70394
1619 Roberts Drive SE,
Mableton, GA 30126
195 Oenoke Ridge, New Canaan,
CT 6840
Accommodation
Food Services and Drinking
Places
Truck Transportation
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Insurance Carriers and Related
Activities
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/10/2044
Term Loan
Prime plus 2.75%
5/10/2044
Term Loan
Prime plus 2.75%
11/9/2029
Term Loan
Prime plus 6.5%
5/9/2029
Term Loan
Prime plus 2.75%
5/8/2044
Term Loan
Prime plus 6.5%
5/6/2029
Term Loan
Prime plus 2.75%
5/6/2029
Term Loan
Prime plus 2.75%
5/3/2029
Term Loan
Prime plus 2.75%
5/3/2029
Ambulatory Health Care Services Term Loan
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
5/3/2029
16.7
3.0
231.9
42.7
360.6
13.8
9.1
20.5
11.3
4.6
18.9
18.5
5.4
16.7
3.0
231.9
42.7
360.6
13.8
9.1
20.5
11.3
4.6
18.9
18.5
5.4
17.5
2.9
210.6
47.5
401.9
12.6
9.4
21.7
11.7
4.1
18.0
16.8
5.1
0.01 %
— %
0.06 %
0.01 %
0.12 %
— %
— %
0.01 %
— %
— %
0.01 %
— %
— %
Prime plus 2.75%
5/3/2044
103.6
103.6
118.2
0.03 %
Educational Services
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Telecommunications
Support Activities for
Transportation
Nonstore Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
5/3/2029
4.9
4.9
4.5
— %
Term Loan
Prime plus 2.75%
5/1/2029
277.8
277.8
279.9
0.08 %
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
4/29/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/25/2029
57.0
35.3
145.7
116.8
215.6
132.1
57.0
35.3
145.7
116.8
215.6
132.1
58.0
37.0
139.1
111.0
209.7
138.5
0.02 %
0.01 %
0.04 %
0.03 %
0.06 %
0.04 %
F-39
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
La Dolce Vita LLC.
La Dolce Vita, LLC, La Dolce
Vita Watersports LLC, LDV Golf
Cart
Quality Living Medical Alert,
LLC
ER & DC McPherson Holdings,
LLC
All My Best Inc.
2Choice2Friends dba 2 N 1 Salad
Bar and Grill
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Modern Demo & Services LLC (#,^)
Expert Building Services LLC
(#,^)
Bottles on Broadway, LLC
Rello, Inc. dba ID Salon
Cormac Enterprises, Inc
Pranamji Inc dba Ohara's
Beverage Spot
Bill Berger LLC
Samco Food Corp dba C-Town
Supermarket
P. Moss Enterprises, LLC dba
Garage Experts-Mid Atlantic
Gilpin Enterprises, LLC dba Jon
Smith Subs
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Southern Gulf Construction, Inc.
(#,^)
J.T. ONeill Company, LLC
Maxiflex LLC
VRGE Strategies LLC
Georgetown Milling Co, LLC
FRAJOVI Urban Air, LLC dba
Urban Air Trampoline&
Adventure Park
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
196 N. Holiday Rd, Miramar
Beach, FL 32550
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
4/25/2044
459.1
459.1
514.8
0.15 %
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
4/25/2029
441.5
441.5
419.4
196 N. Holiday Rd, Miramar
Beach, FL 32550
1882 Capital Circle NE, Ste 104,
Tallahassee, FL 32308
6957 W Broward Blvd.,
Plantation, FL 33317
4320 Anthony Court Stes 1,2,3,
Rocklin, CA 95677
901 W Braker Lane, Austin, TX
78758
10161 W Park Run Drive, Las
Vegas, NV 89145
74 Roosevelt St, Pequannock
Township, NJ 7440
1083 North Broadway, North
Massapequa, NY 11758
8063 Jericho Turnpike,
Woodbury, NY 11797
1205 38th Ave North, Myrtle
Beach, SC 29577
Social Assistance
Term Loan
Prime plus 2.75%
4/24/2029
Ambulatory Health Care Services Term Loan
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Term Loan
Term Loan
Prime plus 2.75%
9/19/2029
Prime plus 2.75%
4/19/2029
Prime plus 6.5%
4/17/2029
Specialty Trade Contractors
Administrative and Support
Services
Term Loan
Prime plus 2.75%
4/17/2029
Term Loan
Prime plus 2.75%
4/17/2029
Food and Beverage Stores
Term Loan
Prime plus 2.75%
4/17/2029
Personal and Laundry Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 6.5%
4/17/2029
Term Loan
Prime plus 2.75%
4/16/2029
Food and Beverage Stores
2300 Levit Rd, Lorain, OH 44052 Food and Beverage Stores
Performing Arts, Spectator
8728 Tireman Ave, Detroit, MI
48204
Sports, and Related Industries
1761 Nostrand Ave, Brooklyn,
NY 11226
3563 South River Terrace,
Edgewater, MD 21037
17790 State Rd 54, Lutz, FL
33458
367 Pine Island Rd, North Fort
Myers, FL 33903
19972 Willowin Farm Lane,
Purceville, VA 20132
512 Verret St, New Orleans, LA
70114
1155 15th St NW, Washington,
DC 20005
9001 Wentworth Springs Rd,
Georgetown, CA 95634
Real Estate
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Food Services and Drinking
Places
Wood Product Manufacturing
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/16/2044
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
9/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/11/2029
Term Loan
Prime plus 2.75%
4/10/2029
Term Loan
Prime plus 2.75%
4/9/2029
48.6
42.9
55.3
11.3
110.4
18.0
113.7
5.4
19.9
46.0
7.9
88.3
38.8
70.2
98.2
8.6
55.2
87.5
11.3
48.6
42.9
55.3
11.3
110.4
18.0
113.7
5.4
19.9
46.0
7.9
88.3
38.8
70.2
98.2
8.6
55.2
87.5
11.3
47.1
39.4
51.8
11.7
101.4
16.4
104.8
5.6
18.3
49.6
7.2
80.2
36.3
65.3
97.8
7.8
57.8
79.5
10.6
0.12 %
0.01 %
0.01 %
0.02 %
— %
0.03 %
— %
0.03 %
— %
0.01 %
0.01 %
— %
0.02 %
0.01 %
0.02 %
0.03 %
— %
0.02 %
0.02 %
— %
1256 Indian Head Rd, Toms
River, NJ 8755
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
1/8/2030
535.0
535.0
553.9
0.16 %
F-40
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Bose and Avinder, Inc.and
Carmel and Preet Inc
Marnon Enterprise LLC
Ren Investment Group Inc dba
True Positon Manufacturing
J Brothers Enterprises, LLC
La Favorita Radio Network
Royalty Freight Inc.
Key HR Associates, Inc dba
Parents Choice for Kids
Hamsons Inc.
EJ & James Transport LLC
Bhatti LLC dba Auntie Ann's &
Bhatti LLC 1
Reliable Power Group Inc. dba
Batteries + bulbs Pensacola
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Bright Freight Solution, LLC
(#,^)
Pizzaplex L3C
Raven's Place LLC
Bayco Enterprises, Inc
Stillwater Ventures, LLC
NuBe Business Group LLC
Iredell Oral & Facial Surgery,
P.C. dba Johnson Oral Surgery
Felipe Antonio Del Valle M.D.
P.A.
StillBasi Holdings, Inc. dba
Buxton Auto Transport
Knoxville Room Service
Outtasight Careers, LLC dba
Gecko Hospitality
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
28201 Date Palm Drive,
Cathedral City, CA 92234
6713 Biscay Hbr, San Antonio,
TX 78249
40 Sandra Drive, South Windsor,
CT 6074
1101 NW 12TH Ave, Ava, MO
65608
4043 Geer Rd, Hughson, CA
95326
3728 W McKinley Ave, Fresno,
CA 93772
3150 West Park Drive,
Burnsville, MN 55306
4900 Hopyard Rd, Pleasanton,
CA 94588
3100 Drewsky Lane Unit 108,
Fort Mills, SC 29715
7219 Silver Mist Ave, North
Chesterfield, VA 23237
6895 N. 9th Ave Ste B,
Pensacola, FL 32504
1112 N Main St, Manteca, CA
95336
4458 West Vernor Hwy, Detroit,
MI 48209
13031 S Western Ave, Blue
Island, IL 60406
128 Cowesett Ave, West
Warwick, RI 2893
8272 W. Sunset Blvd, Los
Angeles, CA 90048
2140 44th St SE, Ste 201, Grand
Rapids, MI 49508
229 Medical Park Rd, Ste 310,
Mooresville, NC 28117
7190 SW 87th Ave Ste 203,
Miami, FL 33173
9371 Jackson Rd, Sacramento,
CA 95826
10670 Parkside Drive, Knoxville,
TN 37922
109 W Fern St, Tampa, FL 33604
Gasoline Stations
Administrative and Support
Services
Machinery Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
4/5/2029
Term Loan
Prime plus 2.75%
4/5/2029
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2044
Broadcasting (except Internet)
Term Loan
Prime plus 2.75%
3/29/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/29/2029
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Truck Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/29/2044
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/29/2029
52.0
4.2
702.9
627.6
329.3
375.1
443.8
164.4
8.3
145.0
87.7
52.0
4.2
702.9
627.6
329.3
375.1
443.8
164.4
8.3
145.0
87.7
Term Loan
Prime plus 2.75%
3/29/2029
1,039.9
1,039.9
Truck Transportation
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2044
Gasoline Stations
Term Loan
Prime plus 2.75%
3/29/2044
Nonstore Retailers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2044
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/29/2044
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/29/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/29/2029
Food and Beverage Stores
Administrative and Support
Services
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
F-41
See accompanying notes to consolidated financial statements.
39.2
672.4
193.4
339.8
39.9
820.8
13.2
267.2
5.9
45.6
39.2
672.4
193.4
339.8
39.9
820.8
13.2
267.2
5.9
45.6
54.4
3.8
647.6
666.5
307.8
361.1
475.8
149.0
8.0
131.5
79.7
985.5
36.2
727.6
220.7
333.1
45.5
873.3
11.9
252.2
5.5
41.3
0.02 %
— %
0.19 %
0.20 %
0.09 %
0.11 %
0.14 %
0.04 %
— %
0.04 %
0.02 %
0.29 %
0.01 %
0.21 %
0.07 %
0.10 %
0.01 %
0.26 %
— %
0.07 %
— %
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Peak Performance Associates
LLC dba Nova Hypnosis and
Wellnes
Complete Care IT LLC
Turtle Shirts, LLC
Skaggs RV Outlet ,LLC
Cleland Pharmacy LLC
J.C. Pallet Company, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Planet X Tobacco & Gift, LLC
(#,^)
GS Bath Inc
(#,^)
Four Seasons Laser Center 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
Gary Krause dba Gary Krause
Landscaping & Design
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Virginia Industrial Plastics, Inc.
(#,^)
Skyways, LTD
(#,^)
10420 Hunter View Rd, Vienna,
VA 22181
4801 South University Drive Ste
125, Davie, FL 33328
10241 Metro Pkwy# 108, Ft
Myers, FL 33966
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
301 Commerce Drive,
Elizabethtown, KY 42701
202 S First St, Wakeeney, KS
67672
18427 New Kent Hwy,
Barhamsville, VA 23011
900 West Northern Lights Blvd,
Anchorage, AK 99503
5335 E. Kaviland Ave, Fresno,
CA 93725
4720 NW 2nd Ave Unit D104 and
Unit D-105, Boca Raton, FL
33498
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
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/28/2029
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
3/28/2029
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
3/28/2029
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/28/2044
Truck Transportation
Term Loan
Prime plus 2.75%
3/28/2029
Personal and Laundry Services
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%
3/28/2029
Term Loan
Prime plus 2.75%
3/28/2044
Term Loan
Prime plus 2.75%
3/28/2029
Term Loan
Prime plus 2.75%
8/28/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/27/2029
52.6
46.0
47.6
218.9
19.7
394.6
175.8
274.2
12.9
985.2
3.0
45.1
52.6
46.0
47.6
218.9
19.7
394.6
175.8
274.2
47.7
41.8
43.9
229.0
20.6
389.2
200.6
262.5
0.01 %
0.01 %
0.01 %
0.07 %
0.01 %
0.11 %
0.06 %
0.08 %
12.9
12.9
— %
985.2
1,075.1
0.32 %
3.0
45.1
2.9
42.1
— %
0.01 %
0.04 %
0.02 %
— %
Term Loan
Prime plus 2.75%
3/27/2029
144.7
144.7
131.1
65.9
5.0
65.9
5.0
68.9
4.5
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%
3/27/2029
Prime plus 2.75%
3/27/2044
572.0
572.0
615.5
0.18 %
2880 Carol Rd, East York, PA
17402
317 N Farview Ave, Paramus, NJ
7652
489 Hamilton Rd, Jacksonville,
OR 97530
2454 N East Side Hwy,, Elkton,
VA 22827
350 15th St NW, Huron, SD
57350
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/26/2044
1,220.5
1,220.5
1,327.9
Nonstore Retailers
Administrative and Support
Services
Plastics and Rubber Products
Manufacturing
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
3/26/2029
109.6
109.6
Term Loan
Prime plus 2.75%
3/22/2029
Term Loan
Prime plus 2.75%
3/22/2044
Term Loan
Prime plus 2.75%
3/22/2029
5.3
290.0
740.7
5.3
290.0
740.7
99.3
5.1
330.5
676.2
0.39 %
0.03 %
— %
0.10 %
0.20 %
F-42
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Term Loan
Prime plus 2.75%
3/22/2044
1,103.2
1,103.2
1,140.7
J & C May Properties, LLC
(#,^)
Virginia Industrial Plastics, Inc.
(#,^)
Dependable Lawn Care, Inc.
(#,^)
Dependable Lawn Care, Inc.
(#,^)
Pitman Holding LLC
(#,^)
American Trails Transport, LLC (#,^)
Michigan Neurosurgical Institute
P.C.
Mega Trucking LLC and
Olyimpian Industries LLC
(#,^)
(#,^)
Sound Manufacturing Inc
Michigan Neurosurgical Institute,
P.C.,,Optical Spine,LLC, MNI
Great
(#,^)
(#,^)
Marvellous Print & Ship LLC
(#,^)
Frontline Selling LLC
Game Station, Inc.
B & W Towing LLC
Panetcarne Inc.dba Jersey Mike's
Subs Greenfield
Vanchoc Transport Inc
Stepping Stones Children's
Academy LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Screening Services Group, LLC (#,^)
Space Express, LLC
(#,^)
Mill Creek Early Childhood
Program LLC
Alpine Remediation, Inc, T & M
Holdings, LLC
(#,^)
(#,^)
Kalloren Provel LLC
(#,^)
315 Sylamore Ave, Mountain
View, AR 72560
2454 North East Side Hwy,
Elkton, VA 22827
2320 138TH ST, Blue Island, IL
60406
2320 138th St, Blue Island, IL
60406
1116 E Main St, Richmond, VA
23219
8704 Grand Ave, Billings, MT
59106
9400 South Saginaw St, Unit 1,
Grand Blanc, MI 48439
5979 NW 151st St, Miami Lakes,
FL 33014
1 Williams Lane, Old Saybrook,
CT 6475
Building Material and Garden
Equipment and Supplies Dealers
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
3/22/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/21/2029
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/21/2044
Term Loan
Prime plus 2.75%
3/21/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/21/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/20/2029
Truck Transportation
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
3/20/2029
Term Loan
Prime plus 2.75%
3/20/2029
Rental and Leasing Services
Support Activities for
Transportation
Food Services and Drinking
Places
Rental and Leasing Services
9400 South Saginaw St, Unit 1,
Grand Blanc, MI 48439
605 W Main St, Oxford, KS
67119
6505 Shiloh Rd,Units 300,310
and 320, Alpharetta, GA 30005
2917 1st Ave SE, Cedar Rapids,
IA 52402
701 Addison Rd, Painted Post,
NY 14870
23077 Greenfield Rd, Southfield,
MI 48075
137 3rd St, Brooklyn, NY 11231
1655 E Warm Springs Rd, Las
Social Assistance
Vegas, NV 89119
Motion Picture and Sound
8670 Wilshire Blvd, Beverly
Hills, CA 90211
Recording Industries
2775 Burris Rd, Davie, FL 33314 Truck Transportation
510 South Batavia Ave, Batavia,
IL 60510
14252 W 44th Ave Unit F,
Golden, CO 80403
6919 Oak Ridge Commerce Way,
Austell, GA 30168
Social Assistance
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
3/19/2029
Term Loan
Prime plus 2.75%
3/15/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
7/15/2029
3/15/2029
Term Loan
Prime plus 2.75%
3/15/2044
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/14/2029
3/12/2029
Term Loan
Prime plus 2.75%
8/11/2029
Term Loan
Prime plus 2.75%
3/8/2029
F-43
See accompanying notes to consolidated financial statements.
243.0
467.2
186.3
6.6
48.1
158.9
351.0
43.8
243.0
467.2
186.3
6.6
48.1
158.9
351.0
43.8
254.2
443.6
210.0
6.2
45.8
144.6
340.9
39.7
3.0
274.0
230.2
50.4
81.7
76.7
364.9
250.7
126.6
55.8
76.8
3.0
274.0
230.2
50.4
81.7
76.7
364.9
250.7
126.6
55.8
76.8
2.7
286.6
218.9
52.7
75.5
69.5
400.2
232.5
117.3
50.7
74.0
0.34 %
0.07 %
0.13 %
0.06 %
— %
0.01 %
0.04 %
0.10 %
0.01 %
— %
0.08 %
0.06 %
0.02 %
0.02 %
0.02 %
0.12 %
0.07 %
0.03 %
0.01 %
0.02 %
0.09 %
Ambulatory Health Care Services Term Loan
Printing and Related Support
Activities
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
3/19/2029
Prime plus 2.75%
3/19/2029
Prime plus 2.75%
3/20/2044
345.4
345.4
369.6
0.11 %
Term Loan
Prime plus 2.75%
3/8/2044
274.0
274.0
300.7
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Precise Air Systems, Inc
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
NY Scoops LLC dba Cool
Suppliers and Breakneck Road
LLC
Wooter Apparel, Inc
Monkey Bones LLC
Woodard Electric Services, Inc.
Shah Medical Center SC &
Heeena Shyamani
Matrix Z LLC
Merdad Dentistry PLLC dba
Easy Dental Care
Harbor Management Company
Inc dba Jamba Juice
Mia Restoration Inc dba
PuroClean and Puroclean of
Morristown NJ
Citiline Cafe At Jacobs Plaza,
LLC dba Citiline Cafe
Bowl 360 Inc.
Rob Barletta's Hockey School,
Inc
Bowl 360 Inc.
Outler Transportation
Services,LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
5467 W San Fernando Rd, Los
Angeles, CA 90039
76 Ranch Rd a/k/a 3695 Movie
Ranch Rd, Duck Creek, UT
84762
5137 Clareton Dr Ste 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
20 Silver Fox Lane, Sussex, NJ
7461
727 Page Ave., Staten Island, NY
10307
3361 Dayton Xenia Rd,
Beavercreek, OH 45432
1600 Carter Cove Rd, Hayesville,
NC 28904
484 Summit St, Elgin, IL 60120
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
3633 B Hill Rd, Parsippany, NJ
7054
12140 Wickchester Ln STE 130,
Houston, TX 77079
98-18 Rockaway Blvd, Ozone
Park, NY 11417
2130 Providence Hwy, Walpole,
MA 2081
98-18 Rockaway Blvd, Far
Rockaway, NY 11417
3775 Carriage Downs CT SW,
Snellville, GA 30039
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/8/2029
231.0
231.0
211.8
0.06 %
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/8/2044
196.2
196.2
218.4
Food Manufacturing
Term Loan
Prime plus 2.75%
3/8/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/8/2029
Social Assistance
Term Loan
Prime plus 2.75%
3/7/2044
76.8
54.9
21.9
76.8
54.9
21.9
69.6
50.6
24.3
0.06 %
0.02 %
0.01 %
0.01 %
Rental and Leasing Services
Term Loan
Prime plus 2.75%
3/4/2029
138.1
138.1
125.2
0.04 %
Food Manufacturing
Term Loan
Prime plus 2.75%
2/28/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
2/28/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/28/2044
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/28/2029
44.0
43.5
19.0
18.8
44.0
43.5
19.0
18.8
43.6
40.1
21.6
17.3
Hospitals
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 6.5%
2/27/2029
Term Loan
Prime plus 2.75%
2/28/2044
246.6
246.6
255.5
11.1
13.7
11.1
13.7
11.5
12.4
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/26/2029
0.01 %
0.01 %
0.01 %
0.01 %
0.08 %
— %
— %
Food Services and Drinking
Places
Waste Management and
Remediation Services
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Performing Arts, Spectator
Sports, and Related Industries
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
2/22/2029
130.6
130.6
119.6
0.04 %
Term Loan
Prime plus 2.75%
2/21/2029
Term Loan
Prime plus 2.75%
2/20/2029
Term Loan
Prime plus 2.75%
2/19/2029
Term Loan
Prime plus 2.75%
2/19/2029
Term Loan
Prime plus 2.75%
2/19/2029
Term Loan
Prime plus 2.75%
2/19/2029
35.9
42.3
141.6
94.8
121.4
39.8
35.9
42.3
141.6
94.8
121.4
39.8
33.4
38.4
136.6
99.2
110.5
36.6
0.01 %
0.01 %
0.04 %
0.03 %
0.03 %
0.01 %
F-44
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
Fluid Connections LLC dba
BurgerIM
CMLCLEARWATERBEACH.LLC
dba Cousins Maine Lobster
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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 Level,
Hastings-on-Hudson, NY 10706
4119 Gallatin Pike, Nashville, TN
37216
1397 McGuire Rd, Lamar, AR
72846
4291 Shoal Line Blvd, 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 2816
174 El Cerrito Plaza, El Cerrito,
CA 94530
309 Coronado Drive, Clearwater
Beach, FL 33767
Term Loan
Prime plus 2.75%
7/15/2029
100.8
100.8
Term Loan
Prime plus 2.75%
2/15/2029
Term Loan
Prime plus 2.75%
2/14/2029
19.6
13.1
19.6
13.1
93.1
17.8
13.7
Term Loan
Prime plus 2.75%
2/14/2044
134.4
134.4
153.2
Food Services and Drinking
Places
Specialty Trade Contractors
Furniture and Home Furnishings
Stores
Professional, Scientific, and
Technical Services
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%
2/14/2029
Term Loan
Prime plus 2.75%
2/14/2029
Term Loan
Prime plus 2.75%
2/8/2029
Term Loan
Prime plus 2.75%
2/8/2029
Term Loan
Prime plus 2.75%
5/8/2029
Utilities
Term Loan
Prime plus 2.75%
2/8/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/7/2029
Forestry and Logging
Term Loan
Prime plus 2.75%
2/5/2029
Accommodation
Administrative and Support
Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
2/1/2029
Term Loan
Prime plus 2.75%
2/1/2029
Term Loan
Prime plus 2.75%
1/31/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
1/30/2044
54.5
69.9
13.8
3.3
147.3
54.4
1.9
6.0
13.1
50.1
31.3
72.9
54.5
69.9
13.8
3.3
147.3
54.4
1.9
6.0
13.1
50.1
31.3
72.9
49.8
63.4
13.2
3.2
140.1
49.5
1.8
6.3
13.7
46.5
28.4
83.0
Food and Beverage Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Apparel Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/22/2029
214.1
214.1
194.2
Term Loan
Prime plus 2.75%
1/18/2029
Term Loan
Prime plus 2.75%
4/18/2029
Term Loan
Prime plus 2.75%
1/16/2044
Term Loan
Prime plus 2.75%
1/11/2029
Term Loan
Prime plus 2.75%
7/11/2029
71.4
76.9
66.9
54.1
78.1
71.4
76.9
66.9
54.1
78.1
64.7
71.0
76.2
51.7
71.7
F-45
See accompanying notes to consolidated financial statements.
0.03 %
0.01 %
— %
0.05 %
0.01 %
0.02 %
— %
— %
0.04 %
0.01 %
— %
— %
— %
0.01 %
0.01 %
0.02 %
0.06 %
0.02 %
0.02 %
0.02 %
0.02 %
0.02 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
Galt Insurance Group of Bonita
Springs, LLC & Bonita Safety
Institut
Superior Concepts Acquisition
Corp
Nix and Nix Funeral Home North
Inc,
Superior Concepts Acquisition
Corp
American Rewinding of NC Inc
dba MTS
Omega Funeral and Cremation
Services,LLC
Medworxs Inc.
East Breeze LLC dba Historic
Springdale Pub and Eatery
Fave Realty Inc.
Green Valley Landscape
Management Inc. dba Apopka
Mower and Equipment
Reservations Unlimited LLC
BD Branson Victorian LLC dba
Branson Victorian Inn
RM Hawkins LLC
Timios Enterprises Corp dba
Palm Court
LP Industries, Inc and
Playground Packages, LLC
D.A.F.S Transport, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
11694 Sudley Manor Drive,
Manassas, VA 20109
14865 Hwy 92, Woodstock, GA
30188
215 S Persimmon St,, Tomball,
TX 77375
191 Old Tower Hill Rd., South
Kingstown, RI 2879
49045 Van Dyke Ave, Shelby
Charter Township, MI 48317
10911 Bonita Beach Rd SE Unit
104 A & 104B, Bonita Springs,
FL 34135
1710 Tiles Court, Grand Haven,
MI 49417
1621 W. Dauphin St,
Philadelphia, PA 8065
1710 Tiles Ct, Grand Haven, MI
49417
1825 N Rocky River Rd, Monroe,
NC 28110
9503 Kenwood Rd, Cincinnati,
OH 45242
6857 Timbers Drive, Evergreen,
CO 80439
32302 East Historic Columbia
River Hwy, Corbett, OR 97019
74 Larkfield Rd, East Northport,
NY 11731
2975 W Orange Blossom Trail,
Apopka, FL 32712
312 W Main St, Red River, NM
87558
450 South Hwy 165, Branson,
MO 65616
5141 Topaz Drive, Colorado
Springs, CO 80918
1912 N Arlington Heights Rd.,
Arlington Heights, IL 60004
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/11/2029
Gasoline Stations
Term Loan
Prime plus 2.75%
1/4/2029
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
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%
12/28/2043
Term Loan
Prime plus 2.75%
12/28/2043
Term Loan
Prime plus 2.75%
12/28/2028
Term Loan
Prime plus 2.75%
12/28/2028
Term Loan
Prime plus 2.75%
12/28/2043
Term Loan
Prime plus 2.75%
12/27/2028
Term Loan
Prime plus 2.75%
12/27/2043
Real Estate
Term Loan
Prime plus 2.75%
12/27/2043
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/27/2043
Real Estate
Term Loan
Prime plus 2.75%
12/26/2043
Accommodation
Term Loan
Prime plus 2.75%
12/24/2043
2040 Norwood, Lenoir, NC 28645 Miscellaneous Manufacturing
207 S. Teresa St, Monahans, TX
79756
Truck Transportation
Nonstore Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/24/2028
Term Loan
Prime plus 2.75%
12/24/2043
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
F-46
See accompanying notes to consolidated financial statements.
47.2
19.5
210.6
541.6
10.1
18.2
497.4
556.7
105.5
376.5
331.9
9.0
124.5
119.9
450.7
138.1
483.3
257.6
688.3
83.1
564.1
47.2
19.5
210.6
541.6
10.1
18.2
497.4
556.7
105.5
376.5
331.9
9.0
124.5
119.9
450.7
138.1
483.3
257.6
688.3
83.1
564.1
42.8
18.7
190.9
584.0
9.8
20.7
525.1
622.4
99.6
356.4
359.4
8.2
137.8
136.7
483.5
152.9
536.9
246.2
752.4
75.4
571.3
0.01 %
0.01 %
0.06 %
0.17 %
— %
0.01 %
0.15 %
0.18 %
0.03 %
0.11 %
0.11 %
— %
0.04 %
0.04 %
0.14 %
0.05 %
0.16 %
0.07 %
0.22 %
0.02 %
0.17 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Term Loan
Prime plus 2.75%
12/21/2028
322.2
322.2
311.3
0.09 %
Sesolinc GRP, Inc.
The Law Office of Jared E.
Shapiro, P.A
Royalty Freight Inc
(#,^)
(#,^)
(#,^)
Fifth Wheel Truck Stop 001, Inc. (#,^)
Burgess and Dudley,
Incorporated
(#,^)
Diamond Estates LLC
(#,^)
Kyle M Walker DDS, PC
Baseline Health, LLC & Baseline
Health Management, LLC
Precision Bytes LLC dba Tower
Connect
(#,^)
(#,^)
(#,^)
Cammarata Associates LLC
Accel Compression Inc.,Accel
Workover Services Inc dba Mica
Tool
C&D Trucking & Equipment
Service, Inc.
ETS Tree Service Inc and Eastern
Tree Service, Inc
Local Liberty Inc dba The
Wardsboro Country Store
Graff Excavating, Inc
Alaska Motor Home Inc
Flashii App, Inc.
CK Green Partners, LLC dba
Reis and Irvy"s Columbus
Hotel Compete, LLC
Healthy and Fresco LLC
Yellow Fin Marine Services
LLC, K Marine XI, LLC K
Marine VIII, LLC
Roots N Shoots, LLC & Yardplus
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/21/2028
204.3
204.3
192.4
806 Randy Lowery Rd,
Statesboro, GA 30461
7777 Glades Rd, Ste 100, Boca
Raton, FL 33434
3728 W McKinley Ave, Fresno,
CA 93722
3767 South Golden State Blvd,
Fresno, CA 93725
24462 NW 9th Place, Newberry,
FL 32669
110 Court St Ste 1, Cromwell, CT
6416
1402 W Park Ave, Orange, TX
77630
1101 Stewart Ave Ste 104,
Garden City, NY 11530
607 West Magnolia Ave, Fort
Worth, TX 76104
5 Greentree Center, Marlton, NJ
8053
4500 S Country Rd, Odessa, TX
79768
4015 Jennings Rd, Cleveland, OH
44109
4813 Pinson Valley Parkway,
Birmingham, AL 35215
23 Main St, Wardsboro, VT 5355
803 E State St, Toledo, IA 52342
6633 Brayton Drive, Anchorage,
AK 99507
75 E Santa Clara St, San Jose, CA
95113
5010 Augusta Drive, Westerville,
OH 43082
223 W Jackson Blvd, Chicago, IL
60606
1671 Belle Isle Ave Ste 110-
Office C, Mount Pleasant, SC
29464
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/21/2028
Truck Transportation
Term Loan
Prime plus 2.75%
12/21/2028
Gasoline Stations
Term Loan
Prime plus 2.75%
12/21/2028
Construction of Buildings
Term Loan
Prime plus 2.75%
12/21/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2028
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Credit Intermediation and Related
Activities
Term Loan
Term Loan
Prime plus 2.75%
12/21/2028
Prime plus 2.75%
12/21/2028
Prime plus 2.75%
12/21/2028
Rental and Leasing Services
Term Loan
Prime plus 2.75%
6/21/2044
Repair and Maintenance
Administrative and Support
Services
Food and Beverage Stores
Heavy and Civil Engineering
Construction
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Nonstore Retailers
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/21/2043
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/20/2043
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%
3/20/2029
Term Loan
Prime plus 2.75%
12/20/2028
9.7
83.8
88.5
9.7
83.8
88.5
8.7
75.9
80.1
64.4
98.6
102.2
112.0
64.4
166.2
113.6
197.6
150.7
168.0
259.0
53.7
167.5
53.7
64.4
98.6
102.2
112.0
64.4
166.2
113.6
197.6
150.7
168.0
259.0
53.7
167.5
53.7
58.3
89.2
94.2
101.3
58.3
189.7
129.4
189.4
166.9
154.1
250.3
56.1
162.8
48.6
— %
0.02 %
0.02 %
0.06 %
0.02 %
0.03 %
0.03 %
0.03 %
0.02 %
0.06 %
0.04 %
0.06 %
0.05 %
0.05 %
0.07 %
0.02 %
0.05 %
0.01 %
Term Loan
Prime plus 2.75%
2/20/2029
39.6
39.6
37.0
0.01 %
2043 Coteau Rd, Houma, LA
70364
86 Boston Rd, Chelmsford, MA
1824
Rental and Leasing Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/20/2028
Term Loan
Prime plus 2.75%
12/20/2028
401.9
46.4
401.9
46.4
417.5
42.8
0.12 %
0.01 %
F-47
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Accent Comfort Services, LLC (#,^)
The Cromer Company
JejoJesi Corp dba Dukunoo
Jamaican Kitchen, Dunkunoo
Sheldon T Banks and Sheldon T
Banks LLC dba Serenity Funeral
chapel ll
Ventures TBD LLC dba The
Bottle Tree
Cordoba Foods LLC, Multi
Logistics Network Inc, Karina
Mena
Alpha Omega Trucking LLC
YBL Restaurant Group LLC dba
Tropisueno
Healthy Human, LLC
Fitness Orlando LLC & Fitness
Orlando Oviedo, LLC
Aero Consulting and Engineering
Inc
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Peanut Butter & Co., Inc.
Alpha Landscape Contractors,
Inc
Mediterranean Tastes Inc dba
Mediterranean Tastes Since 1974 (#,^)
(#,^)
(#,^)
L&M Services, LLC
Sound Contracting LLC
Sound Contracting LLC
Stony Creek Wellness Group,
LLC
The Miller Center for Esthetic
Excellence,
OC Helicopters LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
5035 W. W.T. Harris Blvd Ste C,
Mecklenburg, NC 28269
9800 NW 78th Ave, Hialeah
Gardens, FL 33016
316 NW 24th St, Miami, FL
33180
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/19/2028
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
G-2340 West Carpenter Rd, Flint,
MI 48505
102 Davis St, Belmont, NC 28012
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/19/2044
Term Loan
Prime plus 2.75%
12/14/2043
4477 E 11th Ave, Hialeah, FL
33013
14432-14452 Stateline Rd,
Brookings, OR 97415
75 Yerba Buena Lane, San
Francisco, CA 94103
1007 Johnnie Dodds Blvd., Ste
123, Mount Pleasant, SC 29464
160 Tuskawilla Rd Ste 1214,
Winter Springs, FL 32708
7941 NW 3rd St, Plantation, FL
33324
119 West 57th St, Ste 300, New
York, NY 10019
2823 Fllintstone Rd, Millers, MD
21102
196-15 Northern Blvd, Flushing,
NY 11318
560 Main St, Milford, UT 84751
148 Holmgren Place, Girdwood,
AK 99587
148 Holmgren Place, Girdwood,
AK 99587
Food Manufacturing
Term Loan
Prime plus 2.75%
12/14/2028
Truck Transportation
Food Services and Drinking
Places
Nonstore Retailers
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
3/14/2029
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
1/14/2029
Food and Beverage Stores
Building Material and Garden
Equipment and Supplies Dealers
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
12/14/2043
Term Loan
Prime plus 2.75%
12/14/2043
Construction of Buildings
Term Loan
Prime plus 2.75%
12/14/2028
264 Church St, Guilford, CT 6437 Ambulatory Health Care Services Term Loan
22 Old Short Hills Rd,,
Livingston, NJ 7039
19711 Campus Drive Ste 260,
Santa Ana, CA 92707
Ambulatory Health Care Services Term Loan
Air Transportation
Term Loan
Prime plus 2.75%
12/14/2043
Prime plus 2.75%
12/13/2043
Prime plus 2.75%
12/13/2028
F-48
See accompanying notes to consolidated financial statements.
59.1
440.2
64.5
410.7
95.9
272.8
60.2
336.5
107.3
236.5
13.2
214.8
286.8
13.5
194.2
191.5
35.9
95.9
378.2
77.1
59.1
440.2
64.5
410.7
95.9
272.8
60.2
336.5
107.3
236.5
13.2
214.8
286.8
13.5
194.2
191.5
35.9
95.9
378.2
77.1
53.9
399.5
61.9
455.0
103.0
257.5
62.9
307.3
97.1
222.5
12.0
194.4
272.2
12.3
211.9
207.4
34.5
106.3
391.2
80.5
0.02 %
0.12 %
0.02 %
0.13 %
0.03 %
0.08 %
0.02 %
0.09 %
0.03 %
0.07 %
— %
0.06 %
0.08 %
— %
0.06 %
0.06 %
0.01 %
0.03 %
0.12 %
0.02 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Plan B Burger LLC
Burton Realty Co., Inc dba
Anchor Realty, Northeast
D for Dream LLC dba Blo Blow
Dry Bar Inc
Tapia Auto Care, LLC dba
Shoreline Quick Lube and Car
Wash
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
EMES Supply, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
White Wilson & Associates LLC (#,^)
B&B Bodega of Delray LLC
Googlyoogly, LLC dba Bi-Rite
Supermarket
Hilltop Wine Shop, Inc dba
Hiltop Wine Shop
Duck's Nuts Inc dba Pet Place
Market
TFE Resources ,LTD
Oregon Medical Training Private
Career School Inc.
ZLM Services LLC
Team Henry, LLC dba Kelly
Automotive of Deltona
Food Service Industry
Consultants Inc.
CET Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
484 Farmington Ave, Hartford,
CT 6105
2200 Michener St, Ste 12,
Philadelphia, PA 19115
460 East 3rd Ave, New York, NY
10016
2 Center Rd,, Old Saybrook, CT
6475
1000 Essington Rd, Ste 111,
Joliet, IL 60435
575 Panama Lane, Bakersfield,
CA 93307
1750 W Lake St, Chicago, IL
60612
119 Brooks Rd, Harwich Port,
MA 2646
18115 62nd Ave NE, Kenmore,
WA 98028
575 Panama Lane, Bakerfield,
CA 93307
119 Brooks Rd, Harwich Port,
MA 2646
35622 Vine St, EastLake, OH
44095
16238 Louis Ave., South Holland,
IL 60473
190 NE 2nd Ave, Delray Beach,
FL 33444
10867 W Jefferson Ave, River
Rouge, MI 46218
7505 Highland Rd, White Lake,
MI 48383
212 Bendigo Blvd. N, North
Bend, WA 98045
11 Easter Court Ste G, Owings
Mills, MD 21117
1126 Gateway Loop, Ste 108,
Springfield, OR 97702
51343 Oro Rd, Shelby Township,
MI 33444
1290 Doyle Rd, Deltona, FL
32725
1465 Kelly Johnson Blvd,
Colorado Springs, CO 80920
4709 N El Capitan Ave. Ste 205,
Fresno, CA 93722
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/13/2029
Real Estate
Term Loan
Prime plus 2.75%
12/13/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/13/2029
903.4
260.4
66.7
903.4
260.4
66.7
854.1
235.6
60.6
0.25 %
0.07 %
0.02 %
Term Loan
Prime plus 2.75%
12/13/2043
948.9
948.9
1,014.3
0.30 %
Repair and Maintenance
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
General Merchandise Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/12/2029
Term Loan
Prime plus 2.75%
12/12/2043
Term Loan
Prime plus 2.75%
1/12/2029
Term Loan
Prime plus 2.75%
12/12/2043
8.8
116.5
221.4
208.8
8.8
116.5
221.4
208.8
8.0
125.2
221.7
233.4
Term Loan
Prime plus 2.75%
12/12/2028
1,074.1
1,074.1
1,047.9
Term Loan
Prime plus 2.75%
1/12/2029
Term Loan
Prime plus 2.75%
1/12/2029
51.6
58.1
51.6
58.1
Term Loan
Prime plus 2.75%
1/11/2029
107.4
107.4
Term Loan
Prime plus 2.75%
12/11/2043
Food and Beverage Stores
Term Loan
Prime plus 2.75%
1/11/2029
Food and Beverage Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/11/2043
Term Loan
Prime plus 2.75%
12/11/2043
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
1/11/2029
Utilities
Term Loan
Prime plus 2.75%
1/11/2029
Educational Services
Administrative and Support
Services
Repair and Maintenance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/11/2029
Term Loan
Prime plus 2.75%
1/10/2029
Term Loan
Prime plus 2.75%
12/10/2043
Term Loan
Prime plus 2.75%
1/7/2029
41.3
13.0
197.1
124.3
37.3
514.1
34.4
34.4
379.9
62.0
41.3
13.0
197.1
124.3
37.3
514.1
34.4
34.4
379.9
62.0
Truck Transportation
Term Loan
Prime plus 2.75%
1/6/2029
1,057.3
1,057.3
F-49
See accompanying notes to consolidated financial statements.
— %
0.04 %
0.07 %
0.07 %
0.31 %
0.01 %
0.02 %
0.03 %
0.01 %
— %
0.06 %
0.04 %
0.01 %
0.14 %
0.01 %
0.01 %
0.12 %
0.02 %
0.29 %
46.8
55.0
99.4
44.3
11.8
211.9
135.5
35.9
479.5
31.2
31.2
407.1
56.4
993.2
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
(#,^)
Metro R Services Inc. and Metal
& Roof Supplies Inc.
Unique Home Solutions Inc. and
Unique Home Solutions of Ohio (#,^)
Consulting Solutions, Inc and
Mark Luciani
Little West LLC, 340 Group
LLC, Retail West LLc, Andrew
W Walker
Levine Daycare Inc dba Kids R
Kids
(#,^)
(#,^)
(#,^)
The Altitude Group LLC
Access Staffing, LLC
York Concrete Corp
Swantown Inn and Spa, LLC
Hernando Beach Motel LLC,The
Purple Cow House o APancake
AInc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Water Station Holdings LLC
(#,^)
Cabrera's Auto Services LLC
Microplex Co, Third Market
LLC
Luxury Furniture, Inc.dba
Venicasa & Luxe Home Interiors (#,^)
(#,^)
(#,^)
Tammy's Place LLC
JJB Production LLC
(#,^)
(#,^)
Albert M Quashie, DDS, PC
(#,^)
Albert M. Quashie, DDS, PC
Sky Wonder Pyrotechnics, LLC
dba Sky Wonder Fire and Safety
Gear Up
Extreme Granite Corp
True Love Christian Academy
LLC
(#,^)
(#,^)
(#,^)
(#,^)
20 Universal Place, Carlstadt, NJ
7072
5550 Progress Rd, Indianapolis,
IN 46241
3000 N Federal Hwy, Ste 1, Fort
Lauderdale, FL 33306
342 South La Brea Ave, Los
Angeles, CA 90036
415 Woodbury Rd, Orlando, FL
32828
949 A Clint Moore Rd, Boca
Raton, FL 33487
360 Lexington Ave 8th Floor,
New York, NY 10017
1 Plumb CT., Huntington Station,
NY 11746
1431 11th Ave SE, Olympia, WA
98501
4291 Shoal Line Blvd, Hernando
Beach, FL 34607
1104 N Keystone Ave,
Indianapolis, IN 46201
2206 N Central Ave, Chicago, IL
60639
244 Spokane Ave, Whitefish, MT
59937
13762 W State Rd 84, Davie, FL
33325
235 North Mosby Ave, Littleton,
NC 27850
458 N 7th St, Newark, NJ 7107
3331 Toledo Terrace Ste 308,
Hyattsville, MD 20782
3331 Toledo Terrace Ste 308,
Hyattsville, MD 20782
3626 CR 203, Liverpool, TX
77577
251 NW 1st St, Deerfield Beach,
FL 33441
466 E Raines Rd, Memphis, TN
38109
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
1/6/2029
Construction of Buildings
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/5/2029
Term Loan
Prime plus 2.75%
1/5/2029
Term Loan
Prime plus 2.75%
1/5/2029
Social Assistance
Term Loan
Prime plus 2.75%
1/5/2029
Specialty Trade Contractors
Administrative and Support
Services
Term Loan
Prime plus 2.75%
1/4/2029
Term Loan
Prime plus 2.75%
1/4/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/3/2043
Accommodation
Term Loan
Prime plus 2.75%
1/3/2029
Accommodation
Term Loan
Prime plus 2.75%
11/30/2043
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/30/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/30/2043
Food and Beverage Stores
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/30/2028
Term Loan
Prime plus 2.75%
12/30/2028
Term Loan
Prime plus 2.75%
1/30/2044
Term Loan
Prime plus 2.75%
12/29/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/29/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
11/29/2043
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
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
F-50
See accompanying notes to consolidated financial statements.
178.5
218.6
50.4
77.1
232.3
122.5
167.1
194.2
11.6
218.2
592.1
78.7
140.9
106.8
426.6
6.3
74.8
63.1
419.9
181.9
40.7
178.5
218.6
50.4
77.1
232.3
122.5
167.1
194.2
11.6
218.2
592.1
78.7
140.9
106.8
426.6
6.3
74.8
63.1
419.9
181.9
40.7
186.7
228.6
45.7
70.6
221.4
111.6
151.5
219.5
12.1
248.4
578.2
86.5
127.7
108.1
483.9
5.7
73.1
68.3
477.9
204.5
45.9
0.06 %
0.07 %
0.01 %
0.02 %
0.07 %
0.03 %
0.04 %
0.06 %
— %
0.07 %
0.17 %
0.03 %
0.04 %
0.03 %
0.14 %
— %
0.02 %
0.02 %
0.14 %
0.06 %
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
1132 Creighton Rd, Pensacola,
FL 32504
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
11/28/2043
87.3
87.3
92.6
0.03 %
Term Loan
Prime plus 2.75%
12/21/2028
1,109.5
1,109.5
1,158.1
Level Up Gaming, Inc
BEK Holdings LLC, Veseli Fine
Art Galleries, LLC, Trusted.com
LLC
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
(#,^)
K & A Automotive Inc
High Desert Transport, Inc.
Saunders Management LLC dba
Northern Light Espresso Bar and
Cafe
Cali Fit Meals
Cocomo Joe's LLC
Beau & HB Inc dba Beau's
Billiard, Bowling & Arcade
Beau & HB Inc dba Beau's
Billard, Bowling & Arcade
Allegro Assisted Living Services
of Texas LLC
Schafer Fisheries Inc.
US Dedicated LLC
Salon Femi LLC
McNeill Stokes
Vancole Investments, Inc. dba
Smoothie King #913
Peter Thomas Roth Labs LLC
and June Jacobs Labs, LLC
Modutech Marine Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
12930 Worldgate Drive, Herndon,
VA 20170
69 Lewis Ave, Atlantic Beach,
NY 11509
45 E Main St, New Palestine, IN
46163
14 Iron St, Ledyard, CT 6339
2120 Plaster Bridge Rd NE,
Atlanta, GA 30324
11013 Kenwood Rd., Cincinnati,
OH 45242
2070 Nooseneck Hill Rd,
Coventry, RI 2816
2015 Woodspring Terrace,
Henderson, NV 89012
536 Spruce St, Scranton, PA
18503
3450 East Orangethrope Ave,
Anaheim, CA 92806
3949 New Rd, Youngstown, OH
44515
100 Village Rd, Port Lavaca, TX
77979
100 Village RD, Port Lavaca, TX
77979
3400 Remington Dr, Plano, TX
75023
21985 Waller Rd, Fulton, IL
61252
13410 SE 26th Circle, Vancouver,
WA 98683
1107 BRd St, Bloomfield, NJ
7003
5372 Whitehall Pl SE, Mableton,
GA 30126
876 Virginia Ave, Hapeville, GA
30354
460 Park Ave, Floor 16, New
York, NY 10022
2218 Marine View Drive,
Tacoma, WA 98422
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/20/2043
Warehousing and Storage
Term Loan
Prime plus 2.75%
12/20/2028
Gasoline Stations
Term Loan
Prime plus 2.75%
11/19/2043
Truck Transportation
Term Loan
Prime plus 2.75%
12/19/2028
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Nursing and Residential Care
Facilities
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/16/2028
Term Loan
Prime plus 2.75%
12/16/2028
Term Loan
Prime plus 2.75%
12/16/2028
Term Loan
Prime plus 2.75%
3/16/2029
Term Loan
Prime plus 2.75%
12/16/2043
Term Loan
Prime plus 2.75%
11/15/2043
Term Loan
Prime plus 2.75%
11/14/2028
75.0
19.2
39.6
644.4
361.7
118.5
66.5
34.6
53.4
0.6
37.6
68.4
58.9
43.7
75.0
19.2
39.6
644.4
361.7
118.5
66.5
34.6
53.4
0.6
37.6
68.4
58.9
43.7
67.8
18.4
41.7
695.7
350.1
132.5
62.2
36.1
48.5
0.5
38.1
74.5
67.0
45.6
Term Loan
Prime plus 2.75%
12/9/2028
374.3
374.3
344.2
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
12/9/2028
Term Loan
Prime plus 2.75%
12/8/2028
Term Loan
Prime plus 2.75%
5/7/2044
Term Loan
Prime plus 2.75%
12/1/2028
Term Loan
Prime plus 2.75%
12/1/2028
6.4
5.8
406.1
277.6
320.5
6.4
5.8
406.1
277.6
320.5
6.3
5.2
436.5
251.1
334.6
F-51
See accompanying notes to consolidated financial statements.
0.34 %
0.02 %
0.01 %
0.01 %
0.21 %
0.10 %
0.04 %
0.02 %
0.01 %
0.01 %
— %
0.01 %
0.02 %
0.02 %
0.01 %
0.10 %
— %
— %
0.13 %
0.07 %
0.10 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Steele Security, LLC dba Signal
88 Security of San Antonio
Abington Caregivers, LLC
C.A.T.I. Armor, LLC
Organic Juice Bar Wexford LLC
dba The OJB "The Organic Juice
Bar"
UK, LLC dba Pita Pit
Ohio Gold & Pawn LLC, Our
New Building LLC and Corey
Fischer
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
(#,^)
(#,^)
Throop Family Holdings, Inc
(#,^)
A-1 Van Sevices, Inc.
SwabCo Inc.
(#,^)
(#,^)
Rami Technology USA, LLC
(#,^)
3970 Everhard Rd, NW, Canton,
OH 44709
4268 Cahaba Heights CT Ste 115,
Vestavia, AL 35243
1152 Main St, Coventry, RI 2816
446 SE Washington St, Hillsboro,
OR 97123
248 W 1st. St Ste 201, Reno, NV
89501
2101 Route 610, Woodbine, NJ
8270
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
6475
8550 United Plaza Blvd., Baton
Rouge, LA 79809
11 Netherwood Terrace, East
Orange, NJ 7017
7130 Crater Lake, White City,
OR 97603
154 Sandy Creek Rd, Verona, PA
15147
2341 East Ellis St, Leveland, TX
79336
10400 NW 33rd St, Miami, FL
33172
11230 West Ave, Ste 2210, San
Antonio, TX 78213
7804 Montgomery Ave Unit 3-6,
Elkins Park, PA 19027
435 Packard Hwy, Charlotte, MI
48813
Administrative and Support
Services
Term Loan
Prime plus 2.75%
10/31/2028
Social Assistance
Term Loan
Prime plus 2.75%
11/30/2043
Apparel Manufacturing
Term Loan
Prime plus 2.75%
10/30/2043
1500 Village Run Rd, Wexford,
PA 15090
20038 West Valley HWY, Kent,
WA 98032
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/30/2029
Term Loan
Prime plus 2.75%
3/30/2029
94.2
121.9
203.9
70.0
53.2
94.2
121.9
203.9
70.0
53.2
86.2
134.3
220.7
64.6
49.4
0.03 %
0.04 %
0.07 %
0.02 %
0.01 %
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
10/26/2028
124.8
124.8
130.3
0.04 %
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%
10/25/2028
Term Loan
Prime plus 2.75%
10/24/2043
Term Loan
Prime plus 2.75%
10/16/2043
8.5
67.2
74.2
8.5
67.2
74.2
7.7
76.1
82.8
Term Loan
Prime plus 2.75%
7/15/2029
141.9
141.9
131.1
— %
0.02 %
0.02 %
0.04 %
— %
0.01 %
0.02 %
0.01 %
— %
0.02 %
0.01 %
0.21 %
0.20 %
0.03 %
0.29 %
0.04 %
5.0
21.8
63.7
37.1
12.7
75.8
44.0
768.2
621.5
90.7
908.2
151.2
5.0
21.8
63.7
37.1
12.7
75.8
44.0
768.2
621.5
90.7
908.2
151.2
4.8
23.7
66.5
41.2
11.5
68.6
39.8
714.2
672.2
90.4
991.4
137.9
Term Loan
Prime plus 2.75%
10/12/2028
Ambulatory Health Care Services Term Loan
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
10/11/2043
Prime plus 2.75%
10/10/2028
Prime plus 2.75%
10/10/2043
Prime plus 2.75%
10/9/2028
Telecommunications
Term Loan
Prime plus 2.75%
10/5/2028
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Transit and Ground Passenger
Transportation
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
10/4/2028
Prime plus 2.75%
9/28/2028
Prime plus 2.75%
9/28/2043
Prime plus 2.75%
9/28/2028
Support Activities for Mining
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
9/28/2043
Term Loan
Prime plus 2.75%
9/28/2028
F-52
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Truck Transportation
Term Loan
Prime plus 2.75%
9/28/2028
450.5
450.5
441.7
0.13 %
Burd Brothers Inc.
La Venezia Corporation dba La
Venezia Ballroom & Robertos
Lounge
Blackwater Diving, LLC
Quality Electric & Data
Blue Seven, LLC
Quality Electric & Data Inc.
Action Barricade Company, LLC
and Barricade Holding LLC
LG Law Center, Inc
TFR Transit Inc, The Free Ride
Inc, South Florida Free Ride
Inc.,Tag-A
Catherine Brandon, PSY.D., Inc
dba Kenneth A Deluca, PH.D., &
Assoc
US Shipping Trans Inc, Esteem
Trucking Inc
Dentistry By Design, P.C
Ace Auto Recovery, Inc.
LTS School, Inc.
Above and Beyond Preschool
LLC
Newsome Mobile Notary LLC
Bhatti LLC, Bhatti 3 LLC, dba
Auntie Annes
Phillip Ramos Upholstery Inc.
D & D Optics Inc dba Sterling
Optical
DC Lofty, LLC,
Southern Services and
Equipment, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4005 Borman Drive, Batavia, OH
45103
4646 SE 11th Place, Cape Coral,
FL 33904
112 Forrest Rd, Morgan City, LA
70380
85 Franklin Rd Unit 9B, Dover,
NJ 7801
11111 San Jose Blvd, Ste 70,
Jacksonville, FL 32223
85 Franklin RD Unit 9B, Dover,
NJ 7801
1802 N 27th Ave, Phoenix, AZ
85009
15452 Amar Rd, La Puente, CA
91744
777 South Flagler Drive Ste
800W, West Palm Beach, FL
33401
35888 Center Ridge Rd, Ste 5 &
6, North Ridgeville, OH 44039
16102 Sweetwater Court,
Lathrop, CA 95330
315 Walt Whitman Rd Ste 204-
205, South Huntington, NY
11746
1209 North Lane Ave,
Jacksonville, FL 32254
3731 NW 9th Ave, Deerfield
Beach, FL 33064
672-678 Camellia Drive, Royal
Palm Beach, FL 33411
8153 12th Ave SW, Seattle, WA
98106
7219 Silver Mist Ave, North
Chesterfield, VA 23237
3835 Elm St, Denver, CO 80207
1487 East LaSalle Drive,
Bismark, ND 58503
301 I St NW, Washington, DC
20001
321 Bayou Rd, Saint Bernard, LA
70085
Food and Beverage Stores
Term Loan
Prime plus 2.75%
9/28/2043
Support Activities for Mining
Term Loan
Prime plus 2.75%
9/27/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
1/27/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2043
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
9/27/2028
Term Loan
Prime plus 2.75%
9/27/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/27/2028
Truck Transportation
Term Loan
Prime plus 2.75%
9/26/2028
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/26/2028
Prime plus 2.75%
9/26/2043
Educational Services
Term Loan
Prime plus 2.75%
9/26/2043
Social Assistance
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/26/2043
Term Loan
Prime plus 2.75%
9/25/2028
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
9/25/2028
9/24/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
9/21/2028
Accommodation
Fabricated Metal Product
Manufacturing
F-53
See accompanying notes to consolidated financial statements.
320.1
670.7
83.8
50.9
125.3
259.0
12.6
320.1
670.7
83.8
50.9
125.3
259.0
12.6
353.8
622.2
82.4
48.0
134.0
255.6
11.7
0.10 %
0.18 %
0.02 %
0.01 %
0.04 %
0.08 %
— %
99.3
706.6
12.6
154.1
97.7
533.8
4.4
105.1
13.0
45.4
18.9
99.3
706.6
12.6
154.1
97.7
533.8
4.4
105.1
13.0
45.4
18.9
90.2
709.3
11.7
170.2
111.2
593.3
4.0
98.3
11.7
41.7
17.2
0.03 %
0.21 %
— %
0.05 %
0.03 %
0.17 %
— %
0.03 %
— %
0.01 %
0.01 %
0.10 %
Term Loan
Prime plus 2.75%
9/27/2028
104.8
104.8
101.3
0.03 %
Term Loan
Prime plus 2.75%
9/21/2028
357.3
357.3
349.3
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Southern Services and
Equipment, Inc.
MillClem Corporation &
Monticello Corporation
The Garden Club, LLC
Tables and Bars Services, Inc and
Tables and Bars Rentals, LLC
Watearth Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Lewis River Golf Course, Inc.
(#,^)
Super Station Inc
Dash Point Distributing LLC,
Dash Point Logistics LLC and
Sara Consal
C3 Capital, Inc
(#,^)
(#,^)
(#,^)
M&P RV LLC dba M&P RV
(#,^)
(#,^)
DB Talak LLC
E & G Enterprises LLC dba
Comfort Keepers
Pastel de Feira LLC dba Original
Pastel De Feira
Glendale Grill Inc, Roddy
Cameron, Jr & John K Symasko (#,^)
(#,^)
(#,^)
Culmination Motorsports, Inc.
(#,^)
L&M Equipment, Inc
J & C Garcia LLC
Baby's on Broadway LLC
Rihahn Inc. dba RDBL, Inc
QBS, LLC dba Sterling Optical
Exton
Innovim LLC
Innovative Network Solutions
Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
321 Bayou Rd, Saint Bernard, LA
70085
16660 Oak St, Dillwyn, VA
22936
125 South DuBuque St, Iowa
City, IA 52240
5051 Peachtree Corners Circle
Ste #200, Norcross, GA 30092
445 South Figuerora Ste 3128,
Los Angeles, CA 90071
3209 Lewis River Rd, Woodland,
WA 98674
8855 N Country Rd 25A, Pique,
OH 45356
35000 Pacific Hwy, Federal Way,
WA 98003
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
4244 Pine Ridge CT, Weston, FL
33331
65 Glendale St, Easthampton,
MA 1027
160 W 91st Ave, Unit B,
Anchorage, AK 99515
Mile 2.5 Alaska Peninsula Hwy,
Naknek, AK 99633
26 BRd St, Alexander City, AL
35010
47 East Broadway, Little Falls,
MN 56345
1397 McGuire Rd, Lamar, AR
72846
211 W Lincoln Hwy, Exton, PA
19341
6401 Golden Triangle Drive Ste
200, Greenbelt, MD 20770
31567 West 10 Mile Rd,
Farmington Hills, MI 48336
Fabricated Metal Product
Manufacturing
Merchant Wholesalers,
Nondurable Goods
Miscellaneous Store Retailers
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/21/2043
Term Loan
Prime plus 2.75%
9/21/2043
Term Loan
Prime plus 2.75%
9/21/2028
Term Loan
Prime plus 2.75%
9/20/2028
Term Loan
Prime plus 2.75%
9/19/2028
Term Loan
Prime plus 2.75%
9/19/2043
Gasoline Stations
Term Loan
Prime plus 2.75%
9/19/2043
Truck Transportation
Term Loan
Prime plus 2.75%
9/19/2028
Nonstore Retailers
Term Loan
Prime plus 2.75%
9/19/2028
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/19/2043
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/18/2043
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Term Loan
Prime plus 2.75%
9/18/2028
Prime plus 2.75%
9/17/2028
Prime plus 2.75%
9/17/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/17/2043
202.3
319.6
5.7
15.5
18.9
482.4
202.1
406.5
535.8
105.4
147.2
5.0
5.1
168.9
539.9
202.3
319.6
5.7
15.5
18.9
482.4
202.1
406.5
535.8
105.4
147.2
5.0
5.1
168.9
539.9
214.8
363.3
5.1
14.8
17.1
548.5
229.8
367.2
533.0
119.8
160.4
4.6
4.9
184.9
611.7
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
9/14/2043
1,206.1
1,206.1
1,330.7
Term Loan
Prime plus 2.75%
9/14/2028
Term Loan
Prime plus 2.75%
9/14/2028
62.0
41.9
62.0
41.9
57.3
40.4
Forestry and Logging
Term Loan
Prime plus 2.75%
9/14/2028
117.4
117.4
112.7
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
9/14/2028
Prime plus 2.75%
9/14/2028
68.1
95.4
68.1
95.4
Prime plus 2.75%
9/13/2028
105.1
105.1
62.1
86.2
97.6
0.06 %
0.11 %
— %
— %
0.01 %
0.16 %
0.07 %
0.11 %
0.16 %
0.04 %
0.05 %
— %
— %
0.05 %
0.18 %
0.39 %
0.02 %
0.01 %
0.03 %
0.02 %
0.03 %
0.03 %
F-54
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/13/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/10/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/7/2028
Repair and Maintenance
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/7/2028
95.4
157.2
18.8
13.1
95.4
157.2
18.8
13.1
108.4
159.0
17.1
12.1
0.03 %
0.05 %
0.01 %
— %
Term Loan
Prime plus 2.75%
9/7/2028
268.9
268.9
242.8
0.07 %
Rental and Leasing Services
Term Loan
Prime plus 2.75%
9/7/2028
270.2
270.2
263.6
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/7/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/7/2043
Term Loan
Prime plus 2.75%
9/6/2028
Term Loan
Prime plus 2.75%
8/31/2043
Term Loan
Prime plus 2.75%
11/30/2028
18.8
87.2
7.6
406.4
12.7
18.8
87.2
7.6
406.4
12.7
17.0
98.7
7.3
462.0
11.7
Term Loan
Prime plus 2.75%
8/30/2043
433.5
433.5
492.9
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/30/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/29/2028
Term Loan
Prime plus 2.75%
8/29/2028
88.1
2.0
76.5
88.1
2.0
76.5
Underground Productions LLC
dba 31 Escape
Rancho Paving, Inc
Pool Guard of LA
MurlinComputerCompany LLC
dba Murlin Computer,
Pelican Executives Suites, LLC
NY Tent, LLC dba Tent Company
of New York LLC, NY Tent
Parent LLC
Dr. G's Urgent Care LLC
Asheville Spine and Nerve
Institute PC
Trolley Express Philly, Inc dba
Shuttlebee &Honeybee
Transportation
Living Centers Inc. dba Veranda
House Senior Living
LACCRB LLC dba PostNet
XL Soccer World Orlando. LLC,
XL Soccer World Saco LLC, XL
Sports World
Stat Constructor L.P
ARVAmethod LLC
Greenfield Hill Wines & Spirits,
LLC
Extreme Engineering, Inc.
Kotyark LLC dba Gibsonton
Motel
Graphish Studio, Inc.
JFK Transportation Inc
Atlas Geo-Constructors LLC
Montana Life Group, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1731 Decatur Hwy, Fultandale,
AL 35068
339 Cypress Lane, El Cajon, CA
92020
10866 Washington Blvd,
Apartment #24, Culver City, CA
90232
1014 Thompson Blvd Ste 38B,
Sedalia, MO 65301
2200 Colorado Ave Sutie 131,
Santa Monica, CA 90404
140141 Lakeland Ave, Bohemia,
NY 11716
1425 S Congress Ave, Delray
Beach, FL 33445
190 Broadway St Ste 205,
Asheville, NC 28801
3401 Market St Ste 200,
Philadelphia, PA 19104
5129 E 5th St, Katy, TX 77493
3250 Retail Dr Ste 120, Carson
City, NV 89706
825 Courtland St., Orlando, FL
32804
9573 US Hwy 220, Stoneville,
NC 27048
516 N Ogden Ave # 150,
Chicago, IL 60642
65 Hillside Rd, Fairfield, CT
6824
598 Oliver Dr, Troy, MI 48084
11545 US Hwy 41S, Gibsonton,
FL 33534
231 Main St, Stamford, CT 6901
4 Mechanic St, Natick, MA 1760
3466 Thomasville Rd Winston,
Winston-Salem, NC 27107
8 N 9th Ave, Bozeman, MT
59715
Support Activities for
Transportation
Nursing and Residential Care
Facilities
Printing and Related Support
Activities
Amusement, Gambling, and
Recreation Industries
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Accommodation
Professional, Scientific, and
Technical Services
Transit and Ground Passenger
Transportation
Specialty Trade Contractors
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
8/29/2028
103.9
103.9
Term Loan
Prime plus 2.75%
8/29/2043
Term Loan
Prime plus 2.75%
8/28/2028
79.5
6.2
79.5
6.2
Term Loan
Prime plus 2.75%
8/28/2028
129.3
129.3
119.0
Term Loan
Prime plus 2.75%
8/24/2028
Term Loan
Prime plus 2.75%
8/24/2028
62.9
6.2
62.9
6.2
64.0
5.6
0.08 %
0.01 %
0.03 %
— %
0.14 %
— %
0.15 %
0.03 %
— %
0.02 %
0.03 %
0.03 %
— %
0.04 %
0.02 %
— %
91.8
1.8
69.8
94.7
90.4
5.6
F-55
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Finn & Emma LLC
Wearware Inc dba FlyWire
Cameras
Zash LLC dba Papa Murphy's
take 'N' Bake Pizza
Buffalo Biodiesel Inc.
Ginekis Enterprises, Inc dba
Locanda Veneta
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
Crystal Shores Inc. dba
Shorewood Laundromat
Palanuk & Associates, Inc.dba
Wolfpk
CJNR, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Mercedes Cab Company, Inc
(#,^)
(#,^)
(#,^)
Ron's Pool and Spa Services LLC (#,^)
Alma Jacobsen,ODD Family Eye
Care & Contact Lens LLC
20th Century Lanes, Inc dba
West Seattle Bowl
Millwork Unlimited,
Incorporated
Accel Compression Inc., Accel
Workover Services, Inc
Accel Compression Inc., Accel
Workover Services Inc. dba Mica
Tool
Samy Optical LLC dba Site for
Sore Eyes
(#,^)
(#,^)
(#,^)
(#,^)
1275 Bloomfield Ave Building 5
Unit 28B, Fairfield, NJ 7004
2204 Blackmoor Park Lane,
Lexington, KY 40509
2303 White Bear Ave,
Maplewood, MN 55025
225 Sawyer Ave, Tonawanda, NY
14150
8638 W Third St, Los Angeles,
CA 90048
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
700 West Jefferson St,
Shorewood, IL 60404
28110 SE Fern Drive, Boring, OR
97009
208 East Main St, Elma, WA
98541
35 Alden St, Province Town, MA
2657
1419 NE 30th St., Pompano, FL
33064
1700 Nottingham Way Ste 12A,
Hamilton, NJ 8619
4505 39 Ave SW, Seattle, WA
98116
8264 Pine Cay Rd, Wellington,
FL 33414
4500 S Country Rd, Odessa, TX
79765
4500 S. Country Rd 1310,
Odessa, TX 79765
1350 Travis Blvd Ste 1507A,
Fairfield, CA 94533
Term Loan
Prime plus 2.75%
8/24/2028
101.7
101.7
Term Loan
Prime plus 2.75%
8/24/2028
Term Loan
Prime plus 2.75%
8/23/2028
18.7
35.1
18.7
35.1
91.9
17.2
33.4
Term Loan
Prime plus 2.75%
8/21/2028
1,053.1
1,053.1
1,066.9
Clothing and Clothing
Accessories Stores
Computer and Electronic Product
Manufacturing
Food Services and Drinking
Places
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Air Transportation
Professional, Scientific, and
Technical Services
Truck Transportation
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Accommodation
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
8/20/2028
Term Loan
Prime plus 2.75%
2/17/2044
Term Loan
Prime plus 2.75%
8/16/2028
Term Loan
Prime plus 2.75%
8/16/2028
Term Loan
Prime plus 2.75%
8/15/2028
Term Loan
Prime plus 2.75%
11/14/2028
Term Loan
Prime plus 2.75%
8/10/2028
Term Loan
Prime plus 2.75%
8/9/2028
Term Loan
Prime plus 2.75%
8/8/2028
Term Loan
Prime plus 2.75%
8/7/2043
Term Loan
Prime plus 2.75%
8/7/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/3/2028
Health and Personal Care Stores
Amusement, Gambling, and
Recreation Industries
Wholesale Electronic Markets and
Agents and Brokers
Term Loan
Prime plus 2.75%
8/3/2028
Term Loan
Prime plus 2.75%
8/3/2028
Term Loan
Prime plus 2.75%
8/2/2028
0.03 %
0.01 %
0.01 %
0.31 %
0.02 %
0.04 %
0.05 %
— %
0.14 %
0.01 %
— %
0.01 %
0.02 %
0.04 %
0.03 %
— %
0.01 %
0.03 %
— %
72.0
123.4
169.6
15.0
478.2
36.7
9.4
18.6
85.2
117.3
108.1
3.1
50.1
96.0
6.2
72.0
123.4
169.6
15.0
478.2
36.7
9.4
18.6
85.2
117.3
108.1
3.1
50.1
96.0
6.2
65.4
135.7
167.2
13.5
485.1
34.8
8.4
17.5
77.6
133.4
100.8
2.8
45.9
96.1
5.6
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/1/2043
289.6
289.6
312.5
0.09 %
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/1/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
8/1/2028
388.8
88.6
388.8
88.6
386.4
80.1
0.11 %
0.02 %
F-56
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Term Loan
Prime plus 2.75%
7/27/2028
451.8
451.8
432.3
0.13 %
Term Loan
Prime plus 2.75%
7/26/2028
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
7/25/2028
7/20/2028
Term Loan
Prime plus 2.75%
7/17/2028
6.3
4.9
52.0
8.5
6.3
4.9
52.0
8.5
5.7
4.4
46.9
8.2
Term Loan
Prime plus 2.75%
7/17/2043
253.2
253.2
287.9
CSL Services Inc
Nunez Enterprises Corporation
dba La Casa
(#,^)
(#,^)
Relevant Elephant ,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
US Cargo Express, LLC
Bio-Haz Solutions, Inc
Bio-Haz Solutions, Inc.
M J Losito Electrical
Contractor's, Inc
Corptek Solutions LLC
Critter Cabana, LLC dba Critter
Cabana
National Dredging Services of
North Florida, Inc.
National Dredging Services of
North Florida, Inc.
Julie Cooper-Bierman dba
Forever Shopper
Darnoc Enterprises Inc, Setira
Paul Inc dba Conrad's Famous
Bakery
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
7905 Browning Rd,
Ste.312,314,316, Pennsauken, NJ
8109
3330 Piedmont RD NE, Atlanta,
GA 30305
ON320 Woodvale St, Winfield, IL
60190
158 Great Rd, Bedford, MA 1730
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 South 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
4735 22 Mile Rd, Utica, MI
48317
23 Tonolli Rd, Nesquehoning, PA
18240
23 Tonoli Rd, Nesquehoning, PA
18240
98 Wooster St, Bethel, CT 6801
2363 N. Hwy # 287 Ste # 111,
Mansfield, TX 76063
516 East Main St, Newberg, OR
97132
1537 Northwest Main Blvd., Lake
City, FL 32055
1537 Northwest Main Blvd., Lake
City, FL 32055
7435 Piute Creek Dr, Corona, CA
92881
299 Utica Ave, Brooklyn, NY
11203
Professional, Scientific, and
Technical Services
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Truck Transportation
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Motion Picture and Sound
Recording Industries
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Support Activities for
Transportation
Waste Management and
Remediation Services
Waste Management and
Remediation Services
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
7/13/2028
Term Loan
Prime plus 2.75%
7/13/2028
Term Loan
Prime plus 2.75%
7/13/2028
Term Loan
Prime plus 2.75%
7/12/2028
Term Loan
Prime plus 2.75%
7/3/2028
Term Loan
Prime plus 2.75%
7/3/2028
Term Loan
Prime plus 2.75%
7/2/2043
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
5/29/2044
Term Loan
Prime plus 2.75%
6/29/2028
Term Loan
Prime plus 2.75%
6/28/2028
— %
— %
0.01 %
— %
0.08 %
0.02 %
0.01 %
0.01 %
— %
0.01 %
0.07 %
0.03 %
0.07 %
0.12 %
0.01 %
0.01 %
0.02 %
0.01 %
0.01 %
— %
56.7
17.4
51.6
8.9
51.6
256.8
81.5
217.3
358.2
18.8
38.9
56.9
27.6
43.5
13.1
56.7
17.4
51.6
8.9
51.6
256.8
81.5
217.3
358.2
18.8
38.9
56.9
27.6
43.5
13.1
52.1
18.2
46.6
9.2
48.2
254.2
94.9
226.2
399.3
18.8
37.9
55.5
32.1
45.8
12.8
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
6/28/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/27/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/27/2028
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/27/2028
Food Manufacturing
Term Loan
Prime plus 2.75%
6/27/2043
341.7
341.7
392.8
0.12 %
F-57
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
InUSA Ventures, Inc
Nick's Country Kitchen, LLC
Bengals, Inc. dba Royal Liquor
Mart
Peter Thomas Roth Labs LLC, &
June Jacobs Labs, LLC,
Sun Pools, Inc
Sun Pools, Inc dba Sun
Fiberglass Pools
DPF Filters Inc.
Martha Beauty Supply And
Braiding, Inc.
Sushi Prime, LLC and Vasilia
Investments
Mr. Lube, Inc
Mr. Lube, Inc.
The Desert House Assisted
Living ,LLC dba The Desert
House Assisted
York Woods Tree Service, LLC
dba York Woods Tree and
Products, LLC
Independent Life LLC
York Woods Tree Service, LLC
dba York Woods Tree and
Products, LLC
Mid America Motorworks, Inc
and Yager Holdings L.P
Colovic Hackettstown Dairy
LLC
Jones Roger Sherman Inn, Inc.
Allen Theatre and Back Stage
Cafe LLC
Schumacker Recreation, LLC
Softrol Systems Inc dba Softrol
Systems
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
508 Hyacinthus Court, San
Ramon, CA 94582
3 Flanders RD, Building #1,
Bethlehem, CT 6751
3714 E State St, Rockford, IL
61108
460 Park Ave, Floor 16, New
York, NY 10022
130 Holiday LN, Albany, KY
42602
130 Holiday Lane, Albany, KY
42602
2832 Golden State Blvd., Madera,
CA 93637
538 E Boughton Rd,
Bolingbrook, IL 60440
32 SE 2nd Ave, Delray Beach, FL
33444
721 E Westpoint Drive., Wasilla,
AK 99654
721 E. West Point Drive, Wasilla,
AK 99654
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/27/2028
Term Loan
Prime plus 2.75%
6/27/2028
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/26/2043
Health and Personal Care Stores
Plastics and Rubber Products
Manufacturing
Plastics and Rubber Products
Manufacturing
Merchant Wholesalers, Durable
Goods
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/26/2028
Term Loan
Prime plus 2.75%
6/25/2043
Term Loan
Prime plus 2.75%
6/25/2028
Term Loan
Prime plus 2.75%
6/25/2028
Term Loan
Prime plus 2.75%
6/22/2043
Term Loan
Prime plus 2.75%
6/22/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/22/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/22/2028
40.9
18.4
102.1
757.1
294.0
639.6
56.3
134.1
224.9
654.6
516.8
40.9
18.4
102.1
757.1
294.0
639.6
56.3
134.1
224.9
654.6
516.8
39.9
18.1
115.8
750.0
323.5
635.8
55.6
155.9
226.0
734.9
526.1
0.01 %
0.01 %
0.03 %
0.22 %
0.10 %
0.19 %
0.02 %
0.05 %
0.07 %
0.22 %
0.16 %
11055 E Grove St, Mesa, AZ
85208
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
6/22/2043
75.6
75.6
86.8
0.03 %
300 Harold Dow Hwy, Eliot, ME
3903
4955 S Durango Drive, Ste124,
Las Vegas, NV 89113
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
6/21/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/21/2028
300 Harold Dow Hwy, Elliot, ME
3903
2900 North 3rd St, Effingham, IL
62401
22 Route 57, Hackettstown, NJ
7840
195 Oenoke Ridge, New Canaan,
CT 6840
36 East. Main St, Annville, PA
17003
5325 S University Drive, Davie,
FL 33328
1100 Northpoint Pkwy SE,
Acworth, GA 30102
Building Material and Garden
Equipment and Supplies Dealers
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Food Services and Drinking
Places
Motion Picture and Sound
Recording Industries
Amusement, Gambling, and
Recreation Industries
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
6/21/2043
Term Loan
Prime plus 2.75%
6/19/2043
Term Loan
Prime plus 2.75%
6/19/2043
Term Loan
Prime plus 2.75%
6/19/2028
Term Loan
Prime plus 2.75%
6/18/2043
Term Loan
Prime plus 2.75%
6/18/2028
Term Loan
Prime plus 2.75%
6/15/2028
116.6
100.7
233.9
273.3
264.0
369.0
121.1
122.9
721.6
116.6
100.7
233.9
273.3
264.0
369.0
121.1
122.9
721.6
120.0
98.2
264.7
317.7
306.6
388.5
139.6
129.5
709.0
0.04 %
0.03 %
0.08 %
0.09 %
0.09 %
0.11 %
0.04 %
0.04 %
0.21 %
F-58
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Northway Exit 29 Campground,
Inc dba Adirondacks Jellystone
Parks
Oil Palace Inc.
(#,^)
(#,^)
Venzix Ventures Inc. dba Venzix (#,^)
Dianne Williams and Louis
Williams dba Sweetlips Store
(#,^)
Tele Tax Express Inc
(#,^)
Team Sandy Blanton Realty, Inc (#,^)
E & J Sims Co. LLC
Mastiff Studios LLC
Ciasom LLC dba Mosaic
Beyond Grooming LLC and
Michelle McWatters
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Camp K-9 Pet Resort & Spa, Inc. (#,^)
Skyways LTD,Jet 60
LLC,Mendean Jonath, Inc,Jet
AOG, Inc & Jonathan Men
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
Hardway Inc and A F C Leasing,
Inc
Sowells Consulting Engineers,
LLC
Funtime ,LLC dba Indoor
Playgrounds International
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
SSD Designs LLC
Mastrocinque Restaurant
Management Company LLC dba
Santionii's
(#,^)
(#,^)
4035 Blue Ridge Rd, North
Hudson, NY 12855
10408 Hwy 64 East, Tyler, TX
75707
750 Legend Oak Drive, Fountain,
CO 80817
3870 Sweet Lips Rd, Henderson,
TN 38340
166 Getty Ave, Paterson, NJ 7503
1225 West Gregory St, Pensacola,
FL 32502
28 BRd St, Bloomfield, NJ 7003
2919 West Colorado Ave,
Colorado Springs, CO 80904
1040-1042 Richard Ave, Santa
Clara, CA 95050
1200 Old Martindale Rd, San
Marcos, TX 78666
18501 Le Claire Ave, Tinley Park,
IL 60478
426 15th St NW, Huron, SD
57350
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 6107
12533 S. 73rd East Place, Bixby,
OK 74008
13430 Northwest Freeway #260,
Houston, TX 77040
13200 West Foxfire Drive Ste
144, Surprise, AZ 85378
10840 Bay Hill Club Drive,
Charlotte, NC 28277
Accommodation
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
6/15/2043
Term Loan
Prime plus 2.75%
9/15/2043
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/15/2028
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Real Estate
Amusement, Gambling, and
Recreation Industries
Educational Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/15/2043
Term Loan
Prime plus 2.75%
6/14/2028
Term Loan
Prime plus 2.75%
6/14/2043
Term Loan
Prime plus 2.75%
6/14/2028
Term Loan
Prime plus 2.75%
6/13/2043
207.8
139.5
10.8
44.4
18.4
93.1
40.9
41.1
207.8
139.5
10.8
44.4
18.4
93.1
40.9
41.1
241.5
162.4
11.1
50.9
19.0
104.2
40.6
47.6
Term Loan
Prime plus 2.75%
6/11/2028
147.3
147.3
144.1
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
6/8/2043
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/8/2028
Support Activities for
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/8/2043
Term Loan
Prime plus 2.75%
6/8/2028
Social Assistance
Term Loan
Prime plus 2.75%
6/7/2043
Accommodation
Term Loan
Prime plus 2.75%
6/7/2043
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/6/2043
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
6/6/2028
Term Loan
Prime plus 2.75%
6/6/2028
Term Loan
Prime plus 2.75%
6/5/2028
Term Loan
Prime plus 2.75%
6/5/2028
41.3
6.8
365.3
665.1
48.0
126.1
132.7
246.8
18.4
211.2
61.4
41.3
6.8
365.3
665.1
48.0
126.1
132.7
246.8
18.4
211.2
61.4
47.8
6.6
411.3
655.4
55.5
146.6
149.4
240.6
18.0
206.0
60.2
0.07 %
0.05 %
— %
0.01 %
0.01 %
0.03 %
0.01 %
0.01 %
0.04 %
0.01 %
— %
0.12 %
0.19 %
0.02 %
0.04 %
0.04 %
0.07 %
0.01 %
0.06 %
0.02 %
3535 Hwy 17 Unit 14 &15,
Fleming Island, FL 32003
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/1/2028
51.3
51.3
53.5
0.02 %
F-59
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
BTD Feed & Nutrition, LLC dba
Thomaston Feed Cheshire
Awan Business Management
Group LLC, Awan Sign
Company LLC
Seraj Wireless, LLC
Eagle Aggregate Transportation,
LLC
Crowley Ventures, LLC
Iloka, Inc dba New Cloud
Networks
Adow Pools LLC
Ocean Breeze Holdings, LLC,
Ocean Beach Resort LLC &
Ocean Breeze
Broadalbin Properties LLC dba
Broadalbin Hotel & 1854 Pub &
Eatery
Dream Spa LLC and Dream Spa
Greenwich LLC
Starship, LLC dba Tint World
Smyrna
DMA Equipment LLC
Chem-Flotronics, Inc.
Yakov Levy M.D., P.C.
Mark A Espinoza, DDS PLLC
dba Central Dental Care
On Stage Enterprises LLC, On
Stage Theaters Branson, LLC, On
Stage
JVLS LLC dba Vaccines 2 Go
Joshua One Limited Liability
Company dba Genesis Personal
Fitness
Clore Construction LLC
James T. Hendel dba Autotexx
Mobile Auto Repair
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
943 South Main St, Cheshire, CT
6410
14429 South Wallin Drive,
Plainfield, IL 60544
132 Madison Ave, Albany, NY
12202
4401 N I-35 Ste #113, Denton,
TX 76207
665 Worthington Rd, Westerville,
OH 43082
160 Inverness Drive. W Ste 150,
Englewood, CO 80112
393 Glenbrook Rd, Stamford, CT
6906
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
6/1/2028
39.4
39.4
38.4
0.01 %
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
5/31/2043
Electronics and Appliance Stores
Term Loan
Prime plus 2.75%
5/31/2028
Truck Transportation
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
5/30/2028
Term Loan
Prime plus 2.75%
5/29/2028
Term Loan
Prime plus 2.75%
5/25/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/25/2028
264.8
101.5
72.9
60.6
202.9
141.9
264.8
101.5
72.9
60.6
202.9
141.9
303.2
106.8
72.9
59.6
204.3
140.2
0.09 %
0.03 %
0.02 %
0.02 %
0.06 %
0.04 %
3 Williams Ave, Mystic, CT 6355 Accommodation
Term Loan
Prime plus 2.75%
5/25/2043
1,245.1
1,245.1
1,447.4
0.43 %
59 West Main St, Broadalbin, NY
12025
1220 Post Rd East, Westport, CT
6880
2274 S Atlanta Rd SE, Smyrna,
GA 30080
700 Lee St, Elk Grove Village, IL
60007
195 Paterson Ave, Little Falls, NJ
7424
70-31 108th St, Forest Hills, NY
11375
9315 N Central Ave, Phoenix, AZ
85020
4570 W Post Rd Ste #100, Las
Vegas, NV 89118
4060 Johns Creek Parkway, Ste
H,, Suwanee, GA 30024
28 North State St Unit 100,
Newtown, PA 18940
21220 FM 1420, Harlingen, TX
78550
5857 Hwy101 North, Rockmart,
GA 30153
Accommodation
Term Loan
Prime plus 2.75%
10/25/2043
195.5
195.5
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/25/2028
Term Loan
Prime plus 2.75%
5/25/2043
Repair and Maintenance
Merchant Wholesalers, Durable
Goods
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
5/22/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/18/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/18/2028
Term Loan
Prime plus 2.75%
5/24/2043
251.5
251.5
83.5
94.5
83.5
94.5
81.2
27.4
51.0
81.2
27.4
51.0
228.0
81.9
109.1
284.2
80.1
26.9
49.8
0.07 %
0.02 %
0.03 %
0.08 %
0.02 %
0.01 %
0.01 %
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
5/17/2028
205.2
205.2
200.0
0.06 %
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/17/2028
6.9
6.9
6.7
— %
Amusement, Gambling, and
Recreation Industries
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
5/16/2043
Term Loan
Prime plus 2.75%
5/16/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/15/2028
308.0
121.5
6.1
308.0
121.5
6.1
346.7
122.1
6.4
0.10 %
0.04 %
— %
F-60
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
8216 Main St, Williamsville, NY
14221
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
5/15/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/14/2028
Educational Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
5/11/2028
Term Loan
Prime plus 2.75%
5/11/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/11/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/11/2043
Social Assistance
Term Loan
Prime plus 2.75%
5/10/2028
14.8
3.7
35.4
9.1
28.4
41.9
9.1
14.8
3.7
35.4
9.1
28.4
41.9
9.1
15.5
3.6
34.6
8.9
27.6
47.8
8.9
Educational Services
Term Loan
Prime plus 2.75%
5/9/2043
696.7
696.7
809.9
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
Buy Gitomer Inc., Gitgo
LLC.,GitGo Archives, LLC, and
Jeffrey Gitomer
Schmaltz Operations LLC dba
Companion Camp
Container Shipping, LLC
Wilbur Standford Jr Trucking and
Excavating, LLC
Olmsted LLC and 626 Van LLC
dba Maison Yaki
Metropolitan Solutions Inc.
Brenden Kehren Development
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Sunlinc Inc
Corona Dance, LLC dba Huracan
Dance Studio
(#,^)
(#,^)
Saltamontes Tire Company, LLC (#,^)
Rory James Contracting LLC
(#,^)
Kastoria Inc. dba Bantam Pizza
(#,^)
Suraj Enterprises, Inc.
Little Angels Daycare and
Learning Center LLC
RWT Corporation dba Welding
Works
(#,^)
(#,^)
(#,^)
5714 Edmondson Pike Ste 24,
Nashville, TN 37211
50 Forest St Ste 902, Stamford,
CT 6901
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
310 Arlington Ave Unit 329,
Charlotte, NC 28203
3408 Castle Rock Farm Rd,
Pittsboro, NC 27312
533 Nova Rd Ste 213B, Ormond
Beach, FL 32174
7505 North Chases Lake Rd,
Watson, NY 13343
659 Vanderbilt Ave, Brooklyn,
NY 11238
1420 Chestnut St, Portsmouth,
VA 23704
14689 Gemara Rd, Sparta, WI
54656
170 Canterbury Court, East
Windsor, NJ 8520
480 West Main St, Stamford, CT
6902
1955 Boston Ave, Brodgeport,
CT 6604
33 Bennett Place, Amityville, NY
11701
768 Bantam Rd, Bantam, CT
6750
11720 W. Airport Rd, Meadows
Place, TX 77477
4551 Summit Blvd, West Palm
Beach, FL 33415
32 New Rd, Madison, CT 6443
Personal and Laundry Services
Support Activities for
Transportation
Specialty Trade Contractors
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
5/7/2028
Term Loan
Prime plus 2.75%
5/4/2028
Term Loan
Prime plus 2.75%
5/3/2028
Term Loan
Prime plus 2.75%
2/1/2029
Term Loan
Prime plus 2.75%
4/30/2043
Term Loan
Prime plus 2.75%
4/30/2028
Term Loan
Prime plus 2.75%
4/30/2028
Term Loan
Prime plus 2.75%
4/30/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/30/2043
Construction of Buildings
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/27/2028
Term Loan
Prime plus 2.75%
4/27/2028
Food and Beverage Stores
Term Loan
Prime plus 2.75%
4/27/2028
Social Assistance
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
4/27/2043
Term Loan
Prime plus 2.75%
4/26/2028
F-61
See accompanying notes to consolidated financial statements.
48.7
40.6
194.8
202.0
169.8
2.4
7.8
9.6
98.2
12.9
12.1
251.1
153.9
343.5
48.7
40.6
194.8
202.0
169.8
2.4
7.8
9.6
98.2
12.9
12.1
251.1
153.9
343.5
— %
— %
0.01 %
— %
0.01 %
0.01 %
— %
0.24 %
0.01 %
0.01 %
0.06 %
0.06 %
0.06 %
— %
— %
— %
49.8
39.6
201.2
200.9
187.0
2.4
7.7
9.4
112.2
0.03 %
12.6
11.8
255.0
179.0
344.8
— %
— %
0.08 %
0.05 %
0.10 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Prime plus 2.75%
4/26/2043
204.0
204.0
225.2
Pledge 4 Hope LLC
LMH Optics LLC dba Sterling
Optical
K&S Hardware LLC
Matrix Z, LLC
RWT Corporation dba Welding
Works
Joe & Sons Service, Inc
Just for Boats 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
Southern HVAC LLC
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
(#,^)
(#,^)
(#,^)
(#,^)
53 Bayberry Loop South, Purvis,
MS 39475
1272 Smallwood Dr West,
Waldorf, MD 20603
1865 W Wayzata Blvd, Long
Lake, MN 55356
800 SW 21st Terrace, Ft
Lauderdale, FL 33312
32 New Rd, Madison, CT 6443
855 Atwood Ave, Cranston, RI
2920
459 Dupre Rd, McClellanville,
SC 29458
3761 Mahoning Ave,
Youngstown, OH 44515
5400 Crooked Tree Drive, Mason,
OH 45040
4150 Legacy Drive N Ste # 412,
Frisco, TX 75034
221 W Judge Perez Drive,
Chalmette, LA 70043
945 Riverview Ct, Xenia, OH
45385
308 E BRd St, Bethlehem, PA
18018
119 Ouachita 212, Camden, AZ
71701
15253 Shenandoah Ave, BATON
ROUGE, LA 70817
119 Ouachita 212, Camden, AR
71701
35 E Main St, Pekin, IN 47165
190 Doty Circle, West
Springfield, MA 1089
57 Passaic St, Garfield, NJ 7026
1653 Evalie Dr, Fairfield, OH
45014
1 International Blvd, Ste 400,
Mahwah, NJ 7495
8153 12th Ave SW, Seattle, WA
98106
3307 Charles St, Rockford, IL
61108
Data Processing, Hosting, and
Related Services
Term Loan
Prime plus 2.75%
4/26/2028
Ambulatory Health Care Services Term Loan
Building Material and Garden
Equipment and Supplies Dealers
Nonmetallic Mineral Product
Manufacturing
Fabricated Metal Product
Manufacturing
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
4/26/2028
Prime plus 2.75%
4/26/2028
Prime plus 2.75%
4/26/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/24/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2043
Health and Personal Care Stores
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
4/18/2028
Term Loan
Prime plus 2.75%
4/18/2028
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
4/18/2028
Prime plus 2.75%
4/18/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
4/18/2043
Term Loan
Prime plus 2.75%
4/17/2043
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/17/2028
Term Loan
Prime plus 2.75%
4/13/2043
Miscellaneous Manufacturing
Personal and Laundry Services
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
4/11/2028
4/10/2043
Truck Transportation
Term Loan
Prime plus 2.75%
4/9/2028
Truck Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
4/6/2028
Term Loan
Prime plus 2.75%
4/5/2028
12.1
40.2
18.1
65.3
12.1
40.2
18.1
65.3
11.8
39.3
17.7
67.8
84.2
16.8
57.8
12.1
5.7
12.9
37.7
83.8
21.6
84.2
16.8
57.8
12.1
5.7
12.9
37.7
83.8
21.6
88.7
19.5
65.7
11.8
5.5
12.6
37.5
94.2
24.1
31.8
40.2
18.1
194.0
7.9
41.2
4.2
31.8
40.2
18.1
194.0
7.9
41.2
4.2
32.4
45.9
18.5
224.3
7.8
42.2
4.1
— %
0.01 %
0.01 %
0.02 %
0.07 %
0.03 %
0.01 %
0.02 %
— %
— %
— %
0.01 %
0.03 %
0.01 %
0.12 %
0.01 %
0.01 %
0.01 %
0.07 %
— %
0.01 %
— %
Term Loan
Prime plus 2.75%
4/17/2043
351.2
351.2
405.2
Gasoline Stations
Term Loan
Prime plus 2.75%
4/5/2043
114.9
114.9
131.6
0.04 %
F-62
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Bean City Bar and Grill LLC
B&C Texas Leasing Inc.,M & W
Hot Oill, Inc
(#,^)
(#,^)
Master Roofing and Siding Inc.
(#,^)
Fifth Wheel Truck Stop 001
Michael S Brown Physical
Therapy, P.C
Alaska Industrial Paint LLC
Romancing the Stone
America's Little Leaders
Academy, Inc
Payne's Environmental Services
LLC
Technical Ordnance
Solutions,LLC
GQ Investments,LLC
Alaska Industrial Paint LLC
B&C Texas Leasing Inc and
M&W Hot Oil, Inc.
Kaz Wellness, LLC dba
Grounded Wellness Center
Lou & Choo Enterprises Inc.
Cartwright Termite & Pest
Control Inc. and Cartwright
Termite &Pest Co
Clancy 15 LLC and Allied
Molded Products LLC
Corning Lumber Company Inc &
Frank R Close & Son Inc dba
True Valley
Montage Mountain Resorts, LP
Clancy 15 LLC and Allied
Molded Products LLC
K.C. Communications, Inc.
Towing Professionals of Arizona
Inc dba Shamrock Towing & All
Valley
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
N 2505 Bean City Rd, New
London, WI 54961
8124 Sprague Rd, Odessa, TX
79764
25 Robert Pitt Dr Ste 213,
Monsey, NY 10952
3767 S Golden State Blvd,
Fresno, CA 93725
300 Hempstead Tpke Ste. 3 & 4,
Hempstead, NY 11552
229 Whitney Rd, Unit B,
Anchorage, AK 99501
140 Centre of New England Blvd,
Coventry, RI 2816
2570 NW 152nd Terrace, Opa-
Locka, FL 33054
5617 Causeway Blvd, Tampa, FL
33619
9950 Business Circle, Ste 13,
Naples, FL 34112
5772 Miami Lakes Drive East,
Miami, FL 33014
229 Whitney Rd Unit B,
Anchorage, AK 99501
8124 Sprague Rd, Odessa, TX
73764
104 Clover Court, Bartlett, IL
60103
2101 West Hunting Park Ave,
Philadelphia, PA 19140
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/4/2043
Truck Transportation
Term Loan
Prime plus 2.75%
3/30/2043
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/30/2028
71.6
259.7
211.5
71.6
259.7
211.5
83.2
291.8
205.8
Gasoline Stations
Term Loan
Prime plus 2.75%
3/30/2043
1,094.4
1,094.4
1,221.9
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/30/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/30/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/30/2043
Term Loan
Prime plus 2.75%
3/30/2043
Term Loan
Prime plus 2.75%
3/30/2028
Social Assistance
Administrative and Support
Services
Fabricated Metal Product
Manufacturing
Electrical Equipment, Appliance,
and Component Manufacturing
Term Loan
Prime plus 2.75%
3/30/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/30/2043
Truck Transportation
Term Loan
Prime plus 2.75%
3/30/2028
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/29/2028
Prime plus 2.75%
3/28/2044
Term Loan
7.75%
3/30/2028
1,060.0
1,060.0
78.0
99.6
333.7
21.5
180.9
78.0
99.6
333.7
21.5
180.9
168.0
213.3
780.9
12.7
104.0
178.2
207.0
168.0
213.3
780.9
12.7
104.0
178.2
207.0
75.9
103.8
378.6
24.7
183.8
946.7
165.5
243.8
796.9
12.7
117.3
180.7
232.1
1376 Broadway, El Cajon, CA
92021
1145 13th Ave East, Palmetto, FL
34221
Administrative and Support
Services
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
3/28/2028
Term Loan
Prime plus 2.75%
3/28/2043
111 E. Laurel St, Willows, CA
95988
1000 Montage Mountain Rd,
Scranton, PA 18505
1145 13th Ave East, Palmetto, FL
34221
2715 Saturn St, Brea, CA 92821
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Plastics and Rubber Products
Manufacturing
Telecommunications
2801 W Osborn Rd, Phoenix, AZ
85017
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
3/28/2028
69.8
69.8
73.4
Term Loan
Prime plus 2.75%
3/28/2043
1,195.6
1,195.6
1,389.8
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/28/2028
3/27/2028
126.3
49.9
126.3
49.9
128.3
52.4
Term Loan
Prime plus 2.75%
3/26/2043
515.3
515.3
568.0
0.17 %
0.02 %
0.09 %
0.06 %
0.36 %
0.02 %
0.03 %
0.11 %
0.01 %
0.05 %
0.28 %
0.05 %
0.07 %
0.23 %
— %
0.03 %
0.05 %
0.07 %
0.02 %
0.41 %
0.04 %
0.02 %
F-63
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Cable Management, LLC
Aque Investment Group LLC
Shweiki Media Inc dba Study
Breaks Magazine
Denton BioFuels LLC and
Amercian BioSource, LLC
All Regional Recyclers of Wood
LLC dba ARROW
Sunshine Tents and Event
Rentals LLC
Kajun Martial Arts LLC
Sofasco, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
New York Label & Box Corp
(#,^)
GeoTek Alaska, Inc
Rexco Foods LLC dba Papa
John's
RTSP Union LLC
Cest Chic Concepts, LLC dba
Salon Cest Chic
Camerabots Media, LLC
Petroleum Equipment &
Services, Inc
Rojenco II,Inc.
Bear Bones, Inc.
CTD Operations Inc
Rojenco, Inc. dba Buggy Bathe
Auto Wash Lube & Detail
Shoppe
Rojenco, Inc. dba The Buggy
Bathe Auto Wash Lube & Detail
Shoppe
Rojenco II, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
200 Pratt St, Meriden, CT 6450
3838 N. Sam Houston Parkway
E, Houston, TX 77032
4954 Space Center Drive, San
Antonio, TX 78218
624 W. University Drive.#359,
Denton, TX 76201
104 Wooster St, Bethal, CT 6801
2322 SW 58th Terrace, West
Park, FL 33023
36546 Mission St, Prairieville,
LA 70769
182 Garber Lane, Winchester, VA
22602
50 Oval Drive, Islandia, NY
11749
2756 Commercial Drive,
Anchorage, AK 99501
18640 Fm 1488 Ste C, Magnolia,
TX 77354
2438 Route 22 East, Union, NJ
7083
15231 Hall Station Rd Unit 104,
Bowie, MD 20721
4501 Ford Ave Ste 207,
Alexandria, VA 22302
5631 Silverado Way Unit G,
Anchorage, AK 99518
4357 Shore Drive, Virginia
Beach, VA 23455
43 Libson St, Lewiston, ME 4240
219 Saint Nazaire Rd STE G,
Broussard, LA 70518
2217 Richmond Rd,
Williamsburg, VA 23188
2217 Richmond Rd,
Williamsburg, VA 23188
4357 Shore Drive, Virginia
Beach, VA 23455
Waste Management and
Remediation Services
Real Estate
Publishing Industries (except
Internet)
Waste Management and
Remediation Services
Waste Management and
Remediation Services
Rental and Leasing Services
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers, Durable
Goods
Printing and Related Support
Activities
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Personal and Laundry Services
Motion Picture and Sound
Recording Industries
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
64.1
211.9
59.9
72.5
64.1
211.9
59.9
72.5
66.1
222.7
62.9
73.1
Term Loan
Prime plus 2.75%
3/23/2028
104.7
104.7
106.7
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2043
49.5
18.0
95.6
49.5
18.0
95.6
52.0
17.7
106.8
Term Loan
Prime plus 2.75%
3/23/2043
1,197.8
1,197.8
1,362.0
Term Loan
Prime plus 2.75%
3/21/2043
Term Loan
Prime plus 2.75%
3/20/2028
813.0
33.9
813.0
33.9
925.8
33.0
Term Loan
Prime plus 2.75%
9/20/2028
1,009.2
1,009.2
1,019.4
Term Loan
Prime plus 2.75%
3/19/2028
Term Loan
Prime plus 2.75%
3/16/2028
9.0
12.0
9.0
12.0
8.9
11.8
Support Activities for Mining
Term Loan
Prime plus 2.75%
3/16/2028
199.8
199.8
210.0
Repair and Maintenance
Beverage and Tobacco Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/15/2043
Term Loan
Prime plus 2.75%
3/15/2043
Term Loan
Prime plus 2.75%
7/15/2028
73.8
21.5
53.3
73.8
21.5
53.3
84.7
24.8
52.6
0.02 %
0.07 %
0.02 %
0.02 %
0.03 %
0.02 %
0.01 %
0.03 %
0.40 %
0.27 %
0.01 %
0.30 %
— %
— %
0.06 %
0.02 %
0.01 %
0.02 %
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/15/2043
496.4
496.4
568.5
0.17 %
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/15/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/15/2043
73.8
384.9
73.8
384.9
84.7
440.8
0.02 %
0.13 %
F-64
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Summit Insights Group LLC
Dante Ultimate Cleaning Service
LLC
(#,^)
(#,^)
SRG Waterfront LLC
2b Mom Inc dba Mom's the Word
Maternity
Treft Systems Inc
Unpainted Arizona, LLC dba
Westside Bowl
Espinoza & Salinas Group Ltd
dba Credit 360 Consulting
Stepping Stones Childrens
Academy
BC Bishop Enterprises LLC dba
9Round Pooler
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.
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.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
19 Briant Parkway, Summit, NJ
7901
16969 River Park Dr, Covington,
LA 70345
88 District Square SW,
Washington, DC 20005
3150 18th St, Ste 435, San
Francisco, CA 94110
1050 Kings Hwy North Ste #107,
Cherry HIll, NJ 8034
2617 Mahoning Ave,
Youngstown, OH 44509
17806 IH 10Ste 300, SAN
ANTONIO, TX 78257
720 Rancho Del Norte Drive, Las
Vegas, NV 89031
105-107 Grand Central Blvd,
Pooler, GA 31322
20640 Raven Drive, Eagle River,
AK 99577
7405 Lake Worth Rd, Lake
Worth, FL 33467
401 Dillar's Mill Rd, Tyner, NC
27980
2800 S IH-35, Ste 220, Round
Rock, TX 78681
295 D Bucheimer Rd, Fredrick,
MD 21701
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Administrative and Support
Services
Food Services and Drinking
Places
Clothing and Clothing
Accessories Stores
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/14/2028
Term Loan
Prime plus 2.75%
3/9/2028
36.2
8.1
36.2
8.1
35.2
8.2
Term Loan
Prime plus 2.75%
3/9/2028
232.0
232.0
227.6
Term Loan
Prime plus 2.75%
3/9/2028
Term Loan
Prime plus 2.75%
3/8/2028
26.2
12.0
26.2
12.0
25.5
11.7
0.01 %
— %
0.07 %
0.01 %
— %
Term Loan
Prime plus 2.75%
8/7/2043
100.3
100.3
113.9
0.03 %
Term Loan
Prime plus 2.75%
3/2/2028
3.9
3.9
3.9
— %
Social Assistance
Term Loan
Prime plus 2.75%
3/2/2043
243.4
243.4
279.9
0.08 %
Educational Services
Term Loan
Prime plus 2.75%
3/2/2028
Nonmetallic Mineral Product
Manufacturing
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
2/28/2028
Term Loan
Prime plus 2.75%
2/28/2043
Term Loan
8%
2/28/2043
Term Loan
Prime plus 2.75%
2/28/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
2/27/2028
6.7
2.4
113.6
62.9
177.2
59.3
6.7
2.4
113.6
62.9
177.2
59.3
6.6
2.3
131.9
58.9
186.2
58.6
— %
— %
0.04 %
0.02 %
0.05 %
0.02 %
94-33 Corona Ave, Corona, NY
11373
Food Services and Drinking
Places
4308 Holland Rd, Virginia Beach,
VA 23452
1 Mill & Main Pl., Ste 330,
Maynard, MA 1754
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 7828
191-193 Arch St, New Britain,
CT 6051
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
Term Loan
Prime plus 2.75%
2/26/2043
340.0
340.0
394.7
0.12 %
Term Loan
Prime plus 2.75%
2/23/2028
Term Loan
Prime plus 2.75%
2/22/2028
Term Loan
Prime plus 2.75%
2/21/2028
Term Loan
Prime plus 2.75%
2/21/2028
Term Loan
Prime plus 2.75%
2/16/2028
Term Loan
Prime plus 2.75%
2/16/2028
3.8
29.3
33.6
11.9
65.3
52.3
3.8
29.3
33.6
11.9
65.3
52.3
3.7
30.8
33.2
11.5
68.6
54.9
— %
0.01 %
0.01 %
— %
0.02 %
0.02 %
F-65
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Lulinjett LLC dba All American
Printing & Design
(#,^)
Margab Inc dba Smoothie King
(#,^)
JumboMarkets, Inc.
Tony Herring & Associates, Inc.
Start "UP "Dreams, Inc dba SDC
Concrete and Start"UP" Dream
Construct
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
Chace Building Supply of CT
Inc.,
USA General Investment LLC
dba Braniff Paint and Body Shop (#,^)
(#,^)
(#,^)
(#,^)
Rocco'sLandscaping LLC
WydeBodi, LLC dba Wyde Bodi
Auto Tags
New Phaze Packaging Inc
Concrete Services LLC and
James Ward
Parati USA Inc
Flair Interiors, Inc dba Giant
Don's Flooring America
Tier1 Solutions LLC
Friend Contractors, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Weeping Willow Kennels, Inc.
(#,^)
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
30521 134th St SE, Sultan, WA
98294
1040 4th Ave, Audubon, IA
50025
800 Village Walk #159, Guilford,
CT 6437
128 North Woodland Blvd,
Deland, FL 32720
2425 Durrance LN, Ormond
Beach, FL 32174
4751 West 147th St, Midlothian,
IL 60445
90 Route 171, Woodstock, CT
6281
2290 NW 21st Terrace, Miami,
FL 33142
151 Kitts Lane, Newington, CT
6111
706 North 37th St, Philadelphia,
PA 19104
9533 Irondale Ave, Los Angeles,
CA 91311
24 County Rd 901, Jemison, AL
35085
1018 Wilt Ave, Ridgefield, NJ
7657
7725 Old Seward Hwy,
Anchorage, AK 99502
1000 Essington Rd, Juliet, IL
60435
1950 Mill Bay Rd, Kodiak, AK
99615
6041 Hammond School Rd,
Salisbury,, MD 21804
Printing and Related Support
Activities
Food Services and Drinking
Places
Food and Beverage Stores
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
2/14/2043
Term Loan
Prime plus 2.75%
2/13/2028
Term Loan
Prime plus 2.75%
2/13/2028
Term Loan
Prime plus 2.75%
2/9/2028
101.5
10.1
164.2
6.5
101.5
10.1
164.2
6.5
117.9
10.0
163.0
6.9
Specialty Trade Contractors
Fabricated Metal Product
Manufacturing
Telecommunications
Food Services and Drinking
Places
Repair and Maintenance
Building Material and Garden
Equipment and Supplies Dealers
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
2/9/2028
58.9
58.9
59.2
Term Loan
Prime plus 2.75%
2/9/2028
1,107.1
1,107.1
1,127.0
Term Loan
Prime plus 2.75%
2/8/2028
Term Loan
Prime plus 2.75%
2/7/2028
Term Loan
Prime plus 2.75%
2/5/2028
Term Loan
Prime plus 2.75%
2/2/2028
413.6
64.1
9.5
11.9
413.6
64.1
9.5
11.9
402.4
63.7
10.0
12.5
Term Loan
Prime plus 2.75%
1/31/2043
286.1
286.1
332.1
0.10 %
Repair and Maintenance
Administrative and Support
Services
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
1/31/2028
Term Loan
Prime plus 2.75%
1/31/2043
Term Loan
Prime plus 2.75%
1/30/2043
11.8
71.5
45.3
11.8
71.5
45.3
11.6
83.0
51.8
Paper Manufacturing
Term Loan
Prime plus 2.75%
1/26/2043
914.6
914.6
1,061.0
Specialty Trade Contractors
Merchant Wholesalers,
Nondurable Goods
Furniture and Home Furnishings
Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/25/2028
Term Loan
Prime plus 2.75%
1/25/2028
78.4
13.3
78.4
13.3
78.9
12.9
Term Loan
Prime plus 2.75%
1/24/2028
107.8
107.8
113.3
0.03 %
Term Loan
Prime plus 2.75%
1/23/2028
5.9
5.9
5.8
— %
Construction of Buildings
Term Loan
Prime plus 2.75%
1/19/2043
221.7
221.7
251.7
0.07 %
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/19/2028
8.2
8.2
8.6
— %
F-66
See accompanying notes to consolidated financial statements.
0.03 %
— %
0.05 %
— %
0.02 %
0.33 %
0.12 %
0.02 %
— %
— %
— %
0.02 %
0.02 %
0.31 %
0.02 %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
262 Glen St, Glen Cove, NY
11542
6857 Timbers Dr., Evergreen, CO
80439
2101,2103 & 2105 West Hunting
Park Ave, Philadelphia, PA 19140
2200 N Commerce Parkway,
Weston, FL 33326
1000 Merdian Blvd, Ste 112,
Franklin, TN 37067
2737 Humphrey St, East
Elmhurst, NY 11369
116 Cricket Ave Ste B, Ardmore,
PA 19003
Machinery Manufacturing
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/16/2028
Term Loan
7.5%
1/10/2028
Term Loan
Prime plus 2.75%
1/8/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
1/5/2028
Term Loan
Prime plus 2.75%
1/19/2028
Term Loan
Prime plus 2.75%
1/18/2028
5.9
61.7
5.9
61.7
5.7
60.1
Term Loan
Prime plus 2.75%
1/18/2043
109.8
109.8
124.2
51.0
5.0
12.1
5.9
49.0
8.7
242.4
692.8
9.3
3.0
29.7
51.0
5.0
12.1
5.9
49.0
8.7
242.4
692.8
9.3
3.0
29.7
49.6
4.4
12.7
6.2
47.9
8.5
223.0
796.1
9.1
3.1
28.8
— %
0.02 %
0.04 %
0.01 %
— %
— %
— %
0.01 %
— %
0.07 %
0.23 %
— %
— %
0.01 %
1.11 %
604.8
10.7
167.2
17.8
179.3
604.8
10.7
167.2
17.8
179.3
591.8
10.9
175.4
17.7
207.8
0.17 %
— %
0.05 %
0.01 %
0.06 %
60 Dodd St, Bloomfield, NJ 7003 Personal and Laundry Services
41Peabody St, Nashville, TN
37210
30250 W Nine Mile Rd,
Farmington, MI 48336
800 Farroll Rd, Grover Beach,
CA 93433
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Chemical Manufacturing
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
Term Loan
Prime plus 2.75%
12/27/2042
203 G St, Salida, CO 81201
728 Main St, Middleton, CT 6457
1266 51St 1st Floor, Brooklyn,
NY 11219
271 West Hwy 30, Burley, ID
83318
475 Park Ave South 25th Floor,
New York, NY 10016
12351 Gateway Park Place,
Draper, UT 84020
510 S Spring St, Ukiah, CA
95482
39 Albany Turnpike, West
Simsbury, CT 6092
828 Washington Ave, Miami
Beach, FL 33139
3670 Lake Shore Drive, Lake
George, NY 12845
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/22/2027
Prime plus 2.75%
12/22/2027
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/22/2027
Truck Transportation
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/22/2027
Truck Transportation
Term Loan
Prime plus 2.75%
12/22/2027
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/21/2027
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
12/21/2027
Accommodation
Term Loan
Prime plus 2.75%
12/21/2042
F-67
See accompanying notes to consolidated financial statements.
Term Loan
7.5%
12/22/2027
4,214.0
4,214.0
3,770.6
Term Loan
Prime plus 2.75%
12/22/2027
48.6
48.6
47.2
0.01 %
Lavish Specs Inc
MedWorxs Inc.
Lou & Choo Enterprises Inc dba
Lou & Choo Lounge
Specialized Dairy Processors
LLC and Nathaly Zapata
Work of Heart Inc dba Little Nest
Portraits
Human Resource Time Manager
LLC
Sandfree Systems LLC
Crad Holding LLC dba
Neighborhood Laundry of
Bloomfield
Social Link LLC
Farec, Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Morrocco Method, Inc
Salida Family Chiropractic-
PPLC dba Salida Sport and Spine (#,^)
(#,^)
O'Rourke's Diner, LLC
(#,^)
Medical Plaza of Boro Park PC (#,^)
Anderson Farms Inc
Landmark Ventures USA Inc
Lab Partner, LLC and Beechtree
Diagnostics, LLP and
Cottonwood
Muckamuck Trucks, Inc.
CT Auto Spa LLC
DHD Enterprise LLC dba Edible
Arrangements #1699
Blue Lagoon Resort, LLC dba
Hill View Cottages
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
DBMS Consulting, Inc.
Best Quality Home Care LLC
Auto Excellance of Fort Myers
Inc.
Ocean Trans LLC & Dehal
Trucking LLC
(#,^)
(#,^)
(#,^)
(#,^)
JMD Aviation Holdings, LLC
(#,^)
Capital Containers LLC
Peanut Butter & Co., Inc
1-0 Granny's Helpful Hands,
LLC
Legion Bowl, Inc & Legion Pub
Inc
LP Industries Inc. dba
Childforms
Hana Pastries Enterprises LLC
dba Hana Kitchens, Hana
Pastries, Inc.
Beale Street Blues Company
Inc.dba B.B. King's Club-
Memphis
Barcade Holdings, LLC ,Barcade
LLC,& Barcade New Haven
LLC
Royalty Freight Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Atlas Geo-Constructors, LLC
(#,^)
KR Calvert & Co, LLC
AADJ Empire Inc and AADJ
Galaxy Inc.
Heung Kyun Im
(#,^)
(#,^)
(#,^)
Hardway Inc & AFC Leasing Inc (#,^)
Nichols Fire and Security LLC
LPB LPB Property Management
Inc dba Wilderness View Cabins
& Ellijay
(#,^)
(#,^)
164 West 83rd St- Units CF1 and
CF2, New York, NY 10024
317 S Berry St, Centralia, WA
98531
3105 Fowler St, Fort Myers, FL
33901
1415 W. Anderson St, Stockton,
CA 95206
8050 North West 90th St, Medley,
FL 33166
7610 Auburn Blvd #4B, Citrus
Heights, CA 95610
119 West 57th St, Ste 300, New
York, NY 10019
705 East Lake St, Minneapolis,
MN 55407
661 Park St, Cranston, RI 2910
2040 Norwood St. SW, Lenoir,
NC 28645
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
12/20/2027
Term Loan
Prime plus 2.75%
12/19/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
12/19/2042
Truck Transportation
Term Loan
Prime plus 2.75%
12/15/2042
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/15/2027
Truck Transportation
Merchant Wholesalers,
Nondurable Goods
Nursing and Residential Care
Facilities
Amusement, Gambling, and
Recreation Industries
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/15/2042
Term Loan
Prime plus 2.75%
12/14/2027
58.3
5.2
101.1
595.7
399.8
11.8
174.8
17.5
318.4
60.3
58.3
5.2
101.1
595.7
399.8
11.8
174.8
17.5
318.4
60.3
59.5
5.0
117.2
661.8
419.3
11.7
169.8
17.1
369.1
62.0
0.02 %
— %
0.03 %
0.20 %
0.12 %
— %
0.05 %
0.01 %
0.11 %
0.02 %
34 35th St, Brooklyn, NY 11232
Food Manufacturing
Term Loan
Prime plus 2.75%
12/14/2027
77.2
77.2
80.2
0.02 %
149 Monroe Ave, Memphis, TN
38103
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/14/2027
782.9
782.9
763.8
0.23 %
148 West 24th St, New York, NY
10011
3728 W Mckinley Ave, Fresno,
CA 93722
3466 Thomasville Rd, Winston
Salem, NC 27107
113 Seaboard Lane #C-270,
Franklin, TN 37067
1599 Post Rd, Warwick, RI 2888
6235 Conlan Bay Drive, Houston,
TX 77041
12533 S. 73rd E. Place, Bixby,
OK 74008
1906 Vanderhorn Drive,
Memphis, TN 38134
498 Wilderness View,
Chatsworth, GA 30705
Management of Companies and
Enterprises
Term Loan
Prime plus 2.75%
12/14/2027
Truck Transportation
Term Loan
Prime plus 2.75%
12/14/2027
Specialty Trade Contractors
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/14/2027
Term Loan
Prime plus 2.75%
12/14/2027
Term Loan
Prime plus 2.75%
12/14/2042
Nonstore Retailers
Term Loan
Prime plus 2.75%
12/14/2027
Rental and Leasing Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/13/2027
Term Loan
Prime plus 2.75%
12/13/2042
46.3
518.2
238.6
406.8
172.5
12.0
720.9
83.3
46.3
518.2
238.6
406.8
172.5
12.0
720.9
83.3
45.4
503.2
244.7
395.9
193.5
11.7
700.0
94.3
0.01 %
0.15 %
0.07 %
0.12 %
0.06 %
— %
0.21 %
0.03 %
Real Estate
Term Loan
Prime plus 2.75%
12/12/2042
95.1
95.1
110.3
0.03 %
F-68
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Jai Ganeshai LLC, Mahiveera 1
LLC, Mahiveera 2 LLC & KSVP
LLC
Sky Way Enterprises, Inc, A-
Liner-8-Aviation, Inc, Kissimmee
Aviation
Clore Construction LLC
A-1 Van Services Inc
Big Picture Group LLC
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
Healthcare Interventions, Inc dba
Brightstar Healthcare
Oil Palace, Inc.
Linda Jean Howard Riley dba
The Rusty Bolt
Salud Bar & Grill LLC
Utara LLC
Square1 Partners, LLC
WTI Distribution Inc
Fortress Verve Inc, Maurice R.
Margules and Antonie C.
Reinhard
Skin Beauty Bar Inc. and Tameka
J. Mathis
J. Venture Holdings, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1120 Wren School Rd, Piedmont,
SC 29673
3031 Patrick St, Kissimmee, FL
34741
21220 FM 1420, Harlingen, TX
78550
154 Sandy Creek Rd, Verona, PA
15147
935 N La Jolla, Los Angeles, CA
90046
680 Old Medford Ave, Medford,
NY 11763
9468 American Eagle Way Ste
100, Orlando, FL 32837
4060 Johns Creek Parkway, Ste
H, Suwanee, GA 30024
9130 Wayfarer Lane, Houston,
TX 77075
614 BRd St, Story City, IA 50248
626 N Delsea Drive, Glassboro,
NJ 8028
5300 W. Atlantic Ave. Ste 501,
Delray Beach, FL 33484
10408 Hwy 64 East, Tyler, TX
75707
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
5491 E Francis St, Ontario, CA
91761
1 Jackson St, Troy, NY 12180
749 8th St SE 2nd Floor,
Washington, DC 20003
2285 St. Andrews Ave, Zachary,
LA 70791
Gasoline Stations
Term Loan
Prime plus 2.75%
12/12/2027
38.7
38.7
37.6
0.01 %
Air Transportation
Heavy and Civil Engineering
Construction
Transit and Ground Passenger
Transportation
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Term Loan
8.25%
12/12/2027
Term Loan
Prime plus 2.75%
12/12/2027
Term Loan
Prime plus 2.75%
12/12/2027
Term Loan
Prime plus 2.75%
12/12/2027
Term Loan
Prime plus 2.75%
12/8/2027
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/8/2027
Ambulatory Health Care Services Term Loan
Fabricated Metal Product
Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
Term Loan
Term Loan
Ambulatory Health Care Services Term Loan
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
12/7/2027
Prime plus 2.75%
12/7/2042
Prime plus 2.75%
12/6/2042
Prime plus 2.75%
12/6/2027
Prime plus 2.75%
12/4/2027
430.9
358.5
575.1
299.7
2.9
353.8
12.0
562.5
95.7
38.1
11.7
430.9
358.5
575.1
299.7
2.9
353.8
12.0
562.5
95.7
38.1
11.7
383.4
366.1
589.3
298.0
2.8
356.7
11.6
651.5
106.6
38.3
11.3
Prime plus 2.75%
12/4/2042
945.4
945.4
1,095.9
Miscellaneous Store Retailers
Food Services and Drinking
Places
Food Services and Drinking
Places
Publishing Industries (except
Internet)
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
12/1/2042
Term Loan
Prime plus 2.75%
12/1/2027
Term Loan
Prime plus 2.75%
12/1/2027
Term Loan
Prime plus 2.75%
12/1/2027
Term Loan
Prime plus 2.75%
11/30/2027
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
11/30/2027
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/30/2027
Term Loan
Prime plus 2.75%
11/30/2027
20.0
43.7
18.1
48.4
30.8
80.8
6.9
9.6
20.0
43.7
18.1
48.4
30.8
80.8
6.9
9.6
23.2
42.6
18.1
47.0
31.3
84.8
6.8
10.1
F-69
See accompanying notes to consolidated financial statements.
0.11 %
0.11 %
0.17 %
0.09 %
— %
0.11 %
— %
0.19 %
0.03 %
0.01 %
— %
0.32 %
0.01 %
0.01 %
0.01 %
0.01 %
0.01 %
0.02 %
— %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Our Playhouse Preschool, LLC (#,^)
OPH Lexington, Inc
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
Grumpy's Restaurant Company,
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
PB Market LLC dba Pure Barre
(#,^)
Cali Fit Meals
B Lam LLC
Maya Motel, LLC dba Town
House Motel
Southern Specialty Contractor,
LLC & Ronald David Holbrook
Jr.
SSI Refrigerated Express Inc.
and Robert M Stallone
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 (#,^)
Hofgard & Co, Inc dba Hofgard
Benefits and James Marsh
His Loving Hands Christian
Academy, Inc.
(#,^)
(#,^)
S & S Auto Body Shop Inc.
(#,^)
3501 NC Hwy 54 W, Chapel hill,
NC 27516
235 Walton Ave, Lexington, KY
40502
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
834 Kingsley Ave, Orange Park,
FL 32073
164-C Market St, Charleston, SC
29401
3450 East Orangethrope Ave,
Anaheim, CA 92806
9419 Kenwood Rd, Cincinnati,
OH 45242
1701 Washington Ave, Waco, TX
76701
1990 Flippen Rd, Stockbridge,
GA 30281
1001 E. Cooley Drive Ste 102,
Colton, CA 92324
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 33030
4235 South Fort Apache Rd, Ste
250, Las Vegas, NV 89147
400 S. McCaslin Blvd, Ste 201,
Louisville, CO 80027
15020 Harrison St, Miami, FL
33176
5001 W. Clay St, Richmond, VA
23230
Social Assistance
Term Loan
Prime plus 2.75%
11/29/2042
Social Assistance
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
11/29/2042
Term Loan
Prime plus 2.75%
11/27/2042
Term Loan
Prime plus 2.75%
11/22/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/22/2027
Educational Services
Food Services and Drinking
Places
Educational Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/22/2027
Term Loan
Prime plus 2.75%
11/21/2027
Term Loan
Prime plus 2.75%
11/21/2027
Term Loan
Prime plus 2.75%
11/21/2027
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/20/2042
Accommodation
Term Loan
Prime plus 2.75%
11/17/2042
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/17/2027
Truck Transportation
Term Loan
Prime plus 2.75%
11/17/2027
Couriers and Messengers
Term Loan
Prime plus 2.75%
11/16/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/15/2042
Repair and Maintenance
Nonmetallic Mineral Product
Manufacturing
Educational Services
Food Services and Drinking
Places
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
11/15/2042
Term Loan
Prime plus 2.75%
11/15/2042
Term Loan
Prime plus 2.75%
10/14/2043
Term Loan
Prime plus 2.75%
11/10/2027
Term Loan
Prime plus 2.75%
11/8/2027
Social Assistance
Term Loan
Prime plus 2.75%
11/6/2042
223.1
181.5
120.6
14.4
53.9
12.1
54.7
83.5
17.3
172.3
54.3
40.8
48.4
53.9
12.8
186.5
498.6
448.5
7.5
11.5
87.2
223.1
181.5
120.6
14.4
53.9
12.1
54.7
83.5
17.3
172.3
54.3
40.8
48.4
53.9
12.8
186.5
498.6
448.5
7.5
11.5
87.2
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/3/2042
146.6
146.6
F-70
See accompanying notes to consolidated financial statements.
258.6
210.4
139.8
14.6
52.5
11.8
53.2
81.2
17.6
197.8
62.9
39.9
47.7
53.7
14.9
216.0
578.0
512.8
7.3
11.2
100.1
170.0
0.08 %
0.06 %
0.04 %
— %
0.02 %
— %
0.02 %
0.02 %
0.01 %
0.06 %
0.02 %
0.01 %
0.01 %
0.02 %
— %
0.06 %
0.17 %
0.15 %
— %
— %
0.03 %
0.05 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
Blue Eagle Transport Inc ,
Golden Eagle Transport, Inc &
Green Eagle
Sage Oil LLC
Ashore Ventures Inc dba
PuroClean Professional
Restoration
Suzie LLC dba Tony D's
Restaurant
Grand Blanc Lanes, Inc.
Schafer Fisheries Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Island Refrigeration & AC Inc
(#,^)
Looky Enterprises, LLC
Blueridge Armor LLC
H and K Dry Cleaning LLC
,Quintero Shopping Center
LLC,Aqua Laundry
Cortez Landscaping, LLC
On Call Services LLC
Pro Anderson, LLC
Sandbox Ventures LLC
Eye Optique Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
36359 North 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
377 Boston Post Rd Unit B,
Milford, CT 6460
8913 Egyptian Ave, Las Vegas,
NV 89143
909 SE Everett Mall Way Ste A-
140, Everett, WA 98208
92 Huntington St, New London,
CT 6320
5301 S. Saginaw Rd, Flint, MI
48507
21985 Waller Rd, Fulton, IL
61252
3201 Flagler Ave, Unit 510 &
511, Key West, FL 33040
1175 Surlington Ave, Ste 101,
Leland, NC 28451
1495 Hwy 74-A Bypass, Ste
150192, Spindale, NC 28160
1227 Burnside Ave, East
Hartford, CT 6108
4 Powder Rd, Norwalk, CT 6854
15060 281St Ave NW,
Zimmerman, MN 55398
1092 Hampton Inn Way, Ste 400,
Jacksonville, NC 28546
1857 A Elmdale Ave, Glenview,
IL 60026
10800 Alpharetta Hwy, Ste 220,
Roswell, GA 30076
Insurance Carriers and Related
Activities
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
11/3/2027
Term Loan
Prime plus 2.75%
11/2/2027
Term Loan
Prime plus 2.75%
11/1/2027
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
5.8
4.6
52.4
5.7
32.4
53.6
5.8
4.6
52.4
5.7
32.4
53.6
5.6
4.5
51.5
5.6
31.8
62.1
Educational Services
Term Loan
Prime plus 2.75%
10/30/2042
450.7
450.7
522.5
Couriers and Messengers
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
10/27/2027
Term Loan
Prime plus 2.75%
10/27/2027
Repair and Maintenance
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%
10/25/2042
Term Loan
Prime plus 2.75%
10/25/2027
Food Manufacturing
Term Loan
Prime plus 2.75%
10/25/2027
29.2
7.6
11.1
83.0
11.4
27.4
29.2
7.6
11.1
83.0
11.4
27.4
28.8
7.5
11.0
95.8
12.0
28.7
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/18/2027
Term Loan
Prime plus 2.75%
10/18/2042
125.7
125.7
143.3
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
10/17/2027
Electronics and Appliance Stores
Administrative and Support
Services
Term Loan
7.5%
10/17/2042
Term Loan
Prime plus 2.75%
10/13/2027
Construction of Buildings
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
10/13/2027
Term Loan
Prime plus 2.75%
10/11/2027
Term Loan
Prime plus 2.75%
10/11/2027
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
10/5/2027
F-71
See accompanying notes to consolidated financial statements.
50.7
6.3
61.3
14.6
13.7
41.2
15.4
11.4
50.7
6.3
61.3
14.6
13.7
41.2
15.4
11.4
50.0
6.4
57.4
14.7
14.4
40.4
15.8
11.1
— %
— %
0.02 %
— %
0.01 %
0.02 %
0.15 %
0.01 %
— %
— %
0.03 %
— %
0.01 %
0.04 %
0.01 %
— %
0.02 %
— %
— %
0.01 %
— %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Ains Holding Company LLC
Becky Lou Corp dba Rent A
Center
Dan Cline Transport Inc.
Harco Metal Products Inc
Chicago American
Manufacturing LLC, Dockside
Steel ProcessingLLC
Sashshel Corporation
Miechella Suzette Decker
Threads of Time LLC
Rhode Island Tennis
Management LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
National Media Services, Inc
(#,^)
Pets A Go Go LLC
Rhode Island Tennis
Management LLC
Nicholson Lumber Co Inc.
Complete Care IT LLC
Technologist Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Inspirations Food Design, Inc
(#,^)
JPS Arthur Kill Rd Bakery Corp
dba Aunt Butches of Brooklyn
KB Waterjet Cutting LLC
Sallee Pro-Custom Fabrication
Shop LLC
Insight Diagnostic Technologist
Services
(#,^)
(#,^)
(#,^)
(#,^)
121 Fulton St, New York, NY
10038
3578 Route 611, Ste 210,
Bartonsville, PA 18321
501 State Drive, Mount Vernon,
MO 65712
7895 East Acoma Drive Ste 102,
Scottsdale, AZ 85260
Management of Companies and
Enterprises
Term Loan
Prime plus 2.75%
10/2/2027
Rental and Leasing Services
Term Loan
Prime plus 2.75%
10/2/2027
Truck Transportation
Term Loan
Prime plus 2.75%
9/29/2030
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
9/29/2042
69.2
69.3
823.9
466.7
69.2
69.3
823.9
466.7
68.2
69.8
829.2
518.0
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
4500 W 47th St, Chicago, IL
60632
676 Franklin Blvd, Somerset, NJ
8873
3515 Main St, Exmore, VA 23350 Miscellaneous Store Retailers
207 S Buchanan St, Danville, IL
61832
636 Centerville Rd, Warwick, RI
2886
5091 Lexington Blvd, Fort
Meyers, FL 33919
589 North State Rd, Briarcliff
Manor, NY 10510
636 Centerville Rd, Warwick, RI
2886
377 Main St, Nicholson, PA
18446
4801 South University Drive, Ste
125, Davie, FL 33328
3120 Farview Drive, Ste 610,
Falls Church, VA 22042
1338 Memorial Ave, West
Springfield, MA 1089
4864 Arthur Kill Rd Units
102,103,104 & 105, Staten Island,
NY 10309
4330 Parker Lane, Addis, LA
70710
8865 North County Rd 600 W,
Scipio, IN 47273
2030 Forest Ave, Ste 110, San
Jose, CA 95128
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Repair and Maintenance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/29/2042
1,174.4
1,174.4
1,339.6
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
9/29/2042
9/29/2042
Term Loan
Prime plus 2.75%
9/29/2042
Term Loan
Prime plus 2.75%
9/28/2042
Term Loan
Prime plus 2.75%
9/28/2027
Term Loan
Prime plus 2.75%
9/28/2042
Term Loan
Prime plus 2.75%
9/28/2042
Term Loan
Prime plus 2.75%
9/28/2030
Term Loan
Prime plus 2.75%
9/27/2027
Term Loan
Prime plus 2.75%
9/27/2027
Term Loan
Prime plus 2.75%
9/26/2042
Term Loan
Prime plus 2.75%
9/22/2027
Term Loan
Prime plus 2.75%
9/22/2027
Term Loan
Prime plus 2.75%
9/21/2027
201.4
93.9
130.3
524.0
14.2
188.1
364.9
178.9
11.1
187.1
443.3
16.9
7.7
6.8
201.4
93.9
130.3
524.0
14.2
188.1
364.9
178.9
11.1
187.1
443.3
16.9
7.7
6.8
233.5
108.8
147.3
591.7
13.7
215.5
412.0
189.8
10.8
195.8
503.8
16.5
7.7
7.1
0.02 %
0.02 %
0.24 %
0.15 %
0.39 %
0.07 %
0.03 %
0.04 %
0.17 %
— %
0.06 %
0.12 %
0.06 %
— %
0.06 %
0.15 %
— %
— %
— %
Term Loan
Prime plus 2.75%
9/20/2027
245.5
245.5
243.3
0.07 %
F-72
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
39 Norman St a/k/a 1 Holyoke
Square, Salem, MA 1970
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/20/2027
982.5
982.5
1,028.4
0.30 %
Rental and Leasing Services
Term Loan
Prime plus 2.75%
9/20/2027
776.8
776.8
799.3
0.24 %
Commonwealth Diagnostics
International, Inc
NY Tent LLC & NY Tent Parent,
LLC dba Tent Company of New
York
Imagine By Carleen, Inc.
CR Park Incorporated dba Define
Body and Mind
Denek Contracting Inc and
Denek Leasing LLC
Montessori Community School
Sound Manufacturing, Inc. &
Monster Power Equipment, Inc.
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 (#,^)
Morgan Lynn Kerstetter dba
Catherine School of Dance
Health & Performance Center,
LLC
Foxtail, LLC and Tottly New
Services Corp
(#,^)
(#,^)
(#,^)
1401 Lakeland Ave, Bohemia,
NY 11716
1404 Del Prado Blvd. South,
Units 100 & 105, Cape Coral, FL
33904
49 W. Allandale Ave, Allendale,
NJ 7401
451 E. Wilson Ave, Pontiac, MI
48341
123 South Navarra Drive, Scotts
Valley, CA 95066
51 Donnelley Rd, Old Saybrook,
CT 6475
8920 US HWY, 62 WEST,
Cynthiana, KY 41031
5210 Kaylin Drive, Akron, OH
44319
61 Strafello Drive, Avon, MA
2322
21 E. Lincoln Rd, Spokane, WA
99208
196 East Main St, Clinton, CT
6413
125 E Center St, Midland Park,
NJ 7432
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
6051
244-252 Atwells Ave,
Providence, RI 2903
315 Mill St 3rd Floor, Danville,
PA 17821
1862 Craigshire Rd, Saint Louis,
MO 63146
1481 Highland Ave, Cheshire, CT
6410
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/20/2027
Term Loan
Prime plus 2.75%
9/20/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/20/2042
Social Assistance
Fabricated Metal Product
Manufacturing
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/20/2042
Term Loan
Prime plus 2.75%
9/20/2027
Term Loan
Prime plus 2.75%
9/19/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/19/2027
5.7
50.3
198.7
259.1
150.4
49.5
4.0
5.7
50.3
198.7
259.1
150.4
49.5
4.0
5.9
50.3
230.0
293.9
154.1
51.8
3.8
Term Loan
Prime plus 2.75%
9/18/2042
1,142.2
1,142.2
1,284.8
Personal and Laundry Services
Food Services and Drinking
Places
Gasoline Stations
Professional, Scientific, and
Technical Services
Rental and Leasing Services
Food Services and Drinking
Places
Personal and Laundry Services
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
9/15/2042
Term Loan
Prime plus 2.75%
9/15/2042
Term Loan
Prime plus 2.75%
9/15/2027
Term Loan
Prime plus 2.75%
9/13/2027
Term Loan
Prime plus 3.75%
9/13/2027
Term Loan
Prime plus 2.75%
9/13/2027
Term Loan
Prime plus 2.75%
9/12/2042
Term Loan
Prime plus 2.75%
9/12/2042
Term Loan
Prime plus 2.75%
9/11/2027
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/11/2027
364.3
242.3
62.9
251.6
5.7
10.8
159.8
369.1
5.7
15.4
364.3
242.3
62.9
251.6
5.7
10.8
159.8
369.1
5.7
15.4
418.0
274.4
62.2
243.9
6.1
10.9
185.0
411.5
5.9
14.9
— %
0.01 %
0.07 %
0.09 %
0.05 %
0.02 %
— %
0.38 %
0.12 %
0.08 %
0.02 %
0.07 %
— %
— %
0.05 %
0.12 %
— %
— %
Social Assistance
Term Loan
Prime plus 2.75%
9/8/2042
275.9
275.9
312.7
0.09 %
F-73
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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%
9/8/2027
Term Loan
Prime plus 3.75%
9/7/2027
Term Loan
Prime plus 2.75%
9/7/2042
Social Assistance
Term Loan
Prime plus 2.75%
9/5/2042
Truck Transportation
Term Loan
Prime plus 2.75%
9/1/2027
5.7
4.1
94.8
359.9
75.5
5.7
4.1
94.8
359.9
75.5
5.9
4.1
109.7
407.2
77.0
Couriers and Messengers
Term Loan
Prime plus 2.75%
8/31/2027
293.3
293.3
289.1
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 Tran
Parlay Disributors LLC
Lake County Tow LLC
InUSA Ventures Inc dba InUSA
Services
Genuine Ventures LLC and
Seaweed Ventures LLC
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
(#,^)
HMG Strategy LLC,
Royal Blue Investments, Inc. and
Cleland Pharmacy LLC
Sharon G McMillen, MA
Psychologist, Inc.
Work of Heart Inc dba Little Nest
Portraits
(#,^)
(#,^)
(#,^)
(#,^)
5 Greenleaf Drive, Unit 201,
Portsmouth, NH 3801
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
377 Boston Post Rd, Milford, CT
6460
20 Medford Ave, Ste 104,
Patchogue, NY 11772
15409 Country Rd 565A,
Clermont, FL 34711
3015 San Pablo Ave, Ste 511,
Berkeley, CA 94702
432 S Franklin St, Juneau, AK
99801
168-170 McWhorter St, Newark,
NJ 7105
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
191 Post Rd W., Westport, CT
6880
Educational Services
Support Activities for
Transportation
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Motor Vehicle and Parts Dealers
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/25/2027
Term Loan
Prime plus 2.75%
8/25/2042
Term Loan
Prime plus 2.75%
8/24/2027
Term Loan
Prime plus 2.75%
8/24/2030
Term Loan
Prime plus 2.75%
8/22/2027
Term Loan
Prime plus 2.75%
8/21/2027
Term Loan
Prime plus 2.75%
8/21/2027
Term Loan
Prime plus 2.75%
8/18/2027
Term Loan
Prime plus 2.75%
8/17/2027
Term Loan
Prime plus 2.75%
8/16/2027
Term Loan
Prime plus 2.75%
8/11/2027
Term Loan
Prime plus 2.75%
8/4/2027
Term Loan
Prime plus 2.75%
8/2/2027
Term Loan
Prime plus 2.75%
7/31/2042
202 S. 1st St, Wakeeny, KS 67672 Health and Personal Care Stores
216 West Main St, Kingwood,
WV 26537
1000 Merdian Blvd, Ste 112,
Franklin, TN 37067
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
7/28/2027
7.5%
7/28/2027
F-74
See accompanying notes to consolidated financial statements.
— %
— %
0.03 %
0.12 %
0.02 %
0.09 %
0.02 %
0.03 %
0.01 %
0.14 %
0.05 %
0.01 %
— %
— %
— %
— %
— %
— %
0.01 %
0.02 %
— %
0.01 %
83.2
82.8
18.7
469.9
151.9
16.8
13.5
14.0
5.6
16.9
6.2
4.7
35.5
50.0
13.8
43.5
83.2
82.8
18.7
469.9
151.9
16.8
13.5
14.0
5.6
16.9
6.2
4.7
35.5
50.0
13.8
43.5
81.4
93.5
18.1
484.4
158.9
17.2
14.1
13.9
5.4
16.8
6.2
4.6
34.4
57.6
13.4
38.8
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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 ,
Aitheras Aviation Group, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Wildflour Bakery & Cafe, LLC (#,^)
Koep Companies dba Pipestone
True value
McCord Holdings, Inc. dba Fast
Signs 176101
Thrifty Market Inc dba Thrifty
Foods
Hamilton & Associates Real
Estate and Investments Firm
LLC
The Country House Restaurant,
LLC and Pelton Real Estate,
LLC
J&M Civil Construction Services
LLC
(#,^)
(#,^)
(#,^)
(#,^)
J. T. O'Neill Company, L.L.C
New Chicago Wholesale Bakery
Inc.
Oakhill Farms, LLC
Best Bees Company
Stiegelbauer Associates Inc.
Intellixion LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Food Manufacturing
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
1415 W Andersonr Way,
Stockton, CA 95206
800 SW 21st Terrace, Fort
Lauderdale, FL 33312
2301 N Marginal Rd, Cleveland,
OH 44114
5137 Clareton Drive, Ste 100,110
& 120, Agoura Hills, CA 91301
207 East Main St, Pipestone, MN
56164
7640 N. Wickham Rd,
Melbourne, FL 32940
702 10th St, Wheatland, WY
82201
Air Transportation
Food Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Administrative and Support
Services
Food and Beverage Stores
Truck Transportation
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
7/27/2027
Term Loan
Prime plus 2.75%
7/26/2027
Term Loan
Prime plus 2.75%
7/25/2027
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
7/21/2027
7/21/2042
Term Loan
Prime plus 2.75%
7/21/2027
Term Loan
Prime plus 3.75%
7/19/2027
Term Loan
Prime plus 2.75%
7/18/2027
Term Loan
Prime plus 2.75%
7/17/2027
Term Loan
Prime plus 2.75%
7/14/2042
Term Loan
Prime plus 2.75%
7/7/2027
Term Loan
Prime plus 2.75%
7/6/2027
11776 West Sample Rd, Coral
Springs, FL 33065
Real Estate
Term Loan
Prime plus 2.75%
6/30/2042
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/30/2042
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/30/2027
Real Estate
Term Loan
Prime plus 2.75%
6/30/2027
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
6/30/2027
6/29/2030
Term Loan
Prime plus 2.75%
6/29/2027
677 US Route 7, Pittsford, VT
5763
1221 County Rd 4371, Decatur,
TX 76234
19972 Willowin Farm Lane,
Purcellville, VA 20132
795 Touhy Ave, Elk Grove
Village, IL 60007
15 Carl St, Johnston, RI 2919
839 Albany St, Boston, MA 2119
63 Flushing Ave, Unit 101,
Building 280, Brooklyn, NY
11205
7447 Egan Dr, Ste 110 A, Savage,
MN 55378
Food Manufacturing
Specialty Trade Contractors
Animal Production and
Aquaculture
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
F-75
See accompanying notes to consolidated financial statements.
16.7
162.1
46.0
8.9
28.3
29.1
5.8
611.0
16.7
308.3
13.9
79.6
51.0
48.1
72.5
11.0
11.3
81.8
16.5
16.7
162.1
46.0
8.9
28.3
29.1
5.8
611.0
16.7
308.3
13.9
79.6
51.0
48.1
72.5
11.0
11.3
81.8
16.5
16.2
162.8
44.5
9.0
32.8
28.2
6.2
594.5
17.4
345.2
13.7
79.2
— %
0.05 %
0.01 %
— %
0.01 %
0.01 %
— %
0.18 %
0.01 %
0.10 %
— %
0.02 %
59.4
0.02 %
56.3
73.4
11.2
11.8
88.2
16.7
0.02 %
0.02 %
— %
— %
0.03 %
— %
Term Loan
Prime plus 2.75%
6/29/2027
226.2
226.2
238.0
0.07 %
Term Loan
Prime plus 2.75%
6/29/2027
2.7
2.7
2.8
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Malhame & Company Publishers
& Importers Inc.
Greensboro Plastic Surgical
Associates, PA
Ocean Trans LLC and Dehal
Trucking LLC
Foxhop Fitness, LLC
Old Dominion Transportation
Group, Inc.
Akal Express Inc. dba Truck
Trailer Service Stop
Citibin, Inc.
Auxiliary Systems Inc.,Sharrick
Company, LLC & KMN, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Four Seasons Laser Center Inc.
(#,^)
Ains Holding Company, LLC
(#,^)
Northern Industries, LLC
Vella Construction Enterprises,
Inc. dba Vella Construction
Birches Group, LLC
Scarlet Spartan Inc.dba FastSigns
of Brighton
Don G. Timpton DDS &
Associates PA and Indsaad
Properties,LLC
All Regional Recyclers of Wood
LLC dba ARROW,Superior
Carting,LLC
JAM Media Solutions, LLC
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
180 Orville Rd, Bohemia, NY
11780
2716 Henry St, Greensboro, NC
27405
760 W. Charter Way, Stockton,
CA 95206
4211 NW Federal Hwy, Jensen
Beach, FL 34957
1308 Devils Reach Rd,
Woodbridge, VA 22192
2901 I 40 West, Vega, TX 79092
254 36th St, Ste B519, Brooklyn,
NY 11232
211 East 25th St, Norfolk, VA
23504
4720 NW 2nd Ave Unit D-104
and Unit D-105, Boca Raton, FL
33498
122 West 26th St, New York, NY
10011
W 5585 Dehart Drive,
Tomahawk, WI 54484
318 28th Ave, San Mateo, CA
94403
228 East 45th St. 12th FL South,
New York, NY 10017
533 W. Grand River Ave,
Brighton, MI 48116
11535 Carmel Commons Blvd.
Ste 200, Charlotte, NC 28226
104 Wooster St, Bethel, CT 6801
4744 Tackawanna St,
Philadelphia, PA 19124
2420 Grand Ave, Baldwin, NY
11520
19 Hull Shore Dr, Hull, MA 2045
577 Main Ave, Paterson, NJ 7055
19-4037 Olapalapa Rd, Volcano,
HI 96785
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/29/2027
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/29/2042
Truck Transportation
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
Repair and Maintenance
Furniture and Related Product
Manufacturing
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
6/29/2027
Term Loan
Prime plus 2.75%
6/28/2027
Term Loan
Prime plus 2.75%
6/28/2027
Term Loan
Prime plus 2.75%
6/28/2042
Term Loan
Prime plus 2.75%
6/27/2027
68.4
545.4
452.3
66.8
765.1
26.4
91.7
68.4
545.4
452.3
66.8
765.1
26.4
91.7
69.4
632.9
458.3
67.9
780.7
31.1
92.9
Term Loan
Prime plus 2.75%
6/27/2030
201.0
201.0
216.5
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/26/2042
Term Loan
Prime plus 2.75%
6/26/2027
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/23/2042
Construction of Buildings
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
6/23/2027
Term Loan
Prime plus 2.75%
6/22/2027
Term Loan
Prime plus 2.75%
6/19/2027
211.4
841.7
54.4
16.5
36.7
16.0
211.4
841.7
54.4
16.5
36.7
16.0
245.1
858.7
63.8
16.7
37.2
16.5
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/16/2042
377.5
377.5
434.3
0.13 %
Term Loan
Prime plus 2.75%
6/15/2042
292.7
292.7
338.8
Waste Management and
Remediation Services
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/15/2027
Term Loan
Prime plus 2.75%
6/14/2042
Term Loan
Prime plus 2.75%
6/14/2042
Term Loan
Prime plus 2.75%
6/14/2042
Accommodation
Term Loan
Prime plus 2.75%
6/14/2042
F-76
See accompanying notes to consolidated financial statements.
24.5
21.2
91.3
87.2
58.9
24.5
21.2
91.3
87.2
58.9
24.8
24.7
107.1
101.9
69.1
0.02 %
0.19 %
0.14 %
0.02 %
0.23 %
0.01 %
0.03 %
0.06 %
0.07 %
0.25 %
0.02 %
— %
0.01 %
— %
0.10 %
0.01 %
0.01 %
0.03 %
0.03 %
0.02 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Refoleen Inc dba Spice and Tea
Exchange
Skydive California, LLC
SCW, LLC dba Arthur Murray
Dance Studio
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Haroon Baig,Inc.dba US1 Petrol
Chet Lemon Enterprises LLC dba
All American Sports
(#,^)
(#,^)
Eagle Wood Works LLC
Hurricane Group, Inc.
Swantown Inn & Spa LLC
Beyond Waves A Unique Salon
LLC and Lori Ann Carlson
Jung Design Inc.
Abdul Naushad MD PC dba
Advanced Pain Centers
Locavore LLC dba Paloma
Restaurant
Innovim, LLC
Prestige Construction of Florida,
LLC
Hayden Trucking LLC
Tres K Deli,Grocery,Fruit and
Meat Inc.
Iron Men Home Repair, Inc. and
Ironmen House Lifting Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Waterford Plumbing Co, Inc.
(#,^)
849 E Commerce St Ste 121, San
Antonio, TX 78205
25001 S Kasson Rd, Tracy, CA
95301
2383 Old Dixwell Ave, Hamden,
CT 6518
246 East Belt Blvd, Richmond,
VA 23224
8913 Egyptian Ave, Las Vegas,
NV 89143
716 Foxcroft Ave, Martinsburg,
WV 25401
13200 W. Foxfire Dr #144,
Surprise, AZ 85387
1280-1290 Dixwell Ave, Hamden,
CT 6514
1544 Lane Park Cutoff, Tavares,
FL 32778
1448 Horsehead Rd, Lugoff, SC
29078
312 West Fourth St, Carson City,
NV 89703
1431 11th Ave SE, Olympia, WI
98501
2290 Foxon Rd Route 80, North
Branford, CT 6471
10857 Pine Bluff Drive, Fisher,
IN 46037
2865 James Blvd, Poplar Bluff,
MO 63901
401 S. Guadalupe St, Santa Fe,
NM 87501
6401 Golden Triangle Drive Ste
200, Greenbelt, MD 20770
1404 Yorktown St Ste E, Deland,
FL 34944
11540 Eagle Vista Drive, Fort
Worth, TX 76179
125 West Tremont Ave, Bronx,
NY 10453
132 North Wellwood Ave,
Lindenhurst, NY 11757
2425 W. Cuyler Ave, Chicago, IL
60618
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/8/2027
Educational Services
Term Loan
Prime plus 2.75%
6/2/2027
2.6
40.3
2.6
40.3
2.6
42.4
Educational Services
Term Loan
Prime plus 2.75%
6/2/2042
137.6
137.6
159.7
Motor Vehicle and Parts Dealers
Merchant Wholesalers,
Nondurable Goods
Food and Beverage Stores
Merchant Wholesalers, Durable
Goods
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
6/1/2042
Term Loan
Prime plus 2.75%
5/31/2027
Term Loan
Prime plus 2.75%
5/31/2027
Term Loan
Prime plus 2.75%
5/31/2027
Term Loan
Prime plus 2.75%
5/31/2042
Term Loan
Prime plus 2.75%
5/26/2042
Term Loan
Prime plus 2.75%
5/26/2027
Other Information Services
Term Loan
Prime plus 2.75%
5/26/2027
43.0
16.3
10.9
50.0
248.4
746.7
8.7
55.1
43.0
16.3
10.9
50.0
248.4
746.7
8.7
55.1
50.1
16.6
11.1
50.9
291.4
876.1
9.0
55.8
Accommodation
Term Loan
Prime plus 2.75%
5/26/2042
119.6
119.6
140.2
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
5/25/2027
Term Loan
Prime plus 2.75%
5/25/2027
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
5/25/2042
Prime plus 2.75%
5/25/2027
Prime plus 2.75%
5/24/2027
Construction of Buildings
Term Loan
Prime plus 2.75%
5/23/2042
Truck Transportation
Term Loan
Prime plus 2.75%
5/19/2027
Food and Beverage Stores
Term Loan
Prime plus 2.75%
5/19/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/19/2042
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/18/2027
F-77
See accompanying notes to consolidated financial statements.
9.1
6.5
372.3
36.3
219.9
317.0
99.9
6.0
548.0
36.3
9.1
6.5
372.3
36.3
219.9
317.0
99.9
6.0
548.0
36.3
9.2
6.6
434.9
37.2
222.8
365.7
105.2
6.2
637.5
37.0
— %
0.01 %
0.05 %
0.01 %
— %
— %
0.01 %
0.09 %
0.26 %
— %
0.02 %
0.04 %
— %
— %
0.13 %
0.01 %
0.07 %
0.11 %
0.03 %
— %
0.19 %
0.01 %
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Mr. B's Bicycles & Mopeds, Inc.
(#,^)
Bay Car Wash LLC
Computech Computers Inc.
5 Stars Learning Center Inc
Arco Electrical Contractors Inc.
dba Arco Construction Group
Sanderson Distribution Inc.
B G F Bobby Q's Inc
Estelle Finkel Educational
Associates,LLC
Labmates,LLC
NHS, LLC
NHS, LLC
Innovation Transport, LLC
Benchmark Building, Inc.
Cable Management LLC
Fine Arts Center of Easley, Inc.
dba Midtown Music
Love and Glory Learning Center,
Inc.
Sneads Ferry Foods, Inc. dba DQ
Grill & Chill
JMA Inc. dba Primecut and
Mezzo; Primecut at Marquee
Resident Research, LLC
Getting Even LLC dba The Zoo
Health Club
Ralph's Hair Salon, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1870 S. 4th Ave, Yuma, AZ
85364
952 South Commercial St and
West Magnolia, Aransas Pass, TX
78336
40-24 76th St, Office #2B,
Elmhurst, NY 11373
14 Paine Ave, Irvington, NJ 7111
22-24 South Seventh St,
Elizabeth, NJ 7202
100 Daniel Drive, Alamo, CA
94507
447 N. Main St, Freeport, NY
11520
125 West Mount Pleasant Ave,
Livingston, NJ 7039
141 Watertown Rd, Thomaston,
CT 6787
212 N Douglas Ave, Ellsworth,
KS 67439
212 N Douglas Ave, Ellsworth,
KS 67439
1 International Blvd, Mahwah, NJ
7495
1439 Stargazer Terrace, Sanford,
FL 32771
290 Pratt St, Meriden, CT 6450
117 S. Pendleton St, Easley, SC
29640
4911 N. 42nd St., Tampa, FL
33610
920 Hwy 210, Sneads Ferry, NC
28460
393 Charles St, Providence, RI
2904
4400 Morris Park Drive Ste M,
Charlotte, NC 28277
377 South Willow St, Ste B 2-1,
Manchester, NH 3103
175 NW 14th St, Homestead, FL
33030
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
5/18/2042
138.1
138.1
160.4
0.05 %
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/18/2042
113.9
113.9
132.5
Educational Services
Social Assistance
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
5/17/2027
5/16/2042
36.3
58.1
36.3
58.1
36.8
67.5
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/16/2027
262.0
262.0
270.7
Truck Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
5/12/2027
Term Loan
Prime plus 2.75%
5/11/2027
Educational Services
Term Loan
Prime plus 2.75%
5/11/2027
Miscellaneous Store Retailers
Building Material and Garden
Equipment and Supplies Dealers
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
5/10/2027
Term Loan
Prime plus 2.75%
5/9/2027
Term Loan
Prime plus 2.75%
5/9/2042
Truck Transportation
Term Loan
Prime plus 2.75%
5/9/2027
Construction of Buildings
Waste Management and
Remediation Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
5/5/2027
Term Loan
Prime plus 2.75%
5/3/2027
Term Loan
Prime plus 2.75%
5/2/2042
Social Assistance
Food Services and Drinking
Places
Food Services and Drinking
Places
Other Information Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
4/28/2042
Term Loan
Prime plus 2.75%
4/27/2042
Term Loan
Prime plus 2.75%
4/27/2042
Term Loan
Prime plus 2.75%
4/24/2027
Term Loan
Prime plus 2.75%
4/21/2027
Personal and Laundry Services
Term Loan
Prime plus 2.75%
4/21/2042
F-78
See accompanying notes to consolidated financial statements.
7.6
5.4
88.6
72.6
64.3
20.6
56.8
16.3
41.6
112.5
73.3
611.4
208.3
63.5
5.4
47.0
7.6
5.4
88.6
72.6
64.3
20.6
56.8
16.3
41.6
112.5
73.3
611.4
208.3
63.5
5.4
47.0
7.7
5.7
89.8
75.9
66.0
23.6
59.4
16.6
43.3
132.0
84.9
707.7
244.4
64.3
5.5
54.7
0.04 %
0.01 %
0.02 %
0.08 %
— %
— %
0.03 %
0.02 %
0.02 %
0.01 %
0.02 %
— %
0.01 %
0.04 %
0.03 %
0.21 %
0.07 %
0.02 %
— %
0.02 %
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Condron Brothers LLC DBA Luv
2 Play
Butternuts Beer and Ale LLC
The Altitude Group, LLC and
Core Home Security, LLC
Bear Trail Lodge LLC
Citizens Lanes, LLC
Applied Integrated Technologies,
Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Landmark Ventures USA, Inc.
(#,^)
Golden Hen Inc. dba Cafe
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
Douglas K. Soderblom . dba
Loma Linda Optometry
Gauri Hospitality Group LLC dba
Microtel Inns & Suites by
Wyndham
H and H Hotshot Services, Inc.
dba AA Hotshot & Logistics
New England Country Day
School, Inc. and Thomas D.
Walker
American Pharmaceutical
Innovation Company, LLC
Pecos Entertainment LLC dba
State Theater and Pecos Inn LLC
dba Econo
Heil & Hornik LLC dba Elysium
Tennis
Color Graphic Press, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4790 La Sierra Ave, Riverside,
CA 92505
4021 Hwy 51, Garrattsville, NY
13342
949 Clint Moore Rd, Unit 949A,
Boca Raton, FL 33487
Mile 1 Bear Trail Rd, King
Salmon, AK 99613
5100 Goodson Connector Rd,
Union City, GA 30291
7120 Samuel Morse Drive #150,
Columbia, MD 21046
475 Park Ave South 25th Floor,
New York, NY 10016
468 W. Cheltenham Ave,
Philadelphia, PA 19126
330 Roycefield Rd Unit B,
Hillsborough, NJ 8844
20 Island Farm Rd, Oak Bluffs,
MA 2557
21985 Waller Rd, Fulton, IL
61252
2 Hill Rd, Franklin, NH 3235
25815 Barton Rdad, Unit C104,
Loma Linda, CA 92354
1221 Kentucky Mills Drive,
Louisville, KY 40299
5455 N 51st St, # 30, Glendale,
AZ 85301
27 Kenosia Ave, Danbury, CT
6810
1425 Centre Circle, Downers
Grove, IL 60515
Amusement, Gambling, and
Recreation Industries
Beverage and Tobacco Product
Manufacturing
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/19/2027
Term Loan
Prime plus 2.75%
4/12/2027
Term Loan
Prime plus 2.75%
3/31/2027
Term Loan
Prime plus 2.75%
3/31/2042
Term Loan
8.25%
3/31/2042
Term Loan
Prime plus 2.75%
3/31/2027
Term Loan
Prime plus 2.75%
3/31/2027
Term Loan
Prime plus 2.75%
3/31/2027
Term Loan
Prime plus 2.75%
3/30/2027
Term Loan
Prime plus 2.75%
3/30/2042
Food Manufacturing
Term Loan
Prime plus 2.75%
3/30/2042
Gasoline Stations
Term Loan
Prime plus 2.75%
3/29/2042
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/29/2027
Accommodation
Term Loan
Prime plus 2.75%
3/29/2042
Couriers and Messengers
Term Loan
Prime plus 2.75%
3/29/2030
85.9
53.1
31.7
519.4
607.2
89.1
133.6
46.1
21.4
222.3
233.9
193.9
71.2
993.0
78.5
85.9
53.1
31.7
519.4
607.2
89.1
133.6
46.1
21.4
222.3
233.9
193.9
71.2
88.4
55.8
32.1
608.9
568.7
90.1
135.1
46.8
22.4
258.6
274.5
226.1
73.1
993.0
1,165.0
78.5
81.4
0.03 %
0.02 %
0.01 %
0.18 %
0.17 %
0.03 %
0.04 %
0.01 %
0.01 %
0.08 %
0.08 %
0.07 %
0.02 %
0.34 %
0.02 %
Social Assistance
Term Loan
Prime plus 2.75%
3/28/2042
356.3
356.3
414.0
0.12 %
Chemical Manufacturing
Term Loan
Prime plus 2.75%
3/28/2027
5.0
5.0
5.1
— %
421 S. Oak St, Pecos, TX 79772
7637 C. Commerce Place, Plain
City, OH 43064
42 Main St, Nyack, NY 10960
Motion Picture and Sound
Recording Industries
Amusement, Gambling, and
Recreation Industries
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
3/27/2042
Term Loan
Prime plus 2.75%
3/27/2042
Term Loan
Prime plus 2.75%
3/23/2027
388.0
873.1
85.5
388.0
873.1
85.5
454.5
1,012.3
89.8
0.13 %
0.30 %
0.03 %
F-79
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
JBK Truck Trailer and Bus Inc.
Denton Bio Fuels LLC and
American Bio Source LLC
Executive Fitness & Nutrition
Inc.
Baton Rouge Cargo Services Inc.
and 6507 Westport, LLC
Vehicle Safety Supply LLC
The Purple Cow House of
Pancake Inc
Texcor, Inc.dba Texas
Corral,Texas Coral Restaurants
II, Inc. T.C. of
1MTX LLC and Sunrise
Transportation and Logistics,
LLC and Mustafa M
Dwayne Bernard Tate
Elegant Occasions, LLC dba E
Productions
Anthony LLC dba Star of
Woodward Market
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Allegro Assisted Living Of Texas (#,^)
Podium Auto Sales Inc and RRS
Property, LLC
SSI Refrigerated Express Inc.
and Robert M Stallone dba SSI
Express
Weeping Willow Kennels, Inc
and Aileen N Black
Getting Even LLC dba The Zoo
Health Club
Total Document Solutions Inc
and,TDS Services, LLC
(#,^)
(#,^)
(#,^)
(#,^)
McNally Enterprises Inc.
Teracore Inc.
B & J Bicycle Shop Inc.
TMJ Pizza Mesa LLC dba
Rosati's Pizza Restaurant
(#,^)
(#,^)
(#,^)
(#,^)
8669 South State Rd 67, Camby,
IN 46113
624 W. University Dr. Ste 359,
TX, TX 76201
8610 Roosevelt Ave Ste 2,
Jackson Heights, NY 11372
6507 Westport Ave, Shreveport,
LA 71129
707 Femimore Rd, Mamaroneck,
NY 10543
6 & 10 Skowhegan Rd, Fairfield,
ME 4937
Repair and Maintenance
Waste Management and
Remediation Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
3/23/2042
Term Loan
Prime plus 2.75%
3/23/2027
Term Loan
Prime plus 2.75%
3/23/2027
Truck Transportation
Term Loan
Prime plus 2.75%
3/22/2042
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/21/2027
Term Loan
Prime plus 2.75%
3/16/2042
83.6
43.3
14.3
605.5
16.0
150.9
83.6
43.3
14.3
605.5
16.0
150.9
96.9
44.6
15.1
706.6
16.2
176.8
0.03 %
0.01 %
— %
0.21 %
— %
0.05 %
5880 US Hwy6, Portage, IN
46368
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/16/2027
220.6
220.6
231.7
0.07 %
Term Loan
Prime plus 2.75%
3/13/2027
468.9
468.9
474.1
0.14 %
Truck Transportation
Truck Transportation
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 Personal and Laundry Services
5730 Woodward Ave, Detroit, MI
48202
3400 Remington Drive, Plano,
TX 75023
246 S. Dixie Hwy, Pompano
Beach, FL 33060
Food and Beverage Stores
Nursing and Residential Care
Facilities
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/10/2027
Term Loan
Prime plus 2.75%
3/10/2042
Term Loan
Prime plus 2.75%
3/9/2042
Term Loan
Prime plus 2.75%
3/6/2027
Term Loan
Prime plus 2.75%
3/3/2042
1001 E. Cooley Drive Ste 102,
Colton, CA 92324
6041 Hammond School Rd,
Salisbury, MD 21804
377 South Willow St Unit B2-1,
Manchester, NH 3103
2515 North Shiloh Drive,
Fayetteville, AR 72704
1010 N. Grove St, Anaheim, CA
92806
3300 Holcomb Bridge Rd, Ste
226, Norcross, GA 30092
1620 E. Sample Rd, Pompano
Beach, FL 33064
2235 S. Power Rd Ste 118, Mesa,
AZ 85209
Truck Transportation
Term Loan
Prime plus 2.75%
2/28/2027
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/28/2042
Term Loan
Prime plus 2.75%
2/28/2027
Term Loan
Prime plus 2.75%
2/27/2030
Term Loan
Prime plus 2.75%
2/27/2027
Term Loan
Prime plus 2.75%
2/27/2027
Term Loan
Prime plus 2.75%
2/24/2027
Term Loan
Prime plus 2.75%
2/24/2027
F-80
See accompanying notes to consolidated financial statements.
7.5
555.1
108.4
68.4
85.3
166.3
131.4
67.9
249.2
45.4
115.4
4.4
53.0
7.5
555.1
108.4
68.4
85.3
166.3
131.4
67.9
249.2
45.4
115.4
4.4
53.0
7.7
644.3
127.0
71.8
98.9
168.2
153.1
69.5
262.5
46.4
116.7
4.6
55.5
— %
0.19 %
0.04 %
0.02 %
0.03 %
0.05 %
0.05 %
0.02 %
0.08 %
0.01 %
0.03 %
— %
0.02 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
3W Enterprises LLC
Ameritube, LLC and Ravone
Properties, LLC
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.
Chidlren's House Learning, Inc
and Tarps Investment Group
Brandco, LLC
Fave Realty Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
SRC Publishing LLC
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
Metropolitan Solutions Group
Inc.
Means Enterprises LLC dba
FastFrame Frisco
(#,^)
(#,^)
(#,^)
2727 Industrial Parkway, Elkhart,
IN 46516
1000 North State. Hwy 77,
Hillsboro, TX 76645
2808 Court St, Port Allen, LA
70767
72 S. Main St, Hanover, NH 3755
34 Morningside Ave, Yonkers,
NY 10703
199 Taunton Ave, East
Providence, RI 2914
255 Ray Crain Rd, Indian Mound,
TN 37079
174-176 Mountain Ave,
Springfield, NJ 7081
164 West 83rd St. Units CF1 and
CF2, New York, NY 10024
720 Wilbraham Rd, Springfield,
MA 1109
2151 Consulate Drive Ste 21,
Orlando, FL 32837
1875 Grand Ave, Baldwin, NY
11510
8690 Waterford Bend St, Las
Vegas, NV 89123
Textile Product Mills
Term Loan
Prime plus 2.75%
2/24/2042
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
2/14/2042
Truck Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/10/2042
Term Loan
Prime plus 2.75%
2/10/2027
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/10/2042
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/10/2042
Forestry and Logging
Term Loan
Prime plus 2.75%
2/9/2027
Repair and Maintenance
Professional, Scientific, and
Technical Services
Social Assistance
Professional, Scientific, and
Technical Services
Real Estate
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
2/7/2042
Term Loan
Prime plus 2.75%
2/1/2042
Term Loan
Prime plus 2.75%
1/31/2042
Term Loan
Prime plus 2.75%
1/31/2027
Term Loan
Prime plus 2.75%
1/30/2042
Term Loan
Prime plus 2.75%
1/27/2027
2906 E. Newberry St., Appleton,
WI 54915
357 w 36th #401, New York, NY
10018
568 Techumseh St, Dundee, MI
48131
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
2 Basin Rd, Chilmark, MA 2535 Miscellaneous Store Retailers
16701 E. Iliff Ave, Aurora, CO
80013
1420 Chestnut St, Portsmouth,
VA 23704
4112-4150 Legacy Drive/5729
Leabanon Rd Unit 412, Frisco,
TX 75034
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
1/20/2042
Term Loan
Prime plus 2.75%
1/18/2027
Term Loan
Prime plus 2.75%
1/17/2027
Term Loan
Prime plus 2.75%
1/13/2027
Term Loan
Prime plus 2.75%
1/10/2027
F-81
See accompanying notes to consolidated financial statements.
60.9
173.1
232.6
13.2
129.2
205.6
74.9
307.8
173.8
301.1
30.5
51.1
15.7
39.8
7.3
69.5
15.7
34.1
60.9
173.1
232.6
13.2
129.2
205.6
74.9
307.8
173.8
301.1
30.5
51.1
15.7
39.8
7.3
69.5
15.7
34.1
71.1
202.8
271.5
13.5
150.9
239.5
77.0
355.7
200.9
349.5
30.8
59.4
15.9
46.1
7.5
73.0
16.5
35.8
0.02 %
0.06 %
0.08 %
— %
0.04 %
0.07 %
0.02 %
0.10 %
0.06 %
0.10 %
0.01 %
0.02 %
— %
0.01 %
— %
0.02 %
— %
0.01 %
0.09 %
Term Loan
Prime plus 2.75%
12/19/2041
257.0
257.0
295.1
Term Loan
Prime plus 2.75%
12/16/2026
14.4
14.4
14.6
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Soon Im. Chin dba Stan C-Store
(#,^)
Sempco, Inc.
New Chicago Wholesale Bakery,
Inc.
Techni-Pro Institute LLC
Elita 7, LLC
HMG Strategy, LLC
Trison Enterprises Inc.dba Lee's
Automotive
AGG Management Team LLC
dba Chevron
Roast Beef Levittown LLC dba
Arby's
Success Advertising Inc. dba
Success Communivstion Gr
Wayfarer Bicycle LLC
Mack Team Enterprises Inc.dba
The UPS Store #6815
Recycling Revolution,LLC
eCommerce Direct, LLC
New Life Hospital LLC
Imagine By Carleen Inc.
Hanson's Greeks LLC
Noso Development LLC
Quick Ship, LLC
Imaginarium Foods LLC,
RD Management, LLC
Pebble Wood Lane, LLC and
Good Sam's Assisted Living
Resiidence,LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4014 E Stan Schlueter Loop,
Killeen, TX 76542
51 -55 Lake St Unit #2-6,
Nashua, NH 3060
795 Touhy Ave, Elk Grove
Village, IL 60007
414 NW 35th St, Boca Raton, FL
33431
16 Marble St, Worcester, MA
1603
191 Post Rd West, Westport, CT
6880
13281 Aurora Ave N, Seattle,
WA 98311
2615 S Dixie Hwy, West Palm
Beach, FL 33401
2080 Hempstead Turnpike, East
Meadow, NY 11554
26 Eastmans Rd, Parsippany, NJ
7054
118-120 Ocean Ave, New
London, CT 6320
38200 Ave of the States, Fort
Gordon, GA 30905
4190 Collins Rd, Unadilla, GA
31091
3440 Gannett Ave, Des Moines,
IA 50321
17400 Red Oak Drive, Houston,
TX 77090
1404 Del Prado Blvd. Units 100
& 105, Cape Coral, FL 33990
8132 N. 87th Place, Ste A,
Scottsdale, AZ 85258
4 Walker Way, Albany, NY
12205
448 W. 19th St, Houston, TX
77008
751 N. Cable Rd, Lima, OH
45805
2302 N. Kings Hwy, Myrtle
Beach, SC 29572
Gasoline Stations
Term Loan
Prime plus 2.75%
12/15/2041
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
12/15/2041
Food Manufacturing
Term Loan
Prime plus 2.75%
12/15/2041
Educational Services
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/15/2026
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
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Couriers and Messengers
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/14/2041
Term Loan
Prime plus 2.75%
12/13/2026
Term Loan
Prime plus 2.75%
12/13/2041
Term Loan
Prime plus 2.75%
12/13/2041
Term Loan
Prime plus 2.75%
12/9/2026
Term Loan
Prime plus 2.75%
12/9/2041
198.6
39.2
426.1
130.8
669.9
32.6
380.8
267.8
146.3
435.9
86.4
14.1
85.3
198.6
39.2
426.1
130.8
669.9
32.6
380.8
267.8
146.3
435.9
86.4
14.1
85.3
231.8
45.9
492.2
133.1
779.3
32.9
442.2
313.2
153.3
509.1
99.5
14.4
98.7
Term Loan
Prime plus 2.75%
12/9/2026
534.4
534.4
546.0
Hospitals
Term Loan
Prime plus 2.75%
12/8/2041
1,139.8
1,139.8
1,333.1
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/8/2041
Term Loan
Prime plus 2.75%
12/8/2026
Construction of Buildings
Term Loan
Prime plus 2.75%
12/1/2026
Couriers and Messengers
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/30/2026
Term Loan
Prime plus 2.75%
2/28/2042
Term Loan
Prime plus 2.75%
11/30/2026
49.1
7.7
53.5
7.2
349.1
145.7
49.1
7.7
53.5
7.2
349.1
145.7
56.9
8.1
54.0
7.2
406.5
147.6
0.07 %
0.01 %
0.15 %
0.04 %
0.23 %
0.01 %
0.13 %
0.09 %
0.05 %
0.15 %
0.03 %
— %
0.03 %
0.16 %
0.39 %
0.02 %
— %
0.02 %
— %
0.12 %
0.04 %
1 Pebble Wood Lane, Palm
Coast, FL 32164
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
11/30/2041
63.4
63.4
74.2
0.02 %
F-82
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Usman Jalil, LLC dba Food Mart (#,^)
Access Staffing, LLC
CRK Mens, LLC dba Spiff for
Men
(#,^)
(#,^)
WPN Recycling Company LLC (#,^)
Hafa Adai Signs and Graphics
LLC dba Fastsigns of Auburn
(#,^)
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
Hoosier Health Plus, LLC
Hackensack Steel Corporation
and Luzerne Ironworks Inc
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. (#,^)
147 N Washington St, Plainville,
CT 6062
360 Lexington Ave 8th Floor,
New York, NY 10017
750 Third Ave, New York, NY
10017
5101 Andard Ave, Baltimore, MD
21226
1835 Auburn Way N Ste B,
Auburn, WA 98002
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
520 East 8th St, Anderson, IN
46012
300 Sly St, Swoyersville, PA
18709
Gasoline Stations
Administrative and Support
Services
Personal and Laundry Services
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Food Services and Drinking
Places
Repair and Maintenance
Professional, Scientific, and
Technical Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
11/29/2041
Term Loan
Prime plus 2.75%
11/29/2026
Term Loan
Prime plus 2.75%
11/23/2026
Term Loan
Prime plus 2.75%
11/23/2026
Term Loan
Prime plus 2.75%
11/23/2026
Term Loan
Prime plus 2.75%
11/22/2041
Term Loan
Prime plus 2.75%
11/22/2041
Term Loan
Prime plus 2.75%
11/22/2026
Term Loan
Prime plus 2.75%
11/22/2026
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/21/2026
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/17/2026
Term Loan
Prime plus 2.75%
11/16/2026
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
11/15/2026
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/10/2026
Food Services and Drinking
Places
3844 Post Rd, Warwick, RI 2886 Health and Personal Care Stores
17250 Royalton Rd, Strongsville,
OH 44136
2530 SW 30th Ave, Hallandale
Beach, FL 33009
13215 Miles Ave, Cleveland, OH
44105
1325 BRd St, Central Falls, RI
2863
10302 NW South River Drive,
Bay #18, Miami, FL 33178
131 East Trinity Place, Decatur,
GA 30030
Repair and Maintenance
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/9/2041
Term Loan
Prime plus 2.75%
11/9/2026
Term Loan
Prime plus 2.75%
11/4/2041
Term Loan
Prime plus 2.75%
11/3/2041
Term Loan
Prime plus 2.75%
11/1/2041
Term Loan
Prime plus 2.75%
11/1/2026
Term Loan
Prime plus 2.75%
10/31/2026
F-83
See accompanying notes to consolidated financial statements.
217.9
841.0
71.1
15.3
40.9
90.6
388.2
105.4
84.8
68.2
12.8
46.8
63.1
176.0
224.3
151.9
60.3
111.5
110.8
51.1
40.4
217.9
841.0
71.1
15.3
40.9
90.6
388.2
105.4
84.8
68.2
12.8
46.8
63.1
176.0
224.3
151.9
60.3
111.5
110.8
51.1
40.4
250.7
848.6
72.2
16.1
41.4
105.9
449.9
109.1
85.6
71.4
12.9
49.0
66.1
184.4
259.1
153.8
70.5
130.0
128.9
53.5
40.8
0.07 %
0.25 %
0.02 %
— %
0.01 %
0.03 %
0.13 %
0.03 %
0.03 %
0.02 %
— %
0.01 %
0.02 %
0.05 %
0.08 %
0.05 %
0.02 %
0.04 %
0.04 %
0.02 %
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
2650 S.W. 154 Ave, Davie, FL
33331
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/31/2026
191 2nd Ave, Warwick, RI 2888 Miscellaneous Manufacturing
401 Old Quitman Rd, Abel, GA
31620
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
10/31/2041
Term Loan
Prime plus 2.75%
10/27/2029
176.7
176.7
188.8
Moolchan Enterprises LLC dba
Staying Green
Woodstock Enterprises Corp dba
True Scent Candle Co
Elite Structures Inc
Blakeslee Arpaia Chapman Inc
and Chapman Construction
Services LLC
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
JJA Transportation Management
Inc.
Seaway LLC and Reklaw LLC
dba Allure Lounge
Beadon Inc
(#,^)
(#,^)
(#,^)
(#,^)
CNC Precision Machine, Inc.
(#,^)
Reynolds Fence & Guardrail Inc. (#,^)
Kyle M Walker DDS, PC
Luv 2 Play Nor Cal, LLC dba
Luv 2 Play
TPFC,LLC dbaThe Picture
Frame Company
Ridge Road Equestrian LLC dba
Ricochet Ridge Ranch
PeopleBest Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
200 North Branford Rd, Branford,
CT 6405
10620 W. Greenwood Terrace,
Milwaukee, WI 53224
2830 Beech Daly Rd, Inkster, MI
48141
246 East Belt Blvd, 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
2129
352 Beford St, Lakeville, MA
2347
15 Church St, Upland, PA 19015
415 -417 Halsey Drive, Newark,
NJ 7102
2601 Old Ocean City Rd,
Salisbury, MD 21804
18360 Industrial Circle, Burton,
OH 44021
9320 Machado Drive, Indian
Trail, NC 28079
1402 West Park Ave, Orange, TX
77630
82 Clarksville Rd, Folsom, CA
95630
5957 Glenway Ave, Cincinnati,
OH 45238
24201 North Hwy 1, Fort Bragg,
CA 95437
19442 Mesa Drive, Villa Park,
CA 92861
Heavy and Civil Engineering
Construction
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
10/24/2026
Term Loan
Prime plus 2.75%
10/21/2041
Truck Transportation
Term Loan
Prime plus 2.75%
10/20/2041
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
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Food and Beverage Stores
Fabricated Metal Product
Manufacturing
Heavy and Civil Engineering
Construction
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
Term Loan
Prime plus 2.75%
10/7/2026
Term Loan
Prime plus 2.75%
10/3/2026
Term Loan
Prime plus 2.75%
10/3/2026
Term Loan
Prime plus 2.75%
9/30/2026
Term Loan
Prime plus 2.75%
9/30/2041
Term Loan
Prime plus 2.75%
9/28/2026
Term Loan
Prime plus 2.75%
9/27/2026
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/27/2026
Prime plus 2.75%
9/27/2026
Miscellaneous Store Retailers
Support Activities for Agriculture
and Forestry
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/26/2041
Term Loan
Prime plus 2.75%
9/26/2026
Term Loan
Prime plus 2.75%
9/26/2026
F-84
See accompanying notes to consolidated financial statements.
7.4
82.6
7.4
82.6
7.7
95.2
286.4
208.9
162.9
116.4
110.7
13.1
75.8
24.3
159.6
33.6
127.4
14.9
286.4
208.9
162.9
116.4
110.7
13.1
75.8
24.3
159.6
33.6
127.4
14.9
300.1
244.4
190.5
135.4
115.7
13.3
78.0
24.5
162.4
33.9
149.0
15.6
418.4
157.1
36.2
54.5
6.0
10.0
418.4
157.1
36.2
54.5
6.0
10.0
435.8
159.5
36.9
63.2
6.3
10.0
— %
0.03 %
0.06 %
0.09 %
0.07 %
0.06 %
0.04 %
0.03 %
— %
0.02 %
0.01 %
0.05 %
0.01 %
0.04 %
— %
0.41 %
0.13 %
0.05 %
0.01 %
0.02 %
— %
— %
Term Loan
Prime plus 2.75%
9/28/2041
1,188.7
1,188.7
1,376.8
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Cuppiecakes LLC
Wrecking Crew Media LLC
Consulting Solutions Inc. and
Mark Luciani
Benoit's Towing and Recovery
LLC
Marquis Cattle Company
Metropet Dog Center, Inc
Animal Intrusion Prevention
Systems Holding Company, LLC
dba Critter C
Raem Corporation dba Dryclean
Express
Warren Dale Warrington dba
Custom Paint and Body
Albert Basse Associates Inc
Rosmel Pools Inc
Avery Management Inc. dba
Whetstone Upholstery
TR Companies LLC dba Liberty
Rental 4 U
Sambella Holdings, LLC and
Strike Zone Entertainment Center
LLC
Luv 2 Play Temecula, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Grayson O Company
Paul Belanger dba Paul Belanger
Landscaping
(#,^)
(#,^)
The Hungry Rhino LLC
Little Tree Huggers Child Care
LLC
(#,^)
(#,^)
303 Tower Drive LLC
USA General Investment LLC
dba Braniff Paint and Body Shop (#,^)
676 Club LP dba The Green
Door Tavern/The Drifter
(#,^)
(#,^)
313 S Main St, McGregor, TX
76557
229 Commercial Ave, Pittsburgh,
PA 15212
3000 N Federal Hwy 1-1A, Fort
Lauderdale, FL 33306
301 Tabor Rd, Swanton, VT 5488
805 US Hwy 87, Belt, MT 59412
2057 West Shore Rd, Warwick, RI
2889
1362-1366 W. Carrier Parkway,
Grand Prairie, TX 75050
557 West Whitney Rd, Fairport,
NY 14450
705 S Market Ave, Fort Pierce,
FL 34982
175 Campanelli Parkway,
Stoughton, MA 2072
9300 NW 25th St Ste 103, Miami,
FL 33172
1122 N Bloulevard, Richmond,
VA 23230
410 N Church Rd, Liberty, MO
64068
726-740 South Fleming St,
Sebastian, FL 32958
26469 Ynez Rd, Temecula, CA
92591
6509 Newell Ave, Kannapolis,
NC 28082
2595 Military Ave, Los Angeles,
CA 90064
47 South Main St, Windsor
Locks, CT 6096
38620 9 Mile Rd, Farmington
Hills, MI 48335
303 Tower Drive, Ste A,
Middletown, NY 10941
2290 NW 21st Terrace, Miami,
FL 33142
676 and 678 North Orleans ST,
Chicago, IL 60654
Food Services and Drinking
Places
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Support Activities for
Transportation
Animal Production and
Aquaculture
Term Loan
Prime plus 2.75%
9/21/2041
Term Loan
Prime plus 2.75%
9/21/2026
Term Loan
Prime plus 2.75%
9/20/2026
Term Loan
Prime plus 2.75%
9/20/2026
Term Loan
Prime plus 2.75%
9/13/2026
20.9
33.2
16.2
5.6
33.5
20.9
33.2
16.2
5.6
33.5
24.1
33.5
16.8
5.7
35.1
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/13/2041
101.3
101.3
117.6
Administrative and Support
Services
Term Loan
Prime plus 2.75%
8/30/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/29/2041
Repair and Maintenance
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
8/26/2041
Term Loan
Prime plus 2.75%
8/25/2026
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/25/2026
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/25/2026
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/25/2026
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/24/2041
Term Loan
Prime plus 2.75%
8/15/2026
Term Loan
Prime plus 2.75%
8/10/2041
Term Loan
Prime plus 2.75%
8/9/2026
Real Estate
Term Loan
Prime plus 2.75%
7/29/2041
Social Assistance
Term Loan
Prime plus 2.75%
7/29/2041
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/29/2041
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/29/2026
Term Loan
Prime plus 2.75%
7/28/2041
F-85
See accompanying notes to consolidated financial statements.
89.8
67.1
93.7
40.6
14.8
6.7
32.6
492.0
40.9
578.2
9.8
70.4
129.3
369.5
14.6
622.6
89.8
67.1
93.7
40.6
14.8
6.7
32.6
492.0
40.9
578.2
9.8
70.4
129.3
369.5
14.6
622.6
91.1
78.3
108.9
42.4
15.0
6.7
32.8
574.4
41.1
675.1
9.9
81.5
150.9
430.3
14.8
726.2
0.01 %
0.01 %
— %
— %
0.01 %
0.03 %
0.03 %
0.02 %
0.03 %
0.01 %
— %
— %
0.01 %
0.17 %
0.01 %
0.20 %
— %
0.02 %
0.04 %
0.13 %
— %
0.21 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Apple Tree NC Inc dba Williams
Farm & Garden Center
Intrepid Trinity LLC
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
Robert G Larson State Farm
Insurance
My Sainath Inc dba Motel 6
Robert P Daniels dba Ginger and
Friend's Peppermint Village Gift
Sho
Franklin Firm LLC dba Luv 2
Play
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
dba Close Pai
VMA Technologies LLC
P L H Pharmaco Inc dba
Farmacia San Jose
Martin Inventory Management
LLC
Desert Tacos 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
JumboMarkets Inc dba Rines
Jumbomarkets
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1309 Old Cherry Point Rd, New
Bern, NC 28560
680 Douglas Ave, Providence, RI
2908
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
7922 Jamaica Ave, Woodhaven,
NY 11421
1008 E Crest Drive, Waco, TX
76705
1502 Hwy 157, Mansfield, TX
76063
1310 East Stan Schleuter Loop,
Killeen, TX 76542
5140 Topaz Drive, Colorado
Springs, CO 80918
6315 W. Fond Du Lac Ave,
Milwaukee, WI 53218
Building Material and Garden
Equipment and Supplies Dealers
Nonstore Retailers
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
7/28/2041
319.9
319.9
369.1
Term Loan
Prime plus 2.75%
7/28/2041
Term Loan
Prime plus 2.75%
7/27/2026
Term Loan
Prime plus 2.75%
7/27/2026
Term Loan
Prime plus 2.75%
7/27/2026
Term Loan
Prime plus 2.75%
7/22/2026
57.7
54.2
47.7
82.1
14.6
57.7
54.2
47.7
82.1
14.6
67.0
54.5
49.9
82.7
14.7
0.11 %
0.02 %
0.02 %
0.01 %
0.02 %
— %
Accommodation
Term Loan
Prime plus 2.75%
7/22/2041
282.9
282.9
329.6
0.10 %
Miscellaneous Store Retailers
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
7/18/2026
Term Loan
Prime plus 2.75%
7/15/2041
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/7/2026
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/30/2041
10.2
149.5
32.3
271.8
10.2
149.5
32.3
271.8
10.3
173.6
33.7
320.9
— %
0.05 %
0.01 %
0.09 %
Term Loan
Prime plus 2.75%
6/30/2029
147.5
147.5
159.1
0.05 %
1314 Sixth St, Orland, CA 95963
120 South Serenata Drive Unit
332, Ponte Vedra Beach, FL
32082
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
149 48th St, Union City, NJ 7087 Health and Personal Care Stores
Merchant Wholesalers, Durable
304 1/2 Main St, Edgefield, SC
Goods
29824
Food Services and Drinking
245 East Bell Rd Ste A-2,
Places
Phoenix, AZ 85022
Term Loan
Prime plus 2.75%
6/30/2026
Term Loan
Prime plus 2.75%
6/30/2026
Term Loan
Prime plus 2.75%
6/30/2026
Term Loan
Prime plus 2.75%
6/30/2026
14.3
106.7
15.8
64.9
14.3
106.7
15.8
64.9
14.8
111.9
16.6
67.9
— %
0.03 %
— %
0.02 %
0.04 %
154 High St, Bristol, RI 2809
Accommodation
Term Loan
Prime plus 2.75%
6/29/2041
113.3
113.3
133.6
626 Delsea Drive N, Glassboro,
NJ 8028
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
6/29/2026
89.8
89.8
93.0
0.03 %
330 Roycefield Rd, Unit B,
Hillsborough, NJ 8844
15500 SW Trail Drive,
Indiantown, FL 34956
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
6/29/2041
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/24/2026
280.6
32.0
280.6
32.0
331.0
33.0
0.10 %
0.01 %
F-86
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Island Time Investments, LLC
dba Swantown Inn Bed &
Breakfast
Shooting Sports Academy LLC
and Jetaa LLC dba Shooting
Sports Academy
Visual Advantage LLC dba Signs
Now Perryberg
Long Island Comedy LLC dba
Governors and New York
Comedy, LLC
Bagelicious, LLC
Blue Eagle Transport Inc,
Greeneagle Transport Inc and
Golden Eagle Tr
NKJ Lusby Donuts LLC
Jai-Alexia Consulting, Inc.
Pumpkin Patch Child Care of
Southington, LLC and Giuseppe
Pugliares
Luv 2 Play AZ LLC
Refoleen Inc dba Spice and Tea
Exchange
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
Jack Frost Firewood Inc. and
David Dubinsky
Southwest Division Inc
International Kitchen Supply
LLC
Groth Lumber Co. Inc. dba True
Value
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1431 11th Ave SE, Olympia, WA
98501
Accommodation
Term Loan
Prime plus 2.75%
6/24/2041
93.3
93.3
110.0
0.03 %
27 Main St, Monroe, CT 6468
23248 Dunbridge Rd, Perrysburg,
OH 43443
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
90 A Division Ave, Levittown,
NY 11756
945 S Main St, Cheshire, CT
6410
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/23/2041
Term Loan
Prime plus 2.75%
6/23/2041
Term Loan
Prime plus 2.75%
6/23/2041
Term Loan
Prime plus 2.75%
6/17/2026
459.2
84.1
173.5
34.9
459.2
84.1
173.5
34.9
538.4
98.8
204.0
36.1
0.16 %
0.03 %
0.06 %
0.01 %
Couriers and Messengers
Term Loan
Prime plus 2.75%
6/16/2026
352.9
352.9
364.1
0.11 %
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/16/2026
Couriers and Messengers
Term Loan
Prime plus 2.75%
6/15/2026
14.4
7.6
14.4
7.6
14.9
7.8
Social Assistance
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
6/10/2026
Term Loan
Prime plus 2%
6/15/2041
470.9
470.9
521.8
377 Boston Post Rd, Milford, CT
6460
174 Village Center Drive, Lusby,
MD 20657
14660 Paddock Drive,
Wellington, FL 33414
1137 West St, Southington, CT
6489
15495 Bell Rd, Surprise, AZ
85374
849 East Commerce St, Ste 121,
San Antonio, TX 78205
2325 Hollers Ave, Bronx, NY
10475
65 Farmington Valley Drive,
Plainville, CT 6062
5 Pond Point Rd, Milford, CT
6460
7007 Boeing Drive, El Paso, TX
79925
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/10/2026
Truck Transportation
Term Loan
Prime plus 2.75%
6/6/2026
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/3/2026
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/2/2041
Air Transportation
Term Loan
Prime plus 2.75%
5/31/2026
55 Arbour Lane, Sewell, NJ 8080 Construction of Buildings
8957 Kingsridge Drive,
Centerville, OH 45459
3168 Holland Rd, Virginia Beach,
VA 23453
2103 NE 3rd Terrace, Cape Coral,
FL 33909
3466 North Hwy 11, West Union,
SC 29696
6747 Pacific Ave, Wright, MN
55798
Amusement, Gambling, and
Recreation Industries
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
Term Loan
Prime plus 2.75%
5/27/2041
Term Loan
Prime plus 2.75%
5/27/2026
Term Loan
Prime plus 2.75%
5/26/2041
Term Loan
Prime plus 2.75%
5/26/2026
Term Loan
Prime plus 2.75%
5/25/2026
Term Loan
Prime plus 2.75%
5/25/2026
F-87
See accompanying notes to consolidated financial statements.
— %
— %
0.15 %
0.01 %
0.02 %
— %
0.05 %
0.06 %
0.11 %
0.03 %
0.02 %
0.07 %
— %
0.04 %
— %
41.9
55.4
14.4
158.5
178.5
370.7
91.5
55.3
189.7
5.2
119.9
14.2
41.9
55.4
14.4
158.5
178.5
370.7
91.5
55.3
189.7
5.2
119.9
14.2
43.9
57.1
14.9
164.6
210.6
384.6
107.6
58.0
222.8
5.4
124.6
14.9
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
(#,^)
Dedicated Incorporated
J&A Laundromat Inc.
HBA LLC dba Palmetto Twist-
Vista
(#,^)
(#,^)
(#,^)
FJN Catering Inc
Pumpkin Patch Inc and Christine
Feliciano and Antonio Feliciano (#,^)
(#,^)
Sabir Inc. dba Bear Diner
(#,^)
Keller, Fishback & Jackson LLP (#,^)
Loriet LLC
Hard Exercise Works Winter Park
LLC
Marc S. Rosenberg P.C. dba
Mammuth and Rosenberg
Warner Home Comfort, LLC dba
Smith Piping
(#,^)
(#,^)
(#,^)
(#,^)
Alpha Omega Trucking LLC
May-Craft Fiberglass Products
Inc
Empowerschool LLC and
Empower Autism Academy, LLC (#,^)
(#,^)
(#,^)
Pecos Inn LLC dba Econo Lodge (#,^)
Costume World Inc
(#,^)
Miscellaneous Manufacturing
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
1925 S 14th St No. 7, Amelia
Island, FL 32034
1 Linsley Place, Metuchen, NJ
8840
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
2916 North 39th St, Phoenix, AZ
85019
225 East Park Ave, Long Beach,
NY 11561
1225-1229 Lincoln St, Columbia,
SC 29201
Social Assistance
Administrative and Support
Services
Air Transportation
Personal and Laundry Services
Repair and Maintenance
Food Services and Drinking
Places
106 Main St, Mineola, NY 11951
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
11 Kirby Rd, Cromwell, CT 6419 Social Assistance
603 Pulaski Hwy, Bear, DE
19701
28720 Canwood St, Agoura Hills,
CA 91301
5001 Vivienda Way, Sarasota, FL
34235
11551 University Blvd, Ste. 4C
Building 1, Orlando, FL 32817
401 East City Ave Ste 122, Bala
Cynwyd, PA 19004
1571 Canton Rd., NW,
Carrollton, OH 44615
14432-52 State Line Rd,
Brookings, OR 97415
96 Hillsboro Rd, Four Oaks, NC
27524
1250 South A. W. Grimes Rd,
Round Rock, TX 78665
2207 W Third St, Pecos, TX
79772
950 South Federal Hwy,
Deerfield Beach, FL 33441
Truck Transportation
Transportation Equipment
Manufacturing
Accommodation
Clothing and Clothing
Accessories Stores
Specialty Trade Contractors
Social Assistance
Term Loan
Prime plus 2.75%
5/24/2026
Term Loan
Prime plus 2.75%
5/24/2026
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
5/23/2029
5/20/2026
Term Loan
Prime plus 2.75%
5/20/2026
Term Loan
Prime plus 2.75%
5/20/2026
Term Loan
Prime plus 2.75%
5/18/2041
Term Loan
Prime plus 2.75%
5/18/2026
Term Loan
Prime plus 2.75%
5/18/2026
Term Loan
Prime plus 2.75%
5/13/2041
Term Loan
Prime plus 2.75%
5/12/2041
Term Loan
Prime plus 2.75%
5/11/2041
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2041
Term Loan
Prime plus 2.75%
4/29/2041
Term Loan
Prime plus 2.75%
4/29/2041
Term Loan
Prime plus 2.75%
4/29/2041
Term Loan
Prime plus 2.75%
4/28/2041
14.2
55.0
6.8
4.6
71.5
8.1
42.8
42.7
12.3
243.1
121.9
113.8
80.8
4.7
25.4
14.0
75.7
161.2
227.2
139.4
621.9
14.2
55.0
6.8
4.6
71.5
8.1
42.8
42.7
12.3
243.1
121.9
113.8
80.8
4.7
25.4
14.0
75.7
161.2
227.2
139.4
621.9
14.7
56.8
7.3
4.9
75.0
8.3
50.3
44.2
12.7
286.7
143.2
134.1
84.8
4.8
26.2
14.5
89.0
190.2
267.9
164.4
732.8
Term Loan
Prime plus 2.75%
4/28/2041
1,153.3
1,153.3
1,360.3
— %
0.02 %
— %
— %
0.02 %
— %
0.01 %
0.01 %
— %
0.08 %
0.04 %
0.04 %
0.02 %
— %
0.01 %
— %
0.03 %
0.06 %
0.08 %
0.05 %
0.22 %
0.40 %
F-88
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/26/2026
56.2
56.2
58.0
0.02 %
Term Loan
Prime plus 2.75%
4/22/2041
229.5
229.5
268.6
0.08 %
Accent Comfort Services, LLC (#,^)
Automotive Core Recycling,
LLC and 828 Old Colony Road,
LLC
AAA Mill Direct, Inc. dba Carpet
Mill Outlets
Sushiya Inc
Waterfalls Quick Lube LLC and
Veracruz Shabo LLC
KNS Early Learning Academy
LLC
Christian Soderquist dba
Soderquist Plumbing and Heating
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Vehicle Safety Supply LLC
Dana A. Farley dba Independent
Cabinets
Cameo Carter, MD A
Professional Corporation dba The
Garden Pediatric G
Men of Steel Enterprises LLC
and Vogelbacher Properties LLC (#,^)
(#,^)
(#,^)
MTS Car Service LLC
Beale Street Blues Company-
West Palm Beach, LLC dba
Lafayette’s-West P
Tom Sawyer Country Restaurant
LLC and AM 3208 LLC
Wyldewood Cellars, Inc.
NOSO Development, LLC
Gordon Rogers and Heidi Rogers
dba Stone House Motor Inn
Barrocas Gym LLC dba Snap
Fitness
Marathon Engineering
Corporation
PHCDC1 LLC dba Quarter +
Glory and Public House
Collective, Corp.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
5035-C West W. T. Harris Blvd,
Charlotte, NC 28269
27-29 Cooper St, Meriden, CT
6053
1 North Armistead Ave,
Hampton, VA 23669
72 South Main St, Hanover, NH
3755
1325 BRd St, Central Falls, RI
2863
57 Merritt St SE, Marietta, GA
30060
7 Oak Drive, Sandy Hook, CT
6482
15 East 72nd St, Ste 14-H, New
York, NY 10021
5805 NE Minder Rd, Poulsbo,
WA 98370
101 East Redlands Blvd., Ste 106,
Redlands, CA 92373
2039 US Route 130, Burlington,
NJ 8016
9 Gibson Court Apt# 1, Norwalk,
CT 6854
Merchant Wholesalers, Durable
Goods
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/21/2026
Term Loan
Prime plus 2.75%
4/12/2026
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/6/2041
Social Assistance
Term Loan
Prime plus 2.75%
4/6/2041
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2041
Motor Vehicle and Parts Dealers
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
3/31/2026
Term Loan
Prime plus 2.75%
3/31/2041
Ambulatory Health Care Services Term Loan
Fabricated Metal Product
Manufacturing
Transit and Ground Passenger
Transportation
Term Loan
Term Loan
Prime plus 2.75%
3/31/2026
Prime plus 2.75%
3/31/2041
Prime plus 2.75%
3/30/2026
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Beverage and Tobacco Product
Manufacturing
550 Rosemary Ave, Ste 236, West
Palm Beach, FL 33410
3208 Forest Hills Blvd, Palm
Springs, FL 33406
951 East 119th St, Mulvane, KS
67120
4 Walker Way, Albany, NY 12205 Construction of Buildings
162 Danielson Pike, Foster, RI
2825
260 West Main St, Avon, CT
6001
5615 2nd St W, Lehigh Acres, FL
33971
Accommodation
Amusement, Gambling, and
Recreation Industries
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/30/2026
Term Loan
Prime plus 2.75%
3/30/2041
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/30/2041
3/30/2026
Term Loan
Prime plus 2.75%
3/30/2026
Term Loan
Prime plus 2.75%
3/29/2026
Term Loan
Prime plus 2.75%
3/28/2041
2017 14th St NW, Washington,
DC 20009
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/28/2026
F-89
See accompanying notes to consolidated financial statements.
4.9
54.7
249.9
46.9
52.0
13.9
59.5
46.2
360.4
6.5
57.8
236.1
960.1
120.2
14.0
11.6
41.2
31.6
4.9
54.7
249.9
46.9
52.0
13.9
59.5
46.2
360.4
6.5
57.8
236.1
960.1
120.2
14.0
11.6
41.2
31.6
5.2
56.7
294.3
55.0
61.3
14.3
70.2
47.6
421.4
6.7
59.7
278.4
1,124.2
123.8
14.7
12.1
48.5
— %
0.02 %
0.09 %
0.02 %
0.02 %
— %
0.02 %
0.01 %
0.12 %
— %
0.02 %
0.08 %
0.33 %
0.04 %
— %
— %
0.01 %
32.8
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Revolution Physical Therapy
LLC dba Apex Network Physical
Therapy
(#,^)
International Construction Inc
(#,^)
ActKnowledge, Inc
Precious Care LLC and Precious
Care Management LLC
Taylors Zinn Enterprises Inc dba
Eons Auto Care Inc
Kekoa Enterprises Inc dba
Signarama Sandy
Brian T Rice dba BD Logging
R & D Enterprises Inc dba My
Pool Man
HEWZ, LLC dba Hard Exercise
Works
Mustafa Inc and Raouf Properties
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Dupre Capital LLC dba Fastsigns (#,^)
ABCs & 123s Infant and Child
Care Center LP
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
The River Beas, LLC dba
Subway and Punam Singh
Consulting Solutions, Inc. and
Mark Luciani
(#,^)
(#,^)
(#,^)
Living Essentials HVAC Corp
(#,^)
2705 Dougherty Ferry Rd Ste
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
330 West Harden St, Graham, NC
27253
8942 South 700 East, Sandy, UT
84070
800 3rd St Apt B, St Marys, WV
26170
291 North Texas Ave., Orlando,
FL 32805
5684 West Sample Rd, Coral
Springs, FL 33071
3538 Pin Oak Dr, San Antonio,
TX 78229
215 Quartermaster Court,
Jeffersonville, IN 47130
13419 Hwy 290E., Bldg 5,
Manor, TX 78653
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 6787
8792 East State Rd 70, Ste B,
Bradenton, FL 34202
35 Copps Hill Rd, Ridgefield, CT
6877
5516 Baltimore Ave, Hyattsville,
MD 20781
3000 N Federal Hwy, STE 1, Fort
Lauderdale, FL 33306
42 West St, Apt 24, Randolph,
MA 2368
Ambulatory Health Care Services Term Loan
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
3/25/2026
Prime plus 2.75%
3/24/2041
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/24/2026
14.0
43.5
77.0
14.0
43.5
77.0
14.5
51.0
80.6
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/21/2026
342.2
342.2
352.6
Repair and Maintenance
Professional, Scientific, and
Technical Services
Forestry and Logging
Administrative and Support
Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
3/18/2041
Term Loan
Prime plus 2.75%
3/18/2026
Term Loan
Prime plus 2.75%
3/17/2026
Term Loan
Prime plus 2.75%
3/15/2026
Term Loan
Prime plus 2.75%
3/14/2026
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/14/2041
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/11/2026
Social Assistance
Term Loan
Prime plus 2.75%
3/11/2026
Educational Services
Term Loan
Prime plus 2.75%
3/9/2026
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/9/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/8/2026
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/7/2026
74.0
30.5
1.1
30.8
13.8
68.5
36.0
6.9
4.9
13.9
48.7
4.6
74.0
30.5
1.1
30.8
13.8
68.5
36.0
6.9
4.9
13.9
48.7
4.6
87.1
31.4
1.2
31.7
14.2
80.6
37.0
7.1
5.1
14.4
50.1
4.8
— %
0.02 %
0.02 %
0.10 %
0.03 %
0.01 %
— %
0.01 %
— %
0.02 %
0.01 %
— %
— %
— %
0.01 %
— %
Term Loan
Prime plus 2.75%
3/4/2041
100.1
100.1
117.8
0.03 %
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Social Assistance
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/4/2026
Term Loan
Prime plus 2.75%
3/3/2026
5.0
34.5
5.0
34.5
5.2
36.1
Term Loan
Prime plus 2.75%
2/28/2041
124.2
124.2
146.2
— %
0.01 %
0.04 %
— %
— %
7.5
9.1
7.5
9.1
7.8
9.4
Term Loan
Prime plus 2.75%
2/28/2026
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/28/2026
F-90
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
Jersey Shore Marina & Boat
Sales, Inc.
Ei3 Corporation
Gilmore Heights Dental
Holdings, LTD and Chas Rob
LLC
B for Blonde, LLC dba Blo Blow
Dry Bar
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
841 Route 70 East, Brick, NJ
8724
136 Summit Ave, Montvale, NJ
7645
2250 Warrensville Center Rd,
University Heights, OH 44118
142 East 49th St, New York, NY
10017
2215 NW 2nd Ave, Miami, FL
33127
28 Cornelia St, New York, NY
10014
34 South Valley Rd, West Orange,
NJ 7052
5137 Clareton Dr., Ste 100,
Agoura Hills, CA 91301
24 Wakefield St, Rochester, NH
3867
135 North Lime Ave, Sarasota,
FL 34237
34 Old Colony Ave, East
Taunton, MA 2718
1196 Inverness Lane, Stow, OH
44224
1245 W Baseline Rd Unit 105,
Mesa, AZ 85202
431 Raritan Ave, Highland Park,
NJ 8904
24201 North Hwy 1, Fort Bragg,
CA 95437
800 SW 21st Terrace, Fort
Lauderdale, FL 33312
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/28/2026
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/28/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/23/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/23/2026
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
2/18/2026
Term Loan
Prime plus 2.75%
2/12/2041
Term Loan
Prime plus 2.75%
2/12/2026
1.4
12.0
47.1
31.8
9.6
572.4
198.7
1.4
12.0
47.1
31.8
9.6
572.4
198.7
1.5
12.4
48.5
32.8
10.1
674.0
207.9
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/12/2029
227.3
227.3
242.4
Personal and Laundry 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
Food and Beverage Stores
Food Services and Drinking
Places
Miscellaneous Manufacturing
Amusement, Gambling, and
Recreation Industries
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
2/12/2026
Term Loan
Prime plus 2.75%
2/2/2026
Term Loan
Prime plus 2.75%
1/29/2026
Term Loan
Prime plus 2.75%
1/28/2026
Term Loan
Prime plus 2.75%
1/28/2026
Term Loan
Prime plus 2.75%
1/28/2026
39.7
30.4
13.5
13.4
37.5
6.7
39.7
30.4
13.5
13.4
37.5
6.7
40.9
31.8
14.1
14.0
39.3
7.0
Term Loan
Prime plus 2.75%
1/11/2041
102.8
102.8
121.0
Term Loan
Prime plus 2.75%
1/5/2041
Term Loan
Prime plus 2.75%
12/29/2025
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
61.8
66.6
11.1
9.4
93.3
61.8
66.6
11.1
9.4
93.3
Term Loan
Prime plus 2.75%
12/23/2040
228.7
228.7
72.8
68.7
11.4
9.7
109.4
268.0
— %
— %
0.01 %
0.01 %
— %
0.20 %
0.06 %
0.07 %
0.01 %
0.01 %
— %
— %
0.01 %
— %
0.04 %
0.02 %
0.02 %
— %
— %
0.03 %
0.08 %
F-91
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Premier Athletic Center of Ohio
Inc. and Gates Investments and
Wade Ga
Joyce Outdoor Advertising
Chicago LLC
Hattingh Incorporated dba
Prosthetic Care Facility
(#,^)
(#,^)
(#,^)
Trip Consultants U.S.A. Inc.
(#,^)
Accent Tag and Label Inc
Labmates LLC
Sourceco Limited Liability
Company
Moments to Remember USA
LLC dba Retain Loyalty
New York Home Health Care
Equipment, LLC
Swalm Street LLC and New York
Home Health Care Equipment
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Abitino's JFK LLC dba Abitino's (#,^)
JAG Unit 1, LLC
DC Enterprises Ltd. dba
Lakeview True Value
Basista Family Limited
Partnership and UPE, Inc.
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.
Sambella Holdings, LLC and
Strike Zone Entertainment Center
LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
8957 Kingsridge Drive,
Centerville, OH 45459
2443 West 16th St, Chicago, IL
60608
4415 Woodridge Pkwy, Ste 180,
Leesburg, VA 20176
311 85th St, Brooklyn, NY 11209
2201 Rittenhouse St, Des Moines,
IA 50321
141 Watertown Rd, Thomaston,
CT 6787
17 Palmer Ave, West Long
Branch, NJ 7764
1250 Sanders Ave SW, Massillon,
OH 44646
30 Hopper St, Westbury, NY
11590
30 Hopper St, Westbury, NY
11590
Terminal 8 JFK ExpressWay
Airport, Jamaica, NY 11430
1 West Main St, Patchogue, NY
11772
318 North F St, Lakeview, OR
97630
3401 Brecksville Rd, Richfield,
OH 44286
4508 Blakiston St, Philadelphia,
PA 19136
2142 Rheem Drive, Ste E,
Pleasanton, CA 94588
72-74 South Main St, Hanover,
NH 3755
880 Lowcountry Blvd, Mount
Pleasant, SC 29464
4179 Broadway, New York, NY
10033
10800 E. Bethany Drive, Ste 275,
Aurora, CO 80014
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
Professional, Scientific, and
Technical Services
Printing and Related Support
Activities
Term Loan
Term Loan
Prime plus 2.75%
12/21/2025
Prime plus 2.75%
12/18/2025
Prime plus 2.75%
12/18/2040
Miscellaneous Store Retailers
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/18/2040
Term Loan
6.5%
12/17/2025
Term Loan
Prime plus 2.75%
12/16/2025
635.3
274.3
10.6
98.4
603.3
147.9
24.5
51.3
635.3
274.3
10.6
98.4
603.3
147.9
24.5
51.3
681.1
321.4
11.0
101.0
707.4
173.8
23.7
53.3
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/16/2025
610.4
610.4
637.0
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Merchant Wholesalers, Durable
Goods
Term Loan
Term Loan
Term Loan
Term Loan
7.5%
12/16/2040
Prime plus 2.75%
12/16/2022
Prime plus 2.75%
12/16/2025
Prime plus 2.75%
12/14/2025
Prime plus 2.75%
12/14/2040
Social Assistance
Term Loan
Prime plus 2.75%
12/10/2025
Term Loan
Prime plus 2.75%
12/9/2025
Term Loan
Prime plus 2.75%
12/8/2025
Specialty Trade Contractors
Food Services and Drinking
Places
Repair and Maintenance
Food Services and Drinking
Places
Educational Services
Term Loan
Prime plus 2.75%
11/25/2025
Term Loan
Prime plus 2.75%
11/30/2025
363.0
46.3
150.1
13.3
311.6
4.4
59.2
64.3
363.0
46.3
150.1
13.3
311.6
4.4
59.2
64.3
340.4
46.5
154.1
13.9
365.3
4.6
61.1
66.5
75.7
6.6
75.7
6.6
78.3
6.7
Term Loan
Prime plus 2.75%
12/4/2040
457.4
457.4
536.9
0.20 %
0.09 %
— %
0.03 %
0.21 %
0.05 %
0.01 %
0.02 %
0.19 %
0.10 %
0.01 %
0.05 %
— %
0.11 %
— %
0.02 %
0.02 %
0.16 %
0.02 %
— %
726-740 South Fleming St,
Sebastian, FL 32958
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
11/23/2040
738.3
738.3
692.8
0.20 %
F-92
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Ronny Ramirez RX Corp dba
Naturxheal Family Pharmacy
S.B.B. Enterprises Inc dba
Williamston Hardware
Key Pix Productions Inc. dba Air
Bud Entertainment
Green Life Lawnscapes LLC dba
Green Life Lawn Care
JumboMarkets Inc dba Rines
Jumbomarkets
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Financial Network Recovery Inc (#,^)
ADMO Inc dba Mid States
Equipment
SCJEN Management Inc dba
Bowl of Heaven
Accent Homes Services LLC dba
Benjamin Franklin Plumbing of
Kansas Cit
(#,^)
(#,^)
(#,^)
Binky's Vapes LLC
Barub Realty LLC and Barub
LLC dba Woodlawn Cabinets
R.H. Hummer Jr., Inc.
RIM Investments LLC and RIM
Architects LLC
Greensward of Marco Inc.
Sandlot Ventures LLC and
Sandbox Ventures LLC
Prestigious LifeCare for Seniors
LLC
Daniel W. Stark dba Mountain
Valley Lodge and RV Park
St Lawrence Hotel Corp and
Oheka Catering Inc dba Quality
Inn
Finish Strong Inc dba
FASTSIGNS St Peters
Sound Manufacturing Inc
IIoka Inc dba New Cloud
Networks
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Building Material and Garden
Equipment and Supplies Dealers
Performing Arts, Spectator
Sports, and Related Industries
Administrative and Support
Services
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
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
43958 Pacific Common Blvd,
Fremont, CA 94538
Food and Beverage Stores
Administrative and Support
Services
Plastics and Rubber Products
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/20/2025
Term Loan
Prime plus 2.75%
11/19/2040
Term Loan
Prime plus 2.75%
11/18/2040
Term Loan
Prime plus 2.75%
11/6/2025
Term Loan
Prime plus 2.75%
11/4/2025
Term Loan
Prime plus 2.75%
10/26/2025
Term Loan
Prime plus 2.75%
10/8/2025
Term Loan
Prime plus 2.75%
9/30/2025
7748 Troost Ave, Kansas City,
MO 64131
10539 Greenbelt Rd Ste 102,
Lanham, MD 20706
1838 Adee Ave, Baychester, NY
10469
2141 P Ave, Williamsburg, IA
52361
645 G St Ste 400, Anchorage, AK
99501
54 Marco Lake Drive, Marco
Island, FL 34146
1857A Elmdale Ave, Glenview,
IL 60025
5701 North Pine Island Rd,
Tamarac, FL 33321
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/30/2028
Miscellaneous Store Retailers
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
9/30/2025
Term Loan
Prime plus 2.75%
9/30/2040
Truck Transportation
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/30/2025
Term Loan
Prime plus 2.75%
9/28/2040
Term Loan
Prime plus 2.75%
9/28/2040
Term Loan
Prime plus 2.75%
9/25/2040
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/25/2025
223 Hwy 80, Rodeo, NM 88056
Accommodation
Term Loan
Prime plus 2.75%
9/25/2040
52.5
98.5
499.7
80.1
178.6
23.0
12.9
40.8
46.7
12.7
129.1
230.8
360.7
79.6
413.0
5.6
12.2
52.5
98.5
499.7
80.1
178.6
23.0
12.9
40.8
46.7
12.7
129.1
230.8
360.7
79.6
413.0
5.6
12.2
54.1
114.9
587.4
83.6
186.4
23.6
13.3
41.9
50.1
13.1
151.8
240.9
422.4
93.3
482.0
5.8
14.3
10 West Orvis St, Massena, NY
13662
98 North Hillview Drive, St
Peters, MO 63376
51 Donnelley Rd, Old Saybrook,
CT 6475
160 Inverness Drive W Ste 150,
Englewood, CO 80112
Accommodation
Term Loan
Prime plus 2.75%
9/24/2040
565.1
565.1
661.5
Miscellaneous Manufacturing
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/23/2025
Term Loan
Prime plus 2.75%
9/21/2025
28.3
28.1
28.3
28.1
29.0
29.0
Term Loan
Prime plus 2.75%
9/21/2025
378.5
378.5
387.8
F-93
See accompanying notes to consolidated financial statements.
0.02 %
0.03 %
0.17 %
0.02 %
0.05 %
0.01 %
— %
0.01 %
0.01 %
— %
0.04 %
0.07 %
0.12 %
0.03 %
0.14 %
— %
— %
0.19 %
0.01 %
0.01 %
0.11 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Vanderhoof LLC dba Soxfords
(#,^)
MiJoy Inc dba Imo's Pizza
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
Elite Institute LLC dba
Huntington Learning 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 (#,^)
Beale Street Blues Company-
West Palm Beach LLC dba
Lafayette's-West Pa
(#,^)
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
Thrifty Market, Inc. dba Thrifty
Foods
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Summit Beverage Group LLC
(#,^)
SofRep, Inc dba Force 12 Media (#,^)
11 Sellecks Walk, Pound Ridge,
NY 10576
215 South Kirkwood Rd,
Kirkwood, MO 63122
260 West 36h St, New York, NY
10018
1288 Ala Moana Blvd Ste 27E,
Honolulu, HI 96814
35 Copps Hill Rd, Ridgefield, CT
6877
170 Main St, North Kingstown,
RI 2852
1250 South A. W. Grimes Rd,
Round Rock, TX 78665
13526 Village Park Drive Ste 214,
Orlando, FL 32837
3000 N Federal Hwy, Ste 1, Fort
Lauderdale, FL 33306
40 West. 162nd St, South
Holland, IL 60473
136 New Jersey Ave, Absecon,
NJ 8201
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
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
702 10th St, Wheatland, WY
82201
211 Washington Ave, Marion, VA
24354
930 Tahoe Blvd Ste 802-543,
Incline Village, NV 89451
Apparel Manufacturing
Food Services and Drinking
Places
Apparel Manufacturing
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/18/2025
Term Loan
Prime plus 2.75%
9/18/2025
Term Loan
Prime plus 2.75%
9/17/2025
Term Loan
Prime plus 2.75%
9/15/2025
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
9/11/2025
Term Loan
Prime plus 2.75%
9/8/2040
Social Assistance
Term Loan
Prime plus 2.75%
9/4/2040
Educational Services
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
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Food and Beverage Stores
Food Services and Drinking
Places
Administrative and Support
Services
Food and Beverage Stores
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
8/28/2025
Term Loan
Prime plus 2.75%
8/20/2040
Term Loan
Prime plus 2.75%
8/20/2025
Term Loan
Prime plus 2.75%
8/19/2040
Term Loan
Prime plus 2.75%
8/14/2025
Term Loan
Prime plus 2.75%
8/13/2025
Term Loan
Prime plus 2.75%
7/29/2025
Term Loan
Prime plus 2.75%
7/24/2025
Term Loan
Prime plus 2.75%
7/21/2025
Term Loan
Prime plus 2.75%
7/10/2025
Term Loan
Prime plus 2.75%
6/30/2025
Term Loan
Prime plus 2.75%
6/30/2030
Term Loan
Prime plus 2.75%
8/29/2030
Other Information Services
Term Loan
Prime plus 2.75%
6/26/2025
F-94
See accompanying notes to consolidated financial statements.
8.6
4.7
70.8
87.6
6.4
126.7
619.3
8.5
127.8
29.6
130.9
39.9
48.4
72.3
36.4
35.3
8.6
4.7
70.8
87.6
6.4
126.7
619.3
8.5
127.8
29.6
130.9
39.9
48.4
72.3
36.4
35.3
8.8
4.8
72.6
89.7
6.7
148.7
726.8
8.7
149.9
30.3
153.1
41.3
49.7
75.2
37.5
36.2
61.1
40.6
210.1
219.4
35.7
61.1
40.6
210.1
219.4
35.7
63.4
42.2
228.6
238.9
37.0
— %
— %
0.02 %
0.03 %
— %
0.04 %
0.21 %
— %
0.04 %
0.01 %
0.05 %
0.01 %
0.01 %
0.02 %
0.01 %
0.01 %
0.11 %
0.02 %
0.01 %
0.07 %
0.07 %
0.01 %
Term Loan
Prime plus 2.75%
7/15/2040
330.7
330.7
385.9
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
(#,^)
TJU-DGT Inc dba The Lorenz
Cafe
Jihan Inc dba ARCO AM/PM and
Diana Inc dba Diana's Recycling (#,^)
CEM Autobody LLC dba Dawn's
Autobody
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 dba Interim
Healthcare Tra
AM PM Properties, LLC and AM
PM Willington, LLC
Mirage Plastering Inc and Mpire
LLC and Mpire II LLC
Eldredge Tavern LLC dba
Gonyea's Tavern
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
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
714-718 Lorenz Ave, Pittsburgh,
PA 15220
13886 Campo Rd, Jamul, CA
91935
7 Division St, Keyport, NJ 7735
220 Middle St, Franklin, VA
23851
3560 Hwy 93 South, 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
960 Matley Lane, Ste 20 & 21,
Bldg B, Reno, NV 89502
2262 Hwy 53 W, Jasper, GA
30143
111 N Pompano Beach Blvd.,
Pompano Beach, FL 33062
1308 Stafford Rd, Storrs
Mansfield, CT 6268
1802 W Grant Rd Ste 114,
Tucson, AZ 85745
150 Main St, Pascoag, RI 2859
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
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/26/2029
Gasoline Stations
Term Loan
Prime plus 2.75%
6/26/2040
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/26/2040
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/26/2025
14.8
341.3
121.7
12.1
14.8
341.3
121.7
12.1
16.0
401.7
143.2
12.6
Repair and Maintenance
Administrative and Support
Services
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Waste Management and
Remediation Services
Term Loan
7.22%
6/25/2040
1,097.8
1,097.8
1,029.7
Term Loan
Prime plus 2.75%
6/25/2040
221.6
221.6
260.3
Term Loan
Prime plus 2.75%
6/24/2025
Term Loan
Prime plus 2.75%
6/23/2025
Term Loan
Prime plus 2.75%
6/22/2025
Term Loan
Prime plus 2.75%
6/19/2025
12.2
12.0
28.7
6.8
12.2
12.0
28.7
6.8
12.6
12.4
29.9
7.1
— %
0.12 %
0.04 %
— %
0.30 %
0.08 %
— %
— %
0.01 %
— %
Truck Transportation
Term Loan
Prime plus 2.75%
6/19/2025
279.4
279.4
290.6
0.09 %
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/18/2025
Prime plus 2.75%
6/17/2040
25.2
78.0
25.2
78.0
26.1
91.8
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/8/2040
Term Loan
Prime plus 2.75%
6/12/2040
124.6
124.6
146.2
0.01 %
0.03 %
0.04 %
0.02 %
0.01 %
0.02 %
0.02 %
— %
— %
0.05 %
0.06 %
50.8
33.5
60.5
67.6
4.4
4.8
156.1
165.1
50.8
33.5
60.5
67.6
4.4
4.8
156.1
165.1
59.8
34.8
71.3
70.1
4.5
5.0
183.8
194.3
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/5/2025
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%
6/4/2040
Term Loan
Prime plus 2.75%
6/3/2025
Term Loan
Prime plus 2.75%
5/29/2025
Term Loan
Prime plus 2.75%
5/27/2025
2188 Brunswyck Rd, Wallkill,
NY 12589
15 McArdle St, Rochester, NY
14611
Accommodation
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
5/20/2040
Term Loan
Prime plus 2.75%
5/15/2040
F-95
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Guard Dogs MFS LLC
South Park Properties LLC and
Midlothian Hardware LLC
Matthew Taylor and Landon
Farm LLC
Cares Inc dba Dumpling Grounds
Day Care Center
Diamond Solutions LLC
Giacchino Maritime Consultants
Inc
Sound Coaching Inc
Faramarz Nikourazm dba Car
Clinic Center
Copper Beech Financial Group
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
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 (#,^)
(#,^)
(#,^)
9460 Mistwater Close, Roswell,
GA 30076
4751 147th St, Midlothian, IL
60445
6103 N Church St, Greensboro,
NC 27455
4508 Blakiston St, Philadelphia,
PA 19136
7655 E Gelding Drive, Ste B2,
Scottsdale, AZ 85260
5219 Tamiami Court, Cape Coral,
FL 33904
4749 Main St Ste 3, Bridgeport,
CT 6606
10707 Shady Trail, Dallas, TX
75220
1223 North Church St,
Moorestown, NJ 8057
40 Buzzard Ridge Rd, Sequim,
WA 98382
5600 N. River Rd #925,
Rosemont, IL 60018
501 South Market St,
Wilmington, DE 19801
3033 NW 28 St, Lauderdale
Lakes, FL 33311
800 James Ave, Scranton, PA
18510
1123 Broadway Ste 704, New
York, NY 10010
5001 Vivienda Way, Sarasota, FL
34235
4509 N. Henry Blvd.,
Stockbridge, GA 30281
2016 Warwick Ave, Warwick, RI
2889
Repair and Maintenance
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
5/8/2025
Term Loan
Prime plus 2.75%
5/6/2040
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/4/2040
Social Assistance
Merchant Wholesalers, Durable
Goods
Personal and Laundry Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Repair and Maintenance
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
5/1/2040
Term Loan
Prime plus 2.75%
4/21/2025
Term Loan
Prime plus 2.75%
4/17/2025
Term Loan
Prime plus 2.75%
4/14/2025
Term Loan
Prime plus 2.75%
4/3/2040
Term Loan
Prime plus 2.75%
3/30/2025
33.1
42.8
90.1
72.6
10.1
11.8
23.3
65.7
64.3
33.1
42.8
90.1
72.6
10.1
11.8
23.3
65.7
64.3
34.3
50.4
105.7
85.5
10.5
12.2
24.1
77.3
66.8
0.01 %
0.01 %
0.03 %
0.03 %
— %
— %
0.01 %
0.02 %
0.02 %
Accommodation
Term Loan
Prime plus 2.75%
3/27/2040
269.2
269.2
316.6
0.09 %
Real Estate
Term Loan
Prime plus 2.75%
3/27/2025
Nonstore Retailers
Furniture and Related Product
Manufacturing
Professional, Scientific, and
Technical Services
Data Processing, Hosting, and
Related Services
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/27/2040
Term Loan
Prime plus 2.75%
3/27/2025
Term Loan
Prime plus 2.75%
3/26/2040
Term Loan
Prime plus 2.75%
3/25/2025
Term Loan
Prime plus 2.75%
3/24/2025
Term Loan
Prime plus 2.75%
3/20/2040
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/20/2040
15615 State Route 29, Buchanan
Dam, TX 78609
1224 Greenwich Ave, Warwick,
RI 2886
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/19/2040
Term Loan
Prime plus 2.75%
3/18/2040
F-96
See accompanying notes to consolidated financial statements.
637.4
924.3
54.9
48.2
11.6
6.2
100.4
38.4
76.1
143.4
637.4
924.3
54.9
48.2
11.6
6.2
100.4
38.4
76.1
143.4
658.8
1,084.1
57.0
56.7
12.0
6.4
118.0
45.1
89.5
168.4
0.19 %
0.32 %
0.02 %
0.02 %
— %
— %
0.03 %
0.01 %
0.03 %
0.05 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Term Loan
Prime plus 2.75%
2/26/2040
1,137.8
1,137.8
1,338.1
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
(#,^)
(#,^)
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
First Prevention and Dialysis
Center, LLC
Bowlerama Inc
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 Ha
MM and M Management Inc dba
Pizza Artista
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
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/16/2040
Term Loan
Prime plus 2.75%
3/4/2025
Educational Services
Term Loan
Prime plus 2.75%
2/27/2025
Term Loan
Prime plus 2.75%
2/26/2025
Truck Transportation
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Social Assistance
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
Term Loan
Prime plus 2.75%
2/24/2025
Term Loan
Prime plus 2.75%
2/19/2040
Term Loan
Prime plus 2.75%
2/18/2025
Term Loan
Prime plus 2.75%
4/29/2025
Term Loan
Prime plus 2.75%
1/23/2025
Term Loan
Prime plus 2.75%
1/22/2025
Term Loan
Prime plus 2.75%
1/20/2022
Term Loan
Prime plus 2.75%
12/31/2039
Prime plus 2.75%
12/30/2024
769 Amesbury Rd, Haverhill, MA
1830
491 Montauk Hwy, Eastport, NY
11941
215 Newbury St, Peabody, MA
1960
1425 Honeyspot Rd Extension,
Stratford, CT 6615
475 Nursing Home Drive,
Arcadia, FL 34266
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
7090
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
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
Ambulatory Health Care Services Term Loan
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
12/23/2039
Prime plus 2.75%
12/23/2039
550 South Rosemary Ave Ste
236, West Palm Beach, FL 33401
5409 Johnston St, Lafayette, LA
70503
48649 Hwy 58, Oakridge, OR
97463
2400 Western Ave, Las Vegas,
NV 89102
2410 West Jefferson St, Ste B,
Joliet, IL 60435
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Merchant Wholesalers,
Nondurable Goods
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/22/2024
Term Loan
Prime plus 2.75%
4/19/2025
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
F-97
See accompanying notes to consolidated financial statements.
81.4
5.8
30.3
33.1
81.4
5.8
30.3
33.1
95.6
6.0
31.4
34.4
6.3
55.1
37.6
44.4
41.4
2.1
1.6
117.8
133.9
6.3
55.1
37.6
44.4
41.4
2.1
1.6
117.8
133.9
6.5
64.7
39.0
46.0
42.8
2.2
1.6
138.5
138.7
473.3
443.1
91.6
24.1
47.6
605.3
63.3
473.3
443.1
91.6
24.1
47.6
605.3
63.3
554.2
520.1
94.7
24.9
55.9
624.5
62.1
0.03 %
— %
0.01 %
0.01 %
0.39 %
— %
0.02 %
0.01 %
0.01 %
0.01 %
— %
— %
0.04 %
0.04 %
0.37 %
0.16 %
0.15 %
0.03 %
0.01 %
0.02 %
0.18 %
0.02 %
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/24/2039
1,072.3
1,072.3
1,258.8
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
(#)
(#,^)
B & W Towing, LLC and
Boychucks Fuel LLC
Kemmer LLC and Apples Tree
Top Liquors LLC
Teamnewman Enterprises LLC
dba Newmans at 988 and John H.
Newman
Legacy Estate Planning Inc dba
American Casket Enterprises
DC Real LLC and DC
Enterprises LTD dba Lakeview
True Value
Heartland American Properties
LLC and Skaggs RV Outlet LLC (#,^)
(#,^)
(#,^)
(#,^)
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
Animal Intrusion Prevention
Systems Holding Company, LLC (#,^)
Tavern Properties LLC and
Wildwood Tavern LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
701 Addison Rd, Painted Post,
NY 14870
1300 S Jackson St, Salem, IN
47167
988 Hemlock St, Cannon Beach,
OR 97110
2176 Route 119 North,
Greensburg, PA 15601
318 North F St, Lakeview, OR
97630
301 Commerce Drive,
Elizabethtown, KY 42701
38 Old National Pike, West
Alexander, PA 15376
51 Donnelley Rd, Old Saybrook,
CT 6475
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 Units B13 and B14,
Vineyard Haven, MA 2568
162 Danielson Pike, Foster, RI
2825
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
3330 N Beach St, Fort Worth, TX
76111
6480 West Touhy Ave, Niles, IL
60714
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
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/25/2039
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/21/2024
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
11/20/2039
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
10/31/2039
Real Estate
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
10/10/2039
Term Loan
Prime plus 2.75%
10/10/2024
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/8/2024
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/8/2039
Personal and Laundry Services
Administrative and Support
Services
Food Services and Drinking
Places
Accommodation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/3/2039
Term Loan
Prime plus 2.75%
10/2/2024
Term Loan
Prime plus 2.75%
9/30/2039
Term Loan
Prime plus 2.75%
9/26/2039
Term Loan
Prime plus 2.75%
9/23/2024
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/17/2039
Repair and Maintenance
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/17/2024
Term Loan
Prime plus 2.75%
9/15/2024
Term Loan
Prime plus 2.75%
9/15/2039
F-98
See accompanying notes to consolidated financial statements.
140.8
122.2
105.0
20.1
106.0
422.3
89.7
86.9
3.0
25.4
108.5
25.0
225.0
50.6
12.0
128.1
26.1
140.9
376.9
140.8
122.2
105.0
20.1
106.0
422.3
89.7
86.9
3.0
25.4
108.5
25.0
225.0
50.6
12.0
128.1
26.1
140.9
376.9
165.0
143.2
123.2
20.8
124.4
495.4
105.3
89.9
3.2
29.8
127.4
25.9
263.7
59.3
12.4
150.1
26.9
145.4
441.4
0.05 %
0.04 %
0.04 %
0.01 %
0.04 %
0.15 %
0.03 %
0.03 %
— %
0.01 %
0.04 %
0.01 %
0.08 %
0.02 %
— %
0.04 %
0.01 %
0.04 %
0.13 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
Alpha Preparatory Academy
LLC
Katie Senior Care LLC dba
Home Instead Senior Care
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
dba EST EST EST
Honeyspot Investors LLP and
Pace Motor Lines Inc
Miss Cranston Diner II, LLC and
Miss Cranston II Realty LLC
AMG Holding, LLC and Stetson
Automotive, Inc
Lisle Lincoln II Limited
Partnership dba Lisle Lanes LP
iFood, Inc. dba Steak N Shake
Honeyspot Investors LLP and
Pace Motor Lines Inc
Zinger Hardware and General
Merchant Inc
Nikobella Properties LLC and
JPO Inc dba Village Car Wash
Big Sky Plaza LLC and
Strickland, Incorporated dba
Livingston True Val
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#)
(#,^)
Prime plus 2.75%
9/11/2024
290.8
290.8
299.3
5430 E. Washington St,
Indianapolis, IN 46219
71 Lafayette St,, Salem, MA 1970
7137 Little River Turnpike,
Annandale, VA 22003
20 Providence St, West Warwick,
RI 2893
4462 Mink Livsey Rd, Snellville,
GA 30039
222E Eufaula St Ste 220,
Norman, OK 73069
10463 Hamer Rd, Georgetown,
OH 45121
35 Copps Hill Rd, Ridgefield, CT
6877
5900 Duraleigh Rd, Raleigh, NC
27612
575 Columbus Ave, New Haven,
CT 6519
1425 Honeyspot Rd Extension,
Stratford, CT 6615
15 Stonebridge, Cranston, RI
2921
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Clothing and Clothing
Accessories Stores
Term Loan
Term Loan
Prime plus 2.75%
9/10/2024
Prime plus 2.75%
8/27/2024
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/22/2039
Social Assistance
Term Loan
Prime plus 2.75%
8/15/2039
Social Assistance
Term Loan
Prime plus 2.75%
8/15/2024
Motor Vehicle and Parts Dealers
Term Loan
6%
8/8/2039
Social Assistance
Food Services and Drinking
Places
Food Services and Drinking
Places
Truck Transportation
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
309 Route 9, Waretown, NJ 8758 Repair and Maintenance
4920 Lincoln Ave Route 53,
Lisle, IL 60532
2840 E Millbrook Rd, Raleigh,
NC 27604
1425 Honeyspot Rd Extension,
Stratford, CT 6615
4001 North Lamar Blvd Ste 300,
Austin, TX 78756
1372 South US Route 12, Fox
Lake, IL 60020
Truck Transportation
Building Material and Garden
Equipment and Supplies Dealers
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/7/2039
Term Loan
Prime plus 2.75%
7/31/2024
Term Loan
Prime plus 2.75%
7/30/2039
Term Loan
Prime plus 2.75%
7/24/2039
Term Loan
Prime plus 2.75%
7/17/2039
Term Loan
Prime plus 2.75%
6/30/2039
Term Loan
Prime plus 2.75%
6/30/2024
Term Loan
Prime plus 2.75%
6/30/2039
Term Loan
Prime plus 2.75%
6/30/2039
Term Loan
7.25%
6/26/2024
Term Loan
Prime plus 2.75%
6/25/2039
36.9
57.7
45.2
128.0
48.2
121.6
659.5
174.7
17.8
131.1
85.7
179.8
43.0
550.6
764.5
35.7
444.1
36.9
57.7
45.2
128.0
48.2
121.6
659.5
174.7
17.8
131.1
85.7
179.8
43.0
550.6
764.5
35.7
444.1
38.0
59.6
53.0
150.0
49.6
114.5
772.7
180.4
20.9
153.7
100.4
211.2
44.4
646.4
898.4
35.1
520.7
0.09 %
0.01 %
0.02 %
0.02 %
0.04 %
0.01 %
0.03 %
0.23 %
0.05 %
0.01 %
0.05 %
0.03 %
0.06 %
0.01 %
0.19 %
0.26 %
0.01 %
0.15 %
1313 West Park St #1, Livingston,
MT 59047
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
6/20/2039
203.9
203.9
239.1
0.07 %
F-99
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
The River Beas LLC and Punam
Singh
AS Boyals LLC dba Towne
Liquors
Gerami Realty, LC Sherrill
Universal City Corral, LP dba
Golden
Complete Body & Paint, Inc.
Island Wide Realty LLC and
Long Island Partners, Inc. dba
Realty Execu
Wilshire Media Systems Inc
1899 Tavern & Tap LLC and Ale
House Tavern & Tap LLC
Little People's Village II LLC and
Iliopoulos Realty LLC
Hodges Properties LLC and
Echelon Enterprises Inc dba
Treads Bicycle
Kemmer, LLC and Pitts Package
Store, Inc.
Little People's Village II LLC and
Iliopoulos Realty LLC
Eagle Aggregate Transportation,
LLC and Eagle Pneumatic
Transport LLC
636 South Center Holdings, LLC
and New Mansfield Brass and
Aluminum Co
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
106 Concord Ave, Belmont, MA
2478
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
11704 Centurion Way, Potomac,
MD 20854
117 South BRd St, Woodbury
City, NJ 8096
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. Ste 500,
Westlake Village, CA 91361
1899 State Route 35, South
Amboy, NJ 8879
6522 Haverford Ave,
Philadelphia, PA 19151
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
6/6/2039
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/3/2024
Educational Services
Printing and Related Support
Activities
Health and Personal Care Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/2/2039
Term Loan
Prime plus 2.75%
5/30/2024
Term Loan
Prime plus 2.75%
5/27/2024
Term Loan
Prime plus 2.75%
5/8/2039
Food and Beverage Stores
Term Loan
Prime plus 2.75%
4/29/2039
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/23/2027
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/23/2039
Real Estate
Term Loan
Prime plus 2.75%
4/22/2039
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/17/2024
Term Loan
Prime plus 2.75%
4/9/2039
Social Assistance
Term Loan
Prime plus 2.75%
3/31/2039
16701 E. Iliff Ave, Aurora, CO
80013
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
3/31/2039
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/31/2039
Social Assistance
Term Loan
Prime plus 2.75%
3/31/2039
201 S. Main St, Salem, IN 47167
6522 Haverford Ave,
Philadelphia, PA 19151
4401 N I-35 #113, Denton, TX
76207
636 South Center St, New
Washington, OH 44854
80.9
7.2
48.5
9.6
26.9
78.7
94.6
48.7
18.1
90.1
75.8
97.4
80.3
389.4
101.5
88.5
80.9
7.2
48.5
9.6
26.9
78.7
94.6
48.7
18.1
90.1
75.8
97.4
80.3
389.4
101.5
88.5
94.9
7.4
56.8
9.9
27.7
92.2
111.0
51.7
21.2
105.7
78.2
114.3
94.1
456.7
118.9
103.8
0.03 %
— %
0.02 %
— %
0.01 %
0.03 %
0.03 %
0.02 %
0.01 %
0.03 %
0.02 %
0.03 %
0.03 %
0.13 %
0.04 %
0.03 %
Truck Transportation
Term Loan
Prime plus 2.75%
3/31/2024
305.8
305.8
314.9
0.09 %
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
3/20/2039
68.1
68.1
79.8
0.02 %
F-100
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
63 S Wyoming Ave,
Edwardsville, PA 18704
301 West Grand Ave, Chicago, IL
60654
Food and Beverage Stores
Administrative and Support
Services
Term Loan
Prime plus 2.75%
3/20/2039
Term Loan
Prime plus 2.75%
3/18/2024
Food and Beverage Stores
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
2/28/2039
Term Loan
Prime plus 2.75%
2/28/2024
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/28/2039
96.0
3.2
361.3
139.3
185.3
96.0
3.2
361.3
139.3
185.3
112.4
0.03 %
3.3
— %
422.9
143.5
216.9
0.12 %
0.04 %
0.06 %
Cormac Enterprises and
Wyoming Valley Beverage
Incorporated
Kinisi, Inc. dba The River North
UPS Store
R & R Boyal LLC dba Cap N
Cat Clam Bar and Little Ease
Tavern
(#,^)
(#,^)
(#,^)
Summit Beverage Group LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Faith Memorial Chapel LLC
952 Boston Post Road Realty,
LLC and HNA LLC dba Styles
International
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
Sarah Sibadan dba Sibadan
Agency
Icore Enterprises Inc dba Air
Flow Filters Inc
Nutmeg North Associates LLC
Steeltech Building Products Inc
Amboy Woodbridge Realty LLC
and United Premium Foods LLC (#)
KK International Trading
Corporation
Kurtis Sniezek dba Wolfe's
Foreign Auto
TAK Properties LLC and
Kinderland Inc
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
(#,^)
(#,^)
(#,^)
3111 and 3135 Delsea Drive,
Franklinville, NJ 8322
211 Washington Ave, Marion, VA
24354
600 9th Ave North, Bessemer, AL
35020
952 Boston Post Rd, Milford, CT
6460
96 Mill St, Berlin, CT 6037
74 Veronica Ave, Somerset, NJ
8875
986 Dixwell Ave, Hamden, CT
6510
102-05 101st Ave, Ozone Park,
NY 11416
151 W 24th St, Hialeah, FL
33010
636 Nutmeg Rd North, South
Windsor, CT 6074
One Amboy Ave, Woodbridge,
NJ 7095
219 Lafayette Drive, Syosset, NY
11791
712 5th St, New Brighton, PA
15066
1157 Commerce Ave, Longview,
WA 98632
920 Crooked Hill, Brentwood,
NY 11717
555 Water Works Rd, Old Bridge,
NJ 8857
1455 S Richland Creek Rd, Sugar
HIll, GA 30518
65 Farmington Valley Drive,
Plainville, CT 6062
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/28/2039
179.0
179.0
209.5
0.06 %
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/12/2039
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
2/11/2024
Food Services and Drinking
Places
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
2/7/2039
Term Loan
Prime plus 2.75%
1/27/2039
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
1/15/2024
Construction of Buildings
Term Loan
Prime plus 2.75%
12/31/2038
122.0
111.2
86.1
111.6
8.4
788.2
122.0
111.2
86.1
111.6
8.4
788.2
142.9
114.5
100.8
130.7
8.7
922.3
Term Loan
6%
6/14/2024
1,813.7
1,813.7
1,782.3
Food Manufacturing
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
12/23/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/20/2038
Social Assistance
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
12/18/2038
Term Loan
Prime plus 2.75%
12/10/2038
Truck Transportation
Term Loan
Prime plus 2.75%
12/5/2038
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/3/2038
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/2/2023
F-101
See accompanying notes to consolidated financial statements.
124.8
76.5
348.5
359.7
119.5
89.5
142.1
124.8
76.5
348.5
359.7
119.5
89.5
142.1
134.4
89.4
407.1
420.3
139.6
104.5
145.9
0.04 %
0.03 %
0.03 %
0.04 %
— %
0.27 %
0.53 %
0.04 %
0.03 %
0.12 %
0.12 %
0.04 %
0.03 %
0.04 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
BVIP Limousine Service LTD
(#,^)
AcuCall LLC
Kids in Motion of Springfield
LLC dba The Little Gym of
Springfield IL
Polpo Realty, LLC Polpo
Restaurant, LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Mid-Land Sheet Metal Inc
1 North Restaurant Corp dba 1
North Steakhouse
Master CNC Inc & Master
Properties LLC
Janice B. McShan and The
Metropolitan Day School, LLC (#,^)
Greenbrier Technical Services,
Inc
Clairvoyant Realty Corp. and
Napoli Marble & Granite Design,
Ltd
Discount Wheel and Tire of
Broken Bow Inc
Lenoir Business Partners LLC
LP Industries, Inc dba
Childforms
LP Industries, Inc dba
Childforms
Cencon Properties LLC and
Central Connecticut Warehousing
Company, In
Mitchellville Family Dentistry,
Dr. Octavia Simkins-Wiseman
DDS PC
Anthony C Dinoto and Susan S P
Dinoto and Anthony C Dinoto
Funeral Ho
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Eastside Soccer Dome, Inc .
(#,^)
Southeast Chicago Soccer, Inc.
(#,^)
Kiddie Steps 4 You Inc.
Diamond Memorials
Incorporated
(#,^)
(#,^)
887 W Liberty, Medina, OH
44256
824 U.S Hwy 1, Ste 335, North
Palm Beach, FL 33408
Transit and Ground Passenger
Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/27/2038
Term Loan
Prime plus 2.75%
11/21/2023
3039-3043 Hedley, Springfield,
IL 62704
554 Old Post Rd #3, Greenwich,
CT 6830
125 E Fesler St, Santa Maria, CA
93454
322 W. Montauk Hwy, Hampton
Bays, NY 11946
11825 29 Mile Rd, Washington,
MI 48095
2817 Lomb Ave, Birmingham,
AL 35208
407 E. Edgar Ave, Ronceverte,
WV 24970
77 Mill Rd, Freeport, NY 11520
1202 S Park Drive, Broken Bow,
OK 74728
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Specialty Trade Contractors
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/18/2023
Term Loan
Prime plus 2.75%
11/6/2038
Term Loan
Prime plus 2.75%
10/31/2038
Term Loan
Prime plus 2.75%
10/31/2038
Term Loan
Prime plus 2.75%
10/31/2038
Social Assistance
Term Loan
Prime plus 2.75%
10/31/2023
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/24/2023
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/24/2038
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/30/2038
2040 Norwood, Lenoir, NC
28645
110 Charleston Drive, Ste 105-
107, Morresville, NC 28117
Plastics and Rubber Products
Manufacturing
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
9/30/2038
Term Loan
Prime plus 2.75%
9/30/2038
65.8
5.8
16.7
54.8
117.8
180.2
511.0
15.6
44.7
126.9
191.0
254.0
103.5
65.8
5.8
16.7
54.8
117.8
180.2
511.0
15.6
44.7
126.9
191.0
254.0
103.5
76.8
6.0
17.1
64.0
137.6
210.6
596.7
16.0
45.9
148.3
223.1
296.8
121.0
0.02 %
— %
0.01 %
0.02 %
0.04 %
0.06 %
0.18 %
— %
0.01 %
0.04 %
0.07 %
0.09 %
0.04 %
37 Commons Court, Waterbury,
CT 6704
12150 Annapolis Rd, Ste 301,
Glenn Dale, MD 20769
Warehousing and Storage
Term Loan
Prime plus 2.75%
9/30/2038
294.6
294.6
344.2
0.10 %
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/27/2038
286.0
286.0
334.2
0.10 %
17 Pearl St, Mystic, CT 6355
11919 S Ave O, Chicago, IL
60617
10232 S Ave N, Chicago, IL
60617
1700 West 63rd St., Chicago, IL
60636
800 BRd St, Clifton, NJ 7013
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Social Assistance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/26/2038
Term Loan
Prime plus 2.75%
9/26/2038
Term Loan
Prime plus 2.75%
9/26/2038
Term Loan
Prime plus 2.75%
9/25/2038
Term Loan
Prime plus 2.75%
9/25/2023
85.4
395.9
43.7
77.5
0.9
85.4
395.9
43.7
77.5
0.9
99.6
461.8
51.0
90.4
1.0
0.03 %
0.14 %
0.02 %
0.03 %
— %
F-102
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/20/2038
228.9
228.9
266.9
0.08 %
(#,^)
Faith Memorial Chapel LLC
Serious-Fun in Alpharetta, LLC
dba The Little Gym of Alpharetta (#,^)
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
B for Brunette dba Blo
Schmaltz Holdings, LLC and
Schmaltz Operations, LLC dba
Companio
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
Caribbean Concepts, Inc. dba
Quick Bleach
Daniel W and Erin H Gordon and
Silver Lining Stables CT, LLC
Harbor Ventilation Inc and Estes
Investment, LLC
Angkor Restaurant Inc
Tri County Heating and Cooling
Inc.
Morning Star Trucking LLC and
Morning Star Equipment and
Leasing LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
600 9th Ave North, Bessemer, AL
35020
11585 Jones Bridge Rd, Ste 4G,
Johns Creek, GA 30022
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 6475
532 St Johns Place, Brooklyn,
NY 11238
50 Glen Cove Rd, Greenvale, NY
11548
Educational Services
Term Loan
Prime plus 2.75%
9/20/2023
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/18/2023
Educational Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
9/13/2023
Term Loan
Prime plus 2.75%
9/12/2023
Term Loan
Prime plus 2.75%
9/12/2028
Educational Services
Term Loan
Prime plus 2.75%
9/11/2038
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/10/2023
3408 Castle Rock Farm Rd,
Pittsboro, NC 27312
6600 N Government Way, Coeur
D Alene, ID 83815
Personal and Laundry Services
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
9/4/2038
Term Loan
Prime plus 2.75%
8/30/2023
15150 Evans St, Gulfport, MS
39503
160 Inverness Dr W Ste 100,
Englewood, CO 80112
4561 Ironworks Pike, Ste 161,
Lexington, KY 40511
Social Assistance
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
8/30/2023
Term Loan
Prime plus 2.75%
8/30/2023
Term Loan
Prime plus 2.75%
8/28/2023
1815 De Paul St, Colorado
Springs, CO 80909
19 East 7th St, New York, NY
10003
120 East 56th St, St.#730, New
York, NY 10022
38 Carmen Lane, Monroe, CT
6468
509 East Park St., Livingston, MT
59047
10 Traverse St, Providence, RI
2903
509 East Park St., Livingston, MT
59047
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/16/2023
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
8/12/2023
Prime plus 2.75%
7/24/2023
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/19/2038
Term Loan
Prime plus 2.75%
7/19/2038
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2023
1 Poppy Ave, Neptune, NJ 7753
Truck Transportation
Term Loan
Prime plus 2.75%
7/17/2023
F-103
See accompanying notes to consolidated financial statements.
16.3
5.7
58.1
162.7
34.9
106.1
20.5
190.2
183.9
14.7
221.3
63.9
16.3
5.7
58.1
162.7
34.9
106.1
20.5
190.2
183.9
14.7
221.3
63.9
16.7
5.8
59.5
166.7
37.5
123.7
21.0
221.7
188.5
15.1
226.7
65.4
— %
— %
0.02 %
0.05 %
0.01 %
0.04 %
0.01 %
0.07 %
0.06 %
— %
0.07 %
0.02 %
6.6
7.6
3.9
2.0
79.0
29.0
17.8
6.6
7.6
3.9
2.0
79.0
29.0
17.8
6.7
7.8
4.0
2.3
92.1
29.7
— %
— %
— %
— %
0.03 %
0.01 %
18.2
0.01 %
Nonstore Retailers
Term Loan
Prime plus 2.75%
8/26/2023
27.2
27.2
27.9
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
GIA Realty LLC and VRAJ GIA
LLC dba Lakeview Laundromat
(#,^)
(#,^)
Maxiflex LLC
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 and
Ryan D. Thornton and Thornton
& Associates LLC
Peanut Butter & Co., Inc.
1258 Hartford TPKE, LLC and
Phelps and Sons, Inc
Xela Pack, Inc. and Aliseo and
Catherine Gentile
A & M Commerce, Inc. dba
Cranberry Sunoco
American Diagnostic Imaging,
Inc. dba St. Joseph Imaging
Center
Michael A.and HeatherR. Welsch
dba Art & FrameEtc.
Truth Technologies Inc dba Truth
Technologies Inc.
Sound Manufacturing, Inc. and
Monster Power Equipment Inc.
Bakhtar Group LLC dba
Malmaison
Osceola River Mill, LLC
Ironman Machine, Inc.
Retain Loyalty LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
411 Sharp St, Millville, NJ 8332
512 Verret St, New Orleans, LA
70114
2141 P Ave, Williamsburg, IA
52361
200 North Branford Rd, Branford,
CT 6405
24 Elm St, Montpelier, VT 5602
401 Old Quitman Rd, Adel, GA
31620
85 Reaville Ave, Flemington, NJ
8822
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 6066
8300 Boettner Rd, Saline, MI
48176
398 Baltimore Blvd, Westminster,
MD 21157
3937 Sherman Ave, Saint Joseph,
MO 64506
2819 West T C Jester Blvd.,
Houston, TX 77018
2341 Cheshire Lane, Naples, FL
34109
51 Donnelley Rd, Old Saybrook,
CT 6475
3401 K St NW, Washington, DC
20007
27 Hungerford St, Pittsfield, MA
1201
1250 Sanders Ave SW, Massillon,
OH 44647
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/28/2038
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/28/2023
Truck Transportation
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%
6/19/2026
Term Loan
Prime plus 2.75%
6/18/2028
Term Loan
Prime plus 2.75%
6/14/2023
Term Loan
Prime plus 2.75%
6/12/2038
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/5/2038
Ambulatory Health Care Services Term Loan
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
5/28/2023
Prime plus 2.75%
5/24/2023
Food Manufacturing
Term Loan
Prime plus 2.75%
4/30/2023
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/29/2038
Paper Manufacturing
Term Loan
Prime plus 2.75%
3/27/2028
Gasoline Stations
Term Loan
Prime plus 2.75%
3/27/2038
82.4
14.3
352.6
546.5
110.4
735.7
159.4
19.3
15.6
30.0
104.7
174.5
273.4
82.4
14.3
352.6
546.5
110.4
735.7
159.4
19.3
15.6
30.0
104.7
174.5
273.4
96.2
14.7
371.3
586.2
112.9
857.2
185.7
19.8
15.9
30.7
122.0
186.7
318.0
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/25/2038
455.5
455.5
529.7
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Machinery Manufacturing
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
3/22/2038
Term Loan
Prime plus 2.75%
3/21/2023
56.7
25.2
56.7
25.2
66.0
25.7
Term Loan
Prime plus 2.75%
3/15/2023
140.6
140.6
143.5
Term Loan
Prime plus 2.75%
2/28/2023
Term Loan
Prime plus 2.75%
2/20/2038
Term Loan
Prime plus 2.75%
2/15/2038
27.0
72.3
93.7
27.0
72.3
93.7
27.5
84.0
109.0
0.03 %
— %
0.11 %
0.17 %
0.03 %
0.25 %
0.05 %
0.01 %
— %
0.01 %
0.04 %
0.06 %
0.09 %
0.16 %
0.02 %
0.01 %
0.04 %
0.01 %
0.02 %
0.03 %
F-104
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Sherill Universal City dba
Golden Corral LP
Macho LLC Madelaine
Chocolate Novelties Inc dba The
Madelai
Babie Bunnie Enterprises Inc dba
Triangle Mothercare
Polpo Realty LLC & Polpo
Restaurant LLC dba Polpo
Restauran
Daniel Gordon and Erin Gordon
and Silver Lining Stables CT,
LLC
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
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
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
2301 Pat Booker Rd, Universal
City, TX 78148
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/28/2038
372.8
372.8
433.6
0.13 %
96-03 Beach Channel Drive,
Rockaway Beach, NY 11693
8516 Swarthmore Drive, Raleigh,
NC 27615
Food Manufacturing
Term Loan
Prime plus 2.75%
12/31/2037
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/28/2027
418.9
24.8
418.9
24.8
487.3
26.4
0.14 %
0.01 %
554 Old Post Rd #3, Greenwich,
CT 6830
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/27/2037
442.4
442.4
513.6
0.15 %
38 Carmen Lane, Monroe, CT
6468
8958 W State Rd # 84, Davie, FL
33324
101 Richmond Hill Ave,
Stamford, CT 6902
5771 East Fowler Ave, Temple
Terrace, FL 33617
1345 Wampanoag Trail, East
Providence, RI 2915
305 Quincy Shore Drive, Quincy,
MA 2107
7712 Fourth Ave, Brooklyn, NY
11209
3580 Progress Drive, Unit Q,
Bensalem, PA 19020
175 Industrial Lane, Torrington,
CT 6790
5275 University Parkway # 110,
Bradenton, FL 34201
728 Main St, Middletown, CT
6457
1901 Naylor Rd, SE, Washington,
DC 20020
6291 Thomas Rd, Fort Myers, FL
33912
400 S McCaslin Blvd Ste 201,
Louisville, CO 80027
1111 S Tillotson Ave, Muncie, IN
47304
30 Maple St, Summit, NJ 7901
231 Main St, Stanford, CT 6901
1985 B St, Colorado Springs, CO
80906
Support Activities for Agriculture
and Forestry
Term Loan
Prime plus 2.75%
11/28/2037
190.2
190.2
220.8
0.07 %
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
11/27/2022
2.5
2.5
2.5
— %
Food and Beverage Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/26/2022
Term Loan
Prime plus 2.75%
11/27/2037
153.8
153.8
178.5
0.05 %
15.2
80.0
15.2
80.0
15.5
92.9
Gasoline Stations
Term Loan
Prime plus 2.75%
11/21/2037
Gasoline Stations
Term Loan
Prime plus 2.75%
11/20/2037
149.6
149.6
173.7
Ambulatory Health Care Services Term Loan
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
11/19/2022
Prime plus 2.75%
11/9/2022
5.2
5.6
5.2
5.6
5.3
5.7
Machinery Manufacturing
Term Loan
Prime plus 2.75%
11/2/2037
219.0
219.0
254.1
Personal and Laundry Services
Food Services and Drinking
Places
Truck Transportation
Furniture and Related Product
Manufacturing
Insurance Carriers and Related
Activities
Repair and Maintenance
Educational Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/27/2022
Term Loan
Prime plus 2.75%
9/19/2037
Term Loan
Prime plus 2.75%
8/27/2022
Term Loan
Prime plus 2.75%
8/17/2037
Term Loan
Prime plus 2.75%
7/27/2022
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
6/29/2037
6/15/2022
Term Loan
Prime plus 2.75%
6/14/2022
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
5/31/2037
F-105
See accompanying notes to consolidated financial statements.
20.0
54.6
3.5
297.3
22.6
236.1
9.9
3.9
51.3
20.0
54.6
3.5
297.3
22.6
236.1
9.9
3.9
51.3
20.3
63.3
3.6
344.5
23.0
273.7
10.1
4.0
59.3
— %
0.03 %
0.05 %
— %
— %
0.07 %
0.01 %
0.02 %
— %
0.10 %
0.01 %
0.08 %
— %
— %
0.02 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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.
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
K9 Bytes, Inc & Epazz, Inc dba
K9 Bytes, Inc
28 Cornelia Street Properties,
LLC and Zouk, Ltd.dba Palma
39581 Garfield, LLC and
Tricounty Neurological
Associates, P.C.
Robert E. Caves, Sr. and
American Plank dba Caves
Enterprises
39581 Garfield, LLC and Tri
County Neurological Associates,
P.C.
Michael S. Decker & Janet
Decker dba The Hen House Cafe (#)
(#,^)
(#,^)
(#,^)
(#,^)
Valiev Ballet Academy, Inc
(#,^)
LaHoBa, LLC d/b/a Papa John's
(#,^)
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.
(#,^)
(#,^)
(#,^)
4181 9th Ave West, Bradenton,
FL 34025
305 Shirley Ave, Douglas, GA
31533
360 Lexington Ave, 8th Floor,
New York, NY 10017
6187 NW 167th St Unit H3,
Miami, FL 33015
4954 Space Center Drive, San
Antonio, TX 78218
7007 Boeing Drive, El Paso, TX
79925
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
5/10/2022
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Term Loan
Prime plus 2.75%
4/27/2022
Prime plus 2.75%
3/30/2022
Specialty Trade Contractors
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/22/2027
Air Transportation
Term Loan
Prime plus 2.75%
12/28/2026
4.3
1.4
38.5
60.2
660.6
292.3
4.3
1.4
38.5
60.2
660.6
292.3
4.3
1.5
39.0
64.4
700.6
309.3
— %
— %
0.01 %
0.02 %
0.21 %
0.09 %
Term Loan
Prime plus 2.75%
12/22/2036
136.4
136.4
157.3
0.05 %
2900 South 20th St, Philadelphia,
PA 19145
162 West 84th St, New York, NY
10024
325 N. Milwaukee Ave, Ste G1,
Wheeling, IL 60090
28-28 1/2 Cornelia St, New York,
NY 10014
Furniture and Home Furnishings
Stores
Personal and Laundry Services
Publishing Industries (except
Internet)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/20/2021
Term Loan
Prime plus 2.75%
10/26/2021
Term Loan
Prime plus 2.75%
10/25/2021
39581 Garfield Rd, Clinton
Township, MI 48038
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
401 Caribou St, Simla, CO 80835
635 - 637 Londonderry Lane,
Denton, TX 76205
3001 Pontchartrain Drive, Slidell,
LA 70458
24 Wakefield St, Rochester, NH
13867
4920 Lincoln Ave Route 53,
Lisle, IL 60532
1790 Broadway Ste 716, New
York, NY 10019
Term Loan
Term Loan
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Amusement, Gambling, and
Recreation Industries
Merchant Wholesalers,
Nondurable Goods
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
9/30/2036
Prime plus 2.75%
8/30/2036
Prime plus 2.75%
8/12/2036
Prime plus 2.75%
8/3/2036
Prime plus 2.75%
6/29/2036
Prime plus 2.75%
6/29/2036
Prime plus 2.75%
6/3/2021
F-106
See accompanying notes to consolidated financial statements.
10.1
11.8
2.4
21.9
40.1
64.3
13.0
33.7
61.1
35.4
277.3
3.1
10.1
11.8
2.4
21.9
40.1
64.3
13.0
33.7
61.1
35.4
277.3
3.1
10.2
11.9
2.4
— %
— %
— %
25.2
0.01 %
40.4
0.01 %
74.1
14.9
38.7
70.3
40.7
319.1
3.1
0.02 %
— %
0.01 %
0.02 %
0.01 %
0.09 %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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.
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.
Newsome Trucking Inc and
Kevin Newsome
Rudy & Louise Chavez dba
Clyde's Auto and Furniture
Upholstery
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
I-90 RV & Auto Supercenter
Tanner Optical Inc. dba Murphy
Eye Care
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
(#,^)
(#,^)
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
34 South Valley Rd, West Orange,
NJ 7052
904 North 66th St, Philadelphia,
PA 19151
64-68 North Central Ave, Valley
Stream, NY 11580
3915 Watson Rd, St. Louis, MO
63109
2879 Limekiln Pike, Glenside, PA
19038
175 Campanelli Park Way,
Stroughton, MA 2072
2262 HWY 53W, Jasper, GA
30143
2320 2nd St, Albuquerque, NM
87107
4505 South I-90 Service Rd,
Rapid City, SD 57703
305 Shirley Ave, Douglas, GA
31533
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
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2036
99.7
99.7
114.5
0.03 %
Nonstore Retailers
Term Loan
Prime plus 2.75%
4/18/2036
112.5
112.5
129.2
0.04 %
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/24/2036
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/21/2021
Term Loan
Prime plus 2.75%
2/11/2036
Social Assistance
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
1/31/2036
Term Loan
Prime plus 2.75%
1/28/2036
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/1/2020
Repair and Maintenance
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
11/30/2035
Term Loan
Prime plus 2.75%
9/30/2035
Truck Transportation
Term Loan
Prime plus 2.75%
9/2/2035
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/2/2035
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/29/2035
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Term Loan
Prime plus 2.75%
6/22/2035
Prime plus 2.75%
12/30/2034
Prime plus 2.75%
3/29/2024
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/19/2034
Repair and Maintenance
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Educational Services
Term Loan
Prime plus 2.5%
11/28/2029
Term Loan
Term Loan
6%
6%
3/10/2021
8/1/2031
F-107
See accompanying notes to consolidated financial statements.
12.1
2.1
47.5
24.1
87.9
1.2
26.2
173.4
187.6
38.1
56.5
68.9
31.6
16.9
43.0
42.0
1.2
41.2
12.1
2.1
47.5
24.1
87.9
1.2
26.2
173.4
187.6
38.1
56.5
68.9
31.6
16.9
43.0
42.0
1.2
41.2
13.8
2.1
54.5
27.6
100.8
—
30.0
198.4
214.1
43.5
64.5
78.5
35.9
17.4
48.8
45.2
1.2
39.6
— %
— %
0.02 %
0.01 %
0.03 %
— %
0.01 %
0.06 %
0.06 %
0.01 %
0.02 %
0.02 %
0.01 %
0.01 %
0.01 %
0.01 %
— %
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
6%
11/30/2022
Term Loan
Prime plus 2%
10/18/2025
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/18/2032
61.8
17.0
9.5
61.8
17.0
9.5
61.0
17.5
10.5
Personal and Laundry Services
Term Loan
Prime plus 2.25%
9/7/2027
126.0
126.0
132.1
Bliss Coffee and Wine Bar, LLC (#)
Connect Litigation Technology,
Inc.
1911 East Main Street Holdings,
Corp
(#,^)
(#,^)
Water Works Laundromat, LLC (#)
(#,^)
Dave Kris, and MDK Ram Corp. (#,^)
Head To Toe Personalized
Pampering, Inc.
Christopher F. Bohon & Pamela
D. Bohon
Mogas Limited
Moonlight Multi Media
Production, Inc.
David M. Goens dba Superior
Auto Paint & Body, Inc.
McCallister Venture Group, LLC
and Maw's Vittles, Inc.
(#,^)
(#,^)
(#,^)
(#,^)
(#)
Whirlwind Car Wash, Inc.
Shuttle Car Wash, Inc. dba
Shuttle Car Wash
(#)
(#,^)
Min Hui Lin
Auto Sales, Inc.
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
Randall D. & Patricia D.
Casaburi dba Pat's Pizzazz
Gain Laxmi, Inc. dba Super 8
Motel
(#,^)
(#,^)
(#,^)
1402-A Handlir Drive, Bel Air,
MD 21015
1101 Ivy Hill Rd, #4,
Philadelphia, PA 19150
1911 East Main St, Endicott, NY
13760
968-970 Bergen St, Newark, NJ
7104
15 Elm Park, Groveland, MA
1930
2331 North State Rd 7,
Lauderhill, FL 33313
11600 County Rd 71, Lexington,
AL 35648
47 Chestnut St, Elmer, NJ 8318
2700 West Cypress Creek Rd,
Fort Lauderdale, FL 33309
1912 Manhattan Ave, Harvey, LA
70058
511 South BRd St, Brooksville,
FL 34601
1370 Le Anne Marie Circle,
Columbus, OH 43026
745 Cheney Hwy, Ttitusville, FL
32780
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/5/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/27/2031
Social Assistance
Gasoline Stations
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
10/28/2026
5/31/2030
Other Information Services
Term Loan
5.3%
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
6%
Term Loan
Prime plus 2.75%
7/30/2029
Repair and Maintenance
Term Loan
Prime plus 2%
4/9/2029
2/1/2025
8/26/2024
Term Loan
Prime plus 2.25%
11/10/2028
Term Loan
Term Loan
Prime plus 2.75%
6%
1/30/2028
8/17/2023
Term Loan
Prime plus 2.75%
12/29/2021
Term Loan
6%
9/14/2023
Repair and Maintenance
Food Services and Drinking
Places
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
1916 BRd St, Lanett, AL 36863
1925 State St, Hamden, CT 6417 Motor Vehicle and Parts Dealers
259 East Central Ave, Bangor, PA
18013
3118 Bayshore Ave, Brigantine,
NJ 8203
2336 Wisteria Drive, Ste 430,
Snellville, GA 30078
98-16 160 Ave, Ozone Park, NY
11414
9225 Parkway East, Birmingham,
AL 35206
386 Winsted Rd, Torrington, CT
6790
14341 U.S. Hwy 431 South,
Gunterville, AL 35976
Accommodation
Furniture and Home Furnishings
Stores
Accommodation
Ambulatory Health Care Services Term Loan
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2%
3/12/2022
Prime plus 2.75%
6/16/2025
Term Loan
Prime plus 2.25%
2/14/2025
Term Loan
Prime plus 2.75%
3/13/2023
Term Loan
Prime plus 2.25%
5/31/2023
F-108
See accompanying notes to consolidated financial statements.
0.02 %
0.01 %
— %
0.04 %
0.01 %
— %
— %
0.02 %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
19.2
7.2
2.2
53.0
1.0
9.4
9.0
11.8
12.6
12.7
3.5
0.5
23.1
0.8
3.0
15.7
2.9
8.6
19.2
7.2
2.2
53.0
1.0
9.4
9.0
11.8
12.6
12.7
3.5
0.5
23.1
0.8
3.0
15.7
2.9
8.6
20.1
8.0
2.3
57.9
1.0
9.2
9.8
12.4
13.4
13.6
3.4
0.5
22.8
0.8
3.1
16.2
3.0
8.8
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Accrual Investments (1) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Total SBA Unguaranteed Accrual Investments
1696 North BRd St, Meriden, CT
6450
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
193 Main St, Andover, NJ 7860
Accommodation
Term Loan
Prime plus 2.25%
3/31/2024
Social Assistance
Term Loan
Prime plus 2.75%
1/14/2023
Accommodation
Term Loan
Prime plus 2.25%
9/30/2023
Accommodation
Term Loan
Prime plus 2.75%
3/27/2023
Gasoline Stations
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/23/2022
Term Loan
Prime plus 2.75%
7/18/2021
$
F-109
See accompanying notes to consolidated financial statements.
15.0
2.5
29.1
1.0
3.0
15.0
2.5
29.1
1.0
3.0
15.4
2.6
29.7
1.0
3.1
0.1
0.1
364,957.1 $ 364,957.1 $ 378,329.4
0.1
— %
— %
0.01 %
— %
— %
— %
111.49 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
(*,#,^)
(*,#,^)
(*,#,^)
200 North 8th Street Associates
LLC and Enchanted Acres Fa
15 Frederick Place LLC &
Pioneer Windows Holdings Inc
& Subs
Pioneer Windows Manufacturing
Corp, Pioneer Windows
2 Cool Beans LLC dba
Menchies's Frozen Yogurt
3SIXO Motorsports LLC dba
3SIXO Motorsports Shop
6 Price Avenue, LLC and Pauley
Tree & Lawn Care, Inc
Acton Hardware LLC and Mark
Allgood & Jamie Allgood
Advance Case Parts RE Holdings
LLC and Advance Case Parts Inc (*,#)
(*,#)
(*,#,^)
(*,#,^)
Albas Bar & Grill LLC
Alive Design, LLC
All About Kids and Families
Medical Center, Inc.
All Printing Solutions, Inc. dba
Pryntcomm
Allied Welding Inc.
Amboy Group, LLC dba Tommy
Moloney's
Anglin Cultured Stone Products
LLC
Anglin Cultured Stone Products
LLC dba Anglin Construction
Arclay ,LLC
Arrow Freight Inc
Auto Shine Carwash Inc and
AKM R. Hossain and Jessica F.
Masud
AWA Fabrication &
Construction, L.L.C.
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
200 North 8th St, Reading, PA
19601
3 Expressway Plaza, Ste 221,
Roslyn Heights, NY 11577
3 Expressway Plaza, Suuite 221,
Roslyn Heights, NY 11577
11331 Thienes Ave, South El
Monte, CA 91733
217 W Main St, Centralia, WA
98531
6 Price Ave, Norwalk, CT 6840
31814 Crown Valley Rd, Acton,
CA 93510
12485-12489 NW 44th St, Coral
Springs, FL 33071
221 Self Main St, Homer City, PA
15748
234 Middle St, Middletown, CT
6457
12086 FT Caroline Rd, Ste.
102,103,401,402,403, 501,502,
Jacksonville, FL 32225
303 E. Sioux Ave., Pierre, SD
57501
1820 N. Santa Fe Ave,
Chillicothe, IL 61523
1 Amboy Ave, Woodbridge, NJ
7095
877 Salem Church Rd, Newark,
DE 19702
877 Salem Church Rd, Newark,
DE 19702
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
Term Loan
6.25%
5/4/2028 $
445.6 $
445.6 $
311.8
0.09 %
Fabricated Metal Product
Manufacturing
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 0%
12/16/2021
Term Loan
Prime plus 0%
11/21/2022
Term Loan
Prime plus 0%
Motor Vehicle and Parts Dealers
Administrative and Support
Services
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
7.75%
Term Loan
Term Loan
8%
8%
8/11/2026
1/6/2029
9/24/2039
3/24/2041
3/31/2040
Repair and Maintenance
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
7.75%
Term Loan
Prime plus 0%
10/13/2042
Term Loan
Prime plus 2.75%
3/13/2027
Ambulatory Health Care Services Term Loan
Printing and Related Support
Activities
Fabricated Metal Product
Manufacturing
Term Loan
Term Loan
8.25%
7.75%
8.25%
1/13/2029
6/27/2041
12/15/2041
44.8
80.7
54.1
94.6
237.3
117.1
318.3
43.9
11.4
364.9
491.8
713.5
44.8
80.7
54.1
94.6
237.3
117.1
318.3
43.9
11.4
364.9
491.8
713.5
43.3
78.1
53.0
59.6
192.6
37.9
131.4
17.1
9.7
262.9
81.7
713.5
Food Manufacturing
Term Loan
6%
6/14/2024
1,458.1
1,458.1
1,458.1
Construction of Buildings
Term Loan
8.25%
12/27/2042
Specialty Trade Contractors
Nonmetallic Mineral Product
Manufacturing
Term Loan
8.25%
Term Loan
8%
Truck Transportation
Term Loan
8.25%
Gasoline Stations
Fabricated Metal Product
Manufacturing
Term Loan
7.75%
Term Loan
6%
6/30/2025
5/5/2030
3/30/2028
9/26/2024
4/30/2025
630.5
193.3
137.1
653.0
15.7
34.4
630.5
193.3
137.1
653.0
15.7
34.4
324.4
185.2
30.1
—
15.2
2.5
F-110
See accompanying notes to consolidated financial statements.
0.01 %
0.02 %
0.02 %
0.02 %
0.06 %
0.01 %
0.04 %
0.01 %
0.00 %
0.08 %
0.02 %
0.21 %
0.43 %
0.10 %
0.05 %
0.01 %
0.00 %
0.00 %
0.00 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
B&B Fitness and Barbell, Inc.
dba Elevations Health Club
B4 Fitness LLC dba The Zoo
Health Club
Baker Sales, Inc. d/b/a Baker
Sales, Inc.
Band Sawn Lumber,LLC and
Nathan Ryan Adams
Fieldstone Quick Stop LLC
Barber Investments LLC Thadius
M B
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
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#)
Benevolent International Inc
(*,#,^)
Bev's Sweets LLC
(*,#,^)
(*,#,^)
(*,#)
(*,#)
Bone Bar & Grill LLC
Bowl Mor, LLC dba Bowl Mor
Lanes / Spare Lounge, Inc.
BQRS, Inc. DBA Gresham
Meineke Car Care Center
Brandywine Picnic Park, Inc. and
B.Ross Capps & Linda Capps
Calhoun Satellite
Communications, Inc.
Capstone Pediatrics PLLC and
Capstone Healthcare Consulting
LLC
Carl R. Bieber, Inc. dba Bieber
Tourways/Bieber Transportation (*,#)
(*,#)
(*,#)
(*,#)
CD Game Exchange Inc.
Central Medical Clinic, PLLC-
Clinica Central
Chickamauga Properties, Inc.,
MSW Enterprises, LLP
(*,#,^)
(*,#)
(*,#)
Route 611 North, Scotrun, PA
18355
4 Beehive Dr, Epping, NH 3042
60207 Camp Villere Rd, Slidell,
LA 70460
1873 State Hwy 29, Johnstown,
NY 12095
190 Route 3, South China, ME
4358
3510 Bear Creek Rd,
Franklinville, NY 14737
3510 Bear Creek Rd,
Franklinville, NY 14737
2003 West 5th St, Clifton, TX
76634
2781 Saturn St Ste F, Brea, CA
82821
3778 Hwy 254, Cleveland, GA
30528
3547 &3551 Philipsburg Bigler
Hwy, West Decatur, PA 16878
201 Highland Ave, East Syracuse,
NY 13057
18081 SE Division St, Portland,
OR 97236
690 South Creek Rd, West
Chester, PA 19382
1914 Tigertail Blvd, Dania
Beach, FL 33004
310 25th Ave N. St Ste. 201,
Nashville, TN 37203
320 Fair St, Kutztown, PA 19530
3719 N Mississippi, Portland, OR
97227
393 North Dunlap St Ste LL26,
LL34, LL38, St Paul, MN 55104
214 Sutherland Way, Rocky Face,
GA 30740
Term Loan
6%
6/22/2035
1,385.8
1,385.8
334.3
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Nonstore Retailers
Term Loan
6%
Wood Product Manufacturing
Term Loan
7.75%
9/23/2026
3/29/2036
5/15/2042
59.8
177.4
110.8
59.8
177.4
110.8
Gasoline Stations
Term Loan
6%
9/30/2038
400.4
400.4
Accommodation
Term Loan
Prime plus 2.75%
8/12/2041
1,608.1
1,608.1
Accommodation
Term Loan
7.25%
12/30/2024
Gasoline Stations
Administrative and Support
Services
Administrative and Support
Services
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Term Loan
7.75%
Term Loan
6%
Term Loan
Prime plus 0%
Term Loan
7%
Term Loan
8.25%
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Term Loan
8.25%
Telecommunications
Term Loan
7%
Ambulatory Health Care Services
Transit and Ground Passenger
Transportation
Merchant Wholesalers, Durable
Goods
Ambulatory Health Care Services
Amusement, Gambling, and
Recreation Industries
Term Loan
7.75%
Term Loan
7.5%
Term Loan
8.25%
Term Loan
8.25%
3/28/2028
4/26/2029
9/30/2044
6/30/2042
3/13/2039
6/30/2027
3/30/2031
12/2/2026
5/15/2025
9/30/2027
9/28/2026
6/7/2029
85.4
214.1
71.6
210.5
73.4
201.2
53.9
145.7
37.2
556.4
366.2
10.4
171.9
59.0
85.4
214.1
71.6
210.5
73.4
201.2
53.9
145.7
37.2
556.4
366.2
10.4
171.9
59.0
Term Loan
6.25%
12/22/2035
F-111
See accompanying notes to consolidated financial statements.
0.10 %
0.01 %
0.02 %
0.01 %
0.01 %
0.22 %
0.02 %
0.01 %
0.02 %
0.06 %
0.02 %
0.04 %
0.01 %
0.04 %
0.01 %
0.02 %
0.10 %
0.00 %
0.05 %
0.02 %
31.6
62.1
33.5
33.2
742.4
82.7
29.8
68.6
201.6
62.6
148.4
47.8
144.1
24.0
55.7
354.6
10.2
166.4
56.5
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Children First Home Health Care
Inc
CK Heating and Cooling LLC
Clark Realty LLC
Clearwater Transportation LTD
dba Thrifty Car Rental,
CNYP 717 Irondequoit LLC and
CNYP 2002 Ontario LLC
Colts V LLC and Nowatzke
Service Center, Inc dba Nowatzke
Truck
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
David D. Sullivan dba DMS
Construction
Destination Hope, Inc,
TrilogyTreatment & Wellness
Center, Inc
Destination Hope, Inc. and The
Academy for Addiction
Professionals
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
Driven Warehouse/Distribution
LLC
DTM Parts Supply Inc.
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
Ambulatory Health Care Services Term Loan
7.5%
12/27/2028
282.4
282.4
1220 Broadcasting Rd Ste 202,
Wyomissing, PA 19610
10017 Pebble Beach Drive, St.
Louis, MO 63114
4 Walker Way, Albany, NY 12205 Real Estate
8790 Crownhill Blvd, San
Antonio, TX 78209
717 Titus Ave, Rochester, NY
14617
Specialty Trade Contractors
Rental and Leasing Services
Food Services and Drinking
Places
Repair and Maintenance
Administrative and Support
Services
Professional, Scientific, and
Technical Services
6900 Whitmore Lake Rd,
Whitmore Lake, MI 48189
4802 West Van Buren St,
Phoenix, AZ 85007
380 E. Borden Rd, Rose City, MI
48654
1424 Heath Ave, Ewing, NJ 8638 Machinery Manufacturing
2521 North Federal Hwy, Unit C,
Boca Raton, FL 33431
3610 N Josey Lane Ste 104,
Carrollton, TX 75007
6400 Charwood Place,
Bakersfield, CA 93306
Food Services and Drinking
Places
Specialty Trade Contractors
Term Loan
Term Loan
Prime plus 2.75%
8%
Term Loan
8.25%
Term Loan
8.25%
Term Loan
6.75%
Term Loan
8%
Term Loan
Term Loan
6.25%
8.25%
Term Loan
6.5%
4/12/2029
8/29/2041
11/29/2027
11/20/2040
9/26/2039
8/14/2028
6/17/2021
12/19/2027
12/16/2025
12/20/2028
18.5
73.3
153.7
158.0
553.3
597.0
210.6
141.3
44.1
292.6
11.5
18.5
73.3
153.7
158.0
553.3
597.0
210.6
141.3
44.1
292.6
11.5
51.7
1.3
37.1
17.5
60.2
450.0
408.2
112.7
45.1
20.8
3.2
4.3
0.02 %
0.00 %
0.01 %
0.01 %
0.02 %
0.13 %
0.12 %
0.03 %
0.01 %
0.01 %
0.00 %
0.00 %
Ambulatory Health Care Services Term Loan
8.25%
Term Loan
Prime plus 0%
8/9/2028
6555 NW 9th Ave, Fort
Lauderdale, FL 33309
6555 NW 9th Ave, Fort
Lauderdale, FL 33309
2685 US Hwy 41, Calhoun, GA
30701
1410 Medina Rd, Medina, OH
44256
1600 Village Market Blvd,
Leesburg, VA 20175
1515 Shopton Rd, Charlotte, NC
28217
271 East North Ave, Glendale, IL
60139
31 Sageman St, Mount Vernon,
NY 10550
Ambulatory Health Care Services Term Loan
Prime plus 0%
12/30/2029
345.6
345.6
338.2
0.10 %
Ambulatory Health Care Services Term Loan
6%
12/30/2044
371.2
371.2
363.3
0.11 %
Support Activities for
Transportation
Term Loan
5.25%
12/28/2035
1,316.8
1,316.8
522.2
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
Merchant Wholesalers, Durable
Goods
Term Loan
Term Loan
8%
7%
3/9/2040
2/28/2026
9/29/2042
12/22/2027
6/2/2025
74.2
81.3
243.0
726.2
42.6
74.2
81.3
243.0
726.2
42.6
3.2
79.5
211.2
371.6
42.6
0.15 %
0.00 %
0.02 %
0.06 %
0.11 %
0.01 %
F-112
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
DuCharme Realty LLC and
DuCharme Enterprises LLC dba
Specialty
Dynamic Dental Corporation
E & I Holdings, LP & PA Farm
Products, LLC
E.S.F.P. LLC dba Volusia Van
and Storage
Earth First Recycling LLC
Earth First Recycling, LLC and
191 Clark Road, LLC
Elegant Fireplace Mantels, Inc.
dba Elegant Fireplace Mantels
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
Ericon, Inc.
ERT Group Inc and Curt's Tools
Inspection Inc
(*,#,^)
(*,#,^)
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
(*,#,^)
(*,#,^)
(*,#)
Florida Apnea Diagnostics LLC (*,#,^)
Frontier Sand LLC
Galaforo Construction and
Companies LLC
GEM2K, LLC dba Precision
Precast Group
Grand Manor Realty, Inc. &
Kevin LaRoe
Graphics,Type and Color
Enterprises Inc dba
Clubflyers.com
H.M.C, Incorporated
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
1717 Hwy 200, Noxon, MT
59853
3760 NW 126th Ave, Coral
Springs, FL 33065
1095 Mt Airy Rd, Stevens, PA
17578
1203 N US 1, Ormond Beach, FL
32174
400 Island Park Rd, Easton, PA
18040
400 Island Park Rd, Easton, PA
18040
11949 Borden Ave, San
Fernando, CA 91340
740 Davenport Ave, Fremont, NE
68025
5229 142nd Dr. NW, Williston,
ND 58801
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
2664 Cypress Ridge Blvd Ste.
101 & 102 A, Wesley Chapel, FL
33544
305 Country Hwy AA, New
Auburn, WI 54757
1770 Stumpf Blvd, Terrytown,
LA 70056
4150 E Magnolia St, Phoenix, AZ
85034
318 S. Halsted St, Chicago, IL
60661
Wood Product Manufacturing
Merchant Wholesalers, Durable
Goods
Term Loan
8%
Term Loan
7.5%
2/2/2040
5/31/2029
163.2
60.4
163.2
60.4
47.5
22.2
Food Manufacturing
Term Loan
6%
4/30/2030
4,705.2
4,705.2
3,746.2
Term Loan
Prime plus 0%
11/11/2025
Truck Transportation
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Term Loan
Term Loan
8%
8%
Specialty Trade Contractors
Term Loan
8.25%
Gasoline Stations
Term Loan
8.25%
Support Activities for Mining
Plastics and Rubber Products
Manufacturing
Term Loan
6%
Term Loan
Prime plus 2.75%
3/18/2041
Wood Product Manufacturing
Animal Production and
Aquaculture
Term Loan
7.25%
Term Loan
7.5%
Machinery Manufacturing
Term Loan
8.25%
Machinery Manufacturing
Term Loan
8.25%
Machinery Manufacturing
Term Loan
8.25%
Ambulatory Health Care Services Term Loan
8.25%
Mining (except Oil and Gas)
Term Loan
8.25%
Construction of Buildings
Term Loan
7.5%
Miscellaneous Manufacturing
Term Loan
8.25%
Real Estate
Term Loan
6%
12/6/2027
6/5/2027
12/31/2022
12/1/2041
9/26/2022
3/16/2026
8/31/2042
8/30/2023
3/25/2026
7/8/2028
10/20/2027
11/30/2027
12/15/2042
5/19/2027
2/20/2023
9/28/2041
7/3/2028
54.4
72.8
338.0
43.9
705.6
932.4
312.9
898.3
637.5
66.8
95.2
32.4
143.4
463.6
12.1
140.4
19.0
821.5
183.8
54.4
72.8
338.0
43.9
705.6
932.4
312.9
898.3
637.5
66.8
95.2
32.4
143.4
463.6
12.1
140.4
19.0
821.5
183.8
46.6
72.0
334.4
43.0
652.0
902.7
44.0
409.0
446.8
64.7
25.7
31.4
62.7
319.8
11.1
23.8
18.2
795.3
177.9
2300 NW 7th Ave, Miami, FL
33127
7190 Oakland Mills Rd Ste 10,
Columbia, MD 21046
Printing and Related Support
Activities
Furniture and Related Product
Manufacturing
Term Loan
8.25%
Term Loan
8.25%
F-113
See accompanying notes to consolidated financial statements.
0.01 %
0.01 %
1.10 %
0.01 %
0.02 %
0.10 %
0.01 %
0.19 %
0.27 %
0.01 %
0.12 %
0.13 %
0.02 %
0.01 %
0.01 %
0.02 %
0.09 %
0.00 %
0.01 %
0.01 %
0.23 %
0.05 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Hagerstown Muffler, Inc. and
JMS Muffler, Inc
Harrelson Materials
Management,Inc
HDD Solutions, LLC
HG Ventures, Inc. dba Diamond
Head Trucking
Home Again Restaurant LLC
Insight Vision Care, PC,
CRMOD Lubbock, P.C., Vielm
Vision Eyecare Inc
J&K Fitness, LLC dba Physiques
Womens Fitness Center
J Olson Enterprises LLC and
Olson Trucking Direct, Inc.
J. A. Kohlhepp Sons, Inc. dba
Kohlhepp's True Value
J. A. Kohlhepp Sons, Inc. dba
Kohlhepp's True Value
Jay Carlton's, LLC dba Jay Birds
Rotisserie & Grill
JN Thompson Ent,Inc.
JNP Delivery Inc
JP Dhillon's Foods LLC
K Soles Corp dba Max
Collections
Kantz LLC and Kantz Auto LLC
dba Kantz's Hometown Auto
Kids at Heart,LLC dba Monster
Mini Golf
Kidtastic LLC dba The Little
Gym of Audubon
Kneading Dough LLC dba NY
Bagel Cafe & Deli,NY Bagle,
New York Bagle
Kostekos Inc dba New York
Style Pizza
LA Diner Inc dba Loukas L A
Diner
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
1390 Dual Hwy, Hagerstown,
MD 21740
1101 Russell Rd, Shreveport, LA
71107
6550 Progress Parkway, Cedar
Hill, MO 63016
100 Phoenix Drive, Finleyville,
PA 15332
9524 Camp Lake Rd, Salem, WI
53168
4899 Griggs Rd, Houston, TX
77021
2505 Verot School Rd, Lafayette,
LA 70508
311 Ryan St, Holmen, WI 54636
640 Dubois St, Du Bois, PA
15801
640 Dubois St, Dubois, PA 15801
24480 W 10 Mile RD, Southfield,
MI 48033
400 5th Ave S Ste 100, Naples,
FL 34102
4500 North Providence # 7,
Appleton, WI 54913
840 El Paseo de Saratoga, San
Jose, CA 95130
3208 Oakcliff Industrial St,
Doraville, GA 30340
200 West Adams St, Cochranton,
PA 16314
10 Newbury St, Danvers, MA
1923
2850 Audubon Drive, Audubon,
PA 19403
Repair and Maintenance
Waste Management and
Remediation Services
Heavy and Civil Engineering
Construction
Term Loan
Term Loan
8%
6%
Term Loan
8.25%
Truck Transportation
Food Services and Drinking
Places
Term Loan
7.5%
Term Loan
6.25%
9/24/2040
6/24/2021
12/31/2028
6/29/2030
6/30/2040
58.6
465.2
552.8
807.7
0.4
58.6
465.2
552.8
807.7
0.4
37.0
4.7
336.6
47.1
0.4
7.75%
12/27/2043
1,084.6
1,084.6
222.9
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Term Loan
Truck Transportation
Building Material and Garden
Equipment and Supplies Dealers
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Term Loan
Term Loan
Term Loan
Term Loan
8%
6%
6%
6%
6%
Construction of Buildings
Term Loan
7.75%
Couriers and Messengers
Food Services and Drinking
Places
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 0%
Term Loan
Prime plus 0%
Term Loan
Prime plus 0%
3/16/2026
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
6.25%
Term Loan
6.75%
Term Loan
8.25%
10/29/2039
9/22/2026
7/27/2026
6/8/2036
6/28/2025
11/10/2026
11/10/2041
1/4/2029
12/7/2028
11/7/2027
6/1/2029
14.6
628.4
161.6
438.5
34.8
329.7
47.5
86.5
14.4
11.1
18.8
44.9
17.8
61.9
92.8
14.6
628.4
161.6
438.5
34.8
329.7
47.5
86.5
14.4
11.1
18.8
44.9
17.8
61.9
92.8
9.2
40.6
121.9
419.0
22.5
39.8
46.4
1.3
1.5
2.5
14.7
16.4
17.1
28.1
67.0
0.01 %
0.00 %
0.10 %
0.01 %
0.00 %
0.07 %
0.00 %
0.01 %
0.04 %
0.12 %
0.01 %
0.01 %
0.01 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.01 %
0.01 %
0.02 %
10287 Okeechobee Blvd #13,
Royal Palm Beach, FL 33411
10 South King St, Gloucester, NJ
8030
3205 Route 22 East, Branchburg,
NJ 8876
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/23/2029
Term Loan
8%
Term Loan
7.25%
2/6/2040
9/28/2037
F-114
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
LAN Doctors Inc
LAN Doctors Inc
(*,#)
(*,#,^)
Legacy Roof Contractors LLC
(*,#,^)
Lilo Holdings LLC
Linqserv 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
Magill Truck Line LLC and Jeff
J. Ralls
Mariam Diner Inc dba Country
Kitchen Restaurant
Marlin Lighting LLC
Matchless Transportation LLC
dba First Class Limo
MB Xpress Inc
Medeiros Holdings Inc dba
Outdoor Lighting Perspectives of
the Triad
MIT LLC
Mojo Brands Media, LLC
Morris Glass and Construction
Inc
MTV Bowl, Inc. dba Legend
Lanes
Murf & Sons LLC
N Transport LLC
N Transport LLC
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
14 Pierson Court, Mahwah, NJ
7430
14 Pierson Court, Mahwah, NJ
7430
32091 Broken Branch Circle,
Spanish Fort, AL 36527
1000 Roosevelt Ave., Cartaret, NJ
7008
1555 Lyell Ave, Rochester, NY
14606
8773 West Pine St, Lowgap, NC
27024
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
211 West 53rd St N., Park City,
KS 67204
17393 Main St, Hesperia, CA
92345
7207 B Lockport Pl, Lorton, VA
22079
31525 Aurora Rd # 5, Solon, OH
44139
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
40058 Hwy 30, Astoria, OR
97103
4190 State Rd, Cuyahoga Falls,
OH 44223
3821 Pleasant Hill Rd, Store #B-
107, Kissimmee, FL 34746
5348 W Brown Ave, Fresno, CA
93722
294 N. Fruit Ave, Fresno, CA
93706
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Food Services and Drinking
Places
Transit and Ground Passenger
Transportation
General Merchandise Stores
Merchant Wholesalers,
Nondurable Goods
Support Activities for Agriculture
and Forestry
Merchant Wholesalers,
Nondurable Goods
Merchant Wholesalers,
Nondurable Goods
Truck Transportation
Food Services and Drinking
Places
Specialty Trade Contractors
Transit and Ground Passenger
Transportation
Term Loan
8.25%
Term Loan
8.25%
Term Loan
Term Loan
6%
6%
Term Loan
7.5%
Term Loan
7.25%
Term Loan
7.5%
Term Loan
6%
Term Loan
Term Loan
7.5%
7.5%
Term Loan
7.25%
Term Loan
Term Loan
8%
6%
8/28/2025
3/16/2026
2/28/2044
12/5/2026
11/9/2027
3/24/2041
3/21/2023
4/30/2020
7/10/2020
12/15/2021
3/11/2029
3/18/2026
12/19/2028
59.8
43.4
294.0
11.6
264.0
48.0
197.4
44.6
27.4
133.8
183.5
42.8
90.9
59.8
43.4
294.0
11.6
264.0
48.0
197.4
44.6
27.4
133.8
183.5
42.8
90.9
Term Loan
6.25%
5/31/2020
119.2
119.2
Truck Transportation
Term Loan
8.25%
9/19/2028
1,110.1
1,110.1
Electrical Equipment, Appliance,
and Component Manufacturing
Publishing Industries (except
Internet)
Term Loan
7%
11/25/2025
Term Loan
Prime plus 2.75%
3/31/2042
Broadcasting (except Internet)
Term Loan
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
6%
15%
Term Loan
Term Loan
8.25%
8/28/2023
10/1/2023
6/30/2036
Term Loan
Prime plus 2.75%
11/16/2027
Truck Transportation
Term Loan
8%
Truck Transportation
Term Loan
8.25%
11/20/2027
11/20/2042
F-115
See accompanying notes to consolidated financial statements.
10.5
84.9
725.0
365.9
189.6
129.3
385.5
175.3
10.5
84.9
725.0
365.9
189.6
129.3
385.5
175.3
58.5
36.3
170.8
3.7
22.2
20.3
59.4
43.6
26.8
49.5
82.7
16.5
89.0
12.4
—
10.2
63.2
114.0
188.5
126.7
126.6
79.8
143.3
0.02 %
0.01 %
0.05 %
0.00 %
0.01 %
0.01 %
0.02 %
0.01 %
0.01 %
0.01 %
0.02 %
0.00 %
0.03 %
0.00 %
0.00 %
0.00 %
0.02 %
0.03 %
0.06 %
0.04 %
0.04 %
0.02 %
0.04 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Nando LLC dba Tall Timbers
Banquet and Conference Center
Neville Galvanizing, Inc
North Country Transport, LLC
Olsen Bros. Transportation, Inc.
& Golden Spike Leasing, LLC
P & M Entertainment, LLC dba
Luv 2 Play
Panther Ironworks and Rigging
Solutions LLC
Paragon Fabricators Inc, Paragon
Field Services, Inc and Paragon
Globa
Paragon Global, LLC and
Paragon Fabricators Inc and
Paragon Field Serv
Peter K Lee MD, PC dba Atlanta
Primary Care
Peter K Lee MD, PC dba Atlanta
Primary Care LLC
Play4Fun dba Luv 2 Play
PLES Investements, LLC and
John Redder, Pappy Sand &
Gravel, Inc., T
Top Cat Ready Mix, LLC, Ples
Investments LLC, and Pappy's
Sand and
Providence Management
Environmental, LLC, Tindol
Energy Group, LLC
PS Camping Inc.
PS Camping, Inc. dba
Prospectors RV Resort
Purely Seed LLC
Ramjay Inc.
Randall Miller Company, Inc and
Boyz Transportation Services,
LLC
Recovery Boot Camp, LLC, Rule
62, Inc. and Healing Properties,
LLC
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
13831 National Rd SW,
Reynoldsburg, OH 43068
2983 Grand Ave, Pittsburgh, PA
15225
10 LaCrosse St, Ste 14, Hudson
Falls, NY 12839
2520 Pennsylvania Ave, Ogden,
UT 84401
35 Lafayette Rd Ste #8, North
Hampton, NH 3862
1028 Washburn Switch Rd,
Shelby, NC 28150
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Transit and Ground Passenger
Transportation
Truck Transportation
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Term Loan
Term Loan
6%
4/20/2028
Term Loan
Prime plus 2.75%
12/15/2042
Term Loan
6%
Term Loan
8.25%
Term Loan
6%
6%
2/6/2023
6/20/2028
5/10/2028
11/10/2026
12.7
235.7
4.9
513.2
96.1
112.7
12.7
235.7
4.9
513.2
96.1
112.7
12.4
—
4.8
53.3
76.1
75.4
0.00 %
0.00 %
0.00 %
0.02 %
0.02 %
0.02 %
412 and 500 Main St, La Marque,
TX 77568
Heavy and Civil Engineering
Construction
Term Loan
7%
9/28/2026
570.7
570.7
3.1
0.00 %
412 and 500 Main St, La Marque,
TX 77568
211 Roberson Mill Rd,
Milledgeville, GA 31061
5 Ashford Way, Hawkinsville, GA
31061
13722 Jamboree Rd, Irvine, CA
92602
Heavy and Civil Engineering
Construction
Term Loan
7%
Ambulatory Health Care Services Term Loan
8.25%
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
7.5%
9/28/2041
9/13/2043
9/13/2028
3/7/2028
110.1
859.6
381.0
148.1
110.1
859.6
381.0
148.1
48.7
823.3
364.9
88.9
0.01 %
0.24 %
0.11 %
0.03 %
2040 Dowdy Ferry, Dallas, TX
75218
13851 S State HWY 34, Scurry,
TX 75158
6570 W Hwy 67, Cleburne, TX
76033
43595 US Hwy 50, Canon City,
CO 81212
43659&43595 US Hwy 50,
Canon City, CO 81212
11515 Lake Lane, Ste 102,
Chisago, MN 55013
85 S. Bragg St Ste 303,
Alexandria, VA 22312
256 Blackley Rd, Bristole, TN
37620
85 SW 5th Ave, Delray Beach, FL
33444
Specialty Trade Contractors
Term Loan
8.25%
12/19/2038
494.7
494.7
473.8
0.14 %
Specialty Trade Contractors
Term Loan
8.25%
10/28/2025
479.9
479.9
314.0
0.09 %
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
6/19/2029
Accommodation
Term Loan
8.25%
Accommodation
Merchant Wholesalers,
Nondurable Goods
Transit and Ground Passenger
Transportation
Term Loan
8.25%
Term Loan
Prime plus 0%
Term Loan
8.25%
12/1/2027
5/19/2042
2/26/2028
1/13/2027
255.9
18.2
227.3
101.7
375.6
255.9
18.2
227.3
101.7
375.6
245.1
17.4
217.7
—
81.6
0.07 %
0.01 %
0.06 %
0.00 %
0.02 %
Truck Transportation
Term Loan
7.75%
7/31/2029
772.8
772.8
18.8
0.01 %
Ambulatory Health Care Services Term Loan
7.75%
12/28/2028
112.6
112.6
9.4
0.00 %
F-116
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Return to Excellence Inc
Return to Excellence, Inc. dba
The Waynesville Inn Golf & Spa (*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
RG Productions LLC
Rhone Wolf Vineyard LLC,
Goldline Brands Inc. and Myka
Cellars, Inc.
Roundhay Partners LLC and
Roundhay Farming LLC
Rich's Food Stores LLC dba Hwy
55 of Wallace
Route 130 SCPI Holdings LLC
(EPC) Route 130 SCPI
Operations LLC (OC) d
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
Select Propane & Fuel Inc. and
Select Fuel & Convenience LLC (*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
Shaffer Automotive Repair, LLC (*,#)
Shane M. Howell and Buck
Hardware and Garden Center,
LLC
Shining Star Kids, Inc. dba Brain
Balance
(*,#)
(*,#,^)
Smith and Son Plumbing, LLC
(*,#,^)
Southside BBQ Corp
(*,#,^)
Sovereign Communications LLC (*,#)
Specialty Surgery Center, Inc.
Street Magic Enterprise LLC dba
New Lisbon Travel Mart
(*,#,^)
(*,#,^)
Studio Find It Georgia Inc
(*,#,^)
176 Country Club Drive,
Waynesville, NC 28786
176 Country Club Drive,
Waynesville, NC 28786
2414 W Battlefield Ste H,
Springfield, MO 65807
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
1/27/2027
15.6
15.6
15.3
Term Loan
8%
10/10/2039
1,154.0
1,154.0
1,129.4
Rental and Leasing Services
Term Loan
Prime plus 0%
3/28/2029
139.5
139.5
127.4
5245 Bucks Bar Rd, Placerville,
CA 95667
6160 Granite Spring Rd,
Somerset, CA 95684
611 East Southerland St, Wallace,
NC 28466
423-429 Route 156, Trenton, NJ
8620
11421 N W 107th St, #13, Miami,
FL 33178
2 Sand Hill Cove Rd,
Narragansett, RI 2882
306 McClanahan St, Roanoke,
VA 24014
3822 State Route 3, Red Bud, IL
62278
1485 North McQueen Rd #1,
Gilbert, AZ 85233
Beverage and Tobacco Product
Manufacturing
Term Loan
8.25%
Crop Production
Food Services and Drinking
Places
Term Loan
8.25%
Term Loan
8.25%
Food Services and Drinking
Places
Term Loan
6.25%
Truck Transportation
Food Services and Drinking
Places
Term Loan
7.5%
Term Loan
8.25%
Personal and Laundry Services
Merchant Wholesalers,
Nondurable Goods
Term Loan
Term Loan
7.5%
7.5%
Repair and Maintenance
Term Loan
7%
1/19/2030
8/8/2042
9/14/2026
9/30/2039
6/20/2027
12/27/2041
12/15/2040
2/10/2030
5/24/2030
230.9
902.1
99.3
279.5
95.9
413.0
108.5
524.2
132.8
230.9
902.1
99.3
279.5
95.9
413.0
108.5
524.2
132.8
Term Loan
Term Loan
Educational Services
Building Material and Garden
Equipment and Supplies Dealers
1007 Lancaster Pike, Quarryville,
PA 17566
17323 Ventura Blvd, Encino, CA
91316
15922 Eldorado Parkway, Ste
500-1579, Frisco, TX 75035
16032 South Hwy 16, Cherokee,
TX 76832
26 E 3 Mile Rd,, Sault Sainte
Marie, MI 49783
5505 Peachtree Dunwoody Rd
Stes 640,645, Atlanta, GA 30342 Ambulatory Health Care Services Term Loan
1700 East Bridge St, New Lisbon,
WI 53950
3399 Peachtree Rd NE, Ste 400,
Atlanta, GA 30326
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Food Services and Drinking
Places
Broadcasting (except Internet)
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
7.5%
12/27/2038
113.4
113.4
Prime plus 0%
6%
Prime plus 0%
1/7/2029
6/10/2029
1/25/2028
77.2
76.0
15.7
77.2
76.0
15.7
6.75%
2/7/2024
627.4
627.4
Prime plus 0%
6/28/2029
1,158.8
1,158.8
7.5%
Prime plus 0%
11/7/2042
5/13/2026
419.0
14.8
419.0
14.8
221.2
781.4
9.8
33.5
14.0
197.9
50.5
28.4
38.7
11.5
75.6
34.1
15.4
118.1
186.1
139.8
5.3
0.00 %
0.33 %
0.04 %
0.07 %
0.23 %
0.00 %
0.01 %
0.00 %
0.06 %
0.01 %
0.01 %
0.01 %
0.00 %
0.02 %
0.01 %
0.00 %
0.03 %
0.05 %
0.04 %
0.00 %
F-117
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Unguaranteed Non-Accrual Investments (3) (22)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Suncrest Stone Products LLC
(*,#,^)
Suncrest Stone Products LLC
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 dba The
TX Superior Communications,
LLC
United States Plastic Equipment
LLC
Victorian Restaurant and Tavern,
LLC
Webb Eye Associates, PA
White Hawk Inc.
Wilban LLC
Wilban LLC
Zeeba Company, Inc dba Zeeba
Rent-A-Van & 5 Star Rent- A-
Van
Zahmel Restaurant Suppliers
Corp dba Cash & Carry;Zahners
Hardware;Zan
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
341 County Farm Rd, Ashburn,
GA 31714
341 County Farm Rd, Ashburn,
GA 31714
72 South Main St, Templeton, CA
93465
2125 College Ave, Jackson, AL
36545
3115 Camp Phillips Rd, Wausau,
WI 54403
Nonmetallic Mineral Product
Manufacturing
Nonmetallic Mineral Product
Manufacturing
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
7.25%
Term Loan
7.75%
8/29/2041
8/29/2026
12/7/2026
6/21/2042
Term Loan
8.25%
10/24/2042
608.6
535.4
95.2
97.8
25.0
608.6
535.4
95.2
97.8
25.0
116.1
129.7
79.8
49.7
24.4
0.03 %
0.04 %
0.02 %
0.01 %
0.01 %
29291 Amerihost Drive,
Dowagiac, MI 49047
3510 Bear Creek Rd,
Franklinville, NY 14737
6223 Krempen Ave, San Antonio,
TX 78233
4447 OH-303, Mantua, OH
44255
226 Maple Ave, Cheshire, CT
6410
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 8889
454 US Hwy 22, Whitehouse
Station, NJ 8889
Accommodation
Term Loan
8.25%
12/5/2041
335.1
335.1
328.0
0.10 %
Accommodation
Specialty Trade Contractors
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Term Loan
Term Loan
7%
8%
Term Loan
8.25%
Term Loan
8.25%
Ambulatory Health Care Services Term Loan
7.25%
Truck Transportation
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
8.25%
Term Loan
7.5%
Term Loan
7.25%
9/29/2039
3/19/2028
12/13/2028
2/22/2042
7/19/2027
12/15/2026
3/11/2026
3/28/2039
489.6
85.5
110.5
104.4
71.2
917.5
44.2
238.6
489.6
85.5
110.5
104.4
71.2
917.5
44.2
238.6
474.0
15.1
26.4
27.9
33.8
99.4
43.7
103.5
0.14 %
0.00 %
0.01 %
0.01 %
0.01 %
0.03 %
0.01 %
0.03 %
3200 Wilshire Blvd Ste 1000, Los
Angeles, CA 90010
Transit and Ground Passenger
Transportation
Term Loan
7.75%
9/27/2028
638.9
638.9
450.9
0.13 %
(*,#,^)
33-51 11th St, Astoria, NY 11106
Merchant Wholesalers,
Nondurable Goods
Term Loan
8.25%
4/28/2027
Total Unguaranteed Non-Accrual SBA Investments
Total Unguaranteed SBA Investments
F-118
See accompanying notes to consolidated financial statements.
75.8
55,442.8
75.8
55,442.8 $
74.2
29,418.5
0.02 %
8.67 %
$ 420,399.9 $ 420,399.9 $ 407,747.9
120.15 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Term Loan
Prime plus 2.75%
12/21/2045 $
750.0 $
750.0 $
848.0
Term Loan
Prime plus 2.75%
6/27/2029
3,385.0
3,385.0
3,634.3
Lulubelle's Mountain Banana
Bread LLC
Moon Group, Inc.
Beau & HB Inc. dba Beau’s
Billard, Bowling & Arcade
Hackstaff Restaurants
American Pharmaceutical
Innovation Company, LLC
Matrix Z LLC
Rello Inc.
2Choice2Friends LLC
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.
Campuscuts LLC
Port Diesel LLC
Menshka Inc.
The Bean Coffee Company, LLC
Lawrence Adeyemo & Co LLC
Gradstreet LLC
A&S Services LLC
1063 Carousel Rd, Lake
Arrowhead, CA 92352
145 Moon Rd, Chesapeake City,
MD 21915
100 Village Rd, Port Lavaca, TX
77979
248 W 1st. St Ste 201, Reno, NV
89501
1425 Centre Circle, Downers
Grove, IL 60515
800 SW 21st Terrace, Ft
Lauderdale, FL 33312
8063 Jericho Turnpike,
Woodbury, NY 11797
901 W Braker Lane, Austin, TX
78758
12150 SW 128th St CT Ste 209,
Miami, FL 33186
26 Cooper Rd, Byhalia, MS
38611
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
930 Robtrice Ct, Edmond, OK
73430
3212 Alex Trask Drive, Castle
Hayne, NC 28429
88 High St, Mountclair, NJ 7042
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
Food Manufacturing
Merchant Wholesalers,
Nondurable Goods
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Chemical Manufacturing
Nonmetallic Mineral Product
Manufacturing
Personal and Laundry Services
Food Services and Drinking
Places
Insurance Carriers and Related
Activities
Administrative and Support
Services
Truck Transportation
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/16/2029
Term Loan
Prime plus 2.75%
7/15/2029
Term Loan
Prime plus 2.75%
3/28/2027
Term Loan
Prime plus 6.5%
2/27/2029
Term Loan
Prime plus 6.5%
4/17/2029
Term Loan
Prime plus 6.5%
4/17/2029
Term Loan
Prime plus 6.5%
Term Loan
Prime plus 6.5%
5/6/2029
5/9/2029
Term Loan
Prime plus 6.5%
5/23/2029
Term Loan
Prime plus 6.5%
5/23/2029
Term Loan
Prime plus 6.5%
6/6/2029
Term Loan
Prime plus 6.5%
6/10/2029
Term Loan
Prime plus 6.5%
6/13/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/17/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/21/2029
Repair and Maintenance
Term Loan
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 6.5%
Prime plus 6.5%
6/21/2029
7/10/2029
Prime plus 6.5%
7/17/2029
Prime plus 6.5%
7/19/2029
Nonstore Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 6.5%
7/30/2029
Term Loan
Prime plus 6.5%
8/7/2029
F-119
See accompanying notes to consolidated financial statements.
113.0
426.0
113.0
426.0
122.0
461.0
45.2
11.1
5.4
11.3
11.3
9.1
11.2
8.8
11.4
11.4
4.6
11.4
6.8
11.4
11.5
11.5
9.2
7.3
11.5
45.2
11.1
5.4
11.3
11.3
9.1
11.2
8.8
11.4
11.4
4.6
11.4
6.8
11.4
11.5
11.5
9.2
7.3
11.5
45.2
11.1
5.4
11.3
11.3
9.1
11.2
8.8
11.4
11.4
4.6
11.4
6.8
11.4
11.5
11.5
9.2
7.3
11.5
0.25 %
1.07 %
0.04 %
0.14 %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Crystal Clear Accounting
Doghouse Sport Fishing Charters
Inc.
No Push Back LLC
Softcare247 LLC
Host Marketing LLC
Standard Real Estate Services
LLC
Bargain Store
Powerlift Dumbwaiters Inc.
Pine Mountain Residential LLC
James Clark and Company Inc.
Deer Valley Sport Shop LLC
Sean McNamara
The Pinnacle Group
Pen’s Electric Company, Inc
Standard Capital Corp.
Scott’s Hardware Inc
HADD Corp
La Tradicion Cubana Inc.
This is a Fly Closet LLC
2 N 1 Home and Lawn LLC
All Modes Transportation and
Logistics
Green Farm Inc.
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 West Silver Spring Drive, Ste
K 200,, Glendale, WI 53217
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
5639 Wood Lane, Allentown, PA
18106
105 Springside Drive, Akron, OH
44333
504 Fairfax Ave, Nashville, TN
37212
2349 Wessington Drive, Virginia
Beach, VA 23456
200 Tuckerton Rd, Medford, NJ
8055
364 Rugby Rd, Cedarhurst, NY
11516
9357 S.W. 40th St, Miami, FL
33165
12408 Kingsview St, Bowie, MD
20721
1300 Ridenour Blvd, Kennesaw,
GA 30152
4313 Collingtree Drive,
Rockledge, FL 32955
1018 W SR 424 Ste 100,
Longwood, FL 32750
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%
8/26/2029
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 6.5%
9/11/2029
Term Loan
Prime plus 6.5%
9/18/2029
Real Estate
Term Loan
Prime plus 6.5%
9/19/2029
General Merchandise Stores
Term Loan
Prime plus 6.5%
10/11/2029
Machinery Manufacturing
Term Loan
Prime plus 6.5%
10/16/2029
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 6.5%
10/16/2029
Term Loan
Prime plus 6.5%
10/22/2029
Term Loan
Prime plus 6.5%
11/7/2029
Nonstore Retailers
Term Loan
Prime plus 6.5%
11/14/2029
Social Assistance
Term Loan
Prime plus 6.5%
11/14/2029
Specialty Trade Contractors
Insurance Carriers and Related
Activities
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Miscellaneous Store Retailers
Clothing and Clothing
Accessories Stores
Administrative and Support
Services
Support Activities for
Transportation
Term Loan
Prime plus 6.5%
11/21/2029
Term Loan
Prime plus 6.5%
12/5/2029
Term Loan
Prime plus 6.5%
12/6/2029
Term Loan
Prime plus 6.5%
12/17/2029
Term Loan
Prime plus 6.5%
12/20/2029
Term Loan
Prime plus 6.5%
1/30/2030
Term Loan
Prime plus 6.5%
2/3/2030
Term Loan
Prime plus 6.5%
2/14/2030
Food and Beverage Stores
Term Loan
Prime plus 6.5%
11/19/2030
2.9
11.5
11.2
11.8
11.6
11.6
11.6
11.3
11.6
11.6
12.0
11.7
11.7
11.9
11.8
11.8
11.8
11.8
11.8
11.9
11.9
12.5
2.9
11.5
11.2
11.8
11.6
11.6
11.6
11.3
11.6
11.6
12.0
11.7
11.7
11.9
11.8
11.8
11.8
11.8
11.8
11.9
11.9
12.5
2.9
11.5
11.2
11.8
11.6
11.6
11.6
11.3
11.6
11.6
12.0
11.7
11.7
11.9
11.8
11.8
11.8
11.8
11.8
11.9
11.9
12.5
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-120
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Caraniologie LLC
Kendra Leigh Boyer CPA
Flex Beauty Labs LLC
Dearly Loved Counseling LLC
Diane's Accounting Service
Combs Creative LLC
Travel with Love, LLC
R. JOHNSON
CRAFTSMANSHIP
Jamali LLC
Donald W. Harris
David Benson LLC
Savannah Area Language &
Culture Exchange, LLC
Vege Investments, LLC
ASIL Ventures, LLC
SPECTRUM DYNAMICS, INC
Pittman Holdings LLC DBA
Maple Bourbon
KCL Business Service Inc
Chris' Angels Cleanning Service
LLC
Tiki Torch Liquors
AJN Innocations LLC
The Cow Harbor Beer Company
NJ Floats
225 Wall St, Ste 102A, Vail, CO
81657
5068 Dupont Court E, Santa
Rosa, CA 95409
7512 Dr. Phillip Blvd, Orlando,
FL 32819
14052 N Dale Mabry Hwy, Ste
215, Tampa, FL 33618
119 E Haywood St, England, AR
72046
157 Antler Ridge Circle,,
Nashville, TN 37214
8465 W Sahara Ave, Ste 111, Las
Vegas, NV 89117
346 Spring Garden Rd, Milford,
NJ 8848
2741 Raceway Fairfield West,
Pensacola, FL 32505
1625 US-59 N, Linden, TX
75563
1422 Euclid Ave, Cleveland, OH
44115
6 Dovetail Crossing, Savannah,
GA 31419
26400 SW 177th Ave,
Homestead, FL 33031
444 N Michigan Ave, Ste 1200,
Chicago, IL 60611
27727 Dalton Bluff Court, Katy,
TX 77494
1116 E Main St, Richmond, VA
23219
1042 San Fernando Rd., San
Fernando, CA 91340
2090 Dunwoody Club Drive,
Sandy Springs, GA 30350
101 Dallas St., Talihima, OK
74571
6704 Main St, Miami Lakes, FL
33014
19 Scudder Ave, Northport, NY
11768
327 Route 202/206, Bedminster
Township, NJ 7921
General Merchandise Stores
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Social Assistance
Professional, Scientific, and
Technical Services
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Food Services and Drinking
Places
Warehousing and Storage
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
11/20/2030
Term Loan
Prime plus 6.5%
11/20/2030
Term Loan
Prime plus 6.5%
11/24/2030
Term Loan
Prime plus 6.5%
11/24/2030
Term Loan
Prime plus 6.5%
12/3/2030
Term Loan
Prime plus 6.5%
12/4/2030
Term Loan
Prime plus 6.5%
12/4/2030
Term Loan
Prime plus 6.5%
12/4/2030
Term Loan
Prime plus 6.5%
12/11/2030
Term Loan
Prime plus 6.5%
12/11/2030
Term Loan
Prime plus 6.5%
12/16/2030
Educational Services
Term Loan
Prime plus 6.5%
12/16/2030
Gasoline Stations
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Performing Arts, Spectator
Sports, and Related Industries
Administrative and Support
Services
Food and Beverage Stores
Food Services and Drinking
Places
Beverage and Tobacco Product
Manufacturing
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 6.5%
12/16/2030
Term Loan
Prime plus 6.5%
12/22/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 6.5%
12/23/2030
Term Loan
Prime plus 2.75%
2/15/2031
Term Loan
Prime plus 2.75%
2/11/2031
Term Loan
Prime plus 2.75%
2/12/2046
12.5
12.5
12.5
12.5
12.5
5.5
5.0
10.0
12.5
12.5
12.5
12.5
12.5
4.3
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
5.5
5.0
10.0
12.5
12.5
12.5
12.5
12.5
4.3
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
5.5
5.0
10.0
12.5
12.5
12.5
12.5
12.5
4.3
12.5
12.5
12.5
12.5
12.5
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
329.5
878.2
437.0
329.5
878.2
437.0
365.0
972.6
494.9
0.11 %
0.29 %
0.15 %
F-121
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Kuros LLC dba Alexander Lake
Lodge
Emmalina LLC
Sherwood Sporthorses Inc.
Chet Lemon Enterprises
Jones Roger Shermann Inn Inc.
The Hall at the Yard
Edel Family Management Corp
The Rabbi Grafman Endowment
Fund for Temple Emanu-El
Surf Cup Sports
AM House
Eat Here LLC
Masood A. Rizvi, MD.
Casetabs
James D. Paliwoda, A Law
Corporation
Medical Review Service
North Carolina Custom Modulars,
LLC
Thrive TC LLC
Kenco Inc
Glynwood Center, Inc.
San Basilio, LLC
Stephen Binder DDS
Mto Summerlin
Asthma & Allergy Medical Care,
P.C.
21221 Baron Lake Drive,
Cedaredge, CO 81413
3602 Rock Bay Drive, Louisville,
KY 40245
20502 Forestview, Magnolia, TX
77355
1544 Lane Park Cut off, Tavares,
FL 32778
195 Oenoke Ridge, New Canaan,
CT 6840
1412 Alden Rd, Orlando, FL
32803
Accommodation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/19/2045
Term Loan
Prime plus 2.75%
5/21/2030
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/21/2046
Personal and Laundry Services
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%
3/3/2031
6/4/2030
4/2/2031
2207 Coney Island Ave,
Brooklyn, NY 11223
2100 Highland Ave South,
Birmingham, AL 35205
2037 Park Dale Ln, Encinitas, CA
92024
22322 Burton St, Canoga Park,
CA 91304
500 S Main St, Las Vegas, NV
89101
900 Pompton Ave, Ste B-1, Cedar
Grove, NJ 7009
3333 Michelson Dr, Ste 240,
Irvine, CA 92612
1000 Lakes Dr, Ste 230, West
Covina, CA 91790
13400 Marsh Landing, West Palm
Beach, FL 33418
1936 US-64, Murphy, NC 27203
4888 Town Center Pkwy, Ste 106,
Jacksonville, FL 32246
774 Mays Blvd, Ste 10-574,
Incline Village, NV 89451
362 Glynwood Rd, Cold Spring,
NY 10516
12305 SW 38th St, Ocala, FL
34481
3900 W Fullerton Ave, Chicago,
IL 60647
10970 Rosemary Park Drive, Ste
#100, Las Vegas, NV 89135
68 Nassau Rd, Huntington, NY
11743
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
4/30/2022
4/30/2022
4/30/2022
4/30/2022
4/30/2022
4/30/2022
4/30/2022
4/30/2022
4/30/2022
4/30/2022
5/4/2022
5/4/2022
5/4/2022
5/4/2022
5/4/2022
5/4/2022
5/4/2022
246.8
34.9
615.9
622.0
86.3
761.6
39.2
3.0
19.0
7.7
4.8
3.8
38.5
12.3
31.3
7.8
5.5
2.4
246.8
34.9
615.9
622.0
86.3
761.6
39.2
3.0
19.0
7.7
4.8
3.8
38.5
12.3
31.3
7.8
5.5
2.4
279.2
38.5
698.3
688.9
95.3
846.4
39.2
3.0
19.0
7.7
4.8
3.8
38.5
12.3
31.3
7.8
5.5
2.4
0.08 %
0.01 %
0.21 %
0.20 %
0.03 %
0.25 %
0.01 %
— %
0.01 %
— %
— %
— %
0.01 %
— %
0.01 %
— %
— %
— %
30.3
30.3
30.3
0.01 %
2.5
3.0
4.8
2.5
3.0
4.8
2.5
3.0
4.8
16.1
16.1
16.1
— %
— %
— %
— %
F-122
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
SK8CLICK INC
Provino's South, Inc.
Kore Surgical Inc
Buddy's Towing
EON.AI LLC
Superior Property Solutions
WHO Insurance Agency Inc
Ventum LLC
MacLeod and Company
Dance Daly Studio, LLC
Julius Schwarz LLC
West & East Art Group
Soudan Metals Co
American Showcase Modulars,
LLC
Swirnow Capital Management
Corp
acaso master fund llc
GMS Racing LLC
D Bober LLC dba the Public
Private Network
Ntrepid LLC
South Bay Cable
Basic L Corporation dba Action
Industries
Fernway Solutions Inc.
KJM Medical, LLC
17062 Westport Dr, Huntington
Beach, CA 92649
14485 Hopewell Rd, Alpharetta,
GA 30004
26636 Fond Du Lac Rd, Rancho
Palos Verdes, CA 90275
830 Birch St, Daytona Beach, FL
32117
3401 North Miami Ave, Ste 211,
Miami, FL 33127
7009 E Country Highlands Dr,
Floral City, FL 34436
708 6th Ave SE #A, Decatur, AL
35601
2775 South Hwy 40, Ste 4, Heber
City, UT 84032
3161 Michelson Dr, Irvine, CA
92612
24000 Alicia Parkway, #33,
Mission Viejo, CA 92691
50 Pascack Rd, Hillsdale, NJ
7642
9 N Moore St, New York, NY
10013
319 W 40th Pl, Chicago, IL
60609
6281 US-29, Blairs, VA 24527
500 Harborview Drive, Third
Floor, Baltimore, MD 21230
6710 Benjamin Rd, Ste 100,
Tampa, FL 33634
1980 Festival Plaza Dr, Ste 770,
Las Vegas, NV 89135
445 Hamilton Ave, Ste 1102,
White Plains, NY 10601
12801 Worldgate Dr, Ste 800,
Herndon, VA 20170
54125 Maranatha Dr, Idyllwild,
CA 92549
1120 Olympic Dr, Corona, CA
92881
34 Tidal Way, San Mateo, CA
94401
3012 Pinehurst Dr., Montgomery,
AL 36111
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/4/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/5/2022
5/6/2022
5/6/2022
5/6/2022
5/6/2022
5/6/2022
5/7/2022
5/7/2022
5/7/2022
1.9
18.2
8.0
4.0
2.5
2.5
0.9
8.1
7.5
5.2
4.0
3.3
64.3
6.7
10.0
0.7
130.0
2.8
720.2
80.4
43.1
3.8
1.0
1.9
18.2
8.0
4.0
2.5
2.5
0.9
8.1
7.5
5.2
4.0
3.3
64.3
6.7
10.0
0.7
130.0
2.8
720.2
80.4
43.1
3.8
1.0
1.9
18.2
— %
0.01 %
8.0
4.0
2.5
2.5
0.9
8.1
7.5
5.2
4.0
3.3
64.3
6.7
10.0
0.7
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.02 %
— %
— %
— %
130.0
0.04 %
2.8
720.2
80.4
43.1
3.8
1.0
— %
0.21 %
0.02 %
0.01 %
— %
— %
F-123
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Nolan Construction
Care Values, Inc.
Fried Chicken Kitchen LLC
Playback, Inc.
Conglomerated Hosts, LTD
David A Beach, DMD, MS, PA
Fleming Island Dental Care
Dominion Glass & Mirror Inc.
Allergy & Asthma Associates of
Murray Hill, P.C.
Jeff O. Gonzalez, M.D., P.A.
J.P. Makhlouf, M.D., F.A.A.P., &
Tiziana Anello, M.D., F.A.A.P.,
P.A. d/b/a Roseland Pediatrics
Sweet Dreams
Legg's Welding Inc.
Drobu Media
Urban Clarity
Scott Zucker P.A.
Landmark IV Realty Inc.
Leader, Leader & Zucker, PLLC
Therapeutic Equestrian Center
Inc
Rodney and Bernstein P.A.
Tyler Pidgeon Sole Proprietor
Altea Group LLC
10 Fairway Drive, Deerfield
Beach, FL 33441
1905 Woodstock Rd, Ste 1250,
Roswell, GA 30075
1750 Market St, San Francisco,
CA 94102
17 Ridge Ave, Natick, MA 1760
14485 Hopewell Rd, Alpharetta,
GA 30004
27605 Cashford Circle, Ste 101,
Wesley Chapel, FL 33544
1590 Island Ln, Ste 12, Fleming
Island, FL 32003
14707-B Willard Rd, Chantilly,
VA 20151
35 E 35th St, Ste 202, New York,
NY 10016
2140 W 68th St, Ste 300, Hialeah,
FL 33016
556 Eagle Rock Ave, Ste 106,
Roseland, NJ 7068
480 Mondi Dr, Woodstock, GA
30188
5871 Clay Hwy, Bickmore, WV
25019
1010 Brickell Ave Unit 4105,
Miami, FL 33131
13 S Elliott Pl, Brooklyn, NY
11217
633 S Andrews Ave, #203, Fort
Lauderdale, FL 33301
3990 Sheridan St, Ste 105,
Hollywood, FL 33021
633 S Andrews Ave, #201, Fort
Lauderdale, FL 33301
115 Stonecrop Lane, Cold Spring,
NY 10516
1925 Brickell Ave, Ste D-207,
Miami, FL 33129
10200 Sporting Club Drive,
Raleigh, NC 27617
4510 Cheltenham Dr, Bethesda,
MD 20814
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/7/2022
5/7/2022
5/7/2022
5/7/2022
5/8/2022
5/8/2022
5/8/2022
5/8/2022
5/8/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/11/2022
5/12/2022
2.1
14.1
42.7
4.7
12.7
6.6
6.9
20.4
17.1
2.1
12.8
5.0
9.5
2.1
2.1
1.0
0.9
5.0
6.5
17.1
0.9
1.2
2.1
14.1
42.7
4.7
12.7
6.6
6.9
20.4
17.1
2.1
12.8
5.0
9.5
2.1
2.1
1.0
0.9
5.0
6.5
17.1
0.9
1.2
2.1
14.1
42.7
4.7
12.7
6.6
6.9
20.4
17.1
2.1
12.8
5.0
9.5
2.1
2.1
1.0
0.9
5.0
6.5
— %
— %
0.01 %
— %
— %
— %
— %
0.01 %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
17.1
0.01 %
0.9
1.2
— %
— %
F-124
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Temple Emanu-El
American Automotive
Aftermarket Inc.
Stanton Schwartz Design Group
LLC
Ernst Architect, PLLC
Dental Designs of Fort Myers,
LLC
RX Psychological Services, LLC
KKAP El Sereno Laundry, LLC
KTF Consulting
HL Group Inc.
Child Welfare League of America
Inc.
Gray Global Advisors, LLC
OrtenB Software
Z Valet, Inc.
Quality Pool Management
Weisner Steel Products
Myrna Casta
Fairview Ford Sales, Inc.
Deep Ellum Art Co.
Stress Analysis Services, Inc.
Sun Cloud Holdings LLC
Retrotope, Inc.
Mastermind Alliance Wealth
Solutions Inc.
2100 Highland Ave, Birmingham,
AL 35205
50 Dunham Rd, Billerica, MA
1821
346 Congress St, #201, Boston,
MA 2210
177 W Broadway, 3rd Floor, New
York, NY 10013
3220 Forum Blvd, #104, Fort
Myers, FL 33905
5300 McNutt Rd, Ste 12, Santa
Teresa, NM 88008
4899 Huntington Drive North,
Los Angeles, CA 90032
2471 N Geneva Terrace, Chicago,
IL 60614
16690 Swingley Ridge Rd, Ste
100, Chesterfield, MO 63017
727 15th St NW, Ste 1200,
Washington, DC 20005
300 New Jersey Ave NW, 9th
Floor, Washington, DC 20001
519 Lori Drive, Benicia, CA
94510
4221 Wilshire blvd, Ste 170-11,
Los Angeles, CA 90010
161 Rombout Rd, Poughkeepsie,
NY 12603
77 Moraga Way, Ste F, Orinda,
CA 94563
1801 Century Park E, Ste 1100,
Los Angeles, CA 90067
292 N G St, San Bernardino, CA
92410
3200 Commerce St, Dallas, TX
75226
3920 Ira Rd, Akron, OH 44333
65 Hemlock Ln, Highland Park,
IL 60035
4300 El Camino Real, Ste 201,
Los Altos, CA 94022
5271 Arnica Way, Santa Rosa, CA
95403
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/12/2022
5/12/2022
5/12/2022
5/12/2022
5/12/2022
5/12/2022
5/12/2022
5/12/2022
5/13/2022
5/13/2022
5/13/2022
5/13/2022
5/13/2022
5/13/2022
5/13/2022
5/13/2022
5/13/2022
5/14/2022
5/14/2022
5/14/2022
5/14/2022
5/14/2022
28.0
22.0
0.6
17.6
34.8
2.1
1.8
3.3
16.0
20.0
8.1
0.8
33.9
6.4
24.2
1.8
28.0
22.0
0.6
17.6
34.8
2.1
1.8
3.3
16.0
20.0
8.1
0.8
33.9
6.4
24.2
1.8
28.0
22.0
0.6
17.6
34.8
2.1
1.8
3.3
16.0
20.0
8.1
0.8
33.9
6.4
24.2
1.8
143.9
143.9
143.9
8.0
19.0
0.8
28.3
0.1
8.0
19.0
0.8
28.3
0.1
8.0
19.0
0.8
28.3
0.1
0.01 %
0.01 %
— %
0.01 %
0.01 %
— %
— %
— %
— %
0.01 %
— %
— %
0.01 %
— %
0.01 %
— %
0.04 %
— %
0.01 %
— %
0.01 %
— %
F-125
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Ashford AFH
Meredith Ward Fine Art, Inc.
Tuckahoe Animal Hospital PLLC
Melbourne United Laser Vision
Martin Medical Group
Dalva Bros Inc.
D. R. Horne & Company
Uniglobal Pension Planning, Inc.
Dominic Orfitelli, LLC
James Hundshamer CPA
Grossman LLP
Temecula Hot Yoga, LLC DBA
Hot Yoga Healthy You
Alpine Metal Products, Inc.
Ranco Construction LLC
Rumi K. Lakha D.O., Inc.
Chatham Pathology and
Associates
Kevin C. McWilliams
Timothy G Greco, MD A Prof
Corp
F T Brooks Inc.
3 Options Consulting
Marti E. Peck PhD
Brookhollow Management
Company
Mayer Fayes
Richard C. Watts, Inc.
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
15527 Burke Ave N, Shoreline,
WA 98133
44 East 74th St., Ste G, New
York, NY 10021
20 Depot Square, Tuckahoe, NY
10707
1478 Highland Ave, Ste A,
Melbourne, FL 32935
4422 N 75th St, Unit 4012,
Scottsdale, AZ 85251
53 E 77th St, New York, NY
10075
117 Mercer St, Princeton, NJ
8540
4114 Legato Rd, Ste 300, Fairfax,
VA 22033
7101 Elizabeth Dr, McLean, VA
22101
223 S Glendora Ave, Glendora,
CA 91741
745 5th Ave, Ste 500, New York,
NY 10151
31773 Temecula Pkwy, Temecula,
CA 92592
2000 St John St, Easton, PA
18042
2 Coleman Ct, Southampton, NJ
8088
7136 Pacific Blvd, Ste 225,
Huntington Park, CA 90255
5353 Reynolds St, Savannah, GA
31405
225 W 35th St 14th Floor, New
York, NY 10001
1260 Crestview Drive, Fullerton,
CA 92833
1206 Powhatan St, Alexandria,
VA 22314
PPP
2215 Palmer Pl, Tustin, CA 92782 PPP
3990 Old Town Ave, Ste B100,
San Diego, CA 92110
151 Kalmus Drive, F-1, Costa
Mesa, CA 92626
18800 NE 29th Ave., Apt 114,
Aventura, FL 33180
1602 E 4th St, Santa Ana, CA
92701
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/14/2022
5/14/2022
5/14/2022
5/14/2022
5/14/2022
5/14/2022
5/14/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/15/2022
5/18/2022
F-126
See accompanying notes to consolidated financial statements.
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
0.02 %
0.01 %
— %
— %
— %
— %
— %
— %
17.3
3.2
14.0
7.6
1.7
8.5
4.1
17.3
3.2
14.0
7.6
1.7
8.5
4.1
17.3
3.2
14.0
7.6
1.7
8.5
4.1
14.4
14.4
14.4
3.1
7.0
7.1
1.7
25.0
52.9
21.7
16.8
3.0
3.4
2.1
4.9
2.3
3.1
7.0
7.1
1.7
25.0
52.9
21.7
16.8
3.0
3.4
2.1
4.9
2.3
30.6
0.6
6.1
3.1
7.0
7.1
1.7
25.0
52.9
21.7
16.8
3.0
3.4
2.1
4.9
2.3
30.6
0.6
6.1
30.6
0.01 %
0.6
6.1
— %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Paradise Shutters Inc
M&A Services
BEACHES JET SET PETS INC
Hotel Cheval, LLC
Kohcoon LLC
Leader & Leader P.A.
Michael J Scherb DMD PA
McGee Media LLC
te Neues Publishing Company LP
South City Construction
Elixir Corporation
Olivenhain Capital Partners
Roselle-Stacy, Inc.
Lisa Stransky Real Estate LLC
JLR Realty Inc
Aldene Industrial Park
Yu-Song Yen DDS
Wheelhouse Life Science
Advisors
Keldon Paper Company
Mark E Goldberg, esq.
John Woody Inc.
Chophouse 13
4353 Canton CT, Gulf Breeze, FL
32563
320 East 53rd St, New York, NY
10022
949 12th Ave South, Jacksonville
Beach, FL 32250
1021 Pine St, Paso Robles, CA
93446
4060 Woodridge Rd, Miami, FL
33133
633 S Andrews Ave, #201, Fort
Lauderdale, FL 33301
2143 South Us Hwy 1, Jupiter, FL
33477
156 Katonah Ave., Ste #202,
Katonah, NY 10536
350 7th Ave, Ste 301, New York,
NY 10001
1111 Rancho Conejo Blvd, #205,
Newbury Park, CA 91320
305 Shawnee North Drive, Ste
250, Suwanee, GA 30024
3521 Fortuna Ranch Rd,
Encinitas, CA 92024
204 Sinclair Pl, Westfield, NJ
7090
10000 Falls Rd, Ste 300,
Potomac, MD 20854
119 Circle Dr, Manhasset, NY
11030
204 Sinclair Pl, Westfield, NJ
7090
5222 Balboa Ave, Ste 71, San
Diego, CA 92117
927 Regalo Way, San Ramon, CA
94583
5960 Boxford Ave, Commerce,
CA 90040
130 North Main St, Port Chester,
NY 10573
754 Harrison St, Jacksonville, FL
32220
11362 San Jose Blvd, Ste 1,
Jacksonville, FL 32223
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/18/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
2.4
12.6
9.5
17.5
2.9
2.3
14.2
106.0
12.1
24.0
11.3
5.4
1.3
4.7
3.1
2.2
3.3
11.6
11.9
2.1
27.6
20.4
2.4
12.6
9.5
17.5
2.9
2.3
14.2
106.0
12.1
24.0
11.3
5.4
1.3
4.7
3.1
2.2
3.3
11.6
11.9
2.1
27.6
20.4
2.4
12.6
9.5
17.5
2.9
2.3
14.2
106.0
12.1
24.0
11.3
5.4
1.3
4.7
3.1
2.2
3.3
11.6
11.9
2.1
27.6
20.4
— %
— %
— %
0.01 %
— %
— %
— %
0.03 %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
0.01 %
F-127
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Shorstein & Shorstein PA
Doctors Medical Center of
Walton County, PA
Stephen Wang & Associates
Mecca Resources Inc
Susan Surell
SHAWN KASSMAN ESQ., P.C.
Sybil Hill
Felica Zwebner Design LLC
Robert Giarrusso
Susan Iannelli
Sharrets, Paley, Carter &
Blauvelt, PC
CCG Advisors
The Croft Offshore, LLC
ABRAHAM J DANIEL
Sodales Partners LLC
Mark Allen & Company, LLC
Susan Giarrusso
SA Legends Lacrosse LLC
Laura Billon
Serge Loobkoff
Florida Premier Cardiology LLC
Specialty Coverage Insurance
Agency (SPCIA)
Gregory A. Ebenfeld PA
8265 Bayberry Rd, Jacksonville,
FL 32256
21 W Main Ave, Defuniak
Springs, FL 32435
950 3rd Ave, New York, NY
10022
3033 Riviera Dr, Ste 101, Naples,
FL 34103
26 Diamond Crest Ct, Baltimore,
MD 21209
110 Carleton Ave, Central Islip,
NY 11722
1479 Mossy Branch Way, Mt
Pleasant, SC 29464
115 W 29th St, New York, NY
10001
9 Sabine Lane, Hardyston, NJ
7416
26 Court St, Ste 1805, Brooklyn,
NY 11242
75 BRd St, New York, NY 10004
817 W Peachtree St, Ste 205,
Atlanta, GA 30308
1030 Bayside Ln, Weston, FL
33326
18851 NE 29th Ave, #700,
Aventura, FL 33180
11 Random Farms Circle,
Chappaqua, NY 10514
450 W 17th St, Unit 738, New
York, NY 10011
9 Sabine Ln, Franklin, NJ 7416
1011 Rancho Conejo Blvd,
Newbury Park, CA 91320
1286 El Mercado Way,, Unit C,
Oceanside, CA 92057
215 S Santa Fe Ave, Ste 15, Los
Angeles, CA 90012
11195 Jog Rd, Ste 6, Boynton
Beach, FL 33437
1 Water St, 2nd Floor, Mystic, CT
6355
11011 Sheridan St, Ste 113,
Hollywood, FL 33026
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/19/2022
5/20/2022
5/20/2022
42.3
21.9
12.5
6.3
1.0
1.8
0.8
0.8
0.6
1.0
13.8
21.5
1.3
2.1
1.5
2.2
0.3
42.3
21.9
12.5
6.3
1.0
1.8
0.8
0.8
0.6
1.0
13.8
21.5
1.3
2.1
1.5
2.2
0.3
42.3
21.9
12.5
6.3
1.0
1.8
0.8
0.8
0.6
1.0
13.8
21.5
1.3
2.1
1.5
2.2
0.3
10.1
10.1
10.1
0.1
0.2
8.0
3.2
2.2
0.1
0.2
8.0
3.2
2.2
0.1
0.2
8.0
3.2
2.2
0.01 %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-128
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Caveonix
Seamus Henchy and Associates
Drink Here LLC
Sunren International, LLC
Melanie L Kemmerer, DMD,
PLLC
Sierra Music Publications, Inc.
AllianceRad LLC
Testicular Cancer Commons
Krista Saloom
GARDEN LTC LLC
DIXIE CONTRACT CARPET
INC
KKAP Reseda Laundry LLC
RTP Corp.
KKAP Van Nuys Laundry, LLC
Brandy Cox, Inc
Steven R Wynn Othidonics
Mark E Haddad MD Inc
The Duncraggen Realty Corp
Direct Resources Group
Patricia Margolin
Herion Productions LLC
Fernando Suarez Physical
Therapy, PLLC
Gwendolyn Luce
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
7777 Leesburg Pike, Ste 303
South, Falls Church, VA 22043
145 Hudson St, New York, NY
10013
6410 S DURANGO DR, Ste 100,
Las Vegas, NV 89113
1141 Orange Ave, Monrovia, CA
91016
110 SW Suwannee Ave, Branford,
FL 32008
2711 N Idaho Rd, Liberty Lake,
WA 99019
425 N Ocean Blvd, Unit 4, Boca
Raton, FL 33432
5415 SW 149th Ave, Beaverton,
OR 97007
7210 Corporate Ct, Frederick, MD
21703
10 EVANS DRIVE,
BROOKVILLE, NY 11545
7523 PHILIPS Hwy, Jacksonville,
FL 32256
18300 Vanowen St, Unit #5,
Reseda, CA 91335
2832 Center Port Cir, Pompano
Beach, FL 33064
16105 Victory Blvd, Unit 9I, Van
Nuys, CA 91406
11818 Cupworth Ct, Huntersville,
NC 28078
1901 Westcliff Drive, Ste #1,
Newport Beach, CA 92660
PO Box 791507, Paia, HI 96779
708 W 192nd St, Ste 1K, New
York, NY 10040
1520 4th Ave, Ste 500, Seattle,
WA 98101
551 Spring Valley Rd, Paramus,
NJ 7652
PPP
95 Thomas Rd, Valatie, NY 12184 PPP
72-15 Grand Ave, Maspeth, NY
11378
4065 Laguna Way, Palo Alto, CA
94306
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/20/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
31.0
10.0
4.6
4.2
2.9
1.6
2.1
1.0
1.3
1.3
42.9
0.4
39.2
0.8
0.8
2.5
1.5
0.8
31.0
10.0
4.6
4.2
2.9
1.6
2.1
1.0
1.3
1.3
42.9
0.4
39.2
0.8
0.8
2.5
1.5
0.8
31.0
10.0
4.6
4.2
2.9
1.6
2.1
1.0
1.3
1.3
42.9
0.4
39.2
0.8
0.8
2.5
1.5
0.8
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
0.01 %
— %
— %
— %
— %
— %
31.3
31.3
31.3
0.01 %
0.9
1.2
3.7
0.8
0.9
1.2
3.7
0.8
0.9
1.2
3.7
0.8
— %
— %
— %
— %
F-129
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Hamilton Technology Services
Routable AI Inc
Michelle Euler
Lisa R. Drake PC
KKAP ELA Laundry, LLC
North Carolina Baptist
Foundation, Inc.
Taylor SF Inc
Carrie Risatti
Todd Goodman Productions LLC
DBA LA Light Photography
INNERCONX
Ultracare of Manhattan Ltd
Frank Betz Associates, Inc.
Lemon Tree Entertainment, LLC
Hoops 4 Health
Psychiatry Associates PC
YourHQ
EAM Partners L.P.
S & L Paper Corporation
Javalin Group LLC
A & L Films, Inc.
Inner Pieces
Maselan & Jones, P.C.
Utility Consulting Group LLC
14115 West 59th Place, Arvada,
CO 80004
32 Chester St, Apt 7, Somerville,
MA 2144
1709 Forest Bend Lane, Keller,
TX 76248
3325 Piedmont Rd NE, Unit
3002, Atlanta, GA 30305
3845 East 3rd St, Los Angeles,
CA 90063
201 Convention Drive, Cary, NC
27511
333 Bush St, Ste 3705, San
Francisco, CA 94104
307 Montana Ave, #201, Santa
Monica, CA 90403
1112 Montana Ave, #381, Santa
Monica, CA 90403
641 Ranch Rd, Weston, FL 33326
800 Second Ave, Ste 905, New
York, NY 10017
12045 Hwy 92, Woodstock, GA
30188
130 E 94th ST, 9D, New York,
NY 10128
875 Heather Ln, Winnetka, IL
60093
1736 Oxmoor Rd, Ste 103,
Birmingham, AL 35209
1592 Union St, #505, San
Francisco, CA 94123
3131 Maple Ave, Ste 13B, Dallas,
TX 75201
3500 Hampton Rd, Oceanside,
NY 11572
9735 Rod Rd, Johns Creek, GA
30022
16105 Meadowcrest Rd, Sherman
Oaks, CA 91403
171 Vidal Blvd, Decatur, GA
30030
One International Place, 8th
Floor, Boston, MA 2110
23679 Calabasas Rd, #263,
Calabasas, CA 91302
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/21/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
15.3
15.3
15.3
3.2
1.2
2.3
1.8
3.2
1.2
2.3
1.8
3.2
1.2
2.3
1.8
— %
— %
— %
— %
— %
27.6
27.6
27.6
0.01 %
1.3
1.7
1.8
7.7
90.0
20.9
1.9
3.4
5.0
1.4
3.2
1.3
1.7
1.8
7.7
90.0
20.9
1.9
3.4
5.0
1.4
3.2
1.3
1.7
1.8
7.7
90.0
20.9
1.9
3.4
5.0
1.4
3.2
12.9
12.9
12.9
1.3
2.3
0.4
9.4
1.3
2.3
0.4
9.4
1.3
2.3
0.4
9.4
— %
— %
— %
— %
0.03 %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
53.0
53.0
53.0
0.02 %
F-130
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Platinum Marketing
Fybr LLC
Schlemmer Farms LLC
Black Hawk Inc
Steeplechase Amusement Inc
Four Paws Animal Hospital PC
L Corp
JK Belz & Associates Inc
South Florida Imaging
Consultants LLC
Stoker Construction Inc
JB Press LLC
BanzaiFly Inc
Anders Environmental LLC
P3s Corp
Youth Tennis San Diego
Foundation
Jewish Community Foundation of
the West
Cinema Vehicles
Provino's Italian Restaurant, Inc.
Bethany L. LaFlam
Easy Content Media LLC
Bar-Z Anderson LTD Co
The Desai Foundation
JM Robson LPCCS
120 Windermere Drive, Blue Bell,
PA 19422
640 Cepi Dr, Ste C, Chesterfield,
MO 63005
6167 State Line Rd., Convoy, oh
45832
PO BOX 476, BRISTOL, IN
46507
11540 Clover Ave, Los Angeles,
CA 90066
199 Broadway, Amityville, NY
11701
2190 Talmadge St, Los Angeles,
CA 90027
10580 N McCarran Blvd, #115-
222, Reno, NV 89503
10754 Versailles Blvd,
Wellington, FL 33449
56471 29 PALMS Hwy, YUCCA
VALLEY, CA 92284
82 Flamingo Rd, Roslyn, NY
11576
3861 Reklaw Drive, Studio City,
CA 91604
1315 Hartford Dr, Boulder, CO
80305
21526 Privada Avila, San
Antonio, TX 78257
4490 W Point Loma Blvd, San
Diego, CA 92107
2130 21st St, Sacramento, CA
95818
12580 Saticoy St, North
Hollywood, CA 91605
14485 Hopewell Rd, Alpharetta,
GA 30004
9 Acacia Tree Ln, Irvine, CA
92612
706 Van Nest Drive, Martinsville,
NJ 8836
1408 Wathen Ave, Austin, TX
78703
209 Burlington Rd, Ste 217,
Bedford, MA 1730
4807 Rockside Rd, Ste 300,
Independence, OH 44131
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/22/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
F-131
See accompanying notes to consolidated financial statements.
3.6
27.3
3.0
14.4
4.2
4.4
3.3
4.8
4.4
3.6
27.3
3.0
14.4
4.2
4.4
3.3
4.8
4.4
3.6
27.3
3.0
14.4
4.2
4.4
3.3
4.8
4.4
14.5
14.5
14.5
1.4
2.0
4.0
60.8
0.7
1.2
59.0
25.8
1.7
5.8
5.0
5.3
0.8
1.4
2.0
4.0
60.8
0.7
1.2
59.0
25.8
1.7
5.8
5.0
5.3
0.8
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
1.4
2.0
4.0
60.8
0.02 %
0.7
1.2
59.0
25.8
1.7
5.8
5.0
5.3
0.8
— %
— %
0.02 %
0.01 %
— %
— %
— %
— %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Improving Communications
Kenneth R. Hughes
Drosihn Construction, Inc.
163rd Avenue Investors, LLC
2875 Sedgwick Owners Corp
KN Artist Management, LLC
Hunstiger Inc
Larry Lawrence Realty, Inc.
Quickway Metal Fabricators
DANGOLD, INC.
TK Food Concepts LLC
Jennifer Leigh Cobb
44678 Valley Center LLC
Jennie Kwon Designs
Pacific CCI, Inc
Onchip Systems
J Partners LLC
Craig Iwai
Scalini's, Inc.
Phillip Thomas Inc
X-Pest
Evalyn Mosser Bookkeeping and
Consulting
Hauser Family Foundation
105 Haven Ave, Port Washington,
NY 11050
3620 Mt Diablo Blvd, Ste 203,
Lafayette, CA 94549
749 Atherton Ave, Novato, CA
94945
1435 163rd Ave, San Leandro,
CA 94578
708 W 192nd St, Ste 1K, New
York, NY 10040
3924 Poppyseed Place, Calabasas,
CA 91302
9120 Rock Pond Way, Colorado
Springs, CO 80924
PO Box 2365, Olympic Valley,
CA 96146
9 Murran Rd, P.O. Box 1378,
Monticello, NY 12701
138-43 78th Rd, Flushing, NY
11367
107 North 3rd St, Ste 3D,
Brooklyn, NY 11249
303 Port Royal Way, Pensacola,
FL 32502
1417 Antigua Way, Newport
Beach, CA 92660
643 S Olive St, Los Angeles, CA
90014
880 W 1st St, #520, Los Angeles,
CA 90012
1953 O'Toole Way, San Jose, CA
95131
4885 Rebel Trail, Atlanta, GA
30327
848 S Myrtle Ave, Monrovia, CA
91016
14485 Hopewell Rd, Alpharetta,
GA 30004
210 E 68th St, Ste 9G, New York,
NY 10065
100 N Hill Dr, #40, Brisbane, CA
94005
2436 N Federal Hwy, Ste 474,
Lighthouse Point, FL 33064
10617 Charleston Drive, Vero
Beach, FL 32963
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/26/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
F-132
See accompanying notes to consolidated financial statements.
2.1
2.1
2.6
2.9
1.3
2.1
3.3
4.7
5.9
1.0
2.1
2.1
2.6
2.9
1.3
2.1
3.3
4.7
5.9
1.0
2.1
2.1
2.6
2.9
1.3
2.1
3.3
4.7
5.9
1.0
15.4
15.4
15.4
0.2
3.0
5.4
36.4
12.8
2.1
3.6
17.7
8.4
5.0
1.4
1.3
0.2
3.0
5.4
36.4
12.8
2.1
3.6
17.7
8.4
5.0
1.4
1.3
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
0.2
3.0
5.4
36.4
12.8
2.1
3.6
17.7
0.01 %
8.4
5.0
1.4
1.3
— %
— %
— %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Paige Management LLC
AC Diel
Robert Frantz MD, Inc
Sports Academy Integrated
Sports Medicine, LLC
Jasmine Greenhow
Butterfly Sunrise Corp
Aqua Flies LLC
Bent Tail, Inc.
Actors and Others for Animals
Cabrillo Capital Group, Inc.
Julie Evans Realtor
PlayWorks Counseling, LLC
AMAN PC
Joped, Inc.
Marguarite Clark Public Relations
Jenius Solutions
Frenchy's
Hoaka Property Company LLC
Fourth Church
Daniel I Richman, MD
SANDLER SEARCH
ASSOCIATES, LLC
Yoga Connection of Pembroke
Pines, Inc
Studio U+A, LLC
254 Corsair Ave, Lauderdale-By-
The-Sea, FL 33308
17 Eton Ct, South Barrington, IL
60010
1730 San Ysidro Dr, Beverly
Hills, CA 90210
1011 Rancho Conejo Blvd,
Newbury Park, CA 91320
4848 E Cactus Rd, Ste 505-473,
Scottsdale, AZ 85254
2261 Market St, #418, San
Francisco, CA 94114
PO Box 2216, Sebastopol, CA
95473
824 Brooks Ave, Venice, CA
90291
11523 Burbank Blvd, North
Hollywood, CA 91601
15404 Highland Valley Rd,
Escondido, CA 92025
4 Hopscotch Ln, Savannah, GA
31411
4420 NE St Johns Rd, Ste D,
Vancouver, WA 98661
181 Westfield Ave, Clark, NJ
7066
1411 SE Indian St, Stuart, FL
34997
2 New Chardon, Laguna Niguel,
CA 92677
2772 Lansdowne Ln SE, Atlanta,
GA 30339
1460 3rd St S, Jacksonville
Beach, FL 32250
PO Box 670, Kailua Kona, HI
96745
1270 Silverado St, La Jolla, CA
92037
429 E 75th St, 6th Floor, New
York, NY 10021
132 E 35th St, Apt 5E, New York,
NY 10016
12592 Pines Blvd, #103,
Pembroke Pines, FL 33027
231 W 29th St, Ste 1402, New
York, NY 10001
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/27/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
1.1
1.0
2.1
1.1
1.0
2.1
1.1
1.0
2.1
— %
— %
— %
31.4
31.4
31.4
0.01 %
0.7
1.3
1.0
2.1
5.6
4.2
1.7
0.6
9.9
0.7
1.3
1.0
2.1
5.6
4.2
1.7
0.6
9.9
0.7
1.3
1.0
2.1
5.6
4.2
1.7
0.6
9.9
14.4
14.4
14.4
3.4
1.0
8.6
40.0
3.6
16.8
8.7
2.3
1.6
3.4
1.0
8.6
40.0
3.6
16.8
8.7
2.3
1.6
3.4
1.0
8.6
40.0
3.6
16.8
8.7
2.3
1.6
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
F-133
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Studio LBV
Naissan O Wesley, MD, Inc - A
Medical Corporation
richard noren llc
Tinny Corporation
PPJ
Dr. Tom Gallant DDS
MLN Partners LLC
Tucker Investment Group, LLC
CHANCELLOR CONSULTING
GROUP, INC
Emeco
Sports Academy Venture Lab,
Inc.
George Chien
Law Office of Debrah B.
Rosenthal, APC
Mamba and Mamacita
Sports Foundation
TMCG Marketing Inc. dba The
Marcom Group
TrueCustomerSuccess LLC
Tectonics Enterprises Inc
Julia Obadiah, PC
Jaron Presant, Inc.
Pig Will Productions, Inc.
Construction Details, LLC
Dawn Coleman-Hyman
Benjamin Leshin, M.D. P.C.
6562 San Vicente Blvd, Los
Angeles, CA 90048
9201 W Sunset Blvd, Ste 602,
Los Angeles, CA 90069
2101 Waukegan Rd, Ste 110,
Bannockburn, IL 60015
100 Bradley St, Middletown, CT
6457
2 Carsha Dr, Natick, MA 1760
8906 Colesville Rd, Silver Spring,
MD 20910
550 S Ocean Blvd, Boca Raton,
FL 33432
5010 Parkway Calabasas, Ste 105,
Calabasas, CA 91302
749 Atherton Ave, Novato, CA
94945
805 W Elm Ave, Hanover, PA
17331
1011 Rancho Conejo Blvd,
Newbury Park, CA 91320
12898 Woodmont Dr, Saratoga,
CA 95070
120 Eucalyptus Ln, Costa Mesa,
CA 92627
1011 Rancho Conejo Blvd,
Newbury Park, CA 91320
1655 N Main St, #390, Walnut
Creek, CA 94596
921 N Idaho St, San Mateo, CA
94401
56471 29 PALMS Hwy, YUCCA
VALLEY, CA 92284
6370 SW Borland, Ste 200,
Tualatin, OR 97062
752 Juanita Ave, Santa Barbara,
CA 93109
1957 N Bronson Ave, Los
Angeles, CA 90068
5412 Planting Field Lane,
Flowery Branch, GA 30542
2505 E 7 st, Long Beach, CA
90804
1267 Willis St, Redding, CA
96001
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/28/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
1.7
12.3
2.8
50.2
33.6
1.0
4.2
3.4
4.2
50.7
11.2
2.6
2.7
3.3
5.5
0.7
7.5
3.1
2.0
1.3
2.1
1.2
2.1
1.7
12.3
2.8
50.2
33.6
1.0
4.2
3.4
4.2
50.7
11.2
2.6
2.7
3.3
5.5
0.7
7.5
3.1
2.0
1.3
2.1
1.2
2.1
1.7
12.3
2.8
50.2
33.6
1.0
4.2
3.4
4.2
50.7
11.2
2.6
2.7
3.3
5.5
0.7
7.5
3.1
2.0
1.3
2.1
1.2
2.1
— %
— %
— %
0.01 %
0.01 %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-134
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Don Dietrich Inc.
Shalik, Morris & Company, LLC
Strategic Code Solutions LLC
Elizabeth W. Shull
MANHATTAN RETINA & EYE
CONSULTANTS
TPR Ent. LTD
Michael E. Cindrich, Attorney At
Law
HCMA Consultants, Inc.
Electric Sales Associates, Inc
Derco Construction, Inc.
Brink Design LLC
7D Surgical USA Inc.
BY BABBA Inc
Joseph W Robb DDS Inc A
Dental Corp
Stix,LLC
LB Eatery, LLC
DRAWINGROOM LLC
NOVA Fisheries, Inc.
POTOMAC GLEN DAY
SCHOOL
SLS Partners Inc
Steve Kupfer Consulting
Dreyfus Advisors, LLC
Hawk Management LLC
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
240 Main St, Nyack, NY 10960
80 Crossways Park Dr W,
Woodbury, NY 11797
182 Summer St, Box 355,
Kingston, MA 2364
2600 Wamath Drive, Charlotte,
NC 28210
67 E 78th St, Unit 1c, New York,
NY 10075
644 Fayette Ave, Mamaroneck,
NY 10543
225 Broadway, Ste 2100, San
Diego, CA 92101
1802 Harper Rd, Ste 102,
Beckley, WV 25801
2121 N Commerce Pkwy, Weston,
FL 33326
1771 Blount Rd, #509, Pompano
Beach, FL 33069
1088 Longley Ave NW, Atlanta,
GA 30318
2711 Centerville Rd, Ste 400,
Wilmington, DE 19808
6 St Johns Ln, New York, NY
10013
56 Penny Lane, Ste A,
Watsonville, CA 95076
7805 NW Beacon Square Blvd,
Ste 201, Boca Raton, FL 33487
1781 Village Ln N, Wantagh, NY
11793
73 Milland Dr, Mill Valley, CA
94941
2532 Yale Ave. E, Seattle, WA
98102
9908 S Glen Rd, Potomac, MD
20854
6844 Spyglass Ln, Rancho Santa
Fe, CA 92067
PPP
290 6th Ave, Brooklyn, NY 11215 PPP
448 Springer Rd., Fairfield, CT
6824
2305 W Horizon Ridge Pkwy,
#2024, Henderson, NV 89052
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
F-135
See accompanying notes to consolidated financial statements.
3.3
108.3
3.3
108.3
3.3
— %
108.3
0.03 %
1.7
1.7
2.8
6.0
5.0
14.5
20.0
5.3
2.9
25.2
6.9
9.5
3.3
3.9
2.1
3.1
1.7
1.7
2.8
6.0
5.0
14.5
20.0
5.3
2.9
25.2
6.9
9.5
3.3
3.9
2.1
3.1
1.7
1.7
2.8
6.0
5.0
14.5
20.0
5.3
2.9
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
25.2
0.01 %
6.9
9.5
3.3
3.9
2.1
3.1
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13.9
13.9
13.9
2.7
2.1
2.1
2.7
2.1
2.1
2.7
2.1
2.1
18.9
18.9
18.9
0.01 %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Lenat & Partners, Inc.
Knock Out Productions Inc.
Southside Cleaning Service, Inc.
DELUCA MASONRY
CONSTRUCTION LLC
Atlanta Consulting Engineers,
Inc.
Sirockman Management LLC
Nicholas Thaler PHD
Atlas Compensation Partners ,
LLC.
Scelsi & Associates LLC
Headhunter Inc
Hi Point, LLC
Construction Solutions and
Services LLC
Curtis A Mellon, ReMax Anchor,
MLS Detectives Group
Vicarious Music LLC
Raidah Hudson Dentistry
Clifton Triplett
Benton Oil & Gas LLC
TLM Equities LLC
Xtreme Acro and Cheer Inc.
Jeffrey Bayer CPA, P.C.
Josefa F Simkin
Calgo Mfg Inc
Haley Glazer Geriatric Care
Management, LLC
1633 Old Bayshore Hwy, Ste 220,
Burlingame, CA 94010
21425 Dumetz Rd, Woodland
Hills, CA 91364
2969 Riverwood Terrace,
Birmingham, AL 35242
4 Stone Cir, Norwood, MA 2062
500 Sun Valley Drive, Unit G2,
Roswell, GA 30076
1600 Northside Dr NW, Ste 100,
Atlanta, GA 30318
2950 S Bentley Ave, Unit 10, Los
Angeles, CA 90064
2200 Anna Mae Drive,
Coraopolis, PA 15108
76 E Euclid Ave, Haddonfield, NJ
8033
3380 SW 11th AVE, FT
LAUDERDALE, FL 33315
10798 LONESOME DOVE
TRAIL, Waxahachie, TX 77808
7698 Hoffy Cir, Lake Worth, FL
33467
3941 Tamiami Trail, Ste 3121,
Punta Gorda, FL 33950
70 Berry St, Ste 2C, Brooklyn,
NY 11249
4374 S Laburnum Ave,
Richmond, VA 23231
90 S Tranquil Path, Spring, TX
77380
2700 Post Oak Blvd, #2700,
Houston, TX 77056
8 Saddle Ridge Rd, Old Westbury,
NY 11568
14702 Southlawn Ln, Rockville,
MD 20850
240 Kent Ave, Brooklyn, NY
11249
266 Green Valley Rd, Freedom,
CA 95019
9930 Research Drive, Ste 100,
Irvine, CA 92618
40 Bradway Ave, Ewing
Township, NJ 8618
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
5/29/2022
6/1/2022
1.5
2.3
0.6
3.4
9.3
2.1
2.2
1.0
9.9
1.5
2.3
0.6
3.4
9.3
2.1
2.2
1.0
9.9
1.5
2.3
0.6
3.4
9.3
2.1
2.2
1.0
9.9
— %
— %
— %
— %
— %
— %
— %
— %
— %
78.2
78.2
78.2
0.02 %
2.8
1.1
4.1
0.6
2.5
3.7
0.6
2.0
5.0
2.2
1.2
2.0
3.3
2.8
1.1
4.1
0.6
2.5
3.7
0.6
2.0
5.0
2.2
1.2
2.0
3.3
2.8
1.1
4.1
0.6
2.5
3.7
0.6
2.0
5.0
2.2
1.2
2.0
3.3
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-136
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Snipers Lacrosse Inc
Makena Tech Solutions, Inc
Michael A Friedman, MD
Kevin A. Swersey Wine
Consultant, Inc.
Clozd
Triple Aught Foundation
Bonsecours Productions Inc.
Tova1 Corp
Exclusive 30A Rentals, LLC
Eric Fischl
Senior Resouces Guide LLC
Lori B. Birndorf, D.O., A
Medical Corporation
James E. Schad
VCSC
MRV Associates
Welles & Montgomery LLC
Lubin & Meyer, PC
Broomstick Productions Inc
LAUREL RACQUET AND
HEALTH CLUB INC
Special Events Staffing
BOWIE RACQUET AND
FITNESS CLUB, INC
Tiny Transformations
JAM Marketing, Inc.
1024 W Heritage Club Cir, Delray
Beach, FL 33483
232 N Lone Hill Ave, Glendora,
CA 91741
2675 N Decatur Rd, Decatur, GA
30033
612 Pondside Dr, White Plains,
NY 10607
2801 N Thanksgiving Way, Ste
190, Lehi, UT 84043
24052 Watergap Rd, Hiko, NV
89017
420 Riverside Drive, New York,
NY 10025
21 S Hope Chapel Rd, Jackson
Township, NJ 8527
20 Mark Twain lane, Inlet Beach,
FL 32461
3724 24th St, #113, Long Island
City, NY 11101
PO Box 6027, Denver, CO 80206
12139 Riverside Drive, Valley
Village, CA 91607
260 Hampton Farms Ct NE,
Marietta, GA 30068
11627 Versailles Lakes Ln,
Houston, TX 77082
19 Fox Meadow Rd, Scarsdale,
NY 10583
770 Wildwood Rd NE, Atlanta,
GA 30324
100 City Hall Plaza, Boston, MA
2108
10866 Wilshire Blvd, 10th Floor,
Los Angeles, CA 90024
204 Fort Meade Rd, Laurel, MD
20707
1015 N Lake Ave, Ste 205,
Pasadena, CA 91104
100 White Marsh Park Dr, Bowie,
MD 20715
222 N Henry St, Apt 2, Brooklyn,
NY 11222
736 Broadway, 4th Floor, New
York, NY 10003
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
F-137
See accompanying notes to consolidated financial statements.
2.6
3.9
1.7
0.2
2.6
3.9
1.7
0.2
2.6
3.9
1.7
0.2
10.6
10.6
10.6
6.7
1.2
8.4
8.7
1.9
2.7
3.0
2.1
2.4
2.1
0.7
63.0
2.1
5.3
54.6
28.1
0.5
1.1
6.7
1.2
8.4
8.7
1.9
2.7
3.0
2.1
2.4
2.1
0.7
63.0
2.1
5.3
54.6
28.1
0.5
1.1
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
6.7
1.2
8.4
8.7
1.9
2.7
3.0
2.1
2.4
2.1
0.7
63.0
0.02 %
2.1
5.3
54.6
28.1
0.5
1.1
— %
— %
0.02 %
0.01 %
— %
— %
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Schroeder Arts Consulting LLC
CATHY FRANKLIN
R.E. Hazard Contracting
Company
Sterling Creek Energy LLC
J. B. GOOD RESOURCES, LLC
Bull City Sue
Get Wired Tec, Inc.
A&J Enterprises, Inc.
Steven F. Stratton
Colgate McCallum Advisors Inc
Hafner Research Associates LLC
JD Digital Documentation
Richard A Stevenson DDS
Eco Tekk
Franz Weber, Inc.
Bailey and Owens Construction
Levin's Crosstown Supply Corp.
Egan-Wagner Corporation
MW Engineering
New Soho Gallery Inc., DBA
Julie Saul Projects
Judy DeCanio
Fedbiz Consulting Inc.
Quad Cities Autism Center Inc
The On The Line Company, Inc
35 W 90th St, Ste 9F, New York,
NY 10024
124 EAST 92ND St, NEW
YORK, NY 10128
401 B St, Ste 2400, San Diego,
CA 92101
308 N Colorado St, Ste 200,
Midland, TX 79701
257 Abercorn Circle, Chapel Hill,
NC 27516
228 Pineview Rd, Durham, NC
27707
2192 Lysander Ave, Simi Valley,
CA 93065
250 Columbine Unit 503, Denver,
CO 80206
200 E Randolph St, Chicago, IL
60601
5440 Harvest Hill Rd., #253,
Dallas, TX 75230
12 Quarry Ridge Rd, Sandy
Hook, CT 6482
408 E. 4th St, Ste 301A,
Bridgeport, PA 19405
6851 Belfort Oaks Pl,
Jacksonville, FL 32216
21136 N Andover Rd, Kildeer, IL
60047
PO Box 34000, Reno, NV 89533
2649 Valleydale Rd, Birmingham,
AL 35244
1347 Boston Rd, Bronx, NY
10456
2929 Two Paths Dr, Woodridge,
IL 60517
2001 W Alameda Dr, Ste 201,
Tempe, AZ 85282
1133 Broadway, Ste 733, New
York, NY 10010
171 E 77th St, New York, NY
10075
47522 Coldspring Pl, Sterling, VA
20165
2430 6th Ave, Moline, IL 61265
101 Arch St, Ste 225, Boston, MA
2110
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
2.1
2.1
6.3
1.6
1.1
1.0
4.0
2.2
2.1
2.1
2.1
6.3
1.6
1.1
1.0
4.0
2.2
2.1
2.1
2.1
6.3
1.6
1.1
1.0
4.0
2.2
2.1
14.6
14.6
14.6
1.8
3.6
4.2
4.5
2.2
1.8
3.6
4.2
4.5
2.2
1.8
3.6
4.2
4.5
2.2
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
17.5
17.5
17.5
0.01 %
6.5
4.4
6.6
2.1
2.0
4.3
14.6
9.7
6.5
4.4
6.6
2.1
2.0
4.3
14.6
9.7
6.5
4.4
6.6
2.1
2.0
4.3
14.6
9.7
— %
— %
— %
— %
— %
— %
— %
— %
F-138
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
FVC Associates
Exec.Dev.&Strategy, Inc.
Barnhill Chiropractic Clinic
Guest Associates, Inc.
LG Networks Inc
Steve Solodoff
Orange Park Travel
Alessandra Santopietro
Pacific Design Directions, Inc.
Paul T.C. Liu MD Inc.
JAB Executive Services
Glyphix Studio Inc.
E & J Frankel Limited
Trapwire Inc.
Chitra Kumar MD
Robert M. Worman, P.A
Innervision Technology
Relocation Company
Marilyn Ontell Management
Residential Origination Capital
Mortgage Corp.
Jessica Weber Design Inc
TK Digital Corporation
Provino's of North Gwinnett, Inc.
General Glass
Zola Electric Labs, Inc.
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
97 Aldrich St, Boston, MA 2131
5270 Northwest 34th Blvd.,
Gainesville, FL 32605
2707 Artie St SW, Bldg 300, Ste
2, Huntsville, AL 35805
8111 Lyndon B Johnson Fwy, Ste
700, Dallas, TX 75251
PPP
1523 Portola St, Davis, CA 95616 PPP
3657 St Johns Ave, Jacksonville,
FL 32205
88 Leonard St, Apt 517, New
York, NY 10013
8171 E Kaiser Blvd, Anaheim,
CA 92808
2233 Huntington Dr, San Marino,
CA 91108
11277 Gravitation Dr, Las Vegas,
NV 89135
6964 Shoup Ave, Canoga Park,
CA 91307
612 Pondside Dr, White Plains,
NY 10607
1818 Library St, Reston, VA
20190
5311 John F. Kennedy Blvd, West
New York, NJ 7093
1200 S Pine Island Rd, Ste 220,
Plantation, FL 33324
3780 Kilroy Airport Way, Ste
200-300, Long Beach, CA 90806
14 W 17th St, Ste 5S, New York,
NY 10011
5698 Pirrone Rd, Salida, CA
95368
305 7th Ave, New York, NY
10001
107 North 3rd St, Ste 3D,
Brooklyn, NY 11249
14485 Hopewell Rd, Alpharetta,
GA 30004
3646 23rd Ave S, #105, Lake
Worth, FL 33461
555 De Haro St, San Francisco,
CA 94107
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/1/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
2.1
3.3
3.8
15.1
2.1
6.3
1.8
44.6
7.5
2.1
4.9
1.5
2.1
3.3
3.8
15.1
2.1
6.3
1.8
44.6
7.5
2.1
4.9
1.5
2.1
3.3
3.8
15.1
2.1
6.3
1.8
— %
— %
— %
— %
— %
— %
— %
44.6
0.01 %
7.5
2.1
4.9
1.5
— %
— %
— %
— %
24.4
24.4
24.4
0.01 %
2.9
1.2
7.4
0.3
4.5
3.9
10.8
24.0
13.3
50.0
2.9
1.2
7.4
0.3
4.5
3.9
10.8
24.0
13.3
50.0
2.9
1.2
7.4
0.3
4.5
3.9
10.8
24.0
13.3
50.0
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
0.01 %
F-139
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Elena Napolitano MD, LLC
T-Cubed Ventures, LLC
St. Jude Emergency Medical
Group Inc.
Breiner Psychological Services
LLC
Spruce Street Tap
ICVM Group, INC.
Black Orchard Studios, LLC
Prime Refrigerant Services, LLC
Swiet411, Inc.
Wavecrest Sales LLC
Alarm Specialist Inc
CLG LLC
HIGGINS CONSTRUCTION
LLC
RBR Associates, LLC
Life Without Fear Chiropractic
Clinic LLC
Joseph B. Krauss, DDS
Flynn Gallagher Associates LLC
FGR Automation, LLC
Law Offices of Rajiv S Khanna
PC
Travel Etcetera, Inc.
Samantha Hundshamer
Porretta/Westenhagen Living
Trust
Monument Management Systems
LLC
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
58 Summit Ct, Westfield, NJ 7090 PPP
3317 P St NW, Washington, DC
20007
9930 Research Dr, Irvine, CA
92618
5825 Glenridge Dr, Bldg 3, Ste
101C, Atlanta, GA 30328
PO Box 1636, Asheville, NC
28802
PO Box 761, Mattituck, NY
11952
521 Eayrestown Rd,
Southampton, NJ 8088
511 Gates Creek Rd, Bradenton,
FL 34212
247 Maxwell St, Decatur, GA
30030
501 NE Wavecrest Way, Boca
Raton, FL 33432
333 Old Tarrytown Rd, White
Plains, NY 10603
5108 Baroque Cir NE, Atlanta,
GA 30342
1626 Dunkirk Ln N, Plymouth,
MN 55447
11720 Dancliff Trce, Alpharetta,
GA 30009
1925 Justice Drive, Ste 170,
Lexington, KY 40509
3351 El Camino Real, Ste 235,
Atherton, CA 94027
1980 Festival Plaza Dr, Ste 770,
Las Vegas, NV 89135
1800 Sunset Harbor, Unit 1202,
Miami Beach, FL 33139
5225 N. Wilson Blvd, Arlington,
VA 22205
1107 S Fair Oaks Ave, Pasadena,
CA 91105
8223 Leucite Ave, Rancho
Cucamonga, CA 91730
6454 Van Nuys Blvd, Ste 150,
Van Nuys, CA 91401
2400 Sisson St, Baltimore, MD
21211
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/2/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
1.0
0.3
24.5
1.2
68.5
7.2
1.0
1.2
2.5
2.0
1.0
0.3
24.5
1.2
68.5
7.2
1.0
1.2
2.5
2.0
1.0
0.3
24.5
1.2
68.5
7.2
1.0
1.2
2.5
2.0
— %
— %
0.01 %
— %
0.02 %
— %
— %
— %
— %
— %
20.0
20.0
20.0
0.01 %
2.1
4.2
2.1
2.5
9.4
23.2
7.1
31.3
0.6
0.8
6.9
8.8
2.1
4.2
2.1
2.5
9.4
23.2
7.1
31.3
0.6
0.8
6.9
8.8
2.1
4.2
2.1
2.5
9.4
23.2
7.1
31.3
0.6
0.8
6.9
8.8
— %
— %
— %
— %
— %
0.01 %
— %
0.01 %
— %
— %
— %
— %
F-140
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Compass Management Services
LLC
El Tigre Productions LLC
UVR Sculpture LLC
Solomon Construction
Consulting LLC
Fisher Vista, Inc.
New York Construction
Associates LLC
Ultimate Sports Medicine
Princeton Van Service
Crescent Oil and Gas, LLC
David H.C. King, M.D., Inc.
Renuart Enterprises Inc. (REI)
Integrated risk management
services, llc
Subterranean Hair
Steven R Bateh, DMD, PA
Apache Behavioral Health
Services, Inc.
Saecularia LLC
Bennett Elia
HAssan Medical Pain Relief and
Wellness Center. DBA: Hassan
Spine and Sports Medicine
Mazco Ventures LLC
Parenteau Guidance
Paul Leitner MD
Ryan Berman Advisory, LLC
1711 Parklake Village Dr, Katy,
TX 77450
14 West 17th St, New York, NY
10011
78 Ingraham St, Brooklyn, NY
11237
38 Turtle Cove Ln, Huntington,
NY 11743
119 Marina Ave, Ste A, Aptos,
CA 95003
242 West 36th St, Ste 704, New
York, NY 10018
3727 Buchanan St., Ste 203, San
Francisco, CA 94123
92 north main St bldg 4,
WINDSOR, NJ 8561
4925 Greenville Ave, Ste 600,
Dallas, TX 75206
320 Dardanelli Ln, Ste 23B, Los
Gatos, CA 95032
16950 SW 90th Ave, Palmetto
Bay, FL 33157
225 West 34th St, Ste 905, New
York, NY 10122
263 W 7th St, San Pedro, CA
90731
1305 N Orange Ave, #116, Green
Cove Springs, FL 32043
249 W Ponderosa St, Whiteriver,
AZ 85941
1552 N Cahuenga Blvd, Los
Angeles, CA 90028
3304 Cole Ave, Ste 171, Dallas,
TX 75204
316 Tennent Rd, Ste 202A,
Morganville, NJ 7751
3410 Montrose Blvd, Houston,
TX 77006
132 E 35th St, Apt 3J, New York,
NY 10016
8540 S Sepulveda Blvd, Ste 910,
Los Angeles, CA 90045
161 Falcon Rd, Guilford, CT
6437
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
1.1
1.8
9.8
0.7
3.3
9.8
2.1
1.7
2.1
3.8
7.3
0.6
0.9
3.7
1.1
1.8
9.8
0.7
3.3
9.8
2.1
1.7
2.1
3.8
7.3
0.6
0.9
3.7
1.1
1.8
9.8
0.7
3.3
9.8
2.1
1.7
2.1
3.8
7.3
0.6
0.9
3.7
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
241.1
241.1
241.1
0.07 %
3.8
4.2
1.5
0.3
0.9
3.9
2.1
3.8
4.2
1.5
0.3
0.9
3.9
2.1
3.8
4.2
1.5
0.3
0.9
3.9
2.1
— %
— %
— %
— %
— %
— %
— %
F-141
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Linda Lane PR & Marketing
Heath Tinsley
Innovative Waste Solutions LLC
over the moon
Fiber Connect LLC
Dr. Stuart Schlisserman, MD
Griffin Land Corp.
Mohlar Hurley Partners
Avlis Partners LLC
G2 Computers LLC
Children's Dispensary & Hospital
Association
Realign by Randee, Inc.
Breckenridge Technologies, LLC
Chris Soukas Furs LLC
BRAS NW INC
Metal Oxide Technologies LLC
Social Leadia
Prime Sales & Marketing, Inc.
Vreeke & Associates
THE MYOCARDITIS
FOUNDATION
Gerald A. Field d/b/a Gerald A.
Field, Attorney at Law
Lisa Segmiller
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
280 Edgewood Drive, West Palm
Beach, FL 33405
1595 Sailing Club Rd, Camden,
SC 29020
10300 W Charleston Blvd, Ste
13-B4, Las Vegas, NV 89135
619 Valley Rd, Montclair, NJ
7043
12 Buckingham Lane, Monterey,
MA 1245
211 Quarry Rd, Ste 203 MC5993,
Stanford, CA 94304
115 North St, Ste 40, Litchfield,
CT 6759
608 Santa Monica Blvd, Santa
Monica, CA 90401
900 Golf View Ct, Dacula, GA
30019
1116 Taylorsville Rd, Washington
Crossing, PA 18977
812 E Lasalle Ave, South Bend,
IN 46617
PPP
730 Crystal Ct, Weston, FL 33326 PPP
2333 San Ramon Valley Blvd, Ste
460, San Ramon, CA 94583
1050 Point Seaside Dr, Crystal
Beach, FL 34681
317 NW Gilman Blvd, Ste 44,
Issaquah, WA 98027
8807 Emmott Rd, Ste 100,
Houston, TX 77040
427 Country Ln, Louisville, KY
40207
3211 University Blvd SE, Ste A,
Albuquerque, NM 87106
845 E Easy St., Ste 101, Simi
Valley, CA 93065
3518 Echo Mountain Dr,
Kingwood, TX 77345
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
11 Asylum St, Hartford, CT 6103
17211 Bellhaven Walk Ct,
Charllote, NC 28277
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/3/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
1.6
0.4
0.3
3.4
4.7
4.5
2.1
1.8
2.6
2.4
2.2
0.4
6.9
4.2
1.1
25.2
0.6
24.7
8.8
2.2
1.6
1.2
1.6
0.4
0.3
3.4
4.7
4.5
2.1
1.8
2.6
2.4
2.2
0.4
6.9
4.2
1.1
25.2
0.6
24.7
8.8
2.2
1.6
1.2
1.6
0.4
0.3
3.4
4.7
4.5
2.1
1.8
2.6
2.4
2.2
0.4
6.9
4.2
1.1
25.2
0.6
24.7
8.8
2.2
1.6
1.2
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
0.01 %
— %
— %
— %
— %
F-142
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
MAYATEX, INC.
Rock Bottom Productions
Franciscan Poor Clares
SKYMINA LLC
Guardian Consulting Services,
Inc.
Kitty and Vibe, Inc
Oncology and Hematology
Associates of Central Jersey PA
Serlin Consulting LLC
Amanda Thompson Design
Cartoon Collections, LLC
Farrell Remodeling, Inc.
Aircel LLC
Make 3 Architecture
Edgewater Services Co Ltd
Eva Davis
Human Capital Management and
Performance, LLC.
Robert Spransy CPA
Unity Worldwide Ministries
Eastern Region
Melanie S. Francis, LCSW
Fry Investment Company
RAZL LLC
New Experience
5015 S IH 35, Georgetown, TX
78626
1125 E Broadway, #249,
Glendale, CA 91205
720 HENRY CLAY AVE, NEW
ORLEANS, LA 70118
3105 Cedar Rd, Yorktown
Heights, NY 10598
3333 New Hyde Park Rd, Ste
202, New Hyde Park, NY 11042
126 13th St, 3rd Floor, Brooklyn,
NY 11215
2177 OAK TREE RD, Ste 104,
Edison, NJ 8820
1445 Gordon Terrace, Deerfield,
IL 60015
4676 Dovefield Ln, Kannapolis,
NC 28081
155 E 44th St, 29th Floor, New
York, NY 10017
148 2nd St, Los Altos, CA 94022
3033 Riviera Dr, Ste 101, Naples,
FL 34103
1075 Brady Ave NW, Atlanta, GA
30318
225 Greenfield Pkwy, Ste 202,
Liverpool, NY 13088
4403 Chase Ave, Bethesda, MD
20814
6506 Mebane Oaks Rd, Mebane,
NC 27302
257 Abercorn Cir, Chapel Hill,
NC 27516
800 Blanton Ave, Richmond, VA
23221
116 W 23rd St., 5th Floor, New
York, NY 10011
4241 N Winfield Scott Plaza,
#201, Scottsdale, AZ 85251
45 Coldstream Cir, Lincolnshire,
IL 60069
1029 N Peachtree Parkway 268,
Peachtree City, GA 30269
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
4.7
1.4
2.0
2.1
8.0
0.6
12.0
2.1
0.3
4.4
15.4
35.0
4.0
3.7
2.1
2.1
1.5
0.8
1.6
13.9
2.1
6.9
4.7
1.4
2.0
2.1
8.0
0.6
12.0
2.1
0.3
4.4
15.4
35.0
4.0
3.7
2.1
2.1
1.5
0.8
1.6
13.9
2.1
6.9
4.7
1.4
2.0
2.1
8.0
0.6
12.0
2.1
0.3
4.4
15.4
35.0
4.0
3.7
2.1
2.1
1.5
0.8
1.6
13.9
2.1
6.9
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-143
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Enhanced Affordable
Management Company, LLC
Socorro Corp
Amanda Lopez
Brodeur Kazanjian Beauty &
Fashion LLC dba Queen Beauty
Charm City Cakes
James Reinish & Associates, Inc.
Moody Creek Farms LLC
YMCA of West San Gabriel
Valley
National Postdoctoral
Association
Laura A. Brevetti
Superius Securities Group Inc
CATWALK, LLC fka VITRINE
LLC
Michelle Frost Real Estate Sales
Nezhat Medical Center P.C.
MS-IR LLC
Michael S. Blank Realty
PDT LLC
Hrach Khudatyan MD, Inc
Corona Jackson Refrigeration
Service, Inc.
Hight Accounting Services LLC
Seattle Ventures LLC
Nottingham Investment Company
LLLP
4221 Wilshire Blvd, Ste 260, Los
Angeles, CA 90010
900 Wilshire Blvd, Ste 2400, Los
Angeles, CA 90017
23411 aliso viejo parkway, Aliso
Viejo, CA 92656
1675 E Morten Ave, #4112,
Phoenix, AZ 85020
2936 Remington Ave, Baltimore,
MD 21211
25 E 73rd St, New York, NY
10021
31257 VIA MARIA ELENA,
Bonsall, CA 92003
401 East Corto St, Alhambra, CA
91801
15800 Crabbs Branch Way,
Derwood, MD 20855
575 5th Ave, 14th Floor, New
York, NY 10017
94 Grand Ave, Englewood, NJ
7631
4300 Stevens Creek Blvd, Ste
126, San Jose, CA 95129
3113 Roswell Rd, Ste 101,
Marietta, GA 30062
5555 Peachtree Dunwoody Rd,
Ste #276, Atlanta, GA 30342
88 Morningside Ave, Ste 7A,
New York, NY 10027
1870 Baldwin Rd. - Unit 69,
Yorktown Heights, NY 10598
2812 Rivers Edge Rd, Louisville,
KY 40222
134 N Glendale Ave, Glendale,
CA 91206
59-6 Central Ave, Farmingdale,
NY 11735
3209 E Wood Valley Rd NW,
Atlanta, GA 30327
2215 3rd Ave W, Seattle, WA
98119
1690 Derby Mesa Loop, Burns,
CO 80426
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/4/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
12.0
12.0
12.0
2.1
0.5
5.9
5.5
3.4
35.4
15.7
3.7
3.0
4.4
0.6
2.1
8.3
2.1
1.3
3.3
3.3
2.8
0.5
2.1
2.1
2.1
0.5
5.9
5.5
3.4
35.4
15.7
3.7
3.0
4.4
0.6
2.1
8.3
2.1
1.3
3.3
3.3
2.8
0.5
2.1
2.1
2.1
0.5
5.9
5.5
3.4
35.4
15.7
3.7
3.0
4.4
0.6
2.1
8.3
2.1
1.3
3.3
3.3
2.8
0.5
2.1
2.1
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-144
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
CT Business Enterprises
Sherman Law Group, a
Professional Law Corporation
Salon Vivace VA, LLC
Statewide Interpreters
The Fiedler Companies, Inc.
Chris Matheos
Custom Trades Company
The JW Agency LLC
Precision Landscape
Management Inc
Stonecrop Gardens Inc
Panache
Justin W McClung d/b/a The
McClung Group
Door Four LLC
Grandview Advisors Inc.
Andrew S. Gaffney Foundation
The Law Offices of Bob Camors
Ash Health Corp
Anne T. Carlon M.D. P.C.
SDG Engineering PC
Active Reading Clinic
JD Randall group
American Friends of the Israel
Museum
STSE - DBA Plaza Auto
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
14703 Lyon Hill Ln, Huntersville,
NC 28078
9454 Wilshire Blvd, Beverly
Hills, CA 90212
680 Ingomar Rd, Wexford, PA
15090
63 Milland Dr, Mill Valley, CA
94941
PPP
408 E 134th St, Bronx, NY 10454 PPP
13726 Leadwell St, Van Nuys,
CA 91405
129 Stonehedge Dr N, Greenwich,
CT 6831
707 Skokie Blvd, Ste 600,
Northbrook, IL 60062
3130 Carter Jones Rd, Groveland,
FL 34736
81 Stonecrop Ln, Cold Spring,
NY 10516
639 Pilot House Dr, Newport
News, VA 23606
55 N Altwood Cir, Spring, TX
77382
508 W 26th St, Ste 11A, New
York, NY 10001
100 RIVERSIDE LN, Riverside,
CT 6878
245 South St, Morristown, NJ
7960
1501 The Alameda, Ste 210, San
Jose, CA 95126
316 Tennent Rd, Ste 202A,
Morganville, NJ 7751
425 E 58th St, #39A, New York,
NY 10022
121 Huntington Rd, Port
Washington, NY 11050
25 Hillcroft Way, Walnut Creek,
CA 94597
4422 Sea Harbour Dr, Huntington
Beach, CA 92649
545 5th Ave, Ste 920, New York,
NY 10017
359 E Western Reserve Rd,
Youngstown, OH 44514
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
0.5
4.2
12.7
11.7
5.9
0.1
0.5
3.6
19.0
16.7
7.1
4.2
13.2
1.5
1.4
3.2
1.7
0.5
4.2
12.7
11.7
5.9
0.1
0.5
3.6
19.0
16.7
7.1
4.2
13.2
1.5
1.4
3.2
1.7
0.5
4.2
12.7
11.7
5.9
0.1
0.5
3.6
19.0
16.7
7.1
4.2
13.2
1.5
1.4
3.2
1.7
12.4
12.4
12.4
8.5
3.2
1.5
13.2
1.1
8.5
3.2
1.5
13.2
1.1
8.5
3.2
1.5
13.2
1.1
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-145
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Green Rhino Recycling, LLC
Landmark Technologies LLC
Jacqueline R. Moroco, D.D.S.,
M.S., P.A.
Compacted Recycling Company
LLC
LaFlower Construction, Inc.
DC Retina Docs PLLC
Katherine W Luce
HYPRLABS INC.
Tmack Property Maintenance
LLC
Sea-Est Incorporated
Gwinnett Cemeteries, LLC
Clint Dewey
KP Auto Repair LLC
Michael S Chlopak
Morgan Blakeley LLC
Frank Nicholson Inc.
John Merrick
Music Center Inc. dba Haight
Ashbury Music Center; dba Gelb
Music
Korhan Beba
Grenville Owners Corp.
Camfed U.S.A. Foundation
National Roofing
Dental Designs of Naples
2809 Academy Dr SE, Auburn,
WA 98092
4806 S St Andrews Ln, Spokane,
WA 99223
4600 Linton Blvd, Ste 330,
Delray Beach, FL 33445
2809 Academy Dr SE, Auburn,
WA 98092
23888 Madison St, Torrance, CA
90505
3317 P St NW, Washington, DC
20007
1220 University Dr, Ste 104,
Menlo Park, CA 94025
400 Concar Dr, San Mateo, CA
94402
14 Knollwood Dr, East Hanover,
NJ 7936
1741 W Beaver St, Jacksonville,
FL 32209
103 Crestview Church Rd,
Warner Robins, GA 31088
155 E 31st St, Apt 4S, New York,
NY 10016
12917 Percheron Ln, Oak Hill,
VA 20171
1 Claridge Drive, Apt PH 14,
Verona, NJ 7044
255 Saint Paul St, Apt #220,
Denver, CO 80206
360 Massachusetts Ave, Acton,
MA 1720
3209 Centenary Ave, Dallas, TX
75225
722 El Camino Real, Redwood
City, CA 94063
17 Oak Hill Rd, Branchburg, NJ
8853
225 Bennett Ave, Ste 1K, New
York, NY 10040
466 Geary St, Ste 400, San
Francisco, CA 94102
1237 Circle Ave, Forest Park, IL
60130
5048 Tamiami Trail N, Naples,
FL 34103
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/5/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/8/2022
6/9/2022
2.2
2.8
14.3
1.1
0.1
0.6
1.3
10.4
1.6
25.6
16.5
2.1
1.3
1.4
0.7
8.6
2.0
9.5
0.5
3.2
18.2
52.5
21.1
2.2
2.8
14.3
1.1
0.1
0.6
1.3
10.4
1.6
25.6
16.5
2.1
1.3
1.4
0.7
8.6
2.0
9.5
0.5
3.2
18.2
52.5
21.1
2.2
2.8
14.3
1.1
0.1
0.6
1.3
10.4
1.6
25.6
16.5
2.1
1.3
1.4
0.7
8.6
2.0
9.5
0.5
3.2
18.2
52.5
21.1
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
0.02 %
0.01 %
F-146
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Ronald A. Williams Ltd
National Foundation for
Infectious Diseases (NFID)
The Junior League of Pensacola,
Florida, Incorporated
David Dee Fine Arts
HERBERT CHARLES SCHWAT
ATL Advisory LLC
Kushnika, Inc.
Gabriella New York, LLC
Luxury Destinations
G&A Rehab, Inc
CCR Investment Group dba
Equity Finance Group
OCC installations
Charm City Cakes West
Cape fear kickboxing inc
Solstice Adventure, LLC
Standard Wedding Band Co Inc
Michigan Braille Transcribing
Fund
Joy DiNapoli
PJH Partners LLC
Christine Yi
Intrepid
J3 Consulting, LLC
Don Marshall CPA Inc
5540 Falmouth St Ste 303,
Richmond, VA 23230
7201 Wisconsin Ave, Ste 750,
Bethesda, MD 20814
2016 W. Garden St., Pensacola,
FL 32502
1374 E Arlington Drive, Salt
Lake City, UT 84108
1940 Biltmore St NW, Apt 32,
Washington, DC 20009
76 Bellefair Rd, Rye Brook, NY
10573
14766 Live Oak Ln, Saratoga, CA
95070
155 Wooster St., Unit 3W, New
York, NY 10012
151 Melius Rd, Warren, CT 6754
3333 Skypark Drive, Ste 220,
Torrance, CA 90505
2271 W. Malvern ave, Ste 424,
Fullerton, CA 92833
12102 Manley St, Garden Grove,
CA 92845
8302 Melrose Ave, Los Angeles,
CA 90069
7122 Market St, Ste 120,
Wilmington, NC 28411
1521 Alton Rd, #802, Miami
Beach, FL 33139
951 Franklin Ave, Garden City,
NY 11530
3500 N. Elm, Jackson, MI 49201
154 Beach Ave, Larchmont, NY
10538
455 East Paces Ferry Rd NE, Ste
214, Atlanta, GA 30305
111 E 30th St, Ste 8B, New York,
NY 10016
7 Quail Ridge Rd S, Rolling Hills,
CA 90274
1 Mountain Oaks Park, Glendale,
CA 91214
3427 S Walker Ave, San Pedro,
CA 90731
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/9/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
3.8
9.9
0.5
0.6
2.1
2.1
0.7
3.1
1.6
3.8
9.9
0.5
0.6
2.1
2.1
0.7
3.1
1.6
3.8
9.9
0.5
0.6
2.1
2.1
0.7
3.1
1.6
15.8
15.8
15.8
5.1
0.7
6.6
4.9
0.9
3.5
4.7
1.0
0.9
0.8
6.9
2.1
1.0
5.1
0.7
6.6
4.9
0.9
3.5
4.7
1.0
0.9
0.8
6.9
2.1
1.0
5.1
0.7
6.6
4.9
0.9
3.5
4.7
1.0
0.9
0.8
6.9
2.1
1.0
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-147
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Cassidy Holdings, LLC
AUREUS CAPITAL LLC
Timothy F. Lester
Hamilton Hill LLC
Rain Wine National Corp
Mora Investment Management
Mark Friedman
Grunberger Diamonds
Incorporated
Examoto LLC
Michael Slayton General
Contracting, Inc
Joseph Haraszti
Statement Lawn and Landscape,
Inc.
Alexis D. Bodenheimer
Augusta Grant Travel
NEUMENTUM, INC.
Paige Hoholik LLC
Birdie Golf Ball Company
Rachel Dack Counseling LLC
Law Office of Swati P Mantione,
P.C.
Amanda Reynal Interiors
Clark A Miller Sales LTD
Lucy McRae
The Great Escape Room Tampa
LLC
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
7712 Hillside Dr, La Jolla, CA
92037
216 E Sheridan Pl, Lake Bluff, IL
60044
8 Forest Dr, Westport, CT 6880
905 W Main St, Durham, NC
27701
2608 SW River Shore Dr, Port St.
Lucie, FL 34984
9 W Star Island Dr, Miami Beach,
FL 33139
210 W 101st St, Ste 5E, New
York, NY 10025
98 Cutter Mill Rd, Great Neck
Plaza, NY 11021
125 Booth Ln, Haverford, PA
19041
232 N Lonehill Ave, Glendora,
CA 91741
2810 East Del Mar Blvd, Ste 8A,
Pasadena, CA 91107
19520 W 95th St, Lenexa, KS
66220
205 East 92nd St, Apt 27A, New
York, NY 10128
1428 Hemingway Place, Naples,
FL 34103
250 Colorado Ave, Palo Alto, CA
94301
PPP
210 St Paul St, Denver, CO 80206 PPP
208 Margate Ct, Margate, FL
33063
6917 Arlington Rd, #222,
Bethesda, MD 20814
12 Thadford St, East Northport,
NY 11731
1417 Walnut St, Ste D, Des
Moines, IA 50309
1205 Tuscany Ct, Alpharetta, GA
30004
1340 E 6th St, Los Angeles, CA
90021
300 E Madison St, #301, Tampa,
FL 33602
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/10/2022
6/11/2022
6/11/2022
6/11/2022
7/2/2022
7/9/2022
7/9/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
1.2
1.3
0.5
4.3
2.1
1.2
2.1
8.4
5.3
1.2
2.9
1.1
2.1
0.7
4.9
2.1
0.9
1.3
2.1
1.8
0.6
1.7
4.7
1.2
1.3
0.5
4.3
2.1
1.2
2.1
8.4
5.3
1.2
2.9
1.1
2.1
0.7
4.9
2.1
0.9
1.3
2.1
1.8
0.6
1.7
4.7
1.2
1.3
0.5
4.3
2.1
1.2
2.1
8.4
5.3
1.2
2.9
1.1
2.1
0.7
4.9
2.1
0.9
1.3
2.1
1.8
0.6
1.7
4.7
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-148
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Woodrow Orlando LLC DBA
The Great Escape Room Orlando
Mary Jane Marchisotto dba MJM
Advisory, LLC
Copperfield Investment &
Development Company
Score OKC
Lead Tek Plating
Dan Counts & Associates, Inc.
Diamondback Golf Course, LLC
Josh Madonick Physical Therapy
RHBerman Consulting
MPYRE HOLDING CO
NICK A. DEFILIPPIS, PHD, PC
Orloff Eye Group, Inc.
Protestant Episcopal Church In
The Diocese of California
The Great Escape Room New
York LLC
K.S.M Enterprises Inc. DBA
Michaels Shell
Bobbie Baron Inc.
DEAFLINK INC
Joseph L. Lester, M.D., P.C.
Weber Brands, LLC
Robert M. Tudisco, Esq.
Propel A Charter Management
Group Inc
Sunburst Decorative Rock, Inc
Nancy R. Reinish
525 Woodstead Ct, Longwood,
FL 32779
245 E 87th St, Apt 9F, New York,
NY 10128
1721 Crystal Ann Ave, Las Vegas,
NV 89106
18509 N Meridian Ave, Edmond,
OK 73012
27555 SW Boones Ferry Rd,
Wilsonville, OR 97070
1780 Prescott Ave, Monterey, CA
93940
500 Harborview Drive, Third
Floor, Baltimore, MD 21230
86 Eucalyptus Rd, Petaluma, CA
94952
161 Falcon Rd, Guilford, CT
6437
1723 23rd Ave, San Francisco,
CA 94122
990 Hammond Dr, Ste 575, Sandy
Springs, GA 30328
1 Plume Grass Way,
Westhampton, NY 11977
2791 Driscoll Rd, Fremont, CA
94539
1150 University Ave Bldg 5, Ste
12A, Rochester, NY 14607
2589 N Lakewood Blvd, Long
Beach, CA 90815
1633 Broadway, New York, NY
10019
57 Ludlow Ln, Palisades, NY
10964
2201 Evans Drive, Opelika, AL
36801
50 Pine Hill Rd, Great Neck, NY
11020
90 Stebbins Ave, Eastchester, NY
10709
5200 Irwindale Ave, Irwindale,
CA 91706
282 Live Oak Ave, Irwindale, CA
91706
336 Central Park West, New
York, NY 10025
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
2.0
0.6
1.2
3.0
2.0
0.6
1.2
3.0
2.0
0.6
1.2
3.0
— %
— %
— %
— %
20.0
20.0
20.0
0.01 %
1.1
7.6
0.3
2.1
1.7
1.6
4.8
2.5
2.2
4.0
2.1
1.3
5.5
2.1
1.4
29.8
18.3
2.1
1.1
7.6
0.3
2.1
1.7
1.6
4.8
2.5
2.2
4.0
2.1
1.3
5.5
2.1
1.4
29.8
18.3
2.1
1.1
7.6
0.3
2.1
1.7
1.6
4.8
2.5
2.2
4.0
2.1
1.3
5.5
2.1
1.4
29.8
18.3
2.1
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
0.01 %
— %
F-149
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
The Great Escape Room Chicago
Daydream Reels LLC
C Sensei Group LLC
Dockum Research Lab, Inc
306 Hollywood LLC
Irvine Optometry
Double H Farms, LLC
The Nashville Dermatology And
Skin Cancer Clinic, P.C.
Harper Road Treatment Center
Sense Education, Inc.
PR Realty Management LLC
Roadtrip Productions Inc
Hirezi & Hirezi, D.M.D., P.A.
NTR Partners Administration
LLC
Bartman Bros.
Kleopatra Productions, Inc.
PHILIP F. STOTTS
Rajan Shah MD PA
Surco Products, Inc.
Joel Diaz Training Camp, LLC.
John J. McMahon
Auto Trim Design of
Northeastern New York Inc
Steven Robert Justman aka
Steven Justman
160 E Grand Ave, #400, Chicago,
IL 60611
3615 N Kenilworth St, Arlington,
VA 22207
1730 S Federal Hwy, Ste 280,
Delray Beach, FL 33483
844 E Mariposa St, Altadena, CA
91001
14 West 17th St, New York, NY
10011
17585 Harvard Ave,, Ste E,
Irvine, CA 92614
15050 Golden Point Ln,
Wellington, FL 33414
2222 State St, Ste A, Nashville,
TN 37203
1802 Harper Rd, Ste 202,
Beckley, WV 25801
1 W 85th St, New York, NY
10024
2207 Coney Island Ave,
Brooklyn, NY 11223
One Penn Plaza, Ste 3500, New
York, NY 10119
4495 Baymeadows Rd,
Jacksonville, FL 32217
11726 San Vicente Blvd, Ste 290,
Los Angeles, CA 90049
11777 San Vicente Blvd, Ste 600,
Los Angeles, CA 90049
4230 Gardendale, Ste 101, San
Antonio, TX 78229
4985 Stonehaven Dr., Yorba
Linda, CA 92887
1060 BRd St, Newark, NJ 7102
14001 S Main St, Los Angeles,
CA 90061
40795 Adriatico Ct, Indio, CA
92203
80 Main St, West Orange, NJ
7052
83 Ellison St, Milton, VT 5468
54 Banksville Rd, North Castle,
NY 10504
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
3.9
1.3
2.1
6.4
1.2
4.5
12.9
4.4
2.6
12.0
19.2
2.1
7.4
3.5
5.8
2.1
2.1
4.1
7.5
1.4
2.1
7.0
2.0
3.9
1.3
2.1
6.4
1.2
4.5
12.9
4.4
2.6
12.0
19.2
2.1
7.4
3.5
5.8
2.1
2.1
4.1
7.5
1.4
2.1
7.0
2.0
3.9
1.3
2.1
6.4
1.2
4.5
12.9
4.4
2.6
12.0
19.2
2.1
7.4
3.5
5.8
2.1
2.1
4.1
7.5
1.4
2.1
7.0
2.0
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
F-150
See accompanying notes to consolidated financial statements.
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Accrual Investments (4a)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
J. Li Brand LTD
John Berry Turbidy
Hanson & Schwam Public
Relations LLC
Debra L. Holt
Kenneth Baer
Model Partner, LLC
ARJ Medical LLC
David Raksin
Constance Scharff
Mazza Real Estate, LLC
JP Davis Farms
63 Roebling St, #6L, Brooklyn,
NY 11211
1501 Silver King Dr, Aspen, CO
81611
9350 Wilshire Blvd, #315,
Beverly Hills, CA 90212
233 NW 36th St, Miami, FL
33127
16 Millstone Dr, East Windsor, NJ
8512
19 William Close Ct, Warwick,
NY 10990
2827 Frontier Trail, Atlanta, GA
30341
1010 16th St, #543, San
Francisco, CA 94107
8584 Blue Grouse Way, Blaine,
WA 98230
402 Page St, Cary, NC 27511
10100 Suzanne Dr, River Ridge,
LA 70123
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
PPP
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
3.5
2.1
0.8
2.1
0.5
2.1
1.0
2.1
0.7
0.8
1.2
3.5
2.1
0.8
2.1
0.5
2.1
1.0
2.1
0.7
0.8
1.2
3.5
2.1
0.8
2.1
0.5
2.1
1.0
2.1
0.7
0.8
1.2
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Total SBA Guaranteed Accrual Investments
$
15,888.9 $
15,888.9 $
16,747.1
4.94 %
F-151
See accompanying notes to consolidated financial statements.
Portfolio Company
Tickmarks
Company Address
Industry
SBA Guaranteed Non-Accrual Investments (4b)
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
MIT LLC
Neville Galvanizing, Inc
Kneading Dough LLC dba NY
Bagel Cafe & Deli,NY Bagle,
New York Bagle,N
(*)
(*)
(*)
Chavero's Auto
Total SBA Guaranteed Non-Accrual Investments
(*)
Total SBA Guaranteed Investments
11 North Peach ST., Medford, OR
97504
2983 Grand Ave, Pittsburgh, PA
15225
Publishing Industries (except
Internet)
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
3/31/2042
Term Loan
Prime plus 2.75%
12/15/2042
254.7
707.1
254.7
707.1
254.7
707.1
10287 Okeechobee Blvd #13,
Royal Palm Beach, FL 33411
1364 E Palma Vista Drive,
Palmview, TX 78572
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/23/2029
101.0
101.0
101.0
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 6.5%
10/11/2029
$
$
12.5
1,075.3 $
12.5
1,075.3 $
12.5
1,075.3
16,964.2 $
16,964.2 $
17,822.4
5.25 %
Total SBA Unguaranteed and Guaranteed Investments
$ 437,364.1 $ 437,364.1 $ 425,570.3
125.41 %
F-152
See accompanying notes to consolidated financial statements.
% of Net
Assets
0.08 %
0.21 %
0.03 %
— %
0.32 %
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Portfolio Company
Controlled Investments (5) (22)
Tickmarks
Company Address
Industry
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.
(*,#) (25)
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)
1981 Marcus Ave., Lake Success,
NY 11042
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
ADR Partners, LLC dba banc-
serv Partners, LLC
(*,#) (26)
8777 Purdue Rd, Indianapolis, IN
46268
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
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
Data processing, Hosting, and
Related Services
Type of
Investment
50%
Membership
Interest
Term Loan
100% Common
Stock
100% Common
Stock
Line of Credit
100% Common
Stock
Line of Credit
Line of Credit
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%
Membership
Interest
100%
Membership
Interest
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
—%
3%
—%
—%
10%
—%
10%
Prime plus 0.5%
Prime plus 0.5%
—%
—%
10%
10%
12%
10%
—%
10%
—%
—%
—%
Dec 2014
Dec 2021
Nov 2028
April 2021
July 2022
Oct 2021
May 2022
May 2022
July 2022
June 2021
—
—
—
—
—
—
—
—
—
—
—
381.0
—
—
9,560.0
—
10,821.0
750.0
100.0
—
381.0
—
4,428.0
9,560.0
19,503.7
10,821.0
750.0
225.0
—
—
—
—
5,900.0
29,999.7
10,821.0
750.0
225.0
— %
— %
— %
— %
1.74 %
8.84 %
3.19 %
0.22 %
0.07 %
—
135.0
2,150.0
0.63 %
—
435.0
750.0
500.0
1,000.0
—
400.0
—
—
—
1,878.1
435.0
750.0
500.0
1,000.0
—
—
—
—
—
— %
— %
— %
— %
— %
598.0
400.0
9,650.4
400.0
2.84 %
0.12 %
7,085.2
—
— %
16,438.0
111,500.0
32.86 %
2,980.0
2,500.0
0.74 %
F-153
See accompanying notes to consolidated financial statements.
Portfolio Company
Controlled Investments (5) (22)
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
Newtek Business Lending, LLC (*,#) (10)
14 East Washington St., Orlando,
FL 32801
Newtek Conventional Lending,
LLC
Titanium Asset Management,
LLC
(#) (18) (23)
(*,#) (14)
1981 Marcus Ave., Lake Success,
NY 11042
1981 Marcus Ave., Lake Success,
NY 11042
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
50%
Membership
Interest
Term Loan
100%
Membership
Interest
Term Loan
100%
Membership
Interest
Term Loan
50.14%
Membership
Interest
—%
—%
10%
—%
10%
—
10%
—
Total Controlled Investments
F-154
See accompanying notes to consolidated financial statements.
—
—
—
—
39,912.0
43,541.8
12.83 %
19,002.0
20,028.0
March 2021
900.0
900.0
655.1
—
—
—
Sept 2021
159.2
159.2
—
—
—
—
—
—
5.90 %
0.19 %
— %
— %
— %
Sept 2023
850.0
1,050.0
1,050.0
0.31 %
—
$
—
—
26,606.2 $ 138,891.0 $ 239,171.0
—
— %
70.48 %
Portfolio Company
Tickmarks
Company Address
Industry
Type of
Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
Non-Control Investments (22)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2020
(In Thousands)
EMCAP Loan Holdings, LLC
(+,#) (19) (16)
ARC Metal Stamping, LLC
(#)
Total Non-Control Investments
1140 Reservoir Ave., Cranston,
RI 02920
4111 Munson Hwy, Hudson, MI
49247
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
6.04%
Membership
Interest
—%
— $
— $
1,000.0 $
1,000.0
Machinery Manufacturing
Term Loan
5 Yr Tr plus 7.43%
1/1/2045
5,447.4
5,447.4 $
5,447.4
6,447.4 $
5,447.4
6,447.4
$
0.29 %
1.61 %
1.90 %
Total Investments
$ 469,417.7 $ 582,702.5 $ 671,188.7
197.78 %
^ Investment has been pledged as collateral under the Securitization Trusts.
* Non-income producing security.
# Fair value determined using significant unobservable inputs.
+
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, 2020 are based off a Prime Rate equal to 3.25% and 1 month LIBOR equal to 0.14388%.
(3) Newtek values non-accrual SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Management’s estimate of the 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, 2020 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.
F-155
See accompanying notes to consolidated financial statements.
(8) CDS Business Services, Inc. d/b/a Newtek Business Credit Solutions, a wholly-owned portfolio company that is part of the Company’s business finance platform, providing receivables and
inventory financing and management services to small and medium size businesses; 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) PMTWorks Payroll, LLC d/b/a Newtek Payroll and Benefits Solutions (“NPS” or “PMT”), a wholly-owned portfolio company which offers an array of industry standard and competitively priced
payroll management, payment and tax reporting services to SMBs; 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) Newtek Business Lending, LLC (“NBL”), a wholly-owned portfolio company that provides SBA 504 loans and financing to the SMB market for the acquisition of fixed assets; 100% owned by
Newtek Business Services Holdco 6, Inc. (a subsidiary of Newtek Business Services Corp.
(11) Newtek Merchant Solutions, LLC (“NMS”) is a wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and
software; 100% owned by NBSH Holdings, LLC (a subsidiary of Newtek Business Services Holdco 1, Inc., a subsidiary of Newtek Business Services Corp.).
(12) Small Business Lending, LLC (“SBL”) is a wholly-owned portfolio company that is part of the Company’s business finance platform;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.). 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. In addition, SBL provides loan and servicing solutions to other parts of the Company’s business finance platform.
(13) Newtek Insurance Agency, LLC (“NIA”), a wholly-owned portfolio company which is a retail and wholesale brokerage insurance agency, licensed in all 50 states, specializing in the sale of
commercial and health/benefits lines insurance products to the small and medium size business market as well as various personal lines of insurance; 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) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.)
(16) The initial acquisition date for EMCAP Loan Holdings, LLC was April 25, 2018.
(17) Mobil Money, LLC (“Mobil Money”), a wholly-owned portfolio company that provides payment processing for a merchant portfolio of taxi cabs; 100% owned by Newtek Business Services
Holdco 4, Inc. (a subsidiary of Newtek Business Services Corp.).
(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 wholly-owned 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.
(19) 6.04% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.)
(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.
F-156
See accompanying notes to consolidated financial statements.
(23) Non-qualifying asset under the Investment Company Act of 1940, as amended. 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, 2020, 7.7% of total assets are non-qualifying assets.
(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) Newtek Technology Solutions, Inc. (“NTS”) is a wholly-owned portfolio company that provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet
marketing, ecommerce, data storage, backup and disaster recovery, and other related services; 100% owned by NBSH Holdings, LLC (a subsidiary of Newtek Business Services Holdco 1, Inc., a
subsidiary of Newtek Business Services Corp.). International Professional Marketing, Inc. (“IPM”) and Sidco, LLC d/b/a Cloud Nine Services (“SIDCO”) are wholly-owned portfolio companies
which consult, strategize, design, and implement technology solutions for enterprise and commercial clients across the U.S. On January 1, 2021, IPM and SIDCO became subsidiaries of NTS.
The Schedule of Investments shows IPM and SIDCO under NTS.
(26) 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.).
As of December 31, 2020, the federal tax cost of investments was $582,703,000 resulting in estimated gross unrealized gains and losses of $154,656,000 and $57,787,000, respectively.
F-157
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
% of Net
Assets
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
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 (#)
Term Loan
Prime plus 2.75%
12/31/2029
$
567.5 $
567.5 $
501.2
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
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%
12/31/2044
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
308.3
281.1
136.8
814.1
46.9
65.2
271346
0.16 %
0.10 %
0.09 %
0.04 %
0.25 %
0.01 %
0.02 %
0.08 %
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
4187 Pleasant Hill Rd, Duluth,
GA 30096
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
12/30/2029
275.0
275.0
264.9
0.08 %
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
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
12/30/2029
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-158
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)
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
(#)
(#)
(#)
Administrative and Support
Services
Administrative and Support
Services
Administrative and Support
Services
8712 60th Terrace South, Lake
Worth, FL 33467
25150 W Warren Ave, Dearborn
Heights, MI 48127
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
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 %
Term Loan
Prime plus 2.75%
12/27/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/27/2044
Telecommunications
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
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 %
% of Net
Assets
271346
11788 Sample Rd, Coral Springs,
FL 33065
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
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%
12/27/2044
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
142.5
242.9
112.5
515.3
142.5
242.9
112.5
515.3
157.4
229.6
101.3
454.3
0.05 %
0.07 %
0.03 %
0.14 %
Term Loan
Prime plus 2.75%
12/24/2029
134.2
134.2
137.4
0.04 %
Term Loan
Prime plus 2.75%
12/24/2029
7.5
7.5
6.6
— %
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
527.5
150.0
333.8
527.5
150.0
333.8
481.7
167.3
366.1
0.15 %
0.05 %
0.11 %
F-159
See accompanying notes to consolidated financial statements.
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.
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
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
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
(#)
(#)
Truck Transportation
Truck Transportation
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
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 Personal and Laundry Services
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
Miscellaneous Store Retailers
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Real Estate
Amusement, Gambling, and
Recreation Industries
Repair and Maintenance
Truck Transportation
Nonstore Retailers
Accommodation
Accommodation
Term Loan
Prime plus 2.75%
12/23/2029
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
12/20/2029
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
Term Loan
Prime plus 2.75%
12/20/2044
Term Loan
Prime plus 6.5%
12/20/2029
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
Term Loan
Prime plus 2.75%
12/19/2029
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
Term Loan
Prime plus 2.75%
12/19/2029
Term Loan
Prime plus 2.75%
12/18/2044
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
271346
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 %
— %
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-160
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 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
461 G St., Los Banos, CA 93635
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
Miscellaneous Manufacturing
Merchant Wholesalers,
Nondurable Goods
Construction of Buildings
Professional, Scientific, and
Technical Services
Educational Services
Professional, Scientific, and
Technical Services
Rental and Leasing Services
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
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
Term Loan
Prime plus 2.75%
12/16/2044
1,250.0
1,250.0
1,405.2
Term Loan
Prime plus 2.75%
12/16/2044
475.0
475.0
511.5
Term Loan
Prime plus 2.75%
12/16/2029
207.8
207.8
215.2
0.07 %
Term Loan
Prime plus 2.75%
12/13/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/13/2029
Prime plus 2.75%
12/13/2029
Term Loan
Prime plus 2.75%
12/13/2029
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
Term Loan
Prime plus 2.75%
12/13/2029
1,250.0
1,250.0
1,172.8
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
% of Net
Assets
271346
0.02 %
0.08 %
0.02 %
— %
0.11 %
0.44 %
0.16 %
— %
0.02 %
0.03 %
0.05 %
— %
0.36 %
0.08 %
0.02 %
0.04 %
0.37 %
0.01 %
0.03 %
F-161
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
% of Net
Assets
(#)
(#)
SBA Unguaranteed Accrual Investments (1) (22)
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
Clearwater Engineering Inc
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
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
301 N River St., Derby, KS
67037
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/11/2044
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/11/2029
300.0
41.5
300.0
41.5
337.3
36.7
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/11/2044
112.5
112.5
121.0
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/11/2029
Term Loan
Prime plus 2.75%
12/10/2029
Social Assistance
Term Loan
Prime plus 2.75%
12/10/2044
18.0
16.5
39.0
62.5
18.0
16.5
39.0
62.5
Repair and Maintenance
Nursing and Residential Care
Facilities
Truck Transportation
Fabricated Metal Product
Manufacturing
Heavy and Civil Engineering
Construction
Specialty Trade Contractors
Building Material and Garden
Equipment and Supplies Dealers
Nonstore Retailers
Administrative and Support
Services
Administrative and Support
Services
Management of Companies and
Enterprises
Food Services and Drinking
Places
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
12/10/2029
Term Loan
Prime plus 2.75%
12/9/2029
300.0
300.0
Term Loan
Prime plus 2.75%
12/6/2029
1,100.0
1,100.0
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2044
Term Loan
Prime plus 6.5%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
3/6/2030
Term Loan
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
12/5/2029
136.8
240.0
153.5
12.5
67.5
18.8
20.3
224.5
33.3
590.0
136.8
240.0
153.5
12.5
67.5
18.8
20.3
224.5
33.3
590.0
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
548.6
F-162
See accompanying notes to consolidated financial statements.
271346
0.10 %
0.01 %
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 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
Hurricane Group, Inc.dba Crate
Club Group
(#)
(#)
(#)
S&C Cookies, Inc
(#,^)
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
101 San Patricio Ave, Ste 860,
Guaynabo, PR 00968
1969 Jericho Turnpike, East
Northport, NY 11731
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
Food Manufacturing
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Real Estate
Merchant Wholesalers, Durable
Goods
Construction of Buildings
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/5/2029
Term Loan
Prime plus 6.5%
12/5/2029
Term Loan
Prime plus 2.75%
12/4/2029
Term Loan
Prime plus 2.75%
12/3/2029
Term Loan
Prime plus 2.75%
11/29/2029
Term Loan
Prime plus 2.75%
11/27/2029
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
Term Loan
Prime plus 2.75%
11/27/2029
464.6
464.6
427.2
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/27/2029
Term Loan
Prime plus 2.75%
11/26/2029
Term Loan
Prime plus 2.75%
11/26/2029
Term Loan
Prime plus 2.75%
11/26/2029
Term Loan
Prime plus 2.75%
11/26/2029
13.5
57.3
10.5
272.5
10.7
125.0
150.0
47.5
102.5
8.3
195.3
236.3
50.0
56.3
13.5
57.3
10.5
272.5
10.7
125.0
150.0
47.5
102.5
8.3
195.3
236.3
50.0
56.3
271346
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
44.1
49.7
0.04 %
0.01 %
0.03 %
— %
0.06 %
0.07 %
0.01 %
0.02 %
Truck Transportation
Term Loan
Prime plus 2.75%
11/25/2029
Other Information Services
Term Loan
Prime plus 2.75%
11/25/2029
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
11/22/2029
F-163
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
Ryan & Selena LLC dba Head of
the Class Learning Center
SSH Princeton LLC dba
Stumpy's Hatchet House of
Princeton
(#,^)
(#)
(#)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
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
290 Pratt St., Meriden, CT 06450
30 South Ivey Lane, Orlando, FL
32811
30 South Ivey Lane, Orlando, FL
32811
181 Shunpike Rd, Cromwell, CT
06416
1836 Kathleen Rd, Lakeland, FL
33805
Merchant Wholesalers,
Nondurable Goods
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Nonstore Retailers
Merchant Wholesalers,
Nondurable Goods
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
11/22/2029
Term Loan
Prime plus 2.75%
11/22/2044
Term Loan
Prime plus 2.75%
11/22/2029
Term Loan
Prime plus 2.75%
11/22/2029
Term Loan
Prime plus 2.75%
11/22/2029
187.5
434.7
236.2
122.5
19.2
187.5
434.7
236.2
122.5
19.2
165.3
433.0
225.5
113.1
18.4
Term Loan
Prime plus 2.75%
11/22/2044
1,344.7
1,344.7
1,458.1
Term Loan
Prime plus 2.75%
11/22/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/21/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Term Loan
Prime plus 2.75%
3/21/2030
Prime plus 2.75%
11/21/2029
Prime plus 2.75%
11/21/2029
Specialty Trade Contractors
Term Loan
Prime plus 6.5%
11/21/2029
Specialty Trade Contractors
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
11/21/2029
Term Loan
Prime plus 2.75%
11/20/2029
Construction of Buildings
Term Loan
Prime plus 2.75%
11/20/2029
Construction of Buildings
Term Loan
Prime plus 2.75%
11/20/2044
Social Assistance
Term Loan
Prime plus 2.75%
11/18/2029
Social Assistance
Term Loan
Prime plus 2.75%
11/18/2044
12.0
4.5
59.1
18.0
8.0
12.5
53.7
137.5
75.0
275.0
137.5
445.5
12.0
4.5
59.1
18.0
8.0
12.5
53.7
137.5
75.0
275.0
137.5
445.5
12.3
4.7
52.9
16.2
7.5
12.8
47.3
127.2
73.9
299.6
121.2
477.1
271346
0.05 %
0.13 %
0.07 %
0.04 %
0.01 %
0.45 %
— %
— %
0.02 %
0.01 %
— %
— %
0.01 %
0.04 %
0.02 %
0.09 %
0.04 %
0.15 %
745 Alexander Rd, Ste 1-3,
Princeton, NJ 08540
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
3/15/2030
91.0
91.0
80.4
0.02 %
F-164
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
271346
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
NJ Floats, Inc
James Richard Farkas Jr. dba Lil
Black Bear Inn
HH Wireless Connect LLC
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#)
(#,^)
(#)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
717 Oregon St., Oshkosh, WI
54902
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/15/2044
101.3
101.3
106.3
0.03 %
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
327 Rte 202/206, Bedminster
Township, NJ 07921
8072 State Rd 46 E, Nashville,
TN 47448
48267 Deer Trail Drive, Canton,
MI 48187
Administrative and Support
Services
Term Loan
Prime plus 2.75%
11/15/2044
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/15/2029
Social Assistance
Term Loan
Prime plus 6.5%
11/14/2029
Educational Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Professional, Scientific, and
Technical Services
Nonstore Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/14/2029
Term Loan
Prime plus 6.5%
11/14/2029
Term Loan
Prime plus 2.75%
11/14/2029
Term Loan
Prime plus 6.5%
11/14/2029
Term Loan
Prime plus 2.75%
2/14/2030
72.5
192.5
12.5
9.3
12.5
50.0
12.5
62.5
72.5
192.5
12.5
9.3
12.5
50.0
12.5
62.5
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%
11/12/2029
Gasoline Stations
Term Loan
Prime plus 2.75%
11/12/2029
Food Manufacturing
Term Loan
Prime plus 2.75%
11/12/2044
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/12/2029
Specialty Trade Contractors
Plastics and Rubber Products
Manufacturing
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
11/12/2044
Term Loan
Prime plus 2.75%
1/12/2030
Term Loan
Prime plus 2.75%
5/12/2045
Accommodation
Term Loan
Prime plus 2.75%
11/12/2044
Electronics and Appliance Stores
Term Loan
Prime plus 2.75%
11/12/2029
395.0
125.0
406.2
52.1
62.5
350.0
26.3
109.3
8.3
395.0
125.0
406.2
52.1
62.5
350.0
26.3
109.3
8.3
371.1
127.5
456.7
46.2
70.3
330.8
29.5
115.5
7.3
0.02 %
0.06 %
— %
— %
— %
0.02 %
— %
0.02 %
0.16 %
0.12 %
0.04 %
0.14 %
0.01 %
0.02 %
0.10 %
0.01 %
0.04 %
— %
F-165
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)
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.
Maine Service Corp
Guru Kirpa, Inc
MJ Group, Inc
Dub Industries LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
11/8/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/8/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/8/2044
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%
11/7/2044
Term Loan
Prime plus 2.75%
11/7/2029
Term Loan
Prime plus 2.75%
11/7/2029
Term Loan
Prime plus 6.5%
11/7/2029
80.0
21.6
50.0
393.8
6.3
856.3
12.5
80.0
21.6
50.0
393.8
6.3
856.3
12.5
71.0
19.1
54.4
431.5
6.3
764.8
12.8
Accommodation
Term Loan
Prime plus 2.75%
11/7/2044
1,150.0
1,150.0
1,292.8
0.40 %
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
249.1
232.4
249.1
232.4
903.8
219.8
257.9
Fishing, Hunting and Trapping
Term Loan
Prime plus 2.75%
10/31/2044
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
Food Services and Drinking
Places
Merchant Wholesalers, Durable
Goods
Gasoline Stations
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/31/2044
Term Loan
Prime plus 2.75%
10/31/2044
Term Loan
Prime plus 2.75%
10/31/2029
Term Loan
Prime plus 2.75%
10/31/2044
Term Loan
Prime plus 2.75%
10/31/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
10/31/2029
139.2
297.2
67.1
137.3
124.9
124.3
195.3
21.2
70.6
139.2
297.2
67.1
137.3
124.9
124.3
195.3
21.2
70.6
127.5
322.0
70.5
149.9
137.9
130.6
206.0
18.8
68.0
F-166
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
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 %
0.04 %
0.06 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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 (#,^)
Perisseia Physicians LLC
Diamond Solutions LLC
Four Ace Electrical Services
Corporation
(#,^)
(#,^)
(#,^)
Landmark Ventures USA, Inc
(#,^)
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
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
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
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
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
116.9
111.9
15.7
277.2
174.0
243.6
55.9
116.9
111.9
15.7
277.2
174.0
243.6
55.9
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
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
10/30/2044
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
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/28/2044
Machinery Manufacturing
Term Loan
Prime plus 2.75%
10/25/2029
Term Loan
Prime plus 2.75%
10/25/2029
Specialty Trade Contractors
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
F-167
See accompanying notes to consolidated financial statements.
89.9
157.4
64.6
211.3
7.9
155.9
74.6
399.4
12.7
11.9
89.9
157.4
64.6
211.3
7.9
155.9
74.6
399.4
12.7
11.9
101.1
138.9
57.9
186.3
7.5
156.5
65.8
419.2
11.2
10.7
Term Loan
Prime plus 2.75%
10/25/2029
104.4
104.4
92.1
0.03 %
271346
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 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
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
(#)
(#)
(#)
(#,^)
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
1364 E Palma Vista Drive,
Palmview, TX 78572
19 Scudder Ave, Northport, NY
11768
107 Tabernacle Church Rd,
Candor, NC 27229
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
10/25/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
10/25/2029
Prime plus 2.75%
12/25/2029
Prime plus 2.75%
11/25/2029
Prime plus 2.75%
10/24/2029
Prime plus 2.75%
10/23/2029
Repair and Maintenance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
10/22/2029
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%
10/16/2029
Machinery Manufacturing
Fabricated Metal Product
Manufacturing
Motor Vehicle and Parts Dealers
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 6.5%
10/16/2029
Term Loan
Prime plus 2.75%
10/15/2029
Term Loan
Prime plus 6.5%
10/11/2029
Term Loan
Prime plus 2.75%
7/11/2030
General Merchandise Stores
Term Loan
Prime plus 6.5%
10/11/2029
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
12.5
91.0
12.4
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
12.5
91.0
12.4
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
12.8
90.8
12.7
271346
0.03 %
0.03 %
0.01 %
0.01 %
0.01 %
0.01 %
— %
— %
0.12 %
0.01 %
0.08 %
0.15 %
— %
— %
0.01 %
— %
0.03 %
— %
5604 Slide Rd, Lubbock, TX
79414
Personal and Laundry Services
Term Loan
Prime plus 2.75%
10/11/2029
155.4
155.4
139.1
0.04 %
F-168
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)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
725 Atlantic Blvd, Atlantic
Beach, FL 32233
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
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
10/8/2029
176.5
176.5
177.5
0.06 %
Couriers and Messengers
Term Loan
Prime plus 2.75%
10/4/2029
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/30/2029
Prime plus 2.75%
9/30/2029
Social Assistance
Term Loan
Prime plus 2.75%
9/30/2044
Rental and Leasing Services
Term Loan
Prime plus 2.75%
9/30/2029
16.4
65.5
81.6
179.6
257.1
16.4
65.5
81.6
179.6
257.1
14.7
57.9
80.6
194.6
241.9
Term Loan
Prime plus 2.75%
9/30/2044
623.5
623.5
656.8
Term Loan
Prime plus 2.75%
9/30/2029
1,226.1
1,226.1
1,114.6
Term Loan
Prime plus 2.75%
9/30/2044
1,014.1
1,014.1
1,140.1
Term Loan
Prime plus 2.75%
9/30/2044
422.8
422.8
463.2
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%
9/30/2029
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
9/30/2044
Term Loan
Prime plus 2.75%
9/30/2029
Social Assistance
Term Loan
Prime plus 2.75%
9/30/2029
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/30/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/30/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2044
Nonstore Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/27/2029
Term Loan
Prime plus 2.75%
9/27/2029
F-169
See accompanying notes to consolidated financial statements.
76.6
49.4
213.3
222.5
186.8
9.3
775.0
586.1
710.8
18.5
62.3
76.6
49.4
213.3
222.5
186.8
9.3
775.0
586.1
710.8
18.5
62.3
68.4
46.1
232.8
197.7
165.3
8.2
803.1
604.1
744.4
16.4
65.4
% of Net
Assets
271346
— %
0.02 %
0.02 %
0.06 %
0.08 %
0.20 %
0.35 %
0.35 %
0.14 %
0.02 %
0.01 %
0.07 %
0.06 %
0.05 %
— %
0.25 %
0.19 %
0.23 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#)
(#)
(#,^)
(#,^)
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
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
Miscellaneous Manufacturing
Food Services and Drinking
Places
Furniture and Related Product
Manufacturing
Data Processing, Hosting, and
Related Services
Construction of Buildings
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Amusement, Gambling, and
Recreation Industries
Heavy and Civil Engineering
Construction
Real Estate
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Support Activities for Mining
Term Loan
Prime plus 2.75%
9/27/2029
1,013.5
1,013.5
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/27/2029
Specialty Trade Contractors
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/27/2029
Term Loan
Prime plus 2.75%
9/27/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2029
Term Loan
Prime plus 2.75%
9/27/2044
Term Loan
Prime plus 2.75%
9/27/2044
Term Loan
Prime plus 2.75%
9/26/2029
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
953.1
485.9
607.0
44.8
16.5
175.0
491.1
115.7
450.1
Term Loan
Prime plus 2.75%
9/26/2029
1,236.0
1,236.0
1,157.7
Term Loan
Prime plus 2.75%
9/26/2029
Term Loan
Prime plus 2.75%
9/25/2029
Term Loan
Prime plus 2.75%
9/25/2044
Term Loan
Prime plus 2.75%
9/25/2029
Term Loan
Prime plus 2.75%
9/25/2029
Term Loan
Prime plus 2.75%
9/24/2029
Term Loan
Prime plus 2.75%
9/20/2044
Term Loan
Prime plus 6.5%
9/19/2029
Term Loan
Prime plus 6.5%
9/18/2029
68.2
22.2
53.4
111.7
67.1
201.5
157.6
12.4
12.4
68.2
22.2
53.4
111.7
67.1
201.5
157.6
12.4
12.4
62.4
22.5
54.1
100.3
70.4
190.6
177.0
12.6
12.6
Term Loan
Prime plus 2.75%
9/18/2044
521.0
521.0
545.4
0.17 %
876 Virginia Ave, Hapeville, GA
30354
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/17/2029
11.9
11.9
10.5
— %
F-170
See accompanying notes to consolidated financial statements.
271346
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 %
0.05 %
— %
— %
% of Net
Assets
271346
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)
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
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
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
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
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
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/17/2029
7.4
7.4
6.8
— %
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%
9/16/2029
Term Loan
Prime plus 2.75%
9/13/2044
Term Loan
Prime plus 2.75%
2/12/2045
Term Loan
Prime plus 2.75%
9/12/2029
Term Loan
Prime plus 2.75%
9/12/2029
Term Loan
Prime plus 2.75%
9/12/2044
Term Loan
Prime plus 2.75%
9/11/2029
Rental and Leasing Services
Term Loan
Prime plus 2.75%
9/11/2029
Ambulatory Health Care Services Term Loan
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
9/11/2029
Prime plus 2.75%
9/11/2029
Real Estate
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/11/2044
Term Loan
Prime plus 6.5%
9/11/2029
Term Loan
Prime plus 2.75%
9/6/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/5/2029
Specialty Trade Contractors
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/5/2029
Term Loan
Prime plus 2.75%
9/5/2029
Term Loan
Prime plus 2.75%
9/5/2029
Term Loan
Prime plus 2.75%
8/30/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
8/30/2029
F-171
See accompanying notes to consolidated financial statements.
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
44.5
65.8
75.4
65.5
61.8
8.1
12.2
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
44.5
65.8
75.4
65.5
61.8
8.1
12.2
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
39.8
57.9
74.4
58.6
54.7
7.2
12.4
0.01 %
0.01 %
0.19 %
0.03 %
0.05 %
0.01 %
0.01 %
0.03 %
— %
0.08 %
0.06 %
0.09 %
— %
0.01 %
0.02 %
0.02 %
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
% of Net
Assets
Scenic and Sightseeing
Transportation
Real Estate
Food Services and Drinking
Places
Food and Beverage Stores
Amusement, Gambling, and
Recreation Industries
Food and Beverage Stores
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
SBA Unguaranteed Accrual Investments (1) (22)
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
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.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
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
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
2-4 Commerce Way, Auburn, NY
13021
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 2.75%
8/29/2029
Term Loan
Prime plus 2.75%
1/29/2030
Term Loan
Prime plus 2.75%
8/29/2029
12.3
14.7
87.5
50.4
12.3
14.7
87.5
50.4
12.5
13.5
91.4
49.0
Term Loan
Prime plus 2.75%
8/29/2044
942.4
942.4
1,010.2
Term Loan
Prime plus 2.75%
8/29/2029
Term Loan
Prime plus 2.75%
8/29/2044
Term Loan
Prime plus 2.75%
8/29/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/28/2029
Nonstore Retailers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/28/2029
Term Loan
Prime plus 2.75%
8/28/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/28/2029
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
Couriers and Messengers
Term Loan
Prime plus 2.75%
8/28/2029
444.2
444.2
407.5
0.13 %
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/27/2029
Ambulatory Health Care Services Term Loan
Merchant Wholesalers,
Nondurable Goods
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
8/27/2044
Prime plus 2.75%
8/26/2029
Prime plus 6.5%
8/26/2029
Food Manufacturing
Term Loan
Prime plus 2.75%
8/23/2029
Truck Transportation
Term Loan
Prime plus 2.75%
8/23/2029
F-172
See accompanying notes to consolidated financial statements.
96.0
46.0
22.1
3.2
20.6
49.2
96.0
46.0
22.1
3.2
20.6
49.2
90.2
49.9
19.5
3.2
18.2
51.6
0.03 %
0.02 %
0.01 %
— %
0.01 %
0.02 %
271346
— %
— %
0.03 %
0.02 %
0.31 %
0.01 %
0.03 %
0.10 %
0.03 %
0.07 %
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)
% of Net
Assets
271346
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#)
1046-1050 Orange Ave, West
Haven, CT 06516
8358 W Oakland Park Blvd.
#203E, Sunrise, FL 33351
106 S Washington St.,
Pleasantville, IA 50225
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
8/23/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/23/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/23/2029
1157 Main St., Clifton, NJ 07011 Ambulatory Health Care Services Term Loan
Prime plus 2.75%
8/22/2029
Food Services and Drinking
Places
Administrative and Support
Services
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 Motor Vehicle and Parts Dealers
14101 Main St., Ste 4101,
Hesperia, CA 92345
2066 Route 112, Medford, NY
11763
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/22/2029
Term Loan
Prime plus 2.75%
8/21/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
8/21/2029
8/20/2044
Term Loan
Prime plus 2.75%
12/20/2029
Term Loan
Prime plus 2.75%
8/19/2029
7748 Troost Ave, Kansas City,
MO 64131
5951 NW 151 St., Hialeah, FL
33014
6704 Main St., Miami Lakes, FL
33014
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/15/2029
Nonstore Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/15/2029
Term Loan
Prime plus 2.75%
2/15/2030
Educational Services
Term Loan
Prime plus 2.75%
8/14/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/13/2029
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Food and Beverage Stores
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/12/2029
Term Loan
Prime plus 2.75%
3/9/2030
Term Loan
Prime plus 2.75%
8/8/2029
Term Loan
Prime plus 2.75%
8/7/2029
Term Loan
Prime plus 6.5%
8/7/2029
F-173
See accompanying notes to consolidated financial statements.
86.0
11.1
7.4
73.0
17.8
91.1
190.5
12.3
22.5
165.9
110.6
104.5
24.6
17.0
14.7
76.2
99.6
19.2
18.4
12.3
86.0
11.1
7.4
73.0
17.8
91.1
190.5
12.3
22.5
165.9
110.6
104.5
24.6
17.0
14.7
76.2
99.6
19.2
18.4
12.3
90.3
0.03 %
9.9
6.7
68.8
18.4
94.3
185.1
13.8
20.2
174.1
105.9
96.6
22.7
15.0
13.0
67.3
94.6
17.0
16.3
12.5
— %
— %
0.02 %
0.01 %
0.03 %
0.06 %
— %
0.01 %
0.05 %
0.03 %
0.03 %
0.01 %
— %
— %
0.02 %
0.03 %
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)
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
8/2/2029
Term Loan
Prime plus 2.75%
8/2/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/31/2044
7.4
123.0
323.6
7.4
123.0
323.6
6.5
129.0
334.9
Air Transportation
Term Loan
Prime plus 2.75%
7/31/2029
562.2
562.2
516.2
0.16 %
% of Net
Assets
271346
— %
0.04 %
0.10 %
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
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
(#,^)
(#,^)
(#,^)
82555 Grass Flat Lane, Indio, CA
92203
695 Independence DrIive,
Napoleon, OH 43545
632 N Broadway, Amityville, NY
11701
27603 Parkway Rd, Easton, MD
21601
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
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
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
7/31/2029
Ambulatory Health Care Services Term Loan
Merchant Wholesalers,
Nondurable Goods
Clothing and Clothing
Accessories Stores
Term Loan
Term Loan
Prime plus 2.75%
7/31/2029
Prime plus 2.75%
7/31/2029
Prime plus 2.75%
7/31/2029
Social Assistance
Term Loan
Prime plus 2.75%
7/31/2044
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2029
Term Loan
Prime plus 2.75%
1/31/2030
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2029
Prime plus 2.75%
7/31/2029
Mining (except Oil and Gas)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/31/2044
Term Loan
Prime plus 2.75%
7/30/2029
Nonstore Retailers
Term Loan
Prime plus 6.5%
7/30/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
7/30/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/30/2029
433.9
132.2
753.2
8.0
97.8
11.1
134.3
73.3
249.3
448.8
19.1
12.3
210.7
8.1
56.0
785.5
433.9
132.2
753.2
8.0
97.8
11.1
134.3
73.3
249.3
448.8
19.1
12.3
210.7
8.1
56.0
785.5
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
437.8
17.0
12.5
— %
0.04 %
0.02 %
0.07 %
0.14 %
0.01 %
— %
190.4
0.06 %
7.4
— %
61.8
812.0
0.02 %
0.25 %
288 North Industrial Park Drive,
Liberty, MS 39645
9027 Canoga Ave, Canoga Park,
CA 91301
Apparel Manufacturing
Transportation Equipment
Manufacturing
Term Loan
Prime plus 2.75%
7/30/2044
Term Loan
Prime plus 2.75%
7/30/2044
F-174
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
611 Greenville Blvd SE,
Greenville, NC 27858
E 2947 H-44, Traunik, MI 49891
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
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
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
10/30/2029
Gasoline Stations
Term Loan
Prime plus 2.75%
7/29/2044
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/26/2029
Prime plus 2.75%
7/26/2029
Real Estate
Amusement, Gambling, and
Recreation Industries
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
Term Loan
Prime plus 2.75%
7/26/2029
Term Loan
Prime plus 2.75%
7/26/2044
Term Loan
Prime plus 2.75%
7/25/2029
Term Loan
Prime plus 2.75%
7/24/2044
Term Loan
Prime plus 6.5%
7/19/2029
Term Loan
Prime plus 2.75%
7/19/2029
Term Loan
Prime plus 2.75%
7/19/2029
Educational Services
Term Loan
Prime plus 2.75%
7/18/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/18/2029
Primary Metal Manufacturing
Food Services and Drinking
Places
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
7/18/2029
Term Loan
Prime plus 6.5%
7/17/2029
Term Loan
Prime plus 2.75%
7/17/2044
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/16/2044
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
7/16/2044
Term Loan
Prime plus 2.75%
7/16/2044
Term Loan
Prime plus 2.75%
7/12/2029
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
7/12/2044
F-175
See accompanying notes to consolidated financial statements.
15.2
54.4
8.9
5.8
14.7
407.1
53.0
99.6
9.8
15.4
7.3
8.1
204.6
116.1
12.3
291.2
993.7
299.9
132.4
68.4
324.8
15.2
54.4
8.9
5.8
14.7
407.1
53.0
99.6
9.8
15.4
7.3
8.1
204.6
116.1
12.3
291.2
993.7
299.9
132.4
68.4
324.8
14.4
59.4
9.1
5.5
12.9
457.2
55.6
109.9
10.0
13.9
6.5
7.3
194.5
121.8
12.5
308.2
1,036.1
308.9
142.7
65.6
364.8
271346
— %
0.02 %
— %
— %
— %
0.14 %
0.02 %
0.03 %
— %
— %
— %
— %
0.06 %
0.04 %
— %
0.10 %
0.32 %
0.10 %
0.04 %
0.02 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
7/11/2044
101.1
101.1
105.8
Couriers and Messengers
Term Loan
Prime plus 2.75%
7/10/2029
Ambulatory Health Care Services Term Loan
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 6.5%
7/10/2029
Prime plus 2.75%
7/2/2029
77.5
12.3
14.5
77.5
12.3
14.5
69.6
12.5
12.8
Truck Transportation
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/28/2029
166.5
166.5
163.8
Term Loan
Prime plus 2.75%
6/28/2044
1,245.5
1,245.5
1,278.8
Apparel Manufacturing
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2029
48.7
7.3
48.7
7.3
42.3
6.3
Crop Production
Term Loan
Prime plus 2.75%
6/28/2044
536.1
536.1
570.2
Prime plus 2.75%
6/28/2029
1,241.9
1,241.9
1,149.5
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Fabricated Metal Product
Manufacturing
Term Loan
Term Loan
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Clothing and Clothing
Accessories Stores
Computer and Electronic Product
Manufacturing
Term Loan
Term Loan
Term Loan
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Term Loan
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2029
Prime plus 2.75%
6/28/2029
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2029
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2044
Prime plus 2.75%
6/28/2044
Educational Services
Term Loan
Prime plus 2.75%
6/28/2029
F-176
See accompanying notes to consolidated financial statements.
134.3
206.6
14.6
203.1
93.0
903.8
175.0
348.1
248.6
45.9
134.3
206.6
14.6
203.1
93.0
903.8
175.0
348.1
248.6
45.9
146.6
215.5
12.7
215.2
81.6
933.7
195.2
345.9
256.7
40.5
271346
0.03 %
0.02 %
— %
— %
0.05 %
0.40 %
0.01 %
— %
0.18 %
0.36 %
0.05 %
0.07 %
— %
0.07 %
0.03 %
0.29 %
0.06 %
0.11 %
0.08 %
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)
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
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Nonstore Retailers
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
Merchant Wholesalers,
Nondurable Goods
Administrative and Support
Services
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
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
145 Moon Rd, Chesapeake City,
MD 21915
1327 Wood Branch Drive,
Charlotte, NC 28273
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
Term Loan
Prime plus 2.75%
6/28/2029
Term Loan
Prime plus 2.75%
6/28/2029
267.4
146.1
267.4
146.1
232.4
127.0
Term Loan
Prime plus 2.75%
6/28/2029
1,154.3
1,154.3
1,090.0
Term Loan
Prime plus 2.75%
6/27/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
6/28/2044
6/27/2029
Term Loan
Prime plus 2.75%
6/27/2029
116.9
757.5
110.1
47.4
116.9
757.5
110.1
47.4
Term Loan
Prime plus 2.75%
6/27/2029
1,144.7
1,144.7
102.0
814.0
98.8
41.2
994.9
8.9
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/27/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/27/2029
10.2
206.6
10.2
206.6
215.4
0.07 %
Term Loan
Prime plus 2.75%
6/27/2029
1,220.1
1,220.1
1,185.3
Term Loan
Prime plus 2.75%
6/27/2029
Term Loan
Prime plus 2.75%
6/27/2044
Term Loan
Prime plus 2.75%
2/27/2030
Paper Manufacturing
Term Loan
Prime plus 2.75%
12/26/2029
Paper Manufacturing
Term Loan
Prime plus 2.75%
6/26/2044
Truck Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/26/2029
Term Loan
Prime plus 2.75%
6/26/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/26/2029
Social Assistance
Term Loan
Prime plus 2.75%
6/26/2044
F-177
See accompanying notes to consolidated financial statements.
340.3
200.3
131.6
113.3
233.8
53.0
21.9
243.2
146.7
340.3
200.3
131.6
113.3
233.8
53.0
21.9
243.2
146.7
305.9
223.8
118.7
118.5
261.2
48.7
19.1
225.7
148.2
% of Net
Assets
271346
0.07 %
0.04 %
0.34 %
0.03 %
0.25 %
0.03 %
0.01 %
0.31 %
— %
0.37 %
0.09 %
0.07 %
0.04 %
0.04 %
0.08 %
0.02 %
0.01 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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.
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
(#)
(#,^)
(#)
(#,^)
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
125 Venture Blvd, Spartanburg,
SC 29306
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
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
Transit and Ground Passenger
Transportation
Support Activities for Mining
Support Activities for
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/26/2029
Term Loan
Prime plus 2.75%
6/26/2044
Term Loan
Prime plus 2.75%
6/26/2029
Term Loan
Prime plus 2.75%
6/26/2044
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/26/2029
Repair and Maintenance
Rental and Leasing Services
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
6/25/2029
6/25/2029
Term Loan
Prime plus 2.75%
6/25/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/25/2044
Repair and Maintenance
Support Activities for
Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/25/2044
Term Loan
Prime plus 2.75%
6/25/2029
Term Loan
Prime plus 2.75%
6/25/2029
Food Manufacturing
Term Loan
Prime plus 2.75%
6/24/2044
Food Manufacturing
Term Loan
Prime plus 2.75%
6/24/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/24/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/21/2029
Educational Services
Term Loan
Prime plus 2.75%
6/21/2029
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
Prime plus 6.5%
6/21/2029
Term Loan
Prime plus 2.75%
6/21/2029
Food Manufacturing
Term Loan
Prime plus 2.75%
4/21/2045
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/21/2044
F-178
See accompanying notes to consolidated financial statements.
105.2
574.0
393.5
75.6
70.5
103.5
42.4
485.8
138.7
73.1
48.6
141.0
189.7
12.5
15.8
18.8
5.1
12.3
58.2
76.9
87.0
105.2
574.0
393.5
75.6
70.5
103.5
42.4
485.8
138.7
73.1
48.6
141.0
189.7
12.5
15.8
18.8
5.1
12.3
58.2
76.9
87.0
271346
0.03 %
0.20 %
0.12 %
0.03 %
0.02 %
0.03 %
0.01 %
0.16 %
0.05 %
0.03 %
0.01 %
0.04 %
0.06 %
— %
— %
0.01 %
— %
— %
0.02 %
0.03 %
0.03 %
95.0
641.2
376.0
81.4
66.1
99.8
39.6
500.2
145.1
81.7
44.0
122.5
202.4
10.9
13.9
17.6
4.6
12.2
50.6
85.8
82.5
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)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
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
3981 E Dunrobin Dr., Springfield,
MO 65809
3830 Doctor M.L.K. Jr Blvd,
Anderson, IN 46013
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
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/21/2029
Truck Transportation
Animal Production and
Aquaculture
Administrative and Support
Services
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
6/21/2029
Term Loan
Prime plus 6.5%
6/20/2029
Term Loan
Prime plus 2.75%
6/20/2029
Term Loan
Prime plus 2.75%
6/19/2044
Term Loan
Prime plus 2.75%
6/19/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/19/2044
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
6/19/2029
Educational Services
Term Loan
Prime plus 2.75%
6/19/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/17/2029
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
6/17/2029
Term Loan
Prime plus 2.75%
6/17/2029
Term Loan
Prime plus 2.75%
6/14/2044
Food Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/14/2029
Term Loan
Prime plus 2.75%
6/14/2044
Term Loan
Prime plus 2.75%
11/14/2029
Term Loan
Prime plus 6.5%
6/13/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/12/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/11/2044
Truck Transportation
Term Loan
Prime plus 2.75%
6/11/2029
F-179
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
7.3
701.8
12.2
85.6
69.6
7.3
60.4
263.4
291.7
12.2
182.3
19.2
87.0
301.6
44.8
104.1
4.9
218.8
98.8
243.5
7.3
701.8
12.2
85.6
69.6
7.3
60.4
263.4
291.7
12.2
182.3
19.2
87.0
301.6
44.8
104.1
4.9
218.8
98.8
243.5
7.3
— %
609.9
0.19 %
12.1
74.4
75.0
7.6
62.9
265.0
253.5
12.2
190.1
16.7
94.2
281.3
48.0
93.5
4.9
218.9
106.3
218.7
— %
0.02 %
0.02 %
— %
0.02 %
0.08 %
0.08 %
— %
0.06 %
0.01 %
0.03 %
0.09 %
0.01 %
0.03 %
— %
0.07 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
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
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
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/11/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/10/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/10/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/10/2029
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/7/2044
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/7/2029
Merchant Wholesalers, Durable
Goods
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/7/2029
Term Loan
Prime plus 2.75%
6/7/2044
Term Loan
Prime plus 6.5%
6/6/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/6/2029
Nonstore Retailers
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%
6/5/2029
Term Loan
Prime plus 2.75%
6/5/2029
Term Loan
Prime plus 2.75%
6/5/2044
Term Loan
Prime plus 2.75%
6/4/2029
Term Loan
Prime plus 2.75%
6/3/2029
Term Loan
Prime plus 2.75%
5/31/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/31/2029
Truck Transportation
Term Loan
Prime plus 2.75%
5/31/2029
F-180
See accompanying notes to consolidated financial statements.
74.5
198.6
12.2
80.2
240.6
10.2
38.9
100.7
12.2
5.1
66.2
461.8
69.3
74.5
198.6
12.2
80.2
240.6
10.2
38.9
100.7
12.2
5.1
66.2
461.8
69.3
65.7
187.4
12.1
72.8
255.7
10.5
35.8
106.2
12.1
4.4
62.4
481.6
72.1
85.1
7.3
60.4
113.6
12.8
85.1
7.3
60.4
113.6
12.8
74.8
6.3
52.9
101.3
11.1
271346
0.02 %
0.06 %
— %
0.02 %
0.08 %
— %
0.01 %
0.03 %
— %
— %
0.02 %
0.15 %
0.02 %
0.10 %
0.02 %
— %
0.02 %
0.03 %
— %
Term Loan
Prime plus 2.75%
6/4/2029
303.8
303.8
306.5
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
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
46 Cherry St., Milton, VT 05468
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
Merchant Wholesalers, Durable
Goods
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Fabricated Metal Product
Manufacturing
Chemical Manufacturing
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/31/2029
Term Loan
Prime plus 2.75%
5/31/2029
Term Loan
Prime plus 2.75%
5/30/2029
Term Loan
Prime plus 2.75%
5/30/2044
Term Loan
Prime plus 2.75%
5/30/2044
Term Loan
Prime plus 2.75%
5/29/2044
Term Loan
Prime plus 2.75%
5/29/2029
Term Loan
Prime plus 2.75%
5/29/2029
Term Loan
Prime plus 2.75%
5/28/2044
Term Loan
Prime plus 2.75%
8/24/2029
Term Loan
Term Loan
Prime plus 6.5%
Prime plus 2.75%
5/23/2029
5/23/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/23/2029
Truck Transportation
Term Loan
Prime plus 6.5%
5/23/2029
Machinery Manufacturing
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Miscellaneous Manufacturing
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
5/23/2044
Term Loan
Prime plus 2.75%
5/22/2029
Term Loan
Prime plus 2.75%
5/22/2029
Term Loan
Prime plus 2.75%
5/22/2029
Term Loan
Prime plus 2.75%
5/21/2029
Accommodation
Term Loan
Prime plus 2.75%
5/17/2029
Nonstore Retailers
Term Loan
Prime plus 2.75%
5/17/2029
F-181
See accompanying notes to consolidated financial statements.
48.3
60.4
96.8
406.8
422.2
781.2
4.8
114.8
48.7
89.5
9.8
118.9
43.0
12.1
306.3
108.8
72.5
14.5
19.6
247.6
234.9
48.3
60.4
96.8
406.8
422.2
781.2
4.8
114.8
48.7
89.5
9.8
118.9
43.0
12.1
306.3
108.8
72.5
14.5
19.6
247.6
234.9
271346
0.02 %
0.02 %
0.03 %
0.13 %
0.14 %
0.27 %
— %
0.03 %
0.02 %
0.02 %
— %
0.03 %
0.01 %
— %
0.10 %
0.03 %
0.02 %
— %
0.01 %
0.08 %
0.07 %
49.3
53.0
84.7
432.0
465.1
856.3
4.5
103.9
51.8
77.9
9.7
106.6
44.9
12.0
325.4
95.4
63.1
12.8
18.3
258.2
223.0
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
SBA Unguaranteed Accrual Investments (1) (22)
FibAire Communications, LLC
Dba AireBeam
Kappa Investments LLC dba
Buddy's Home Furnishings
(#,^)
(#,^)
13589 S. Sunland Gin Rd,
Arizona City, AZ 85123
365 Lowe's Drive Ste H,
Danville, VA 24540
1030 Gettysburg Ave, Clovis, CA
93161
Telecommunications
Term Loan
Prime plus 2.75%
5/17/2029
Rental and Leasing Services
Term Loan
Prime plus 2.75%
5/17/2029
Truck Transportation
Term Loan
Prime plus 2.75%
5/16/2029
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
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
(#,^)
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
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
Accommodation
Food Services and Drinking
Places
Educational Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
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
Educational Services
Beverage and Tobacco Product
Manufacturing
Ambulatory Health Care Services
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/16/2029
Term Loan
Prime plus 2.75%
5/10/2044
53.7
419.3
252.1
18.1
3.3
85.8
48.3
43.5
53.7
419.3
252.1
18.1
3.3
85.8
48.3
43.5
51.1
366.0
219.1
18.9
3.0
76.3
42.6
46.8
Term Loan
Prime plus 2.75%
5/10/2044
367.1
367.1
396.7
Term Loan
Prime plus 6.5%
5/9/2029
Term Loan
Prime plus 2.75%
11/9/2029
Term Loan
Prime plus 2.75%
5/8/2044
Term Loan
Prime plus 2.75%
5/6/2029
Term Loan
Prime plus 6.5%
5/6/2029
Term Loan
Prime plus 2.75%
5/3/2029
Term Loan
Prime plus 2.75%
5/3/2029
Term Loan
Prime plus 2.75%
5/3/2029
9.9
14.9
20.9
5.0
12.2
20.2
20.6
5.4
9.9
14.9
20.9
5.0
12.2
20.2
20.6
5.4
9.8
13.0
21.2
4.3
12.1
17.5
18.9
4.7
Term Loan
Prime plus 2.75%
5/3/2044
105.6
105.6
117.8
0.04 %
Term Loan
Prime plus 2.75%
5/3/2029
5.9
5.9
5.3
— %
Term Loan
Prime plus 2.75%
5/1/2029
302.1
302.1
296.8
0.09 %
271346
0.02 %
0.11 %
0.07 %
0.01 %
— %
0.02 %
0.01 %
0.01 %
0.12 %
— %
— %
0.01 %
— %
— %
0.01 %
0.01 %
— %
F-182
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
271346
1619 Malon Bay Drive, Orlando,
FL 32828
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
4/30/2029
4.3
4.3
4.3
— %
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.
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
(#,^)
(#)
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
15105 John J Delaney Dr. #D
170, Charlotte, NC 28277
196 N. Holiday Rd, Miramar
Beach, FL 32550
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
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Support Activities for
Transportation
Telecommunications
Administrative and Support
Services
Nonstore Retailers
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Clothing and Clothing
Accessories Stores
Term Loan
Prime plus 2.75%
9/30/2029
Term Loan
Prime plus 2.75%
4/29/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/26/2029
Term Loan
Prime plus 2.75%
4/25/2029
Term Loan
Prime plus 6.5%
4/25/2029
61.8
38.4
121.6
158.6
75.7
234.7
140.6
4.8
61.8
38.4
121.6
158.6
75.7
234.7
140.6
4.8
61.3
40.1
111.7
146.3
65.8
221.3
146.6
4.8
0.02 %
0.01 %
0.03 %
0.05 %
0.02 %
0.07 %
0.05 %
— %
Term Loan
Prime plus 2.75%
4/25/2044
467.7
467.7
509.3
0.16 %
Term Loan
Prime plus 2.75%
4/25/2029
480.5
480.5
440.7
0.14 %
Term Loan
Prime plus 2.75%
4/24/2029
Social Assistance
Term Loan
Prime plus 2.75%
4/24/2029
Ambulatory Health Care Services
Merchant Wholesalers,
Nondurable Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/19/2029
Term Loan
Prime plus 2.75%
4/19/2029
Term Loan
Prime plus 2.75%
4/17/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
4/17/2029
Food and Beverage Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/17/2029
Term Loan
Prime plus 6.5%
4/17/2029
F-183
See accompanying notes to consolidated financial statements.
3.1
52.9
46.5
60.1
19.6
5.8
123.7
12.1
3.1
52.9
46.5
60.1
19.6
5.8
123.7
12.1
2.7
49.7
40.9
54.3
17.0
5.8
109.5
12.0
— %
0.02 %
0.01 %
0.02 %
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)
10161 W Park Run Drive, Las
Vegas, NV 89145
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/17/2029
120.1
120.1
105.9
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Specialty Trade Contractors
Real Estate
Food Services and Drinking
Places
2300 Levit Rd, Lorain, OH 44052 Food and Beverage Stores
Fabricated Metal Product
1205 38th Ave North, Myrtle
Manufacturing
Beach, SC 29577
Performing Arts, Spectator
8728 Tireman Ave, Detroit, MI
Sports, and Related Industries
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
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
Specialty Trade Contractors
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Wood Product Manufacturing
Specialty Trade Contractors
Food and Beverage Stores
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
Amusement, Gambling, and
Recreation Industries
Administrative and Support
Services
% of Net
Assets
271346
0.03 %
0.02 %
0.01 %
— %
Term Loan
Prime plus 2.75%
4/16/2044
Term Loan
Prime plus 2.75%
4/16/2029
Term Loan
Prime plus 2.75%
4/12/2029
46.9
21.6
8.7
46.9
21.6
8.7
48.5
19.1
7.5
Term Loan
Prime plus 2.75%
4/12/2029
106.9
106.9
103.6
0.03 %
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
9/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/12/2029
Term Loan
Prime plus 2.75%
4/11/2029
Term Loan
Prime plus 2.75%
4/10/2029
Term Loan
Prime plus 2.75%
4/9/2029
9.4
76.0
19.7
95.5
42.3
8.7
122.3
60.1
131.0
12.3
9.4
76.0
19.7
95.5
42.3
8.7
122.3
60.1
131.0
12.3
8.1
67.9
17.2
83.0
38.1
7.5
106.6
62.6
113.8
11.1
— %
0.02 %
0.01 %
0.03 %
0.01 %
— %
0.03 %
0.02 %
0.04 %
— %
Term Loan
Prime plus 2.75%
1/8/2030
575.0
575.0
583.3
0.18 %
Gasoline Stations
Term Loan
Prime plus 2.75%
4/5/2029
Term Loan
Prime plus 2.75%
4/5/2029
4.6
55.3
4.6
55.3
4.0
57.6
— %
0.02 %
0.23 %
Machinery Manufacturing
Term Loan
Prime plus 2.75%
3/29/2029
829.1
829.1
732.4
F-184
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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.
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/29/2044
Broadcasting (except Internet)
Term Loan
Prime plus 2.75%
3/29/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/29/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/29/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/29/2029
Social Assistance
Term Loan
Prime plus 2.75%
3/29/2044
639.5
358.9
9.0
413.5
95.5
449.9
639.5
358.9
9.0
413.5
95.5
449.9
650.0
323.0
8.4
385.0
83.1
463.0
Term Loan
Prime plus 2.75%
3/29/2029
1,158.3
1,158.3
1,058.5
Truck Transportation
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2044
Truck Transportation
Term Loan
Prime plus 2.75%
3/29/2029
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/29/2029
Prime plus 2.75%
3/29/2044
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/29/2029
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Printing and Related Support
Activities
Term Loan
Term Loan
Prime plus 2.75%
3/29/2044
Prime plus 2.75%
3/29/2029
Prime plus 2.75%
3/29/2029
179.1
42.8
157.9
40.6
286.6
14.3
681.6
397.5
820.8
49.7
51.4
179.1
42.8
157.9
40.6
286.6
14.3
681.6
397.5
820.8
49.7
51.4
155.4
38.0
137.0
45.4
261.1
12.4
709.8
376.2
837.5
43.1
45.5
Gasoline Stations
Term Loan
Prime plus 2.75%
3/29/2044
197.0
197.0
219.9
1485 Chain Bridge Rd #304-305,
McLean, VA 22101
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/29/2029
57.3
57.3
49.8
0.02 %
F-185
See accompanying notes to consolidated financial statements.
271346
0.20 %
0.10 %
— %
0.12 %
0.03 %
0.14 %
0.33 %
0.05 %
0.01 %
0.04 %
0.01 %
0.08 %
— %
0.22 %
0.12 %
0.26 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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 (#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
3/29/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/28/2029
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
3/28/2029
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
3/28/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/28/2029
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/28/2044
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/28/2029
Rental and Leasing Services
Term Loan
Prime plus 2.75%
3/28/2029
Term Loan
Prime plus 2.75%
3/28/2029
6.4
50.2
238.9
429.9
21.5
14.3
283.3
131.7
148.8
298.6
6.4
50.2
238.9
429.9
21.5
14.3
283.3
131.7
148.8
298.6
5.8
43.6
248.7
412.3
22.4
13.9
306.1
114.2
138.2
276.4
Truck Transportation
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%
3/28/2044
1,003.8
1,003.8
1,056.1
Term Loan
Prime plus 2.75%
3/28/2029
Term Loan
Prime plus 2.75%
8/28/2029
3.3
48.9
3.3
48.9
3.1
43.9
Term Loan
Prime plus 2.75%
3/27/2029
157.6
157.6
136.8
Truck Transportation
Term Loan
Prime plus 2.75%
3/27/2029
71.1
5.4
71.1
5.4
74.1
4.7
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%
3/27/2029
Prime plus 2.75%
3/27/2044
582.8
582.8
602.4
0.19 %
2880 Carol Rd, East York, PA
17402
317 N Farview Ave, Paramus, NJ
07652
315 Sylamore Ave, Mountain
View, AR 72560
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/26/2044
1,239.3
1,239.3
1,301.4
Nonstore Retailers
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/26/2029
119.4
119.4
103.6
Term Loan
Prime plus 2.75%
3/22/2044
1,124.0
1,124.0
1,105.0
0.40 %
0.03 %
0.34 %
F-186
See accompanying notes to consolidated financial statements.
271346
— %
0.01 %
0.08 %
0.13 %
0.01 %
— %
0.10 %
0.04 %
0.04 %
0.09 %
0.33 %
— %
0.01 %
0.04 %
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)
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 (#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
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
701 Addison Rd, Painted Post,
NY 14870
Plastics and Rubber Products
Manufacturing
Support Activities for
Transportation
Administrative and Support
Services
Plastics and Rubber Products
Manufacturing
Educational Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/22/2044
Term Loan
Prime plus 2.75%
3/22/2029
Term Loan
Prime plus 2.75%
3/22/2029
Term Loan
Prime plus 2.75%
3/22/2029
Term Loan
Prime plus 2.75%
3/21/2029
Term Loan
Prime plus 2.75%
3/21/2029
Truck Transportation
Term Loan
Prime plus 2.75%
3/21/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/21/2029
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/21/2044
Truck Transportation
Term Loan
Prime plus 2.75%
3/20/2029
Ambulatory Health Care Services Term Loan
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
3/20/2029
Prime plus 2.75%
3/20/2029
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/20/2044
Prime plus 2.75%
3/19/2029
Rental and Leasing Services
Printing and Related Support
Activities
Food Services and Drinking
Places
Social Assistance
Rental and Leasing Services
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
3/19/2029
Term Loan
Prime plus 2.75%
3/19/2029
Term Loan
Prime plus 2.75%
7/15/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/15/2044
3/15/2029
Term Loan
Prime plus 2.75%
3/15/2029
294.0
788.5
5.7
258.7
4.3
7.2
52.5
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
294.0
788.5
5.7
258.7
4.3
7.2
52.5
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
F-187
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.10 %
0.21 %
— %
327.8
690.1
5.3
269.3
0.08 %
3.7
6.5
48.3
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
— %
— %
0.01 %
0.14 %
0.06 %
0.11 %
0.05 %
0.01 %
0.11 %
0.10 %
0.07 %
— %
0.02 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
8670 Wilshire Blvd, Beverly
Hills, CA 90211
2775 Burris Rd, Davie, FL 33314
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
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
Motion Picture and Sound
Recording Industries
Truck Transportation
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/14/2029
3/12/2029
Social Assistance
Term Loan
Prime plus 2.75%
8/11/2029
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/8/2029
Term Loan
Prime plus 2.75%
3/8/2029
Term Loan
Prime plus 2.75%
3/8/2044
268.9
143.4
60.9
251.2
83.7
281.3
268.9
143.4
60.9
251.2
83.7
281.3
240.0
127.6
53.0
220.9
78.1
298.0
Term Loan
Prime plus 2.75%
3/8/2044
200.0
200.0
215.9
Food Manufacturing
Term Loan
Prime plus 2.75%
3/8/2029
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/8/2029
Social Assistance
Term Loan
Prime plus 2.75%
3/7/2044
83.6
59.7
22.3
83.6
59.7
22.3
72.5
52.9
24.0
271346
0.07 %
0.04 %
0.02 %
0.07 %
0.02 %
0.09 %
0.07 %
0.02 %
0.02 %
0.01 %
Rental and Leasing Services
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
3/1/2029
Term Loan
Prime plus 2.75%
3/4/2029
150.5
150.5
130.6
0.04 %
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/28/2044
Nonstore Retailers
Term Loan
Prime plus 2.75%
2/28/2029
Food Manufacturing
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
2/28/2029
Term Loan
Prime plus 2.75%
2/28/2029
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/28/2029
Hospitals
Term Loan
Prime plus 2.75%
2/28/2044
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/28/2044
F-188
See accompanying notes to consolidated financial statements.
14.3
19.3
47.5
48.4
14.3
20.5
251.3
297.1
14.3
19.3
47.5
48.4
14.3
20.5
251.3
297.1
12.4
21.5
42.0
46.5
14.9
18.1
247.6
305.0
— %
0.01 %
0.01 %
0.01 %
— %
0.01 %
0.08 %
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
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 6.5%
2/27/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/26/2029
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
2/22/2029
Term Loan
Prime plus 2.75%
2/22/2029
Term Loan
Prime plus 2.75%
2/21/2029
Term Loan
Ambulatory Health Care Services Term Loan
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
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
2/21/2044
Prime plus 2.75%
2/20/2029
Prime plus 2.75%
2/19/2029
Prime plus 2.75%
2/19/2029
Prime plus 2.75%
2/19/2029
Prime plus 2.75%
2/19/2029
Prime plus 2.75%
7/15/2029
Term Loan
Prime plus 2.75%
2/15/2029
Term Loan
Prime plus 2.75%
2/14/2029
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
3633 B Hill Rd, Parsippany, NJ
07054
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
Specialty Trade Contractors
Furniture and Home Furnishings
Stores
Professional, Scientific, and
Technical Services
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%
2/14/2044
137.0
137.0
152.8
Term Loan
Prime plus 2.75%
2/14/2029
Term Loan
Prime plus 2.75%
2/14/2029
Term Loan
Prime plus 2.75%
2/8/2029
Term Loan
Prime plus 2.75%
2/8/2029
59.5
78.4
15.6
3.6
59.5
78.4
15.6
3.6
52.2
68.0
14.3
3.4
Term Loan
Prime plus 2.75%
5/8/2029
160.2
160.2
147.0
0.05 %
F-189
See accompanying notes to consolidated financial statements.
125.1
0.04 %
4.9
— %
12.0
15.0
142.5
5.7
39.2
148.6
46.6
154.5
132.5
103.3
42.7
109.4
21.4
14.2
12.0
15.0
142.5
5.7
39.2
148.6
46.6
154.5
132.5
103.3
42.7
109.4
21.4
14.2
11.9
13.0
35.1
156.5
40.4
144.3
115.5
107.6
37.8
97.0
18.5
14.8
% of Net
Assets
271346
— %
— %
0.01 %
0.05 %
0.01 %
0.04 %
0.04 %
0.03 %
0.01 %
0.03 %
0.01 %
— %
0.05 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
EJGR Corp dba Brite Energy
Solutions
Creative Counseling Nashville
PLLC
Better Dayz PT, Inc. dba Physical
Therapy Now
(#,^)
(#,^)
(#,^)
D & G Elite Construction, Inc.
(#,^)
(#,^)
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.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Utilities
Term Loan
Prime plus 2.75%
2/8/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/7/2029
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/7/2029
59.4
2.1
21.4
59.4
2.1
21.4
51.7
1.8
18.7
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/6/2029
123.6
123.6
128.7
Forestry and Logging
Term Loan
Prime plus 2.75%
2/5/2029
Accommodation
Administrative and Support
Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
2/1/2029
Term Loan
Prime plus 2.75%
2/1/2029
Term Loan
Prime plus 2.75%
1/31/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
1/30/2044
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
Term Loan
Prime plus 2.75%
1/22/2029
233.8
233.8
203.0
Food and Beverage Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Apparel Manufacturing
Food Services and Drinking
Places
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/18/2029
Term Loan
Prime plus 2.75%
4/18/2029
Term Loan
Prime plus 2.75%
1/16/2044
Term Loan
Prime plus 2.75%
7/11/2029
Term Loan
Prime plus 2.75%
1/11/2029
Term Loan
Prime plus 2.75%
1/11/2029
77.9
83.8
68.2
84.7
59.1
51.5
21.2
223.4
552.0
77.9
83.8
68.2
84.7
59.1
51.5
21.2
223.4
552.0
67.6
74.2
76.0
74.5
54.6
44.7
19.7
193.8
572.4
Gasoline Stations
Term Loan
Prime plus 2.75%
1/4/2029
215 S Persimmon St., Tomball,
TX 77375
191 Old Tower Hill Rd., South
Kingstown, RI 02879
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/31/2028
Term Loan
Prime plus 2.75%
12/31/2043
F-190
See accompanying notes to consolidated financial statements.
271346
0.02 %
— %
0.01 %
0.04 %
— %
— %
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 %
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
(#,^)
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Amusement, Gambling, and
Recreation Industries
Personal and Laundry Services
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Insurance Carriers and Related
Activities
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
Term Loan
Prime plus 2.75%
12/28/2043
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/28/2043
Real Estate
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/27/2043
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
Real Estate
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/27/2043
Term Loan
Prime plus 2.75%
12/26/2043
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
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/21/2028
Prime plus 2.75%
12/21/2028
F-191
See accompanying notes to consolidated financial statements.
17.1
339.3
402.6
504.4
112.6
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
17.1
339.3
402.6
504.4
112.6
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
271346
— %
0.11 %
0.11 %
0.16 %
0.03 %
0.01 %
0.19 %
0.04 %
— %
0.04 %
0.08 %
0.15 %
0.05 %
0.23 %
0.08 %
0.16 %
0.02 %
0.03 %
— %
15.5
353.6
368.3
509.3
102.7
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
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
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
207 S. Teresa St., Monahans, TX
79756
607 West Magnolia Ave, Fort
Worth, TX 76104
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
Fabricated Metal Product
Manufacturing
Administrative and Support
Services
Truck Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
223.5
70.5
100.0
352.3
216.1
620.1
121.9
223.5
70.5
100.0
352.3
216.1
620.1
121.9
203.1
61.1
86.6
329.7
200.4
613.0
105.6
4500 S Country Rd, Odessa, TX
79768
Rental and Leasing Services
Term Loan
Prime plus 2.75%
6/21/2044
169.0
169.0
188.7
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/21/2028
Credit Intermediation and Related
Activities
2040 Norwood, Lenoir, NC 28645 Miscellaneous Manufacturing
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
Repair and Maintenance
Administrative and Support
Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
803 E State St., Toledo, IA 52342
6633 Brayton Drive, Anchorage,
AK 99507
23 Main St., Wardsboro, VT
05355
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2028
Term Loan
Prime plus 2.75%
12/21/2043
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
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/20/2028
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/20/2043
2043 Coteau Rd, Houma, LA
70364
223 W Jackson Blvd, Chicago, IL
60606
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
F-192
See accompanying notes to consolidated financial statements.
88.6
70.4
111.6
116.0
50.7
43.2
58.7
183.7
281.8
153.7
543.4
58.7
88.6
70.4
111.6
116.0
50.7
43.2
58.7
183.7
281.8
153.7
543.4
58.7
77.0
61.0
98.8
129.3
45.0
38.8
60.2
161.8
264.0
164.8
537.8
50.8
271346
0.06 %
0.02 %
0.03 %
0.10 %
0.06 %
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 %
% of Net
Assets
271346
0.05 %
0.03 %
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)
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
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
(#,^)
(#,^)
5010 Augusta Drive, Westerville,
OH 43082
7207 B Lockport Pl, Lorton, VA
22079
9800 NW 78th Ave, Hialeah
Gardens, FL 33016
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
178.3
95.6
469.7
178.3
95.6
469.7
168.3
82.8
408.5
G-2340 West Carpenter Rd, Flint,
MI 48505
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
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/19/2044
416.5
416.5
446.5
0.14 %
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
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
12/14/2028
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
Food Services and Drinking
Places
Administrative and Support
Services
Food Services and Drinking
Places
Food and Beverage Stores
Merchant Wholesalers,
Nondurable Goods
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
12/14/2028
Term Loan
Prime plus 2.75%
3/14/2029
Term Loan
Prime plus 2.75%
1/14/2029
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
Term Loan
Prime plus 2.75%
12/14/2043
F-193
See accompanying notes to consolidated financial statements.
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
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
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
— %
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 %
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
(#,^)
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
Aero Consulting and Engineering
Inc
Fitness Orlando LLC & Fitness
Orlando Oviedo, LLC
Tapia Auto Care, LLC dba
Shoreline Quick Lube and Car
Wash
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
7941 NW 3rd St., Plantation, FL
33324
160 Tuskawilla Rd Ste 1214,
Winter Springs, FL 32708
2 Center Rd, Old Saybrook, CT
06475
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
119 Brooks Rd, Harwich Port,
MA 02646
119 Brooks Rd, Harwich Port,
MA 02646
18115 62nd Ave NE, Kenmore,
WA 98028
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
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
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/13/2043
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
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/13/2043
Prime plus 2.75%
1/13/2029
Air Transportation
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/13/2028
Term Loan
Prime plus 2.75%
1/12/2029
Term Loan
Prime plus 2.75%
1/12/2029
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/12/2043
Term Loan
Prime plus 2.75%
1/12/2029
Term Loan
Prime plus 2.75%
1/12/2029
Food and Beverage Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Support Activities for Agriculture
and Forestry
14.1
258.8
967.3
70.9
137.1
284.6
384.3
986.6
84.7
9.6
240.8
118.8
56.4
63.4
14.1
258.8
967.3
70.9
137.1
284.6
384.3
986.6
84.7
9.6
240.8
118.8
56.4
63.4
12.2
234.8
992.6
61.7
118.8
246.6
378.2
899.9
88.1
8.3
235.1
122.7
48.9
58.0
Term Loan
Prime plus 2.75%
12/12/2043
212.8
212.8
231.0
Term Loan
Prime plus 2.75%
12/12/2028
1,174.3
1,174.3
1,112.0
Specialty Trade Contractors
Term Loan
8.25%
1/12/2029
Miscellaneous Store Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/11/2029
Term Loan
Prime plus 2.75%
12/11/2043
Utilities
Term Loan
Prime plus 2.75%
1/11/2029
60.8
40.6
126.7
561.4
60.8
40.6
126.7
561.4
56.8
37.9
133.2
503.9
F-194
See accompanying notes to consolidated financial statements.
271346
— %
0.07 %
0.31 %
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 %
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
SBA Unguaranteed Accrual Investments (1) (22)
Oregon Medical Training Private
Career School Inc.
Googlyoogly, LLC dba Bi-Rite
Supermarket
(#,^)
(#,^)
White Wilson & Associates LLC (#,^)
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
(#,^)
1126 Gateway Loop Ste 108,
Springfield, OR 97702
10867 W Jefferson Ave, River
Rouge, MI 46218
16238 Louis Ave., South Holland,
IL 60473
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
Educational Services
Term Loan
Prime plus 2.75%
1/11/2029
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/11/2043
Term Loan
Prime plus 2.75%
12/11/2043
General Merchandise Stores
Term Loan
Prime plus 2.75%
1/11/2029
Food and Beverage Stores
Term Loan
Prime plus 2.75%
1/11/2029
Repair and Maintenance
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/10/2043
Term Loan
Prime plus 2.75%
1/10/2029
Term Loan
Prime plus 2.75%
1/7/2029
Educational Services
Term Loan
Prime plus 2.75%
1/7/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
1/6/2029
37.6
200.9
42.1
117.8
14.5
387.2
37.6
67.2
82.3
94.6
37.6
200.9
42.1
117.8
14.5
387.2
37.6
67.2
82.3
94.6
32.6
207.7
43.4
104.7
12.7
398.6
32.6
58.5
71.9
82.6
Truck Transportation
Term Loan
Prime plus 2.75%
1/6/2029
1,154.6
1,154.6
1,045.1
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
1/6/2029
Construction of Buildings
Term Loan
Prime plus 2.75%
1/5/2029
Social Assistance
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Specialty Trade Contractors
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/5/2029
Term Loan
Prime plus 2.75%
1/5/2029
Term Loan
Prime plus 2.75%
1/5/2029
Term Loan
Prime plus 2.75%
1/4/2029
Term Loan
Prime plus 2.75%
1/4/2029
Term Loan
Prime plus 2.75%
1/4/2029
Accommodation
Term Loan
Prime plus 2.75%
1/3/2029
195.0
234.9
253.7
54.4
82.4
130.9
182.5
37.2
12.7
195.0
234.9
253.7
54.4
82.4
130.9
182.5
37.2
12.7
203.0
244.6
233.7
47.2
72.4
114.3
158.4
34.8
13.2
F-195
See accompanying notes to consolidated financial statements.
271346
0.01 %
0.06 %
0.01 %
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 %
— %
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
271346
York Concrete Corp
Hernando Beach Motel LLC,The
Purple Cow House o APancake
AInc.
(#,^)
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1 Plumb CT., Huntington Station,
NY 11746
4291 Shoal Line Boulevard,
Hernando Beach, FL 34607
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
458 N 7th St., Newark, NJ 07107
3331 Toledo Terrace Ste 308,
Hyattsville, MD 20782
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
12930 Worldgate Drive, Herndon,
VA 20170
69 Lewis Ave, Atlantic Beach,
NY 11509
45 E Main St., New Palestine, IN
46163
14 Iron St., Ledyard, CT 06339
2120 Plaster Bridge Rd NE,
Atlanta, GA 30324
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/3/2043
197.9
197.9
217.9
0.07 %
Accommodation
Food Services and Drinking
Places
Food and Beverage Stores
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
11/30/2043
Term Loan
Prime plus 2.75%
1/30/2044
Term Loan
Prime plus 2.75%
12/30/2028
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
Administrative and Support
Services
Term Loan
Prime plus 2.75%
11/29/2043
Prime plus 2.75%
12/29/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/29/2028
Amusement, Gambling, and
Recreation Industries
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
11/28/2043
Term Loan
Prime plus 2.75%
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
222.4
436.0
154.1
116.8
80.2
647.3
64.4
6.9
81.8
429.3
89.0
185.4
41.5
222.4
436.0
154.1
116.8
80.2
647.3
64.4
6.9
81.8
429.3
89.0
185.4
41.5
247.8
481.7
133.7
115.4
85.3
613.3
67.1
6.0
77.7
478.2
90.5
202.6
45.5
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
1,188.9
1,188.9
1,221.9
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
81.7
21.0
42.8
81.7
21.0
42.8
70.8
19.4
44.8
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/20/2043
656.9
656.9
682.6
0.08 %
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 %
F-196
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
% of Net
Assets
Warehousing and Storage
Term Loan
Prime plus 2.75%
12/20/2028
Truck Transportation
Term Loan
Prime plus 2.75%
12/19/2028
SBA Unguaranteed Accrual Investments (1) (22)
Commonwealth Warehouse Inc
(#,^)
High Desert Transport, Inc.
K & A Automotive Inc
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
11013 Kenwood Rd., Cincinnati,
OH 45242
2015 Woodspring Terrace,
Henderson, NV 89012
2070 Nooseneck Hill Rd,
Coventry, RI 02816
100 Village Rd, Port Lavaca, TX
77979
3949 New Rd, Youngstown, OH
44515
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
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
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
Construction of Buildings
Food Services and Drinking
Places
Transportation Equipment
Manufacturing
Merchant Wholesalers, Durable
Goods
Administrative and Support
Services
Term Loan
Prime plus 2.75%
11/19/2043
Term Loan
Prime plus 2.75%
3/16/2029
Term Loan
Prime plus 2.75%
12/16/2028
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
Term Loan
Prime plus 2.75%
11/15/2043
Term Loan
Prime plus 2.75%
11/14/2028
Term Loan
Prime plus 2.75%
12/9/2028
395.5
71.0
120.8
41.1
0.6
37.9
69.7
58.4
93.9
47.0
7.0
395.5
71.0
120.8
41.1
0.6
37.9
69.7
58.4
93.9
47.0
7.0
371.0
64.0
131.2
40.7
0.5
39.4
73.2
50.8
104.6
48.8
6.7
Term Loan
Prime plus 2.75%
12/9/2028
392.2
392.2
346.7
Term Loan
Prime plus 2.75%
12/9/2028
Term Loan
Prime plus 2.75%
12/8/2028
Term Loan
Prime plus 2.75%
5/7/2044
Term Loan
Prime plus 2.75%
12/7/2028
Term Loan
Prime plus 2.75%
6/1/2029
Term Loan
Prime plus 2.75%
12/1/2028
Term Loan
Prime plus 2.75%
12/1/2028
Term Loan
Prime plus 2.75%
10/31/2028
20.7
6.3
414.5
377.5
91.9
350.4
303.5
103.2
20.7
6.3
414.5
377.5
91.9
350.4
303.5
103.2
21.5
5.5
427.7
340.1
79.9
364.3
262.9
90.7
271346
0.12 %
0.02 %
0.04 %
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 %
F-197
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
Social Assistance
Term Loan
Prime plus 2.75%
11/30/2043
123.9
123.9
132.1
0.04 %
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
7804 Montgomery Ave Unit 3-6,
Elkins Park, PA 19027
1500 Village Run Rd, Wexford,
PA 15090
435 Packard Hwy, Charlotte, MI
48813
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
Food Services and Drinking
Places
Apparel Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/30/2029
Term Loan
Prime plus 2.75%
10/30/2043
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
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
Ambulatory Health Care Services
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
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
Term Loan
Prime plus 2.75%
10/12/2028
Term Loan
Prime plus 2.75%
10/11/2043
Term Loan
Prime plus 2.75%
10/10/2028
Term Loan
Prime plus 2.75%
10/10/2043
Term Loan
Prime plus 2.75%
10/9/2028
Telecommunications
Term Loan
Prime plus 2.75%
10/5/2028
Ambulatory Health Care Services
Professional, Scientific, and
Technical Services
Support Activities for Mining
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
10/4/2028
Term Loan
Prime plus 2.75%
9/28/2028
Term Loan
Prime plus 2.75%
9/28/2043
Term Loan
Prime plus 2.75%
9/28/2028
F-198
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.02 %
0.07 %
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 %
76.4
207.9
57.9
53.9
136.9
123.4
9.3
68.5
75.6
76.4
207.9
57.9
53.9
136.9
123.4
9.3
68.5
75.6
67.8
216.7
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
5.4
22.3
69.6
37.9
13.9
88.2
48.3
811.9
928.1
165.9
5.1
23.2
72.0
40.7
12.1
76.4
41.8
728.8
977.9
145.4
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Mellow Sweets, Inc dba Jaafer
Sweets & Marwan Hamdan
(#,^)
Burd Brothers Inc.
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4825 North Kedzie Ave, Chicago,
IL 60625
4005 Borman Drive, Batavia, OH
45103
154 Sandy Creek Rd, Verona, PA
15147
7130 Crater Lake, White City, OR
97603
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
Food Manufacturing
Term Loan
Prime plus 2.75%
9/28/2028
Truck Transportation
Transit and Ground Passenger
Transportation
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/28/2028
Term Loan
Prime plus 2.75%
9/28/2028
Term Loan
Prime plus 2.75%
9/28/2043
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/28/2043
Term Loan
Prime plus 2.75%
9/27/2028
Support Activities for Mining
Term Loan
Prime plus 2.75%
9/27/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
1/27/2029
Rental and Leasing Services
Term Loan
Prime plus 2.75%
9/27/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2043
53.0
494.2
97.7
635.0
325.9
13.8
735.8
93.5
55.5
286.5
128.4
53.0
494.2
97.7
635.0
325.9
13.8
735.8
93.5
55.5
286.5
128.4
46.3
471.5
95.3
661.2
348.9
12.4
656.9
89.3
50.4
274.7
131.7
271346
0.01 %
0.15 %
0.03 %
0.21 %
0.11 %
— %
0.20 %
0.03 %
0.02 %
0.09 %
0.04 %
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%
9/27/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/26/2028
Truck Transportation
Term Loan
Prime plus 2.75%
9/26/2028
Social Assistance
Term Loan
Prime plus 2.75%
9/26/2043
Educational Services
Term Loan
Prime plus 2.75%
9/26/2043
Construction of Buildings
Term Loan
8.25%
9/26/2028
115.0
13.8
777.1
544.7
99.6
95.5
115.0
13.8
777.1
544.7
99.6
95.5
107.7
12.3
760.7
587.1
111.0
81.1
0.03 %
— %
0.24 %
0.18 %
0.03 %
0.03 %
F-199
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Ace Auto Recovery, Inc.
Bhatti LLC, Bhatti 3 LLC, dba
Auntie Annes
(#,^)
(#,^)
Newsome Mobile Notary LLC
(#,^)
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
(#,^)
(#,^)
1209 North Lane Ave,
Jacksonville, FL 32254
7219 Silver Mist Ave, North
Chesterfield, VA 23237
8153 12th Ave SW, Seattle, WA
98106
1432 Crooked Stick Drive,
O'Fallon, MO 63366
3835 Elm St., Denver, CO 80207
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
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
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Repair and Maintenance
Accommodation
Fabricated Metal Product
Manufacturing
Fabricated Metal Product
Manufacturing
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
9/26/2043
Term Loan
Prime plus 2.75%
9/25/2028
Term Loan
Prime plus 2.75%
9/25/2028
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
9/25/2028
9/24/2028
Term Loan
Prime plus 2.75%
9/21/2028
Term Loan
Prime plus 2.75%
9/21/2028
Term Loan
Prime plus 2.75%
9/21/2043
Term Loan
Prime plus 2.75%
9/21/2043
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/21/2028
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/21/2028
Prime plus 2.75%
9/20/2028
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/20/2028
Gasoline Stations
Term Loan
Prime plus 2.75%
9/19/2043
Truck Transportation
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/19/2028
Term Loan
Prime plus 2.75%
9/19/2028
Term Loan
Prime plus 2.75%
9/19/2043
Nonstore Retailers
Term Loan
Prime plus 2.75%
9/19/2028
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/19/2043
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/18/2043
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/18/2028
157.7
115.3
4.8
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
157.7
115.3
4.8
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
271346
0.05 %
0.03 %
— %
— %
— %
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 %
— %
168.5
103.9
4.2
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
F-200
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
Food Services and Drinking
Places
Food Services and Drinking
Places
Repair and Maintenance
Furniture and Home Furnishings
Stores
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Forestry and Logging
Amusement, Gambling, and
Recreation Industries
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
SBA Unguaranteed Accrual Investments (1) (22)
Glendale Grill Inc, Roddy
Cameron, Jr & John K Symasko
Pastel de Feira LLC dba Original
Pastel De Feira
(#,^)
(#,^)
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,
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
65 Glendale St., Easthampton,
MA 01027
4244 Pine Ridge CT, Weston, FL
33331
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
Term Loan
Prime plus 2.75%
9/17/2043
Term Loan
Prime plus 2.75%
9/17/2028
Term Loan
Prime plus 2.75%
9/17/2043
Term Loan
Prime plus 2.75%
9/14/2028
172.2
5.6
550.5
46.0
172.2
5.6
550.5
46.0
Term Loan
Prime plus 2.75%
9/14/2043
1,229.8
1,229.8
1,314.4
Term Loan
Prime plus 2.75%
9/14/2028
115.0
115.0
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/14/2028
Term Loan
Prime plus 2.75%
9/14/2028
68.1
74.7
68.1
74.7
Term Loan
Prime plus 2.75%
9/14/2028
126.2
126.2
Term Loan
Prime plus 2.75%
9/13/2043
Term Loan
Prime plus 2.75%
9/13/2028
97.2
80.5
97.2
80.5
Term Loan
Prime plus 2.75%
9/13/2028
113.9
113.9
Term Loan
Prime plus 2.75%
9/13/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/10/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/7/2028
243.8
172.5
20.7
20.7
243.8
172.5
20.7
20.7
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/7/2028
Prime plus 2.75%
9/7/2028
285.7
285.7
247.0
Rental and Leasing Services
Term Loan
Prime plus 2.75%
9/7/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/7/2028
296.7
14.3
296.7
14.3
281.1
12.8
F-201
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
182.3
0.06 %
5.2
608.3
43.0
99.4
60.4
65.3
117.5
108.2
69.6
101.9
228.9
170.4
18.0
18.0
— %
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 %
0.09 %
— %
% of Net
Assets
271346
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)
Asheville Spine and Nerve
Institute PC
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
190 Broadway St., Ste 205,
Asheville, NC 28801
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
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/7/2043
Support Activities for
Transportation
Printing and Related Support
Activities
Nursing and Residential Care
Facilities
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/6/2028
Term Loan
Prime plus 2.75%
11/30/2028
Term Loan
Prime plus 2.75%
8/31/2043
Term Loan
Prime plus 2.75%
8/31/2044
Term Loan
Prime plus 2.75%
8/30/2043
Term Loan
Prime plus 2.75%
8/30/2028
Term Loan
Prime plus 2.75%
8/29/2028
Accommodation
Term Loan
Prime plus 2.75%
8/29/2043
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/29/2028
Term Loan
Prime plus 2.75%
8/29/2028
Term Loan
Prime plus 2.75%
8/28/2028
89.6
11.7
14.0
414.4
270.0
442.1
95.2
114.7
81.1
2.2
84.1
6.9
89.6
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
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Transit and Ground Passenger
Transportation
Specialty Trade Contractors
Insurance Carriers and Related
Activities
Clothing and Clothing
Accessories Stores
Computer and Electronic Product
Manufacturing
Miscellaneous Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/28/2028
147.9
147.9
130.7
Term Loan
Prime plus 2.75%
8/24/2028
Term Loan
Prime plus 2.75%
8/24/2028
68.5
6.9
68.5
6.9
Term Loan
Prime plus 2.75%
8/24/2028
113.4
113.4
Term Loan
Prime plus 2.75%
8/24/2028
Term Loan
Prime plus 2.75%
8/24/2028
Term Loan
Prime plus 2.75%
8/23/2028
20.6
79.9
38.6
20.6
79.9
38.6
68.2
5.9
98.1
18.2
71.5
35.6
— %
— %
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 %
F-202
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
% of Net
Assets
Term Loan
Prime plus 2.75%
8/21/2028
1,134.1
1,134.1
1,125.0
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
225 Sawyer Ave, Tonawanda, NY
14150
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
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/20/2028
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/17/2028
Prime plus 2.75%
2/17/2044
Air Transportation
Professional, Scientific, and
Technical Services
Truck Transportation
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
8/16/2028
Term Loan
Prime plus 2.75%
8/16/2028
Term Loan
Prime plus 2.75%
8/15/2028
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%
8/9/2028
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
8/9/2028
Term Loan
Prime plus 2.75%
8/8/2028
Term Loan
Prime plus 2.75%
8/7/2028
Accommodation
Term Loan
Prime plus 2.75%
8/7/2043
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%
8/3/2028
Term Loan
Prime plus 2.75%
8/3/2028
Term Loan
Prime plus 2.75%
8/3/2028
Term Loan
Prime plus 2.75%
8/2/2028
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/1/2043
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
8/1/2028
F-203
See accompanying notes to consolidated financial statements.
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
271346
0.35 %
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 %
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)
Accel Compression Inc., Accel
Workover Services Inc. dba Mica
Tool & T
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/1/2028
422.7
422.7
409.5
0.13 %
Term Loan
Prime plus 2.75%
7/27/2028
496.8
496.8
460.0
0.14 %
Term Loan
Prime plus 2.75%
7/26/2028
Term Loan
Prime plus 2.75%
7/26/2028
7.5
17.0
7.5
17.0
6.5
14.7
— %
— %
Term Loan
Prime plus 2.75%
7/26/2028
117.4
117.4
102.0
0.03 %
4500 S. Country Rd 1310,
Odessa, TX 79765
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
Miscellaneous Store Retailers
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
Couriers and Messengers
Support Activities for
Transportation
Truck Transportation
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Motion Picture and Sound
Recording Industries
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Term Loan
Prime plus 2.75%
7/20/2028
Term Loan
Prime plus 2.75%
7/17/2028
Term Loan
Prime plus 2.75%
7/17/2043
256.9
256.9
285.9
Term Loan
Prime plus 2.75%
7/25/2028
Term Loan
Prime plus 2.75%
7/25/2028
Term Loan
Prime plus 2.75%
7/24/2028
Term Loan
Prime plus 2.75%
7/24/2028
Term Loan
Prime plus 2.75%
7/13/2028
Term Loan
Prime plus 2.75%
7/13/2028
Term Loan
Prime plus 2.75%
7/13/2028
Term Loan
Prime plus 2.75%
7/12/2028
Term Loan
Prime plus 2.75%
7/3/2028
Term Loan
Prime plus 2.75%
7/3/2028
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
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
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/3/2028
F-204
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
— %
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
98 Wooster St., Bethel, CT 06801
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
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
Specialty Trade Contractors
Waste Management and
Remediation Services
Waste Management and
Remediation Services
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
7/2/2043
Term Loan
Prime plus 2.75%
6/29/2028
Term Loan
Prime plus 2.75%
3/29/2029
Term Loan
Prime plus 2.75%
5/29/2044
Term Loan
Prime plus 2.75%
6/28/2028
Term Loan
Prime plus 2.75%
6/28/2028
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/27/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/27/2028
Food Manufacturing
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
6/27/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/27/2043
Construction of Buildings
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/27/2043
Term Loan
Prime plus 2.75%
6/27/2028
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/26/2043
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%
6/26/2028
Term Loan
Prime plus 2.75%
6/25/2043
Term Loan
Prime plus 2.75%
6/25/2028
Term Loan
Prime plus 2.75%
6/25/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/22/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/22/2028
F-205
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.03 %
0.01 %
0.07 %
0.12 %
0.02 %
0.01 %
— %
0.02 %
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
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
41.2
32.1
980.0
1,112.0
20.3
104.1
833.7
299.9
62.0
704.2
654.6
542.6
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 %
Term Loan
Prime plus 2.75%
6/27/2043
347.4
347.4
385.0
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)
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%
6/22/2043
Term Loan
Prime plus 2.75%
6/22/2028
Term Loan
Prime plus 2.75%
6/22/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/22/2043
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
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%
6/21/2028
Term Loan
Prime plus 2.75%
6/20/2028
Term Loan
Prime plus 2.75%
6/19/2043
Term Loan
Prime plus 2.75%
6/19/2043
Term Loan
Prime plus 2.75%
6/19/2028
Term Loan
Prime plus 2.75%
6/18/2028
Term Loan
Prime plus 2.75%
6/18/2043
Term Loan
Prime plus 2.75%
6/15/2028
Term Loan
Prime plus 2.75%
9/15/2043
Nonstore Retailers
Term Loan
Prime plus 2.75%
6/15/2028
Food and Beverage Stores
Term Loan
Prime plus 2.75%
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-206
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
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)
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
(#,^)
(#,^)
Term Loan
Prime plus 2.75%
6/14/2043
614.2
614.2
641.2
0.20 %
Term Loan
Prime plus 2.75%
6/14/2028
468.7
468.7
450.0
1760 Swan Lake Rd, Bossier City,
LA 71111
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
Merchant Wholesalers, Durable
Goods
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Educational Services
Professional, Scientific, and
Technical Services
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
6/14/2028
Term Loan
Prime plus 2.75%
6/14/2028
Real Estate
Term Loan
Prime plus 2.75%
6/14/2043
Term Loan
Prime plus 2.75%
6/13/2043
45.1
20.3
95.6
41.9
45.1
20.3
95.6
41.9
42.6
20.4
101.3
47.1
149.3
Term Loan
Prime plus 2.75%
6/11/2028
162.2
162.2
Term Loan
Prime plus 2.75%
6/8/2043
370.6
370.6
396.9
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
6/8/2043
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/8/2028
Term Loan
Prime plus 2.75%
6/8/2028
Social Assistance
Term Loan
Prime plus 2.75%
6/7/2043
Accommodation
Term Loan
Prime plus 2.75%
6/7/2043
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Rental and Leasing Services
Merchant Wholesalers, Durable
Goods
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
6/6/2043
Term Loan
Prime plus 2.75%
6/6/2028
Term Loan
Prime plus 2.75%
6/6/2028
Term Loan
Prime plus 2.75%
6/5/2028
Term Loan
Prime plus 2.75%
6/5/2028
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
6/1/2028
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
F-207
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
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)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
JVLS LLC dba Vaccines 2 Go
(#,^)
3535 Hwy 17 Unit 14-15,
Fleming Island, FL 32003
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
4060 Johns Creek Parkway Ste H,
Suwanee, GA 30024
Term Loan
Prime plus 2.75%
6/1/2028
56.5
56.5
57.5
0.02 %
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Electronics and Appliance Stores
Scenic and Sightseeing
Transportation
Food Services and Drinking
Places
Truck Transportation
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
5/31/2043
Term Loan
Prime plus 2.75%
5/31/2028
Term Loan
Prime plus 2.75%
5/31/2028
Term Loan
Prime plus 2.75%
5/30/2028
Term Loan
Prime plus 2.75%
5/30/2028
Term Loan
Prime plus 2.75%
5/29/2028
Term Loan
Prime plus 2.75%
5/25/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
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%
5/25/2043
1,245.1
1,245.1
1,411.3
Repair and Maintenance
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
5/25/2043
Term Loan
Prime plus 2.75%
5/24/2043
Ambulatory Health Care Services Term Loan
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 2.75%
5/24/2043
Prime plus 2.75%
5/22/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/18/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/18/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/17/2028
96.6
255.7
48.9
89.5
32.8
54.6
7.4
96.6
255.7
48.9
89.5
32.8
54.6
7.4
107.9
275.6
53.6
83.5
30.3
49.9
6.8
F-208
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
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 %
— %
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)
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
Wilbur Standford Jr Trucking and
Excavating, LLC
(#,^)
(#,^)
4570 W Post Rd, Ste 100, Las
Vegas, NV 89118
21220 FM 1420, Harlingen, TX
78550
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
7505 North Chases Lake Rd,
Watson, NY 13343
Term Loan
Prime plus 2.75%
5/17/2028
Term Loan
Prime plus 2.75%
5/16/2028
223.7
134.1
223.7
134.1
204.8
128.8
Term Loan
Prime plus 2.75%
5/16/2043
314.4
314.4
336.4
0.10 %
Performing Arts, Spectator
Sports, and Related Industries
Heavy and Civil Engineering
Construction
Amusement, Gambling, and
Recreation Industries
Repair and Maintenance
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
5/15/2028
Term Loan
Prime plus 2.75%
5/15/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/14/2028
Educational Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
5/11/2028
Term Loan
Prime plus 2.75%
5/11/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
5/11/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/11/2043
% of Net
Assets
271346
0.06 %
0.04 %
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 %
— %
Social Assistance
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
5/10/2028
Term Loan
Prime plus 2.75%
5/10/2028
108.6
108.6
103.2
0.03 %
Educational Services
Building Material and Garden
Equipment and Supplies Dealers
Motion Picture and Sound
Recording Industries
Personal and Laundry Services
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
5/9/2043
Term Loan
Prime plus 2.75%
5/9/2028
Term Loan
Prime plus 2.75%
5/8/2028
Term Loan
Prime plus 2.75%
5/7/2028
Term Loan
Prime plus 2.75%
5/4/2028
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/3/2028
214.8
214.8
215.6
0.25 %
0.07 %
0.01 %
0.02 %
0.01 %
0.07 %
F-209
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)
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
Just for Boats LLC
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
459 Dupre Rd, McClellanville,
SC 29458
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
5/1/2028
Prime plus 2.75%
2/1/2029
Prime plus 2.75%
4/30/2043
Prime plus 2.75%
4/30/2028
Repair and Maintenance
Performing Arts, Spectator
Sports, and Related Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
4/30/2043
Term Loan
Prime plus 2.75%
4/30/2028
Term Loan
Prime plus 2.75%
4/30/2028
Construction of Buildings
Term Loan
Prime plus 2.75%
4/27/2028
Food and Beverage Stores
Term Loan
Prime plus 2.75%
4/27/2028
Social Assistance
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%
4/27/2043
Term Loan
Prime plus 2.75%
4/27/2028
Term Loan
Prime plus 2.75%
4/26/2028
Term Loan
Prime plus 2.75%
4/26/2028
Term Loan
Prime plus 2.75%
4/26/2028
Term Loan
Prime plus 2.75%
4/26/2028
Ambulatory Health Care Services Term Loan
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
4/26/2028
Prime plus 2.75%
4/26/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/24/2028
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2043
F-210
See accompanying notes to consolidated financial statements.
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
17.2
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
17.2
% of Net
Assets
271346
0.03 %
0.06 %
0.06 %
— %
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
19.4
— %
— %
— %
0.08 %
0.06 %
— %
0.14 %
— %
0.02 %
0.01 %
0.01 %
0.07 %
0.03 %
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
% of Net
Assets
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
SBA Unguaranteed Accrual Investments (1) (22)
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
Fifth Wheel Truck Stop 001
Alaska Industrial Paint LLC
(#,^)
(#,^)
(#,^)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
4/20/2028
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
4/18/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
4/18/2028
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Furniture and Home Furnishings
Stores
Term Loan
Term Loan
Prime plus 2.75%
4/18/2043
Prime plus 2.75%
4/18/2028
Prime plus 2.75%
4/18/2028
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
4/17/2043
Term Loan
Prime plus 2.75%
4/17/2043
358.7
358.7
400.5
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/17/2028
Food and Beverage Stores
Food Services and Drinking
Places
Truck Transportation
35 E Main St., Pekin, IN 47165
190 Doty Circle, West
Miscellaneous Manufacturing
Springfield, MA 01089
57 Passaic St., Garfield, NJ 07026 Personal and Laundry Services
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
3767 S Golden State Blvd,
Fresno, CA 93725
229 Whitney Rd, Unit B,
Anchorage, AK 99501
Gasoline Stations
Food Services and Drinking
Places
Truck Transportation
Professional, Scientific, and
Technical Services
Repair and Maintenance
Repair and Maintenance
Gasoline Stations
Term Loan
Prime plus 2.75%
4/16/2028
Term Loan
Prime plus 2.75%
4/13/2043
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
4/11/2028
4/10/2043
Term Loan
Prime plus 2.75%
4/9/2028
Term Loan
Prime plus 2.75%
4/6/2028
Term Loan
Prime plus 2.75%
4/5/2028
Term Loan
Prime plus 2.75%
4/5/2043
Term Loan
Prime plus 2.75%
4/4/2043
Term Loan
Prime plus 2.75%
3/30/2043
F-211
See accompanying notes to consolidated financial statements.
Term Loan
Prime plus 2.75%
3/30/2043
1,126.5
1,126.5
1,188.2
Term Loan
Prime plus 2.75%
3/30/2028
110.1
110.1
112.5
18.0
13.3
14.3
85.5
41.5
6.7
22.0
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
35.2
20.0
42.5
20.0
197.9
10.7
45.5
4.7
117.3
80.8
217.7
35.2
20.0
42.5
20.0
197.9
10.7
45.5
4.7
117.3
80.8
217.7
34.4
20.7
46.5
19.7
221.7
10.1
44.9
4.3
129.2
90.5
239.1
271346
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 %
0.37 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
Montage Mountain Resorts, LP
K.C. Communications, Inc.
Towing Professionals of Arizona
Inc dba Shamrock Towing, All
Valley Im
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/30/2028
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/30/2043
Truck Transportation
Term Loan
Prime plus 2.75%
3/30/2043
Specialty Trade Contractors
Publishing Industries (except
Internet)
Electrical Equipment, Appliance,
and Component Manufacturing
Truck Transportation
Administrative and Support
Services
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
3/30/2028
Term Loan
Prime plus 2.75%
3/30/2043
Term Loan
Prime plus 2.75%
3/30/2028
Term Loan
Prime plus 2.75%
3/30/2028
Term Loan
Prime plus 2.75%
3/30/2028
89.4
340.3
263.5
233.8
87.1
185.7
864.6
200.0
89.4
340.3
263.5
233.8
87.1
185.7
864.6
200.0
81.9
369.3
281.3
214.0
98.8
173.4
854.1
196.1
Term Loan
Prime plus 2.75%
3/30/2028
1,138.5
1,138.5
1,049.3
Social Assistance
Term Loan
Prime plus 2.75%
3/30/2043
Ambulatory Health Care Services
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/29/2028
Term Loan
Prime plus 2.75%
3/29/2043
Term Loan
Prime plus 2.75%
3/28/2044
22.0
14.0
390.4
105.8
22.0
14.0
390.4
105.8
24.4
13.4
442.5
113.1
271346
0.03 %
0.11 %
0.09 %
0.07 %
0.03 %
0.05 %
0.27 %
0.06 %
0.33 %
0.01 %
— %
0.14 %
0.04 %
1376 Broadway, El Cajon, CA
92021
Administrative and Support
Services
111 E. Laurel St., Willows, CA
95988
1145 13th Ave East, Palmetto, FL
34221
1145 13th Ave E, Palmetto, FL
34221
1000 Montage Mountain Rd,
Scranton, PA 18505
2715 Saturn St., Brea, CA 92821
Building Material and Garden
Equipment and Supplies Dealers
Plastics and Rubber Products
Manufacturing
Plastics and Rubber Products
Manufacturing
Amusement, Gambling, and
Recreation Industries
Telecommunications
2801 W Osborn Rd, Phoenix, AZ
85017
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
3/28/2028
205.3
205.3
199.9
0.06 %
Term Loan
Prime plus 2.75%
3/28/2028
Term Loan
Prime plus 2.75%
3/28/2043
Term Loan
Prime plus 2.75%
3/28/2028
77.2
210.3
136.7
77.2
210.3
136.7
80.7
223.7
134.0
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/28/2043
3/27/2028
1,220.0
55.1
1,220.0
55.1
1,382.9
57.6
0.03 %
0.07 %
0.04 %
0.43 %
0.02 %
Term Loan
Prime plus 2.75%
3/26/2028
132.3
132.3
125.7
0.04 %
F-212
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Towing Professionals of Arizona
Inc dba Shamrock Towing & All
Valley I
(#,^)
2801 W Osborn Rd, Phoenix, AZ
85017
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
Support Activities for Mining
Motion Picture and Sound
Recording Industries
Beverage and Tobacco Product
Manufacturing
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
43 Libson St., Lewiston, ME
04240
4357 Shore Drive, Virginia
Beach, VA 23455
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
Bear Bones, Inc.
Rojenco II,Inc.
Rojenco, Inc. dba Buggy Bathe
Auto Wash Lube & Detail
Shoppe
CTD Operations Inc
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Term Loan
Prime plus 2.75%
3/26/2043
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
Term Loan
Prime plus 2.75%
3/23/2028
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
Term Loan
Prime plus 2.75%
3/23/2043
1,220.0
1,220.0
1,330.7
Term Loan
Prime plus 2.75%
3/23/2043
Term Loan
Prime plus 2.75%
3/23/2028
97.6
19.9
97.6
19.9
Term Loan
Prime plus 2.75%
3/21/2043
829.6
829.6
103.1
18.5
906.9
Term Loan
Prime plus 2.75%
9/20/2028
1,107.2
1,107.2
1,071.5
271346
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 %
— %
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/19/2028
Term Loan
Prime plus 2.75%
3/20/2028
37.5
9.9
37.5
9.9
34.3
9.3
Term Loan
Prime plus 2.75%
3/16/2028
220.6
220.6
230.5
0.07 %
Term Loan
Prime plus 2.75%
3/16/2028
Term Loan
Prime plus 2.75%
3/15/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/15/2043
2217 Richmond Rd,
Williamsburg, VA 23188
219 Saint Nazaire Rd STE G,
Broussard, LA 70518
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/15/2043
Term Loan
Prime plus 2.75%
7/15/2028
F-213
See accompanying notes to consolidated financial statements.
13.3
22.0
75.3
506.5
58.7
13.3
22.0
75.3
506.5
58.7
12.4
24.5
83.2
559.2
54.6
— %
0.01 %
0.03 %
0.17 %
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
271346
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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.
(#,^)
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
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
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/15/2043
392.8
392.8
433.6
0.13 %
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
Term Loan
Prime plus 2.75%
9/15/2043
Term Loan
Prime plus 2.75%
3/14/2028
Term Loan
Prime plus 2.75%
3/9/2028
Term Loan
Prime plus 2.75%
3/9/2028
Term Loan
Prime plus 2.75%
3/9/2028
Term Loan
Prime plus 2.75%
3/9/2028
Term Loan
Prime plus 2.75%
3/8/2028
Term Loan
Prime plus 2.75%
3/8/2028
Term Loan
Prime plus 2.75%
3/7/2028
Term Loan
Prime plus 2.75%
8/7/2043
Term Loan
Prime plus 2.75%
3/2/2028
Educational Services
Term Loan
Prime plus 2.75%
3/2/2028
75.3
40.0
9.0
264.7
85.9
177.5
19.9
13.2
158.4
102.3
4.4
7.4
75.3
40.0
9.0
264.7
85.9
177.5
19.9
13.2
158.4
102.3
4.4
7.4
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 %
— %
— %
Term Loan
Prime plus 2.75%
3/2/2043
248.4
248.4
276.1
0.09 %
Social Assistance
Nonmetallic Mineral Product
Manufacturing
Nursing and Residential Care
Facilities
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
2/28/2028
Term Loan
8%
2/28/2043
Term Loan
Prime plus 2.75%
2/28/2028
Term Loan
Prime plus 2.75%
2/28/2043
Repair and Maintenance
Term Loan
Prime plus 2.75%
2/27/2028
F-214
See accompanying notes to consolidated financial statements.
2.6
62.9
196.2
116.0
65.7
2.6
62.9
196.2
116.0
65.7
2.4
59.7
205.0
131.3
61.5
— %
0.02 %
0.06 %
0.04 %
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
271346
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
11515 Lake Lane Ste 102,
Chisago, MN 55013
Merchant Wholesalers,
Nondurable Goods
94-33 Corona Ave, Corona, NY
11373
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/26/2028
109.5
109.5
100.0
0.03 %
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
128 North Woodland Blvd,
Deland, FL 32720
2425 Durrance LN, Ormond
Beach, FL 32174
4751 West 147th St., Midlothian,
IL 60445
1345 North Shepherd Dr,
Houston, TX 77008
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
Food and Beverage Stores
Furniture and Home Furnishings
Stores
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
2/23/2028
Term Loan
Prime plus 2.75%
2/22/2028
Term Loan
Prime plus 2.75%
2/21/2028
Term Loan
Prime plus 2.75%
2/21/2028
Term Loan
Prime plus 2.75%
2/16/2028
Term Loan
Prime plus 2.75%
2/16/2028
Term Loan
Prime plus 2.75%
2/14/2043
Term Loan
Prime plus 2.75%
2/13/2028
Term Loan
Prime plus 2.75%
2/13/2028
Term Loan
Prime plus 2.75%
2/9/2028
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 %
— %
Term Loan
Prime plus 2.75%
2/9/2028
1,144.4
1,144.4
1,129.6
0.35 %
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/9/2028
Telecommunications
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/8/2028
Term Loan
Prime plus 2.75%
2/7/2028
Repair and Maintenance
Building Material and Garden
Equipment and Supplies Dealers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
2/5/2028
Term Loan
Prime plus 2.75%
2/2/2028
Term Loan
Prime plus 2.75%
2/1/2028
65.7
458.2
68.9
10.5
13.1
10.4
65.7
458.2
68.9
10.5
13.1
10.4
63.2
418.6
65.3
11.0
13.7
9.5
0.02 %
0.13 %
0.02 %
— %
— %
— %
F-215
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Building Material and Garden
Equipment and Supplies Dealers
Administrative and Support
Services
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%
1/31/2043
292.2
292.2
330.8
Term Loan
Prime plus 2.75%
1/31/2043
Term Loan
Prime plus 2.75%
1/31/2028
Term Loan
Prime plus 2.75%
1/30/2043
73.0
13.0
46.2
73.0
13.0
46.2
82.6
12.2
50.9
Term Loan
Prime plus 2.75%
1/26/2043
933.6
933.6
1,053.4
Term Loan
Prime plus 2.75%
1/25/2028
Term Loan
Prime plus 2.75%
1/25/2028
Term Loan
Prime plus 2.75%
1/25/2028
14.7
86.9
16.9
14.7
86.9
16.9
13.5
83.8
17.7
Term Loan
Prime plus 2.75%
1/24/2028
119.5
119.5
124.9
Term Loan
Prime plus 2.75%
1/23/2028
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/19/2028
Machinery Manufacturing
Term Loan
Prime plus 2.75%
1/19/2028
Construction of Buildings
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/19/2043
Term Loan
Prime plus 2.75%
1/18/2028
Term Loan
Prime plus 2.75%
1/18/2043
Term Loan
Prime plus 2.75%
1/16/2028
Term Loan
Prime plus 2.75%
1/8/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
1/8/2043
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
1/5/2028
6.5
9.1
6.5
226.3
68.5
111.9
56.5
13.4
61.4
6.5
54.3
6.5
9.1
6.5
226.3
68.5
111.9
56.5
13.4
61.4
6.5
54.3
6.1
9.5
6.0
246.1
62.5
121.0
51.6
14.0
68.1
6.8
50.0
0.02 %
271346
0.10 %
0.03 %
— %
0.02 %
0.33 %
— %
0.03 %
0.01 %
0.04 %
— %
— %
— %
0.08 %
0.02 %
0.04 %
0.02 %
— %
0.02 %
— %
60 Dodd St., Bloomfield, NJ
07003
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/5/2028
F-216
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
% of Net
Assets
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
475 Park Ave S 25th Fl, New
York, NY 10016
SBA Unguaranteed Accrual Investments (1) (22)
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 (#,^)
(#,^)
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
(#,^)
(#,^)
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
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
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/22/2027
Term Loan
Prime plus 2.75%
12/22/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
12/22/2027
9.7
242.4
707.3
630.5
11.8
3.2
14.0
9.7
242.4
707.3
630.5
11.8
3.2
14.0
Truck Transportation
Term Loan
7.5%
12/22/2027
1,084.7
1,084.7
Ambulatory Health Care Services Term Loan
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
12/22/2027
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
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
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
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/21/2027
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
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
F-217
See accompanying notes to consolidated financial statements.
53.9
53.9
10.4
671.4
43.1
181.1
189.3
19.7
64.7
6.2
103.3
324.6
53.9
53.9
10.4
671.4
43.1
181.1
189.3
19.7
64.7
6.2
103.3
324.6
271346
— %
0.07 %
0.24 %
0.20 %
— %
— %
— %
0.28 %
0.02 %
0.02 %
— %
0.19 %
0.01 %
0.06 %
0.06 %
0.01 %
0.02 %
— %
0.04 %
0.11 %
8.9
223.3
785.3
660.5
11.7
3.2
14.6
914.2
49.2
49.2
9.4
620.0
39.3
204.8
197.2
18.7
63.8
5.7
116.8
367.1
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
(#,^)
(#,^)
(#,^)
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
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
12/15/2027
Truck Transportation
Term Loan
Prime plus 2.75%
12/15/2042
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/15/2027
Truck Transportation
Merchant Wholesalers,
Nondurable Goods
Specialty Trade Contractors
Transit and Ground Passenger
Transportation
Truck Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/15/2027
Term Loan
Prime plus 2.75%
12/14/2027
Term Loan
Prime plus 2.75%
12/14/2027
Term Loan
Prime plus 2.75%
12/14/2027
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
2040 Norwood St. SW, Lenoir,
NC 28645
Food Manufacturing
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2.75%
12/14/2027
Term Loan
Prime plus 2.75%
12/14/2027
19.4
598.7
431.3
19.4
194.1
262.3
435.9
587.9
176.1
13.3
83.2
64.9
19.4
598.7
431.3
19.4
194.1
262.3
435.9
587.9
176.1
13.3
83.2
64.9
17.9
628.5
447.5
18.1
177.0
261.2
399.0
536.2
187.8
12.2
84.8
65.1
271346
0.01 %
0.20 %
0.14 %
0.01 %
0.05 %
0.08 %
0.12 %
0.17 %
0.06 %
— %
0.03 %
0.02 %
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
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
3031 Patrick St, Kissimmee, FL
34741
Management of Companies and
Enterprises
Administrative and Support
Services
Rental and Leasing Services
Heavy and Civil Engineering
Construction
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
12/14/2027
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
54.4
85.0
778.6
398.5
620.7
54.4
85.0
778.6
398.5
620.7
50.4
92.2
710.1
393.7
618.2
0.02 %
0.03 %
0.22 %
0.12 %
0.19 %
Air Transportation
Term Loan
Prime plus 2.75%
12/12/2027
446.7
446.7
407.4
0.13 %
F-218
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)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1120 Wren School Rd, Piedmont,
SC 29673
110 S. Fairfax Ave, Los Angeles,
CA 90036
Gasoline Stations
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
12/12/2027
Term Loan
Prime plus 2.75%
12/12/2027
16965 Park Circle Drive, Chagrin
Falls, OH 44023
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/12/2027
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
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
Real Estate
Administrative and Support
Services
Term Loan
Prime plus 2.75%
12/12/2042
Term Loan
Prime plus 2.75%
12/8/2027
Rental and Leasing Services
Term Loan
Prime plus 2.75%
12/8/2027
Ambulatory Health Care Services Term Loan
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
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
12/7/2027
Prime plus 2.75%
12/7/2042
Prime plus 2.75%
12/6/2042
Prime plus 2.75%
12/6/2027
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/4/2027
Miscellaneous Store Retailers
Food Services and Drinking
Places
Food Services and Drinking
Places
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
12/1/2042
Term Loan
Prime plus 2.75%
12/1/2027
Term Loan
Prime plus 2.75%
12/1/2027
Term Loan
Prime plus 2.75%
12/1/2027
1 Jackson St., Troy, NY 12180
14277 Ramona Ave, Chino, CA
91710
Miscellaneous Store Retailers
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
11/30/2027
Term Loan
Prime plus 2.75%
11/30/2027
F-219
See accompanying notes to consolidated financial statements.
12.2
— %
109.7
0.03 %
% of Net
Assets
271346
0.01 %
0.10 %
— %
0.11 %
— %
0.20 %
0.03 %
0.01 %
0.34 %
— %
0.01 %
0.01 %
0.01 %
0.02 %
0.04 %
0.01 %
43.0
324.7
12.9
97.2
3.2
381.7
12.9
562.5
97.2
42.3
43.0
324.7
12.9
97.2
3.2
381.7
12.9
562.5
97.2
42.3
39.2
307.8
3.0
370.4
11.8
635.3
102.5
40.6
12.9
20.4
48.5
20.1
54.3
112.3
34.2
12.9
20.4
48.5
20.1
54.3
112.3
34.2
11.8
23.1
44.5
19.3
49.5
115.4
33.5
Prime plus 2.75%
12/4/2042
961.7
961.7
1,087.7
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
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
11/30/2042
Mining (except Oil and Gas)
Term Loan
Prime plus 2.75%
11/30/2027
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/30/2027
Term Loan
Prime plus 2.75%
11/30/2027
Rental and Leasing Services
Term Loan
8.25%
11/29/2027
Social Assistance
Term Loan
Prime plus 2.75%
11/29/2042
Social Assistance
Food Services and Drinking
Places
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
11/29/2042
Term Loan
Prime plus 2.75%
11/27/2042
Term Loan
Prime plus 2.75%
11/22/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/22/2027
Educational Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/22/2027
Term Loan
Prime plus 2.75%
11/21/2027
Term Loan
Prime plus 2.75%
11/21/2027
Educational Services
Term Loan
Prime plus 2.75%
11/21/2027
84.9
463.6
7.7
10.7
153.7
188.3
231.7
123.2
16.0
59.9
13.5
19.3
60.9
92.9
84.9
463.6
7.7
10.7
153.7
188.3
231.7
123.2
16.0
59.9
13.5
19.3
60.9
92.9
95.1
468.2
7.2
11.1
130.9
212.9
262.0
139.3
15.7
54.9
12.3
18.9
55.7
84.9
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/20/2042
175.9
175.9
195.3
Rental and Leasing Services
Term Loan
Prime plus 2.75%
11/17/2027
161.8
161.8
161.7
271346
0.03 %
0.15 %
— %
— %
0.04 %
0.07 %
0.08 %
0.04 %
— %
0.02 %
— %
0.01 %
0.02 %
0.03 %
0.06 %
0.05 %
0.02 %
0.02 %
Accommodation
Term Loan
Prime plus 2.75%
11/17/2042
Truck Transportation
Term Loan
Prime plus 2.75%
11/17/2027
558 West Main St., Lebanon, OH
45036
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
11/17/2027
F-220
See accompanying notes to consolidated financial statements.
55.3
53.4
42.8
55.3
53.4
42.8
62.6
49.8
40.7
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)
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.
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Specialty Trade Contractors
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/17/2027
Term Loan
Prime plus 2.75%
11/16/2027
Couriers and Messengers
Term Loan
Prime plus 2.75%
11/16/2027
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/15/2042
Repair and Maintenance
Nonmetallic Mineral Product
Manufacturing
Educational Services
Food Services and Drinking
Places
Transit and Ground Passenger
Transportation
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
11/15/2042
Term Loan
Prime plus 2.75%
11/15/2042
Term Loan
Prime plus 2.75%
10/14/2043
Term Loan
Prime plus 2.75%
11/10/2027
Term Loan
Prime plus 2.75%
11/9/2027
Term Loan
Prime plus 2.75%
11/8/2027
Couriers and Messengers
Term Loan
Prime plus 2.75%
11/7/2027
Social Assistance
Term Loan
Prime plus 2.75%
11/6/2042
45.4
142.4
59.9
13.1
190.4
609.4
457.5
8.3
285.6
12.8
95.8
89.0
45.4
142.4
59.9
13.1
190.4
609.4
457.5
8.3
285.6
12.8
95.8
89.0
41.8
131.7
56.9
14.8
214.5
680.2
501.6
7.6
11.7
92.7
98.9
Term Loan
Prime plus 2.75%
11/3/2042
160.1
160.1
180.0
297.9
0.09 %
Repair and Maintenance
Insurance Carriers and Related
Activities
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Insurance Carriers and Related
Activities
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
11/3/2027
Term Loan
Prime plus 2.75%
11/2/2027
Term Loan
Prime plus 2.75%
11/1/2027
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
F-221
See accompanying notes to consolidated financial statements.
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
% of Net
Assets
271346
0.01 %
0.04 %
0.02 %
— %
0.07 %
0.21 %
0.16 %
— %
— %
0.03 %
0.03 %
0.06 %
— %
— %
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
Educational Services
Term Loan
Prime plus 2.75%
10/30/2042
460.3
460.3
520.6
0.16 %
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
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
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/24/2027
Prime plus 2.75%
10/18/2027
12.4
31.8
8.5
84.8
12.7
29.7
19.2
56.5
12.4
31.8
8.5
84.8
12.7
29.7
19.2
56.5
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/18/2042
130.0
130.0
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
10/17/2027
Electronics and Appliance Stores
Food Services and Drinking
Places
Administrative and Support
Services
Construction of Buildings
Amusement, Gambling, and
Recreation Industries
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
7.94%
10/17/2042
Term Loan
Prime plus 2.75%
10/13/2042
Term Loan
Prime plus 2.75%
10/13/2027
Term Loan
Prime plus 2.75%
10/13/2027
7.0
62.4
43.9
16.3
15.5
7.0
62.4
43.9
16.3
15.5
Term Loan
Prime plus 2.75%
10/13/2027
105.4
105.4
Term Loan
Prime plus 2.75%
10/12/2027
Term Loan
Prime plus 2.75%
10/11/2027
Term Loan
Prime plus 2.75%
10/11/2027
19.3
45.9
16.2
19.3
45.9
16.2
F-222
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
11.6
29.8
7.9
94.9
13.3
31.0
19.4
52.8
142.4
6.8
59.1
46.5
15.7
16.2
98.5
18.0
42.5
16.3
— %
0.01 %
— %
0.03 %
— %
0.01 %
0.01 %
0.02 %
0.04 %
— %
0.02 %
0.01 %
— %
0.01 %
0.03 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
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
Health and Personal Care Stores
Management of Companies and
Enterprises
Rental and Leasing Services
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
10/5/2027
Term Loan
Prime plus 2.75%
10/2/2027
Term Loan
Prime plus 2.75%
10/2/2027
Term Loan
Prime plus 2.75%
9/29/2042
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/29/2042
Primary Metal Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/29/2042
Term Loan
Prime plus 2.75%
9/29/2042
Truck Transportation
Term Loan
Prime plus 2.75%
9/29/2030
12.7
72.1
77.3
133.0
97.5
476.9
205.8
886.0
12.7
72.1
77.3
133.0
97.5
476.9
205.8
886.0
11.6
67.3
74.7
143.8
110.3
499.5
232.8
841.9
Fabricated Metal Product
Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Food Services and Drinking
Places
Construction of Buildings
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
9/29/2042
1,211.0
1,211.0
1,328.4
Term Loan
Prime plus 2.75%
9/28/2030
Term Loan
Prime plus 2.75%
9/28/2042
Term Loan
Prime plus 2.75%
9/28/2027
Term Loan
Prime plus 2.75%
9/28/2042
Term Loan
Prime plus 2.75%
9/28/2042
Term Loan
Prime plus 2.75%
9/27/2027
Term Loan
Prime plus 2.75%
9/27/2027
Term Loan
Prime plus 2.75%
9/26/2042
Term Loan
Prime plus 2.75%
9/26/2027
Term Loan
Prime plus 2.75%
9/22/2027
192.1
371.3
15.8
192.7
533.2
12.4
215.5
455.9
278.9
8.6
192.1
371.3
15.8
192.7
533.2
12.4
215.5
455.9
278.9
8.6
199.5
400.7
14.4
213.1
575.4
11.3
224.5
497.0
285.8
8.2
271346
— %
0.02 %
0.02 %
0.04 %
0.03 %
0.16 %
0.07 %
0.26 %
0.41 %
0.06 %
0.12 %
— %
0.07 %
0.18 %
— %
0.07 %
0.15 %
0.09 %
— %
F-223
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Food Services and Drinking
Places
Repair and Maintenance
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/22/2027
Term Loan
Prime plus 2.75%
9/21/2027
Term Loan
Prime plus 2.75%
9/20/2027
Term Loan
Prime plus 2.75%
9/20/2027
18.9
7.6
168.0
262.8
18.9
7.6
168.0
262.8
17.4
7.9
167.0
248.3
Term Loan
Prime plus 2.75%
9/20/2027
1,063.3
1,063.3
1,107.2
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/20/2027
6.3
6.3
6.4
Rental and Leasing Services
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/20/2027
Term Loan
Prime plus 2.75%
9/20/2027
Social Assistance
Term Loan
Prime plus 2.75%
9/20/2042
Social Assistance
Term Loan
Prime plus 2.75%
9/20/2042
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/20/2042
Couriers and Messengers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
9/20/2027
Term Loan
Prime plus 2.75%
9/19/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/19/2027
867.3
68.7
157.2
284.7
203.0
67.5
54.7
4.4
867.3
68.7
157.2
284.7
203.0
67.5
54.7
4.4
868.1
65.2
169.1
308.1
229.4
65.0
56.9
4.0
Personal and Laundry Services
Food Services and Drinking
Places
Gasoline Stations
Professional, Scientific, and
Technical Services
Rental and Leasing Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/18/2042
1,185.5
1,185.5
1,271.0
Term Loan
Prime plus 2.75%
9/15/2042
Term Loan
Prime plus 2.75%
9/15/2042
Term Loan
Prime plus 2.75%
9/15/2027
Term Loan
Prime plus 2.75%
9/13/2027
Term Loan
Prime plus 3.75%
9/13/2027
372.0
253.8
70.2
279.3
6.4
372.0
253.8
70.2
279.3
6.4
413.2
275.1
66.0
254.3
6.6
271346
0.01 %
— %
0.05 %
0.08 %
0.34 %
— %
0.27 %
0.02 %
0.05 %
0.10 %
0.07 %
0.02 %
0.02 %
— %
0.39 %
0.13 %
0.09 %
0.02 %
0.08 %
— %
F-224
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)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Personal and Laundry Services
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/13/2027
Term Loan
Prime plus 2.75%
9/12/2042
Term Loan
Prime plus 2.75%
9/12/2042
Ambulatory Health Care Services Term Loan
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
9/11/2027
Prime plus 2.75%
9/11/2027
12.0
163.7
377.5
17.2
6.3
12.0
163.7
377.5
17.2
6.3
11.8
185.0
399.0
15.6
6.6
Social Assistance
Term Loan
Prime plus 2.75%
9/8/2042
281.8
281.8
306.3
0.10 %
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%
9/8/2027
Term Loan
Prime plus 3.75%
9/7/2027
Term Loan
Prime plus 2.75%
9/7/2042
Social Assistance
Term Loan
Prime plus 2.75%
9/5/2042
Truck Transportation
Term Loan
Prime plus 2.75%
9/1/2027
Couriers and Messengers
Term Loan
Prime plus 2.75%
8/31/2027
Real Estate
Term Loan
Prime plus 2.75%
8/29/2042
Real Estate
Support Activities for
Transportation
Educational Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/29/2042
Term Loan
Prime plus 2.75%
8/25/2042
Term Loan
Prime plus 2.75%
8/25/2027
Term Loan
Prime plus 2.75%
8/24/2027
Term Loan
Prime plus 2.75%
8/24/2030
F-225
See accompanying notes to consolidated financial statements.
6.3
4.5
96.9
362.2
85.0
321.1
684.7
537.9
84.5
93.1
20.9
495.8
6.3
4.5
96.9
362.2
85.0
321.1
684.7
537.9
84.5
93.1
20.9
495.8
6.5
4.4
109.4
393.0
83.8
300.6
684.2
537.5
91.3
86.0
19.0
491.3
— %
— %
0.03 %
0.12 %
0.03 %
0.09 %
0.21 %
0.17 %
0.03 %
0.03 %
0.01 %
0.15 %
% of Net
Assets
271346
— %
0.06 %
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
% of Net
Assets
Term Loan
Prime plus 2.75%
8/23/2042
Term Loan
Prime plus 2.75%
8/22/2027
79.8
172.0
79.8
172.0
90.1
176.3
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
760 W. Charter Way, Stockton,
CA 95206
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/21/2027
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%
8/21/2027
Term Loan
Prime plus 2.75%
8/18/2027
Term Loan
Prime plus 2.75%
8/17/2027
Term Loan
Prime plus 2.75%
8/16/2027
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Repair and Maintenance
Professional, Scientific, and
Technical Services
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
8/11/2027
Term Loan
Prime plus 2.75%
8/4/2027
Term Loan
Prime plus 2.75%
8/3/2027
Term Loan
Prime plus 2.75%
8/2/2027
Term Loan
Prime plus 2.75%
7/31/2027
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/31/2027
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
7/31/2042
Ambulatory Health Care Services Term Loan
Merchant Wholesalers, Durable
Goods
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
7/28/2027
Prime plus 2.75%
7/27/2027
Prime plus 2.75%
7/25/2027
Food Manufacturing
Social Assistance
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
7/21/2027
7/21/2042
Truck Transportation
Term Loan
Prime plus 2.75%
7/21/2027
F-226
See accompanying notes to consolidated financial statements.
271346
0.03 %
0.05 %
0.01 %
— %
— %
— %
0.01 %
— %
— %
— %
0.01 %
— %
— %
0.02 %
— %
0.01 %
0.05 %
0.02 %
— %
0.01 %
0.01 %
18.8
15.0
15.7
6.3
18.8
6.9
6.1
7.5
41.3
8.7
11.8
51.1
15.4
18.7
18.8
15.0
15.7
6.3
18.8
6.9
6.1
7.5
41.3
8.7
11.8
51.1
15.4
18.7
18.6
15.7
14.8
5.7
17.9
6.6
5.6
6.8
37.6
7.9
12.3
57.0
14.0
17.0
53.5
9.9
28.9
32.2
53.5
9.9
28.9
32.2
48.7
9.7
32.7
29.3
Prime plus 2.75%
7/26/2027
181.4
181.4
174.7
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
271346
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
800 SW 21st Terrace, Fort
Lauderdale, FL 33312
Nonmetallic Mineral Product
Manufacturing
Term Loan
Prime plus 3.75%
7/19/2027
6.3
6.3
6.7
— %
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
11776 West Sample Rd, Coral
Springs, FL 33065
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
Air Transportation
Term Loan
Prime plus 2.75%
7/18/2027
Food Manufacturing
Building Material and Garden
Equipment and Supplies Dealers
Motor Vehicle and Parts Dealers
Administrative and Support
Services
Term Loan
Prime plus 2.75%
7/17/2027
Term Loan
Prime plus 2.75%
7/14/2042
Term Loan
Prime plus 2.75%
7/13/2027
Term Loan
Prime plus 2.75%
7/7/2027
Food and Beverage Stores
Term Loan
Prime plus 2.75%
7/6/2027
Food Manufacturing
Term Loan
Prime plus 2.75%
6/30/2027
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/30/2042
Real Estate
Term Loan
Prime plus 2.75%
6/30/2027
Real Estate
Professional, Scientific, and
Technical Services
Specialty Trade Contractors
Animal Production and
Aquaculture
Term Loan
Prime plus 2.75%
6/30/2042
Term Loan
Prime plus 2.75%
6/30/2027
Term Loan
Prime plus 2.75%
6/30/2027
Term Loan
Prime plus 2.75%
6/29/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/29/2027
Truck Transportation
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/29/2027
Term Loan
Prime plus 2.75%
6/29/2027
Term Loan
Prime plus 2.75%
6/29/2027
Ambulatory Health Care Services Term Loan
Term Loan
Specialty Trade Contractors
Prime plus 2.75%
Prime plus 2.75%
6/29/2042
6/29/2030
F-227
See accompanying notes to consolidated financial statements.
683.6
18.6
315.0
10.9
15.5
87.8
12.3
48.1
12.3
52.1
87.3
79.7
18.5
253.9
514.4
3.1
73.9
557.7
87.9
683.6
18.6
315.0
10.9
15.5
87.8
12.3
48.1
12.3
52.1
87.3
79.7
18.5
253.9
514.4
3.1
73.9
557.7
87.9
626.4
19.4
335.4
9.9
14.5
83.5
12.7
55.4
12.1
59.3
85.4
77.9
18.1
267.5
502.2
3.0
72.2
630.0
94.9
0.19 %
0.01 %
0.10 %
— %
— %
0.03 %
— %
0.02 %
— %
0.02 %
0.03 %
0.02 %
0.01 %
0.08 %
0.16 %
— %
0.02 %
0.20 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
2901 I 40 West, Vega, TX 79092
4211 NW Federal Hwy, Jensen
Beach, FL 34957
1308 Devils Reach Rd,
Woodbridge, VA 22192
254 36th St., Unit 25, Brooklyn,
NY 11232
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
228 East 45th St. 12th FL South,
New York, NY 10017
533 W. Grand River Ave,
Brighton, MI 48116
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
Furniture and Related Product
Manufacturing
Transportation Equipment
Manufacturing
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/28/2042
Term Loan
Prime plus 2.75%
6/28/2027
Term Loan
Prime plus 2.75%
6/28/2027
Term Loan
Prime plus 2.75%
6/27/2027
Term Loan
Prime plus 2.75%
6/27/2030
Term Loan
Prime plus 2.75%
6/27/2027
Term Loan
Prime plus 2.75%
6/26/2027
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/26/2042
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/23/2042
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/23/2042
Construction of Buildings
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
6/23/2027
Term Loan
Prime plus 2.75%
6/22/2027
Term Loan
Prime plus 2.75%
6/19/2027
11535 Carmel Cmns Blvd #200,
Charlotte, NC 28226
4744 Tackawanna St.,
Philadelphia, PA 19124
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/16/2042
Prime plus 2.75%
6/15/2027
57.8
76.5
831.8
102.8
215.7
13.5
887.7
211.4
15.7
55.6
18.5
41.1
24.0
385.8
26.6
57.8
76.5
831.8
102.8
215.7
13.5
887.7
211.4
15.7
55.6
18.5
41.1
24.0
385.8
26.6
104 Wooster St., Bethel, CT
06801
2420 Grand Ave, Baldwin, NY
11520
19 Hull Shore Dr, Hull, MA
02045
577 Main Ave, Paterson, NJ
07055
Waste Management and
Remediation Services
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
6/15/2042
299.3
299.3
Term Loan
Prime plus 2.75%
6/14/2042
Term Loan
Prime plus 2.75%
6/14/2042
Term Loan
Prime plus 2.75%
6/14/2042
21.7
92.8
89.1
21.7
92.8
89.1
F-228
See accompanying notes to consolidated financial statements.
271346
0.02 %
0.02 %
0.26 %
0.03 %
0.07 %
— %
0.27 %
0.07 %
0.01 %
0.02 %
0.01 %
0.01 %
0.01 %
0.13 %
0.01 %
0.10 %
0.01 %
0.03 %
0.03 %
66.5
75.2
823.0
100.4
230.7
14.2
878.3
239.4
16.9
64.4
18.1
40.1
24.0
429.2
26.0
337.1
24.7
107.4
102.2
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
6291 Chittenden Rd, Boston
Heights, OH 44236
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
Accommodation
Term Loan
Prime plus 2.75%
6/14/2042
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/12/2027
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/8/2027
59.7
97.6
2.9
59.7
97.6
2.9
69.2
99.9
2.8
Educational Services
Term Loan
Prime plus 2.75%
6/2/2042
140.6
140.6
159.2
Educational Services
Term Loan
Prime plus 2.75%
6/2/2027
Motor Vehicle and Parts Dealers
Merchant Wholesalers,
Nondurable Goods
Food and Beverage Stores
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/1/2042
Term Loan
Prime plus 2.75%
5/31/2027
Term Loan
Prime plus 2.75%
5/31/2027
Term Loan
Prime plus 2.75%
5/31/2027
Administrative and Support
Services
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
Other Information Services
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
5/31/2042
Term Loan
Prime plus 2.75%
5/31/2042
Term Loan
Prime plus 2.75%
5/26/2042
Term Loan
Prime plus 2.75%
5/26/2027
Term Loan
Prime plus 2.75%
5/26/2027
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/26/2042
Accommodation
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
5/26/2042
Term Loan
Prime plus 2.75%
5/25/2027
Term Loan
Prime plus 2.75%
5/25/2027
Term Loan
Prime plus 2.75%
5/25/2027
F-229
See accompanying notes to consolidated financial statements.
45.2
44.0
18.3
12.3
54.0
76.4
253.8
761.9
61.1
9.8
190.8
122.2
7.3
12.2
40.8
45.2
44.0
18.3
12.3
54.0
76.4
253.8
761.9
61.1
9.8
190.8
122.2
7.3
12.2
40.8
47.6
50.2
18.0
12.1
53.2
87.9
294.0
882.5
59.7
9.9
218.0
141.1
7.2
12.0
40.6
271346
0.02 %
0.03 %
— %
0.05 %
0.01 %
0.02 %
0.01 %
— %
0.02 %
0.03 %
0.09 %
0.27 %
0.02 %
— %
0.07 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Ambulatory Health Care Services Term Loan
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
5/25/2042
Prime plus 2.75%
5/24/2027
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/23/2042
Construction of Buildings
Term Loan
Prime plus 2.75%
5/23/2042
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/19/2042
Truck Transportation
Term Loan
Prime plus 2.75%
5/19/2027
Food and Beverage Stores
Term Loan
Prime plus 2.75%
5/19/2027
379.0
275.1
325.7
323.4
560.0
170.5
6.7
40.8
379.0
275.1
325.7
323.4
560.0
170.5
6.7
40.8
434.6
268.6
367.0
361.8
636.9
174.3
6.8
40.2
Specialty Trade Contractors
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
5/18/2027
Term Loan
Prime plus 2.75%
5/18/2042
141.1
141.1
160.1
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/18/2042
116.1
116.1
132.2
Educational Services
Term Loan
Prime plus 2.75%
5/17/2027
Social Assistance
Term Loan
Prime plus 2.75%
5/16/2042
Food and Beverage Stores
Term Loan
Prime plus 2.75%
5/16/2027
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/16/2027
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
5/15/2042
Truck Transportation
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
5/12/2027
Term Loan
8.25%
5/12/2027
Term Loan
Prime plus 2.75%
5/11/2027
Educational Services
Term Loan
Prime plus 2.75%
5/11/2027
40.8
59.4
43.8
291.2
110.8
8.6
67.9
6.1
99.4
40.8
59.4
43.8
291.2
110.8
8.6
67.9
6.1
99.4
39.8
67.4
43.3
294.6
124.6
8.4
65.9
6.4
97.0
F-230
See accompanying notes to consolidated financial statements.
271346
0.13 %
0.08 %
0.11 %
0.11 %
0.20 %
0.05 %
— %
0.01 %
0.05 %
0.04 %
0.01 %
0.02 %
0.01 %
0.09 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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.
(#,^)
(#,^)
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
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
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
Miscellaneous Store Retailers
Building Material and Garden
Equipment and Supplies Dealers
Truck Transportation
Building Material and Garden
Equipment and Supplies Dealers
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
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
Term Loan
Prime plus 2.75%
5/10/2027
Term Loan
Prime plus 2.75%
5/9/2042
Term Loan
Prime plus 2.75%
5/9/2027
Term Loan
Prime plus 2.75%
5/9/2027
Term Loan
Prime plus 2.75%
5/5/2027
Term Loan
Prime plus 2.75%
5/3/2027
Term Loan
Prime plus 2.75%
5/2/2042
Term Loan
Prime plus 2.75%
4/28/2042
Term Loan
Prime plus 2.75%
4/27/2042
Term Loan
Prime plus 2.75%
4/27/2042
Term Loan
Prime plus 2.75%
4/26/2027
Term Loan
Prime plus 2.75%
4/24/2027
Term Loan
Prime plus 2.75%
4/21/2027
Term Loan
Prime plus 2.75%
4/21/2042
Term Loan
Prime plus 2.75%
4/19/2027
Term Loan
Prime plus 2.75%
4/12/2027
Term Loan
Prime plus 2.75%
3/31/2027
Term Loan
Prime plus 2.75%
3/31/2027
Term Loan
Prime plus 2.75%
3/31/2027
81.5
21.1
63.6
72.1
18.3
46.7
113.5
74.9
213.2
611.4
70.7
71.8
6.1
48.0
96.6
59.6
150.5
52.0
100.4
81.5
21.1
63.6
72.1
18.3
46.7
113.5
74.9
213.2
611.4
70.7
71.8
6.1
48.0
96.6
59.6
150.5
52.0
100.4
84.2
23.2
65.6
72.1
17.9
47.9
131.5
84.5
246.9
689.0
74.5
70.2
6.0
54.8
96.9
62.8
146.9
51.1
98.0
271346
0.03 %
0.01 %
0.02 %
0.02 %
0.01 %
0.01 %
0.04 %
0.03 %
0.08 %
0.21 %
0.02 %
0.02 %
— %
0.02 %
0.03 %
0.02 %
0.05 %
0.02 %
0.03 %
F-231
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
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
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
3/31/2042
Term Loan
Prime plus 2.75%
3/31/2042
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2027
Food Manufacturing
Term Loan
Prime plus 2.75%
3/30/2042
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%
3/30/2027
Term Loan
Prime plus 2.75%
3/30/2042
531.0
607.2
35.5
238.6
24.1
227.2
531.0
607.2
35.5
238.6
24.1
227.2
613.1
703.3
34.7
276.4
25.2
258.5
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%
3/29/2042
1,015.1
1,015.1
1,174.2
Couriers and Messengers
Term Loan
Prime plus 2.75%
3/29/2030
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/29/2027
84.5
80.3
84.5
80.3
84.3
80.4
2 Hill Rd, Franklin, NH 03235
Gasoline Stations
Term Loan
Prime plus 2.75%
3/29/2042
198.2
198.2
226.4
27 Kenosia Ave, Danbury, CT
06810
7637 C. Commerce Place, Plain
City, OH 43064
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
Social Assistance
Amusement, Gambling, and
Recreation Industries
Motion Picture and Sound
Recording Industries
Professional, Scientific, and
Technical Services
Waste Management and
Remediation Services
Printing and Related Support
Activities
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
3/28/2042
Term Loan
Prime plus 2.75%
3/27/2042
Term Loan
Prime plus 2.75%
3/27/2042
Term Loan
Prime plus 2.75%
3/24/2042
Term Loan
Prime plus 2.75%
3/23/2027
Term Loan
Prime plus 2.75%
3/23/2027
Term Loan
Prime plus 2.75%
3/23/2042
Term Loan
Prime plus 2.75%
3/23/2027
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
Truck Transportation
Term Loan
Prime plus 2.75%
3/22/2042
618.0
618.0
708.6
F-232
See accompanying notes to consolidated financial statements.
271346
0.19 %
0.22 %
0.01 %
0.09 %
0.01 %
0.08 %
0.36 %
0.03 %
0.02 %
0.07 %
0.13 %
0.31 %
0.14 %
0.15 %
0.01 %
0.03 %
0.03 %
0.01 %
0.22 %
% of Net
Assets
271346
0.01 %
— %
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)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
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
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/21/2027
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/17/2027
18.1
3.9
79.8
18.1
3.9
79.8
17.6
3.9
81.1
Educational Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/16/2027
Term Loan
Prime plus 2.75%
3/16/2042
154.4
154.4
178.6
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 Personal and Laundry Services
Truck Transportation
Truck Transportation
Term Loan
Prime plus 2.75%
3/13/2027
Term Loan
Prime plus 2.75%
3/10/2027
Term Loan
Prime plus 2.75%
3/10/2042
140 Dupont St., Plainview, NY
11803
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
Nonmetallic Mineral Product
Manufacturing
Food and Beverage Stores
Nursing and Residential Care
Facilities
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
3/9/2027
Term Loan
Prime plus 2.75%
3/9/2042
Term Loan
Prime plus 2.75%
3/6/2027
Term Loan
Prime plus 2.75%
3/3/2042
Term Loan
Prime plus 2.75%
2/28/2027
Truck Transportation
Term Loan
Prime plus 2.75%
2/28/2027
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%
2/28/2042
Term Loan
Prime plus 2.75%
2/27/2027
Term Loan
Prime plus 2.75%
2/27/2027
Term Loan
Prime plus 2.75%
2/27/2030
Term Loan
Prime plus 2.75%
2/24/2027
F-233
See accompanying notes to consolidated financial statements.
543.7
8.4
565.7
100.2
110.9
77.0
87.2
76.6
182.3
134.4
130.2
51.2
268.7
59.8
543.7
8.4
565.7
100.2
110.9
77.0
87.2
76.6
182.3
134.4
130.2
51.2
268.7
59.8
529.9
0.16 %
8.5
— %
641.9
0.20 %
98.9
128.3
81.0
98.6
76.3
177.6
153.4
126.9
51.0
276.3
62.1
0.03 %
0.04 %
0.03 %
0.03 %
0.02 %
0.06 %
0.05 %
0.04 %
0.02 %
0.09 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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 (#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Textile Product Mills
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
2/24/2042
Term Loan
Prime plus 2.75%
2/24/2027
Term Loan
Prime plus 2.75%
2/17/2042
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
2/14/2042
Truck Transportation
Term Loan
Prime plus 2.75%
2/10/2042
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/10/2042
Term Loan
Prime plus 2.75%
2/10/2027
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/10/2042
Forestry and Logging
Term Loan
Prime plus 2.75%
2/9/2027
Repair and Maintenance
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
2/7/2042
Term Loan
Prime plus 2.75%
2/1/2042
Term Loan
Prime plus 2.75%
1/31/2027
Social Assistance
Term Loan
Prime plus 2.75%
1/31/2042
Real Estate
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/30/2042
Term Loan
Prime plus 2.75%
1/27/2027
Term Loan
Prime plus 2.75%
1/27/2042
Term Loan
Prime plus 2.75%
1/27/2042
62.8
5.3
38.4
177.8
237.5
132.1
14.9
210.2
84.5
315.7
177.5
34.5
308.0
52.2
17.7
103.2
167.2
62.8
5.3
38.4
177.8
237.5
132.1
14.9
210.2
84.5
315.7
177.5
34.5
308.0
52.2
17.7
103.2
167.2
72.1
5.6
44.5
205.7
272.3
151.7
14.8
240.3
84.8
355.0
199.7
33.6
349.3
59.5
17.3
119.4
185.7
271346
0.02 %
— %
0.01 %
0.06 %
0.08 %
0.05 %
— %
0.07 %
0.03 %
0.11 %
0.06 %
0.01 %
0.11 %
0.02 %
0.01 %
0.04 %
0.06 %
2906 E. Newberry St., Appleton,
WI 54915
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
1/20/2042
40.7
40.7
46.1
0.01 %
F-234
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
325 West 38th St. Studio 1704-
1706, New York, NY 10018
568 Techumseh St., Dundee, MI
48131
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Gasoline Stations
Nursing and Residential Care
Facilities
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Food Services and Drinking
Places
Publishing Industries (except
Internet)
Professional, Scientific, and
Technical Services
2 Basin Rd, Chilmark, MA 02535 Miscellaneous Store Retailers
16701 E. Iliff Ave, Aurora, CO
80013
8624 Rogers Ave, Fort Smith, AR
72903
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
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
Gasoline Stations
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Miscellaneous Manufacturing
Professional, Scientific, and
Technical Services
Repair and Maintenance
Educational Services
Food Manufacturing
Term Loan
Prime plus 2.75%
1/18/2027
Term Loan
Prime plus 2.75%
1/17/2027
Term Loan
Prime plus 2.75%
1/13/2027
Term Loan
Prime plus 2.75%
1/10/2027
Term Loan
Prime plus 2.75%
12/28/2026
Term Loan
Prime plus 2.75%
12/23/2026
8.3
78.5
17.8
38.6
15.2
97.6
8.3
78.5
17.8
38.6
15.2
97.6
8.2
82.3
18.7
40.6
15.2
95.0
Term Loan
Prime plus 2.75%
12/19/2041
262.8
262.8
292.4
Term Loan
Prime plus 2.75%
12/16/2026
Term Loan
Prime plus 2.75%
12/15/2041
Term Loan
Prime plus 2.75%
12/15/2041
Term Loan
Prime plus 2.75%
12/15/2026
Term Loan
Prime plus 2.75%
12/15/2041
Term Loan
Prime plus 2.75%
12/15/2041
Term Loan
Prime plus 2.75%
12/14/2026
Term Loan
Prime plus 2.75%
12/14/2041
Term Loan
Prime plus 2.75%
12/14/2041
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
17.6
203.1
680.9
148.3
433.2
40.1
38.6
389.4
274.8
88.4
445.8
165.9
17.6
203.1
680.9
148.3
433.2
40.1
38.6
389.4
274.8
88.4
445.8
165.9
17.2
233.4
777.5
146.6
487.7
46.4
37.5
443.0
317.4
98.9
512.9
174.1
271346
— %
0.03 %
0.01 %
0.01 %
— %
0.03 %
0.09 %
0.01 %
0.07 %
0.24 %
0.05 %
0.15 %
0.01 %
0.01 %
0.14 %
0.10 %
0.03 %
0.16 %
0.05 %
F-235
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
% of Net
Assets
Term Loan
Prime plus 2.75%
12/9/2026
605.4
605.4
Term Loan
Prime plus 2.75%
12/9/2041
Term Loan
Prime plus 2.75%
12/9/2026
Term Loan
Prime plus 2.75%
12/8/2041
Term Loan
Prime plus 2.75%
12/8/2026
88.7
15.9
50.2
8.8
88.7
15.9
50.2
8.8
602.3
100.1
15.9
56.9
9.2
Term Loan
Prime plus 2.75%
12/8/2041
1,166.4
1,166.4
1,347.6
SBA Unguaranteed Accrual Investments (1) (22)
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
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 (#,^)
Hospitals
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Merchant Wholesalers, Durable
Goods
Couriers and Messengers
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 Construction of Buildings
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
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/7/2029
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
12/5/2026
12/1/2026
Term Loan
Prime plus 2.75%
11/30/2026
Term Loan
Prime plus 2.75%
11/30/2026
Term Loan
Prime plus 2.75%
11/30/2026
Term Loan
Prime plus 2.75%
11/30/2026
Term Loan
Prime plus 2.75%
2/28/2042
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
Nursing and Residential Care
Facilities
Gasoline Stations
Administrative and Support
Services
Term Loan
Prime plus 2.75%
11/30/2041
Term Loan
Prime plus 2.75%
11/29/2041
Term Loan
Prime plus 2.75%
11/29/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/23/2026
1835 Auburn Way N Ste B,
Auburn, WA 98002
5101 Andard Ave, Baltimore, MD
21226
Administrative and Support
Services
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
11/23/2026
Term Loan
Prime plus 2.75%
11/23/2026
F-236
See accompanying notes to consolidated financial statements.
271346
0.19 %
0.03 %
— %
0.02 %
— %
0.42 %
0.02 %
— %
0.02 %
— %
— %
— %
0.05 %
0.13 %
0.02 %
0.08 %
0.28 %
0.03 %
0.01 %
0.01 %
60.7
12.6
58.6
8.1
6.3
5.8
165.4
358.5
64.7
223.9
914.3
84.6
46.4
17.4
60.7
12.6
58.6
8.1
6.3
5.8
165.4
358.5
64.7
223.9
914.3
84.6
46.4
17.4
63.2
12.7
57.0
7.9
6.1
5.7
161.9
409.0
74.8
250.0
889.1
83.2
45.5
18.3
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
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
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
Merchant Wholesalers,
Nondurable Goods
Food Services and Drinking
Places
Repair and Maintenance
Professional, Scientific, and
Technical Services
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
11/23/2026
Term Loan
Prime plus 2.75%
11/22/2041
Term Loan
Prime plus 2.75%
11/22/2041
Term Loan
Prime plus 2.75%
11/22/2026
Term Loan
Prime plus 2.75%
11/22/2026
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/21/2026
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/17/2026
Term Loan
Prime plus 2.75%
11/16/2026
Ambulatory Health Care Services Term Loan
Building Material and Garden
Equipment and Supplies Dealers
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Term Loan
Prime plus 2.75%
11/15/2026
Prime plus 2.75%
11/10/2026
Prime plus 2.75%
11/10/2041
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/10/2026
Specialty Trade Contractors
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
3844 Post Rd, Warwick, RI 02886 Health and Personal Care Stores
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
Repair and Maintenance
Food Services and Drinking
Places
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/10/2026
Term Loan
Prime plus 2.75%
11/9/2026
Term Loan
Prime plus 2.75%
11/9/2041
Term Loan
Prime plus 2.75%
11/9/2026
Term Loan
Prime plus 2.75%
11/4/2041
Term Loan
Prime plus 2.75%
11/3/2041
Term Loan
Prime plus 2.75%
11/1/2041
96.7
92.8
396.2
122.4
96.6
77.4
14.5
53.0
91.7
170.5
438.5
123.0
191.0
135.4
229.1
168.8
63.5
120.6
115.6
96.7
92.8
396.2
122.4
96.6
77.4
14.5
53.0
91.7
170.5
438.5
123.0
191.0
135.4
229.1
168.8
63.5
120.6
115.6
94.1
107.0
449.0
124.5
93.9
81.2
14.1
55.6
94.3
177.7
500.8
124.1
200.4
131.7
258.0
165.2
73.4
137.9
132.0
271346
0.03 %
0.03 %
0.14 %
0.04 %
0.03 %
0.03 %
— %
0.02 %
0.03 %
0.06 %
0.16 %
0.04 %
0.06 %
0.04 %
0.08 %
0.05 %
0.02 %
0.04 %
0.04 %
F-237
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Telecommunications
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
11/1/2026
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
58.0
46.0
8.4
84.6
82.6
58.0
46.0
8.4
84.6
82.6
60.9
44.7
8.8
94.7
83.5
Term Loan
Prime plus 2.75%
10/27/2029
191.3
191.3
202.5
200 North Branford Rd, Branford,
CT 06405
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
Heavy and Civil Engineering
Construction
Nursing and Residential Care
Facilities
Term Loan
Prime plus 2.75%
10/24/2026
Term Loan
Prime plus 2.75%
10/21/2041
Truck Transportation
Term Loan
Prime plus 2.75%
10/20/2041
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
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%
10/14/2041
Term Loan
Prime plus 2.75%
10/13/2026
Term Loan
Prime plus 2.75%
10/13/2026
Term Loan
Prime plus 2.75%
10/7/2026
Term Loan
Prime plus 2.75%
10/3/2026
Term Loan
Prime plus 2.75%
10/3/2026
Term Loan
Prime plus 2.75%
9/30/2041
Term Loan
Prime plus 2.75%
9/30/2026
Term Loan
Prime plus 2.75%
9/30/2041
Term Loan
Prime plus 2.75%
9/30/2029
325.7
213.9
167.2
119.2
126.1
14.9
86.2
27.6
181.6
230.3
39.8
130.4
545.1
325.7
213.9
167.2
119.2
126.1
14.9
86.2
27.6
181.6
230.3
39.8
130.4
545.1
341.8
247.1
193.2
136.0
130.6
14.5
86.8
26.8
179.3
259.7
38.7
150.6
574.0
F-238
See accompanying notes to consolidated financial statements.
271346
0.02 %
0.01 %
— %
0.03 %
0.03 %
0.06 %
0.11 %
0.08 %
0.06 %
0.04 %
0.04 %
— %
0.03 %
0.01 %
0.06 %
0.08 %
0.01 %
0.05 %
0.18 %
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
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
805 US Hwy 87, Belt, MT 59412
2057 West Shore Rd, Warwick,
RI 02889
209 South Front St., Townsend,
MT 59644
1186 Ocean Ave, Bayshore, NY
11706
9139 W Stockton Blvd Ste 100,
Elk Grove, CA 95758
Term Loan
Prime plus 2.75%
9/28/2041
821.5
821.5
949.1
Printing and Related Support
Activities
Food and Beverage Stores
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/28/2026
Term Loan
Prime plus 2.75%
9/28/2026
Ambulatory Health Care Services Term Loan
Heavy and Civil Engineering
Construction
Amusement, Gambling, and
Recreation Industries
Term Loan
Term Loan
Prime plus 2.75%
9/27/2026
Prime plus 2.75%
9/27/2026
Prime plus 2.75%
9/27/2026
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/26/2041
Miscellaneous Store Retailers
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%
9/26/2041
Term Loan
Prime plus 2.75%
9/26/2026
Term Loan
Prime plus 2.75%
9/26/2026
Term Loan
Prime plus 2.75%
9/21/2026
Term Loan
Prime plus 2.75%
9/21/2041
Term Loan
Prime plus 2.75%
9/20/2026
Term Loan
Prime plus 2.75%
9/20/2026
Term Loan
Prime plus 2.75%
9/14/2026
Term Loan
Prime plus 2.75%
9/13/2026
17.0
17.5
175.0
476.8
39.9
277.5
55.7
6.8
11.4
37.9
21.3
17.1
9.1
11.7
38.2
17.0
17.5
175.0
476.8
39.9
277.5
55.7
6.8
11.4
37.9
21.3
17.1
9.1
11.7
38.2
17.8
17.0
172.6
491.8
39.7
314.8
63.3
7.1
11.0
36.8
24.1
17.5
8.9
11.6
40.1
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/13/2041
103.6
103.6
118.0
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/12/2041
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/6/2041
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/6/2026
78.2
41.3
32.2
78.2
41.3
32.2
87.7
47.7
31.2
F-239
See accompanying notes to consolidated financial statements.
271346
0.29 %
0.01 %
0.01 %
0.05 %
0.15 %
0.01 %
0.10 %
0.02 %
— %
— %
0.01 %
0.01 %
0.01 %
— %
— %
0.01 %
0.04 %
0.03 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Administrative and Support
Services
Term Loan
Prime plus 2.75%
8/30/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/29/2041
Repair and Maintenance
Printing and Related Support
Activities
Repair and Maintenance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
8/26/2041
Term Loan
Prime plus 2.75%
8/25/2026
Term Loan
Prime plus 2.75%
8/25/2026
Term Loan
Prime plus 2.75%
8/25/2026
Rental and Leasing Services
Term Loan
Prime plus 2.75%
8/25/2026
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/25/2026
98.7
68.6
95.8
46.3
7.7
16.9
67.5
16.9
98.7
68.6
95.8
46.3
7.7
16.9
67.5
16.9
97.2
79.0
109.5
48.5
7.4
16.4
65.5
16.6
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%
12/24/2041
492.0
492.0
566.5
Term Loan
Prime plus 2.75%
8/15/2026
Term Loan
Prime plus 2.75%
8/11/2026
45.0
61.9
45.0
61.9
43.7
60.0
Term Loan
Prime plus 2.75%
8/10/2041
591.7
591.7
682.2
Term Loan
Prime plus 2.75%
8/9/2026
Real Estate
Term Loan
Prime plus 2.75%
7/29/2041
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/29/2026
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/29/2041
Social Assistance
Term Loan
Prime plus 2.75%
7/29/2041
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
7/28/2026
Term Loan
Prime plus 2.75%
7/28/2041
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/28/2041
F-240
See accompanying notes to consolidated financial statements.
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
271346
0.03 %
0.02 %
0.03 %
0.02 %
— %
0.01 %
0.02 %
0.01 %
0.18 %
0.01 %
0.02 %
0.21 %
— %
0.03 %
0.01 %
0.13 %
0.05 %
0.07 %
0.23 %
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
% of Net
Assets
Term Loan
Prime plus 2.75%
7/28/2041
321.7
321.7
362.4
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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%
7/27/2026
Term Loan
Prime plus 2.75%
7/27/2026
Term Loan
Prime plus 2.75%
7/27/2026
485 Pepper St., Norwalk, CT
06468
1008 E Crest Drive, Waco, TX
76705
7922 Jamaica Ave, Woodhaven,
NY 11421
Heavy and Civil Engineering
Construction
Accommodation
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
7/26/2026
Term Loan
Prime plus 2.75%
7/22/2041
Term Loan
Prime plus 2.75%
7/22/2026
1923 E 5th St, Tempe, AZ 85281
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2026
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%
7/18/2026
Term Loan
Prime plus 2.75%
7/15/2041
Term Loan
Prime plus 2.75%
7/13/2026
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/7/2026
Food and Beverage Stores
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Health and Personal Care Stores
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
6/30/2041
Term Loan
Prime plus 2.75%
6/30/2029
Term Loan
Prime plus 2.75%
6/30/2026
Term Loan
Prime plus 2.75%
6/30/2026
Term Loan
Prime plus 2.75%
6/30/2026
Term Loan
Prime plus 2.75%
6/30/2026
154 High St., Bristol, RI 02809
Accommodation
Term Loan
Prime plus 2.75%
6/29/2041
F-241
See accompanying notes to consolidated financial statements.
62.0
54.7
92.8
67.3
288.6
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
62.0
54.7
92.8
67.3
288.6
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
60.2
57.3
90.1
67.8
330.9
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
271346
0.11 %
0.02 %
0.02 %
0.03 %
0.02 %
0.10 %
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
Term Loan
Prime plus 2.75%
6/29/2026
102.9
102.9
105.4
0.03 %
Term Loan
Prime plus 2.75%
6/29/2041
287.4
287.4
626 Delsea Drive N, Glassboro,
NJ 08028
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
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Nonmetallic Mineral Product
Manufacturing
Administrative and Support
Services
1431 11th Ave SE, Olympia, WA
98501
27 Main St., Monroe, CT 06468
Accommodation
Amusement, Gambling, and
Recreation Industries
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%
6/28/2026
Term Loan
Prime plus 2.75%
6/28/2026
Term Loan
Prime plus 2.75%
6/24/2041
Term Loan
Prime plus 2.75%
6/23/2041
Term Loan
Prime plus 2.75%
6/23/2041
Term Loan
Prime plus 2.75%
6/17/2026
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/24/2026
Couriers and Messengers
Term Loan
Prime plus 2.75%
6/16/2026
Food and Beverage Stores
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
6/16/2026
Term Loan
Prime plus 2.75%
6/16/2026
Couriers and Messengers
Term Loan
Prime plus 2.75%
6/15/2026
99.2
12.9
36.7
95.5
470.0
99.2
12.9
36.7
95.5
470.0
86.1
40.1
396.4
16.5
8.3
8.7
86.1
40.1
396.4
16.5
8.3
8.7
336.2
101.7
13.1
37.4
112.1
544.0
206.0
100.0
40.8
403.1
16.8
8.7
8.8
Term Loan
Prime plus 2.75%
6/23/2041
176.9
176.9
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
Social Assistance
Term Loan
Prime plus 2%
6/15/2041
483.0
483.0
533.5
Food and Beverage Stores
Amusement, Gambling, and
Recreation Industries
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
6/10/2026
Term Loan
Prime plus 2.75%
6/10/2026
Term Loan
Prime plus 2.75%
6/6/2026
Truck Transportation
Term Loan
Prime plus 2.75%
6/6/2026
63.6
45.9
8.8
16.5
63.6
45.9
8.8
16.5
64.7
48.4
9.0
16.8
F-242
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.10 %
0.03 %
— %
0.01 %
0.03 %
0.17 %
0.06 %
0.03 %
0.01 %
0.13 %
0.01 %
— %
— %
0.17 %
0.02 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
Construction of Buildings
Building Material and Garden
Equipment and Supplies Dealers
Nonstore Retailers
Heavy and Civil Engineering
Construction
Merchant Wholesalers, Durable
Goods
Building Material and Garden
Equipment and Supplies Dealers
Specialty Trade Contractors
Food and Beverage Stores
Air Transportation
Amusement, Gambling, and
Recreation Industries
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
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
Air Transportation
Social Assistance
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Miscellaneous Manufacturing
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Personal and Laundry Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
6/3/2026
Term Loan
Prime plus 2.75%
6/2/2041
Term Loan
Prime plus 2.75%
5/31/2026
Term Loan
Prime plus 2.75%
5/27/2026
Term Loan
Prime plus 2.75%
5/27/2041
Term Loan
Prime plus 2.75%
5/26/2041
Term Loan
Prime plus 2.75%
5/26/2026
Term Loan
Prime plus 2.75%
5/26/2026
Term Loan
Prime plus 2.75%
5/25/2026
Term Loan
Prime plus 2.75%
5/25/2026
Term Loan
Prime plus 2.75%
5/24/2026
Term Loan
Prime plus 2.75%
5/24/2026
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
5/23/2029
5/20/2026
182.8
182.8
404.9
63.6
93.8
194.2
245.5
6.0
135.8
16.4
16.4
63.4
8.7
5.4
182.8
182.8
404.9
63.6
93.8
194.2
245.5
6.0
135.8
16.4
16.4
63.4
8.7
5.4
188.4
214.4
416.7
67.1
109.1
225.6
259.0
6.2
140.2
17.3
16.7
64.4
9.4
5.7
271346
0.06 %
0.07 %
0.13 %
0.02 %
0.03 %
0.07 %
0.08 %
— %
0.04 %
0.01 %
0.01 %
0.02 %
— %
— %
Term Loan
Prime plus 2.75%
5/20/2026
909.2
909.2
959.3
0.30 %
Term Loan
Prime plus 2.75%
5/20/2026
Term Loan
Prime plus 2.75%
5/18/2026
Term Loan
Prime plus 2.75%
5/18/2041
Term Loan
Prime plus 2.75%
5/18/2026
Term Loan
Prime plus 2.75%
5/13/2026
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
— %
0.02 %
0.02 %
— %
0.01 %
F-243
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
(#,^)
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
(#,^)
(#,^)
106 Main St., Mineola, NY 11951
11 Kirby Rd, Cromwell, CT
06419
603 Pulaski Hwy, Bear, DE
19701
4216 NW 16th Blvd, Gainsville,
FL 32605
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
Food Services and Drinking
Places
Social Assistance
Food Services and Drinking
Places
Food and Beverage Stores
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%
5/13/2041
Term Loan
Prime plus 2.75%
5/12/2041
Term Loan
Prime plus 2.75%
5/11/2041
Term Loan
Prime plus 2.75%
5/5/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2026
Term Loan
Prime plus 2.75%
4/29/2041
Truck Transportation
Term Loan
Prime plus 2.75%
4/29/2041
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/29/2041
Term Loan
Prime plus 2.75%
4/29/2041
Social Assistance
Clothing and Clothing
Accessories Stores
247.3
124.8
116.6
16.4
91.9
16.2
29.3
5.4
232.8
165.1
77.5
142.8
247.3
124.8
116.6
16.4
91.9
16.2
29.3
5.4
232.8
165.1
77.5
142.8
290.1
145.1
136.4
16.6
96.9
16.5
29.8
5.5
273.2
193.7
90.2
167.5
Term Loan
Prime plus 2.75%
4/28/2041
1,175.8
1,175.8
1,379.6
Accommodation
Term Loan
Prime plus 2.75%
4/28/2041
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/26/2026
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
4/22/2041
Ambulatory Health Care Services Term Loan
Furniture and Home Furnishings
Stores
Food Services and Drinking
Places
Term Loan
Term Loan
Prime plus 2.75%
4/22/2041
Prime plus 2.75%
4/21/2026
Prime plus 2.75%
4/12/2026
Social Assistance
Term Loan
Prime plus 2.75%
4/6/2041
F-244
See accompanying notes to consolidated financial statements.
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
271346
0.09 %
0.05 %
0.04 %
0.01 %
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 %
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
1325 Broad St., Central Falls, RI
02863
7 Oak Drive, Sandy Hook, CT
06482
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/6/2041
261.6
261.6
305.4
0.09 %
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2041
53.2
53.2
62.5
0.02 %
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/31/2026
Repair and Maintenance
Furniture and Related Product
Manufacturing
101 East Redlands Blvd, Ste 106,
Redlands, CA 92373
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 Construction of Buildings
30 Taylor Ave, Norwalk, CT
06850
Motor Vehicle and Parts Dealers
Fabricated Metal Product
Manufacturing
Beverage and Tobacco Product
Manufacturing
Transit and Ground Passenger
Transportation
550 Rosemary Ave, Ste 236, West
Palm Beach, FL 33410
3208 Forest Hills Boulevard,
Palm Springs, FL 33406
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
Performing Arts, Spectator
Sports, and Related Industries
Food Services and Drinking
Places
Accommodation
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/31/2041
Term Loan
Prime plus 2.75%
3/31/2041
Term Loan
Prime plus 2.75%
3/31/2026
Term Loan
Prime plus 2.75%
3/31/2041
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
3/30/2041
3/30/2026
Term Loan
Prime plus 2.75%
3/30/2026
Term Loan
Prime plus 2.75%
3/30/2026
Term Loan
Prime plus 2.75%
3/30/2041
Term Loan
Prime plus 2.75%
3/30/2026
Term Loan
Prime plus 2.75%
3/29/2026
Term Loan
Prime plus 2.75%
3/29/2026
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
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
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/25/2026
F-245
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
53.4
485.9
61.8
16.0
369.1
960.1
133.5
7.5
66.8
243.0
16.2
13.8
57.9
42.2
35.6
16.2
53.4
485.9
61.8
16.0
369.1
960.1
133.5
7.5
66.8
243.0
16.2
13.8
57.9
42.2
35.6
16.2
54.3
565.6
72.6
16.3
424.6
1,108.3
135.5
7.6
68.2
284.5
17.1
14.3
58.7
49.3
0.02 %
0.18 %
0.02 %
0.01 %
0.13 %
0.34 %
0.04 %
— %
0.02 %
0.09 %
0.01 %
— %
0.02 %
0.02 %
36.7
0.01 %
16.6
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
International Construction Inc
(#,^)
ActKnowledge, Inc.
Precious Care LLC and Precious
Care Management LLC
(#,^)
(#,^)
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 (#,^)
53955 Gratiot Ave, Chesterfield,
MI 48051
365 5th Ave, New York, NY
10016
186-06 Union Turnpike, Fresh
Meadows, NY 11364
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
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
3/24/2041
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/24/2026
45.6
89.0
45.6
89.0
53.0
93.7
Ambulatory Health Care Services Term Loan
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Professional, Scientific, and
Technical Services
Term Loan
Term Loan
Prime plus 2.75%
3/21/2026
396.1
396.1
402.7
Prime plus 2.75%
3/21/2026
Prime plus 2.75%
3/18/2026
16.0
35.2
16.0
35.2
16.2
35.8
Support Activities for Mining
Term Loan
Prime plus 2.75%
3/18/2041
1,186.2
1,186.2
1,377.1
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/18/2041
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%
3/17/2026
Term Loan
Prime plus 2.75%
3/16/2026
Term Loan
Prime plus 2.75%
3/15/2026
Term Loan
Prime plus 2.75%
3/14/2026
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
Term Loan
Prime plus 2.75%
3/11/2026
106.8
106.8
109.1
Social Assistance
Term Loan
Prime plus 2.75%
3/11/2026
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/11/2026
Educational Services
Term Loan
Prime plus 2.75%
3/9/2026
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/9/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/8/2026
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/7/2026
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
3/4/2041
Term Loan
Prime plus 2.75%
3/4/2026
8.0
41.6
5.7
16.0
56.3
5.3
102.5
5.8
8.0
41.6
5.7
16.0
56.3
5.3
102.5
5.8
F-246
See accompanying notes to consolidated financial statements.
271346
0.02 %
0.03 %
0.12 %
0.01 %
0.01 %
0.43 %
0.03 %
— %
0.01 %
0.01 %
0.01 %
0.03 %
— %
0.01 %
— %
0.01 %
0.02 %
— %
8.1
42.2
5.8
16.6
57.1
5.4
120.1
0.04 %
5.9
— %
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%
3/3/2026
Term Loan
Prime plus 2.75%
3/2/2026
38.4
67.8
38.4
67.8
40.4
69.2
Term Loan
Prime plus 2.75%
2/28/2041
127.6
127.6
149.3
SBA Unguaranteed Accrual Investments (1) (22)
Almost Home Daycare LLC
Miles of Smiles Inc
The River Beas, LLC dba
Subway and Punam Singh
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.
(#,^)
(#,^)
35 Copps Hill Rd, Ridgefield, CT
06877
1408 Molalla Ave, Oregon City,
OR 97045
5516 Baltimore Ave, Hyattsville,
MD 20781
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
Social Assistance
Food Services and Drinking
Places
Food Services and Drinking
Places
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/28/2026
Term Loan
Prime plus 2.75%
2/28/2026
Term Loan
Prime plus 2.75%
2/28/2026
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
2/28/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/23/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/23/2026
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
2/18/2026
Term Loan
Prime plus 2.75%
2/12/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/12/2026
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Clothing and Clothing
Accessories Stores
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
2/12/2029
Prime plus 2.75%
2/12/2041
Prime plus 2.75%
2/2/2026
Prime plus 2.75%
1/29/2026
Prime plus 2.75%
1/28/2026
Social Assistance
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 2.75%
1/28/2026
Term Loan
Prime plus 2.75%
1/28/2026
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/11/2041
F-247
See accompanying notes to consolidated financial statements.
271346
0.01 %
0.02 %
0.05 %
— %
— %
— %
— %
0.02 %
0.01 %
— %
0.08 %
0.01 %
0.08 %
0.21 %
0.01 %
0.01 %
0.01 %
0.01 %
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
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
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
8.2
— %
121.5
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
SBA Unguaranteed Accrual Investments (1) (22)
Dolarian Realty LLC and OV's
Restaurant Inc
Lemonberry Food Stores Inc dba
Lemonberry Frozen Yogurt
(#,^)
(#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
34 Old Colony Ave, East Taunton,
MA 02718
1196 Inverness Lane, Stow, OH
44224
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
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
Food Services and Drinking
Places
Food and Beverage Stores
Food Services and Drinking
Places
Miscellaneous Manufacturing
Amusement, Gambling, and
Recreation Industries
Nonmetallic Mineral Product
Manufacturing
Amusement, Gambling, and
Recreation Industries
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
1/5/2041
Term Loan
Prime plus 2.75%
12/29/2025
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
63.3
77.5
12.9
11.0
95.6
63.3
77.5
12.9
11.0
95.6
Term Loan
Prime plus 2.75%
12/23/2040
228.7
228.7
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
Food and Beverage Stores
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/18/2040
Term Loan
Prime plus 2.75%
12/18/2040
Term Loan
Prime plus 2.75%
12/18/2025
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
Professional, Scientific, and
Technical Services
Nonmetallic Mineral Product
Manufacturing
Term Loan
Term Loan
Prime plus 2.75%
12/16/2025
Prime plus 2.75%
12/16/2025
Prime plus 2.75%
12/15/2025
F-248
See accompanying notes to consolidated financial statements.
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
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
271346
0.02 %
0.02 %
— %
— %
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 %
74.2
79.4
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
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%
12/14/2040
319.3
319.3
370.9
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
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.
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 (#,^)
3401 Brecksville Rd, Richfield,
OH 44286
318 North F St., Lakeview, OR
97630
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
Merchant Wholesalers, Durable
Goods
Building Material and Garden
Equipment and Supplies Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/14/2025
Term Loan
Prime plus 2.75%
12/11/2040
Gasoline Stations
Term Loan
Prime plus 2.75%
12/11/2025
Social Assistance
Term Loan
Prime plus 2.75%
12/10/2025
Specialty Trade Contractors
Food Services and Drinking
Places
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/9/2025
Term Loan
Prime plus 2.75%
12/8/2025
Term Loan
Prime plus 2.75%
12/4/2040
Term Loan
Prime plus 2.75%
11/30/2025
Educational Services
Term Loan
Prime plus 2.75%
11/25/2025
Social Assistance
Term Loan
Prime plus 2.75%
11/23/2025
726-740 S Fleming St., Sebastian,
FL 32958
Amusement, Gambling, and
Recreation Industries
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
Food and Beverage Stores
Administrative and Support
Services
Truck Transportation
Administrative and Support
Services
Term Loan
8.25%
11/23/2040
Term Loan
Prime plus 2.75%
11/20/2025
Term Loan
Prime plus 2.75%
11/19/2040
Term Loan
Prime plus 2.75%
11/18/2040
Term Loan
Prime plus 2.75%
11/11/2025
Term Loan
Prime plus 2.75%
11/6/2025
Term Loan
Prime plus 2.75%
11/4/2025
Term Loan
Prime plus 2.75%
10/26/2025
F-249
See accompanying notes to consolidated financial statements.
15.5
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
27.0
15.5
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
27.0
16.2
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
271346
0.12 %
0.01 %
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 %
% of Net
Assets
271346
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)
ADMO Inc dba Mid States
Equipment
Recycling Consultants, Inc. and
Prairie State Salvage and
Recycling In
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
16180 Westwoods Business Park,
Ellisville, MO 63021
PO Box 468, Wood River, IL
62095
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
Plastics and Rubber Products
Manufacturing
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
10/8/2025
15.1
15.1
15.4
— %
Term Loan
Prime plus 2.75%
9/30/2027
447.9
447.9
470.7
0.15 %
Specialty Trade Contractors
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
9/30/2028
Term Loan
Prime plus 2.75%
9/30/2025
Term Loan
Prime plus 2.75%
9/30/2040
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/30/2025
Truck Transportation
Administrative and Support
Services
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
9/30/2025
Term Loan
Prime plus 2.75%
9/28/2040
Term Loan
Prime plus 2.75%
9/28/2040
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
0.02 %
0.02 %
0.05 %
— %
0.08 %
0.03 %
0.13 %
Term Loan
Prime plus 2.75%
9/28/2025
340.4
340.4
356.7
0.11 %
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/25/2025
Accommodation
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/25/2040
Term Loan
Prime plus 2.75%
9/25/2040
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/25/2040
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
Accommodation
Administrative and Support
Services
Miscellaneous Manufacturing
Fabricated Metal Product
Manufacturing
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/24/2040
579.3
579.3
672.5
Term Loan
Prime plus 2.75%
9/23/2040
Term Loan
Prime plus 2.75%
9/23/2025
Term Loan
Prime plus 2.75%
9/21/2025
57.5
33.3
33.1
57.5
33.3
33.1
66.7
33.6
33.9
Term Loan
Prime plus 2.75%
9/21/2025
444.6
444.6
449.1
— %
— %
0.15 %
0.32 %
0.21 %
0.02 %
0.01 %
0.01 %
0.14 %
F-250
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Vanderhoof LLC dba Soxfords
(#,^)
MiJoy Inc dba Imo's Pizza
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
(#,^)
11 Sellecks Walk, Pound Ridge,
NY 10576
215 South Kirkwood Rd,
Kirkwood, MO 63122
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
Apparel Manufacturing
Food Services and Drinking
Places
Apparel Manufacturing
Merchant Wholesalers, Durable
Goods
Term Loan
Prime plus 2.75%
9/18/2025
Term Loan
Prime plus 2.75%
9/18/2025
Term Loan
Prime plus 2.75%
9/17/2025
Term Loan
Prime plus 2.75%
9/15/2025
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Social Assistance
Food Services and Drinking
Places
Educational Services
Insurance Carriers and Related
Activities
Professional, Scientific, and
Technical Services
Food Services and Drinking
Places
Couriers and Messengers
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
Food and Beverage Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/11/2025
Term Loan
Prime plus 2.75%
9/8/2040
Term Loan
Prime plus 2.75%
9/4/2040
Term Loan
Prime plus 2.75%
9/2/2025
Term Loan
Prime plus 2.75%
8/28/2025
Term Loan
Prime plus 2.75%
8/20/2025
Term Loan
Prime plus 2.75%
8/20/2040
Term Loan
Prime plus 2.75%
8/19/2040
Term Loan
Prime plus 2.75%
8/14/2025
Term Loan
Prime plus 2.75%
8/13/2025
Term Loan
Prime plus 2.75%
7/29/2025
Term Loan
Prime plus 2.75%
7/24/2025
Term Loan
Prime plus 2.75%
7/23/2025
Term Loan
Prime plus 2.75%
7/21/2025
Term Loan
Prime plus 2.75%
7/15/2040
Term Loan
Prime plus 2.75%
7/10/2025
10.4
5.5
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
330.7
69.3
10.4
5.5
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
330.7
69.3
271346
— %
— %
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 %
10.5
5.5
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
381.5
71.7
F-251
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Jonathan E Nichols and Nichols
Fire and Security LLC
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
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
1906 Vanderhorn Drive,
Memphis, TN 38134
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
Administrative and Support
Services
Term Loan
Prime plus 2.75%
6/30/2025
Specialty Trade Contractors
Term Loan
8.25%
6/30/2025
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/30/2030
Personal and Laundry Services
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
6/29/2025
Term Loan
Prime plus 2.75%
8/29/2030
Other Information Services
Term Loan
Prime plus 2.75%
6/26/2025
48.1
193.3
222.7
10.2
235.4
42.5
48.1
193.3
222.7
10.2
235.4
42.5
50.7
187.2
242.3
10.5
256.9
43.9
13886 Campo Rd, Jamul, CA
91935
714-718 Lorenz Ave, Pittsburgh,
PA 15220
220 Middle St., Franklin, VA
23851
Gasoline Stations
Food Services and Drinking
Places
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
Truck Transportation
Waste Management and
Remediation Services
Miscellaneous Store Retailers
Professional, Scientific, and
Technical Services
Administrative and Support
Services
Term Loan
Prime plus 2.75%
6/26/2040
350.1
350.1
413.0
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/26/2025
Term Loan
Prime plus 2.75%
6/26/2029
16.1
14.4
16.1
14.4
17.5
14.9
Term Loan
Prime plus 2.75%
6/26/2040
124.9
124.9
147.2
Term Loan
7.65%
6/25/2040
1,123.2
1,123.2
1,066.2
Term Loan
Prime plus 2.75%
6/25/2040
227.8
227.8
266.7
Term Loan
Prime plus 2.75%
6/24/2025
Term Loan
Prime plus 2.75%
6/23/2025
Term Loan
Prime plus 2.75%
6/22/2025
Term Loan
Prime plus 2.75%
6/19/2025
Term Loan
Prime plus 2.75%
6/19/2025
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
111 N Pompano Beach Blvd.,
Pompano Beach, FL 33062
1308 Stafford Rd, Storrs
Mansfield, CT 06268
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/18/2025
Prime plus 2.75%
6/17/2040
F-252
See accompanying notes to consolidated financial statements.
271346
0.02 %
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 %
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
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
Mirage Plastering Inc and Mpire
LLC and Mpire II LLC
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
1802 W Grant Rd Ste 114,
Tucson, AZ 85745
150 Main St., Pascoag, RI 02859
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
Specialty Trade Contractors
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/12/2040
Term Loan
Prime plus 2.75%
6/8/2040
Term Loan
Prime plus 2.75%
6/5/2025
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/5/2025
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%
6/4/2040
Term Loan
Prime plus 2.75%
6/3/2025
Term Loan
Prime plus 2.75%
5/29/2025
Term Loan
Prime plus 2.75%
5/27/2025
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
Accommodation
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
5/20/2040
Term Loan
Prime plus 2.75%
5/15/2040
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/8/2025
Ambulatory Health Care Services Term Loan
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
5/7/2025
Prime plus 2.75%
5/6/2040
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/4/2040
Social Assistance
Term Loan
Prime plus 2.75%
5/1/2040
274 Spring St., Newton, NJ 07860 Ambulatory Health Care Services Term Loan
Prime plus 2.75%
4/24/2025
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
Term Loan
Prime plus 2.75%
4/21/2025
Term Loan
Prime plus 2.75%
4/21/2025
Personal and Laundry Services
Term Loan
Prime plus 2.75%
4/17/2025
F-253
See accompanying notes to consolidated financial statements.
127.8
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
127.8
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
271346
0.05 %
0.02 %
— %
0.01 %
0.03 %
0.03 %
— %
— %
0.06 %
0.06 %
0.01 %
0.03 %
0.02 %
0.03 %
0.03 %
— %
— %
— %
— %
149.2
61.3
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
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 Coaching Inc
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
(#,^)
(#,^)
(#)
4749 Main St. Ste 3, Bridgeport,
CT 06606
10707 Shady Trail, Dallas, TX
75220
717 W 11th St., Panama City, FL
32402
1223 North Church St.,
Moorestown, NJ 08057
40 Buzzard Ridge Rd, Sequim,
WA 98382
3033 NW 28 St., Lauderdale
Lakes, FL 33311
501 South Market St,
Wilmington, DE 19801
5600 N River Rd #925,
Rosemont, IL 60018
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Repair and Maintenance
Merchant Wholesalers, Durable
Goods
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
4/14/2025
Term Loan
Prime plus 2.75%
4/3/2040
Term Loan
Prime plus 2.75%
3/31/2040
Term Loan
Prime plus 2.75%
3/30/2025
Accommodation
Furniture and Related Product
Manufacturing
Term Loan
Prime plus 2.75%
3/27/2040
Term Loan
Prime plus 2.75%
3/27/2025
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/27/2040
27.8
67.5
392.6
77.1
276.3
65.7
948.7
27.8
67.5
392.6
77.1
276.3
65.7
28.7
79.4
460.0
80.5
326.7
68.7
948.7
1,111.7
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
Personal and Laundry Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/26/2040
Term Loan
Prime plus 2.75%
3/25/2025
Term Loan
Prime plus 2.75%
3/24/2025
Term Loan
Prime plus 2.75%
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
Term Loan
Prime plus 2.75%
3/20/2040
103.0
103.0
121.6
15615 State Route 29, Buchanan
Dam, TX 78609
1224 Greenwich Ave, Warwick,
RI 02886
769 Amesbury Rd, Haverhill, MA
01830
491 Montauk Hwy, Eastport, NY
11941
215 Newbury St., Peabody, MA
01960
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/19/2040
Term Loan
Prime plus 2.75%
3/18/2040
Term Loan
Prime plus 2.75%
3/16/2040
Term Loan
Prime plus 2.75%
3/4/2025
Educational Services
Term Loan
Prime plus 2.75%
2/27/2025
78.1
147.2
83.5
6.9
36.3
78.1
147.2
83.5
6.9
36.3
92.2
172.8
98.3
7.3
37.5
0.02 %
— %
— %
0.01 %
0.04 %
0.03 %
0.05 %
0.03 %
— %
0.01 %
F-254
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.01 %
0.02 %
0.14 %
0.02 %
0.10 %
0.02 %
0.35 %
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
SBA Unguaranteed Accrual Investments (1) (22)
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
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
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
1425 Honeyspot Rd Extension,
Stratford, CT 06615
475 Nursing Home Drive,
Arcadia, FL 34266
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
Truck Transportation
Nursing and Residential Care
Facilities
Professional, Scientific, and
Technical Services
Social Assistance
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%
2/26/2025
40.0
40.0
41.9
Term Loan
Prime plus 2.75%
2/26/2040
1,168.5
1,168.5
1,379.3
Term Loan
Prime plus 2.75%
2/24/2025
Term Loan
Prime plus 2.75%
2/19/2040
Term Loan
Prime plus 2.75%
2/18/2025
Term Loan
Prime plus 2.75%
4/29/2025
Term Loan
Prime plus 2.75%
1/23/2025
Term Loan
Prime plus 2.75%
1/22/2025
Term Loan
Prime plus 2.75%
1/20/2022
Term Loan
Prime plus 2.75%
12/31/2039
Term Loan
Prime plus 2.75%
12/30/2024
Prime plus 2.75%
12/30/2024
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
Amusement, Gambling, and
Recreation Industries
Term Loan
Term Loan
Ambulatory Health Care Services Term Loan
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
Term Loan
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
12/24/2039
1,095.8
1,095.8
1,291.5
Prime plus 2.75%
12/23/2039
Prime plus 2.75%
12/23/2039
Prime plus 2.75%
12/22/2024
Prime plus 2.75%
12/19/2039
Prime plus 2.75%
12/19/2024
6.25%
12/19/2024
Prime plus 2.75%
4/19/2025
482.5
455.0
111.0
48.9
735.5
88.5
28.7
482.5
455.0
111.0
48.9
735.5
88.5
28.7
563.8
536.2
115.1
57.6
757.6
86.9
29.8
271346
0.01 %
0.43 %
— %
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 %
F-255
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
B & W Towing, LLC and
Boychucks Fuel LLC
Kemmer LLC and Apples Tree
Top Liquors LLC
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
318 North F St., Lakeview, OR
97630
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
701 Addison Rd, Painted Post,
NY 14870
1300 S Jackson St., Salem, IN
47167
988 Hemlock St., Cannon Beach,
OR 97110
250 Park Ave South, New York,
NY 10003
2176 Route 119 North,
Greensburg, PA 15601
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
Food Services and Drinking
Places
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
11/25/2039
Term Loan
Prime plus 2.75%
11/25/2024
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/21/2024
1923 E. 5th St., Tempe, AZ 85281 Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/21/2024
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
11/20/2039
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
10/31/2039
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/14/2024
149.7
129.0
108.2
128.4
24.5
440.8
108.9
434.0
11.8
92.2
149.7
129.0
108.2
128.4
24.5
440.8
108.9
434.0
11.8
92.2
Real Estate
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
10/10/2039
Term Loan
Prime plus 2.75%
10/10/2024
107.0
107.0
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/8/2024
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
10/8/2039
Personal and Laundry Services
Administrative and Support
Services
Food Services and Drinking
Places
Accommodation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
10/3/2039
Term Loan
Prime plus 2.75%
10/2/2024
Term Loan
Prime plus 2.75%
9/30/2039
Term Loan
Prime plus 2.75%
9/26/2039
Term Loan
Prime plus 2.75%
9/23/2024
3.7
26.0
110.5
30.6
231.2
52.0
16.0
3.7
26.0
110.5
30.6
231.2
52.0
16.0
F-256
See accompanying notes to consolidated financial statements.
271346
0.05 %
0.05 %
0.04 %
0.04 %
0.01 %
0.14 %
0.04 %
0.16 %
— %
0.03 %
0.03 %
— %
0.01 %
0.04 %
0.01 %
0.08 %
0.02 %
0.01 %
175.4
150.9
127.2
132.4
25.2
454.8
128.1
510.4
12.2
108.6
110.9
3.9
30.7
130.1
32.0
270.9
61.3
16.4
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
(#,^)
(#,^)
(#,^)
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
Ryan Crick and Pamela J. Crick
and Crick Enterprises Inc
Modern Leather Goods Repair
Shop Inc
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
(#,^)
3390 W. Andrew Johnson Hwy,
Greeneville, TN 37743
2 West 32nd St., Ste 401, New
York, NY 10001
3330 N Beach St., Fort Worth, TX
76111
6480 West Touhy Ave, Niles, IL
60714
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
10463 Hamer Rd, Georgetown,
OH 45121
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
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/17/2039
Repair and Maintenance
Administrative and Support
Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/17/2024
Term Loan
Prime plus 2.75%
9/15/2024
Term Loan
Prime plus 2.75%
9/15/2039
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Clothing and Clothing
Accessories Stores
Term Loan
Term Loan
Prime plus 2.75%
9/11/2024
Prime plus 2.75%
9/10/2024
Prime plus 2.75%
8/27/2024
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/22/2039
Social Assistance
Term Loan
Prime plus 2.75%
8/15/2024
131.9
32.3
166.7
387.5
357.3
45.4
80.4
46.5
59.6
131.9
32.3
166.7
387.5
357.3
45.4
80.4
46.5
59.6
155.2
33.1
172.5
455.0
366.9
46.5
84.0
54.5
61.2
Social Assistance
Term Loan
Prime plus 2.75%
8/15/2039
131.5
131.5
154.8
Motor Vehicle and Parts Dealers
Term Loan
6%
8/8/2039
Social Assistance
Food Services and Drinking
Places
Food Services and Drinking
Places
Truck Transportation
Food Services and Drinking
Places
Truck Transportation
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
8/7/2039
Term Loan
Prime plus 2.75%
7/31/2024
Term Loan
Prime plus 2.75%
7/30/2039
Term Loan
Prime plus 2.75%
7/24/2039
Term Loan
Prime plus 2.75%
7/17/2039
Term Loan
Prime plus 2.75%
6/30/2039
Term Loan
Prime plus 2.75%
6/30/2039
128.7
674.2
216.6
18.5
134.9
88.2
786.8
566.8
128.7
674.2
216.6
18.5
134.9
88.2
786.8
566.8
123.1
792.5
225.0
21.8
158.7
103.6
932.7
669.7
F-257
See accompanying notes to consolidated financial statements.
271346
0.05 %
0.01 %
0.05 %
0.14 %
0.11 %
0.01 %
0.03 %
0.02 %
0.02 %
0.05 %
0.04 %
0.25 %
0.07 %
0.01 %
0.05 %
0.03 %
0.29 %
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
% of Net
Assets
(#,^)
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
Lisle Lincoln II Limited
Partnership dba Lisle Lanes LP
AMG Holding, LLC and Stetson
Automotive, Inc
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
4920 Lincoln Ave Rte 53, Lisle,
IL 60532
309 Route 9, Waretown, NJ
08758
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
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
6/30/2024
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/30/2039
Ambulatory Health Care Services Term Loan
Building Material and Garden
Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
6/26/2039
7.25%
6/26/2024
Repair and Maintenance
Building Material and Garden
Equipment and Supplies Dealers
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
6/25/2039
Term Loan
Prime plus 2.75%
6/20/2039
Term Loan
Prime plus 2.75%
6/6/2039
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/3/2024
Educational Services
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
6/2/2039
Term Loan
Prime plus 2.75%
5/30/2024
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
5/27/2024
53.7
187.0
128.4
41.1
444.1
209.6
84.9
9.0
49.8
12.0
34.0
53.7
187.0
128.4
41.1
444.1
209.6
84.9
9.0
49.8
12.0
34.0
Term Loan
Prime plus 2.75%
5/15/2039
148.4
148.4
Repair and Maintenance
Food Services and Drinking
Places
Food and Beverage Stores
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
5/8/2039
Term Loan
Prime plus 2.75%
4/29/2039
Term Loan
Prime plus 2.75%
4/23/2027
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/23/2039
Real Estate
Term Loan
Prime plus 2.75%
4/22/2039
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/17/2024
F-258
See accompanying notes to consolidated financial statements.
81.0
97.3
53.0
18.6
92.8
96.9
81.0
97.3
53.0
18.6
92.8
96.9
271346
0.02 %
0.07 %
0.05 %
0.01 %
0.16 %
0.08 %
0.03 %
— %
0.02 %
— %
0.01 %
0.05 %
0.03 %
0.04 %
0.02 %
0.01 %
0.03 %
0.03 %
56.3
221.7
151.8
40.5
525.1
247.9
100.5
9.3
58.9
12.5
35.3
175.3
95.8
115.2
57.0
22.0
109.8
100.8
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)
1899 Tavern & Tap LLC and Ale
House Tavern & Tap LLC
(#,^)
Dantanna's Tavern LLC
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
Term Loan
Prime plus 2.75%
4/9/2039
100.2
100.2
118.6
1899 State Route 35, South
Amboy, NJ 08879
6615 Roswell Rd NE #30, Sandy
Springs, GA 30328
6522 Haverford Ave,
Philadelphia, PA 19151
Food Services and Drinking
Places
Food Services and Drinking
Places
Social Assistance
Term Loan
Prime plus 2.75%
3/31/2039
Term Loan
Prime plus 2.75%
6/30/2024
4401 N I-35 #113, Denton, TX
76207
6522 Haverford Ave,
Philadelphia, PA 19151
Truck Transportation
Term Loan
Prime plus 2.75%
3/31/2024
Social Assistance
Term Loan
Prime plus 2.75%
3/31/2039
201 S. Main St., Salem, IN 47167
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/31/2039
87.4
82.6
365.0
91.1
105.3
87.4
82.6
365.0
91.1
105.3
91.3
97.5
381.5
107.6
124.2
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 %
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
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%
3/20/2039
Term Loan
Prime plus 2.75%
3/18/2024
Food Manufacturing
Term Loan
Prime plus 2.75%
3/14/2029
Food Manufacturing
Term Loan
Prime plus 2.75%
3/14/2039
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/28/2039
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/28/2039
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%
2/28/2039
Term Loan
Prime plus 2.75%
2/28/2024
71.8
98.9
5.8
770.6
41.3
371.8
190.8
184.2
177.7
71.8
98.9
5.8
770.6
41.3
371.8
190.8
184.2
177.7
84.8
0.03 %
116.8
0.04 %
6.0
840.4
48.8
438.7
225.0
217.3
185.2
— %
0.26 %
0.02 %
0.14 %
0.07 %
0.07 %
0.06 %
(#,^)
96 Mill St., Berlin, CT 06037
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/12/2039
126.8
126.8
149.8
0.05 %
F-259
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.04 %
0.03 %
0.03 %
0.12 %
0.03 %
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
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
2/11/2024
141.9
141.9
147.3
0.05 %
(#,^)
(#,^)
(#,^)
SBA Unguaranteed Accrual Investments (1) (22)
JWB Industries, Inc. dba Carteret
Die Casting
986 Dixwell Avenue Holding
Company, LLC and Mughali
Foods, LLC
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
74 Veronica Ave, Somerset, NJ
08875
986 Dixwell Ave, Hamden, CT
06510
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
Food Services and Drinking
Places
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
2/7/2039
Term Loan
Prime plus 2.75%
1/27/2039
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
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
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Waste Management and
Remediation Services
Term Loan
Prime plus 2.75%
12/18/2038
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
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
(#,^)
(#,^)
(#,^)
(#,^)
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
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
Term Loan
Prime plus 2.75%
12/2/2023
Term Loan
Prime plus 2.75%
11/27/2038
Term Loan
Prime plus 2.75%
11/21/2023
3039-3043 Hedley, Springfield,
IL 62704
671 E. Cooley Drive, Unit 114,
Colton, CA 92324
2446 Route 9, Howell, NJ 07731
Amusement, Gambling, and
Recreation Industries
Wholesale Electronic Markets and
Agents and Brokers
Sporting Goods, Hobby, Musical
Instrument, and Book Stores
Term Loan
Prime plus 2.75%
11/18/2023
Term Loan
Prime plus 2.75%
11/15/2023
Term Loan
Prime plus 2.75%
11/14/2023
F-260
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
88.6
114.9
10.8
812.1
136.4
78.7
359.0
9.1
370.3
123.0
92.4
190.0
67.6
7.4
22.3
36.0
2.2
88.6
114.9
10.8
812.1
136.4
78.7
359.0
9.1
370.3
123.0
92.4
190.0
67.6
7.4
22.3
36.0
2.2
104.6
135.7
11.3
957.6
148.7
92.9
422.8
9.4
436.8
145.0
108.6
196.9
79.7
7.6
23.1
37.3
2.3
0.03 %
0.04 %
— %
0.30 %
0.05 %
0.03 %
0.13 %
— %
0.14 %
0.05 %
0.03 %
0.06 %
0.02 %
— %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Polpo Realty, LLC, Polpo
Restaurant, LLC
1 North Restaurant Corp dba 1
North Steakhouse
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
(#,^)
(#,^)
554 Old Post Rd #3, Greenwich,
CT 06830
322 W. Montauk Hwy, Hampton
Bays, NY 11946
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
77 Mill Rd, Freeport, NY 11520
104 McCoy St., Milford, DE
19963
37 Commons Court, Waterbury,
CT 06704
1202 S Park Drive, Broken Bow,
OK 74728
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
11/6/2038
Term Loan
Prime plus 2.75%
10/31/2038
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/24/2038
Social Assistance
Term Loan
Prime plus 2.75%
9/30/2038
Warehousing and Storage
Term Loan
Prime plus 2.75%
9/30/2038
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/30/2038
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%
9/30/2038
Term Loan
Prime plus 2.75%
9/30/2038
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%
9/27/2038
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
Term Loan
Prime plus 2.75%
9/27/2038
Term Loan
Prime plus 2.75%
9/26/2038
17 Pearl St., Mystic, CT 06355
10232 S Ave N, Chicago, IL
60617
1700 West 63rd St., Chicago, IL
60636
800 Broad St., Clifton, NJ 07013
Personal and Laundry Services
Amusement, Gambling, and
Recreation Industries
Social Assistance
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/26/2038
Term Loan
Prime plus 2.75%
9/26/2038
Term Loan
Prime plus 2.75%
9/25/2038
Term Loan
Prime plus 2.75%
9/25/2023
F-261
See accompanying notes to consolidated financial statements.
55.6
187.7
526.2
20.5
121.4
97.2
130.7
85.8
303.4
196.7
260.1
106.0
294.6
666.2
407.8
87.9
45.0
80.0
2.7
55.6
187.7
526.2
20.5
121.4
97.2
130.7
85.8
303.4
196.7
260.1
106.0
294.6
666.2
407.8
87.9
45.0
80.0
2.7
271346
0.02 %
0.07 %
0.19 %
0.01 %
0.04 %
0.03 %
0.05 %
0.03 %
0.11 %
0.07 %
0.10 %
0.04 %
0.11 %
0.24 %
0.15 %
0.03 %
0.02 %
0.03 %
— %
65.6
221.4
619.0
21.3
143.1
101.0
154.1
101.0
357.9
231.7
306.6
125.0
347.2
784.2
481.0
103.7
53.1
93.9
2.8
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
SBA Unguaranteed Accrual Investments (1) (22)
Serious-Fun in Alpharetta, LLC
dba The Little Gym of Alpharetta (#,^)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
11585 Jones Bridge Rd, Ste 4G,
Johns Creek, GA 30022
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
15150 Evans St., Gulfport, MS
39503
4561 Ironworks Pike, Ste 161,
Lexington, KY 40511
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
Educational Services
Term Loan
Prime plus 2.75%
9/20/2023
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/20/2038
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/18/2023
Educational Services
Amusement, Gambling, and
Recreation Industries
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
9/13/2023
Term Loan
Prime plus 2.75%
9/12/2023
Term Loan
Prime plus 2.75%
9/12/2028
Educational Services
Term Loan
Prime plus 2.75%
9/11/2038
Social Assistance
Term Loan
8%
9/11/2038
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/10/2023
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Heavy and Civil Engineering
Construction
Term Loan
Prime plus 2.75%
9/4/2038
Term Loan
Prime plus 2.75%
8/30/2023
Term Loan
Prime plus 2.75%
8/30/2023
Social Assistance
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
8/30/2023
Term Loan
Prime plus 2.75%
8/28/2023
Nonstore Retailers
Term Loan
Prime plus 2.75%
8/26/2023
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/16/2023
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Term Loan
Term Loan
Prime plus 2.75%
8/12/2023
Prime plus 2.75%
7/24/2023
Prime plus 2.75%
7/19/2038
F-262
See accompanying notes to consolidated financial statements.
21.5
236.1
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
21.5
236.1
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
271346
0.01 %
0.09 %
— %
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 %
22.2
277.5
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
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
SBA Unguaranteed Accrual Investments (1) (22)
Tri County Heating and Cooling
Inc.
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.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
509 East Park St., Livingston, MT
59047
509 East Park St., Livingston, MT
59047
1 Poppy Ave, Neptune, NJ 07753
512 Verret St., New Orleans, LA
70114
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2023
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2038
Truck Transportation
Term Loan
Prime plus 2.75%
7/17/2023
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/28/2023
411 Sharp St., Millville, NJ 08332 Personal and Laundry Services
2141 P Ave, Williamsburg, IA
52361
200 North Branford Rd, Branford,
CT 06405
Truck Transportation
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%
6/28/2038
Term Loan
Prime plus 2.75%
6/19/2026
Term Loan
Prime plus 2.75%
6/18/2028
Term Loan
Prime plus 2.75%
6/14/2023
Term Loan
Prime plus 2.75%
6/12/2038
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/5/2038
Ambulatory Health Care Services Term Loan
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
5/28/2023
Prime plus 2.75%
5/24/2023
Food Manufacturing
Term Loan
Prime plus 2.75%
4/30/2023
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/29/2038
Gasoline Stations
Term Loan
Prime plus 2.75%
3/27/2038
Paper Manufacturing
Term Loan
Prime plus 2.75%
3/27/2028
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
3/25/2038
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/22/2038
F-263
See accompanying notes to consolidated financial statements.
39.1
2.1
23.9
19.5
85.0
398.3
601.8
149.7
777.1
164.7
26.7
21.3
41.5
108.0
286.1
187.9
465.9
58.5
39.1
2.1
23.9
19.5
85.0
398.3
601.8
149.7
777.1
164.7
26.7
21.3
41.5
108.0
286.1
187.9
465.9
58.5
40.5
2.4
24.6
20.2
100.5
425.4
654.9
155.0
916.8
194.3
27.7
22.1
42.9
127.4
337.0
204.1
548.7
68.9
271346
0.01 %
— %
0.01 %
0.01 %
0.03 %
0.13 %
0.20 %
0.05 %
0.28 %
0.06 %
0.01 %
0.01 %
0.01 %
0.04 %
0.10 %
0.06 %
0.17 %
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
Truth Technologies Inc dba Truth
Technologies Inc.
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
2341 Cheshire Lane, Naples, FL
34109
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
Professional, Scientific, and
Technical Services
Fabricated Metal Product
Manufacturing
Accommodation
Food Services and Drinking
Places
Machinery Manufacturing
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%
3/21/2023
Term Loan
Prime plus 2.75%
3/15/2023
Term Loan
Prime plus 2.75%
3/12/2038
Term Loan
Prime plus 2.75%
2/28/2023
Term Loan
Prime plus 2.75%
2/20/2038
Term Loan
Prime plus 2.75%
2/19/2038
Term Loan
Prime plus 2.75%
2/15/2038
Term Loan
Prime plus 2.75%
2/6/2023
Term Loan
Prime plus 2.75%
1/28/2038
Food Manufacturing
Term Loan
Prime plus 2.75%
12/31/2037
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/28/2027
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%
11/28/2037
Food and Beverage Stores
Term Loan
Prime plus 2.75%
11/27/2037
Miscellaneous Store Retailers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
11/27/2022
Term Loan
Prime plus 2.75%
11/26/2022
Gasoline Stations
Term Loan
Prime plus 2.75%
11/21/2037
F-264
See accompanying notes to consolidated financial statements.
35.2
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
35.2
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
36.3
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
271346
0.01 %
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)
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
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.
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
15 Frederick Place, Hicksville,
NY 11801
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
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
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
Fabricated Metal Product
Manufacturing
Term Loan
Prime plus 2.75%
11/21/2022
Gasoline Stations
Term Loan
Prime plus 2.75%
11/20/2037
Ambulatory Health Care Services Term Loan
Printing and Related Support
Activities
Term Loan
Prime plus 2.75%
11/19/2022
Prime plus 2.75%
11/9/2022
100.5
154.4
7.7
8.2
100.5
154.4
7.7
8.2
103.5
181.6
7.9
8.5
Machinery Manufacturing
Term Loan
Prime plus 2.75%
11/2/2037
228.3
228.3
268.3
0.08 %
Amusement, Gambling, and
Recreation Industries
Personal and Laundry Services
Food Services and Drinking
Places
Truck Transportation
Furniture and Related Product
Manufacturing
Insurance Carriers and Related
Activities
Term Loan
Prime plus 2.75%
10/26/2022
Term Loan
Prime plus 2.75%
9/27/2022
Term Loan
Prime plus 2.75%
9/19/2037
Term Loan
Prime plus 2.75%
8/27/2022
66.6
26.7
55.9
5.5
66.6
26.7
55.9
5.5
68.6
27.5
65.6
5.6
Term Loan
Prime plus 2.75%
8/17/2037
306.7
306.7
360.1
Term Loan
Prime plus 2.75%
7/27/2022
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/27/2022
Repair and Maintenance
Educational Services
Professional, Scientific, and
Technical Services
Motor Vehicle and Parts Dealers
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
6/29/2037
6/15/2022
Term Loan
Prime plus 2.75%
6/14/2022
Term Loan
Prime plus 2.75%
5/31/2037
Term Loan
Prime plus 2.75%
5/10/2022
Ambulatory Health Care Services Term Loan
Administrative and Support
Services
Term Loan
Prime plus 2.75%
4/27/2022
Prime plus 2.75%
3/30/2022
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/23/2028
F-265
See accompanying notes to consolidated financial statements.
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
% of Net
Assets
271346
0.03 %
0.06 %
— %
— %
0.02 %
0.01 %
0.02 %
— %
0.11 %
0.01 %
— %
0.09 %
0.01 %
— %
0.02 %
— %
— %
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
% of Net
Assets
Term Loan
6.25%
Term Loan
6%
3/23/2022
3/23/2037
449.7
449.7
445.3
2,623.4
2,623.4
2,519.4
SBA Unguaranteed Accrual Investments (1) (22)
DC Realty, LLC dba FOGO Data
Centers
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
(#,^)
340 Tom Reeve Drive, Carrolton,
GA 30117
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
Professional, Scientific, and
Technical Services
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
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
Truck Transportation
Publishing Industries (except
Internet)
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/16/2021
Term Loan
Prime plus 2.75%
12/8/2021
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
234 West 42nd St., New York,
NY 10036
401 Caribou St., Simla, CO 80835
5690 Pine Lane Circle, Bessemer,
AL 35022
635 - 637 Londonderry Lane,
Denton, TX 76205
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
9/30/2036
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Miscellaneous Store Retailers
Performing Arts, Spectator
Sports, and Related Industries
Term Loan
Prime plus 2.75%
9/28/2021
Term Loan
Prime plus 2.75%
8/30/2036
Term Loan
Prime plus 2.75%
8/19/2036
Term Loan
Prime plus 2.75%
8/12/2036
F-266
See accompanying notes to consolidated financial statements.
271346
0.14 %
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 %
244.1
16.2
128.3
40.7
0.08 %
0.01 %
0.04 %
0.01 %
724.9
532.8
343.8
19.5
63.7
64.2
17.1
5.3
68.3
69.0
23.2
239.7
13.8
109.9
34.9
724.9
532.8
343.8
19.5
63.7
64.2
17.1
5.3
68.3
69.0
23.2
239.7
13.8
109.9
34.9
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
271346
LaHoBa, LLC d/b/a Papa John's
(#,^)
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
(#)
3001 Pontchartrain Drive, Slidell,
LA 70458
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
Food Services and Drinking
Places
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%
8/3/2036
63.3
63.3
73.9
0.02 %
Term Loan
Prime plus 2.75%
6/29/2036
Term Loan
Prime plus 2.75%
6/29/2036
Term Loan
Prime plus 2.75%
6/3/2021
Term Loan
Prime plus 2.75%
5/25/2021
36.7
287.3
8.9
39.0
36.7
287.3
8.9
39.0
42.9
335.4
9.0
39.7
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2036
103.5
103.5
120.7
Nonstore Retailers
Term Loan
Prime plus 2.75%
4/18/2036
113.8
113.8
132.7
0.04 %
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/24/2036
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/21/2021
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
2/25/2023
Prime plus 2.75%
2/11/2036
Social Assistance
Support Activities for
Transportation
Term Loan
Prime plus 2.75%
1/31/2036
Term Loan
Prime plus 2.75%
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
12.5
9.9
20.6
49.4
25.0
91.3
22.2
9.2
27.2
12.5
9.9
20.6
49.4
25.0
91.3
22.2
9.2
27.2
Repair and Maintenance
Printing and Related Support
Activities
Publishing Industries (except
Internet)
Term Loan
Prime plus 2.75%
11/30/2035
Term Loan
Prime plus 2.75%
9/30/2035
180.6
180.6
Term Loan
Prime plus 2.75%
9/30/2020
2.8
2.8
F-267
See accompanying notes to consolidated financial statements.
0.01 %
0.10 %
— %
0.01 %
0.04 %
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
% of Net
Assets
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 (#)
Zog Inc.
(#,^)
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
595 Bethlehem Pike #404,
Montgomeryville, PA 18936
Couriers and Messengers
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.75%
9/29/2020
Term Loan
Prime plus 2.75%
9/20/2020
Truck Transportation
Term Loan
Prime plus 2.75%
9/17/2020
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/2/2035
Truck Transportation
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 2.75%
9/2/2035
Term Loan
Prime plus 2.75%
8/30/2020
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/30/2020
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
6/29/2035
Term Loan
Prime plus 2.75%
8/25/2020
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
6/22/2035
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Food Services and Drinking
Places
Administrative and Support
Services
Term Loan
Term Loan
Term Loan
Prime plus 2.75%
6/28/2020
Prime plus 2.75%
7/15/2020
Prime plus 2.75%
12/30/2034
Prime plus 2.75%
3/29/2024
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/19/2034
Repair and Maintenance
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Educational Services
Food Services and Drinking
Places
Term Loan
Prime plus 2.5%
11/28/2029
Term Loan
Term Loan
Term Loan
6%
6%
6%
3/10/2021
8/1/2031
11/30/2022
Other Information Services
Term Loan
Prime plus 2.75%
4/30/2020
F-268
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
13.6
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
13.6
271346
— %
0.01 %
— %
0.01 %
0.07 %
— %
— %
0.02 %
— %
0.03 %
— %
— %
0.01 %
0.01 %
0.02 %
0.02 %
— %
0.01 %
0.02 %
— %
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
21.6
51.9
49.7
3.8
42.6
63.3
13.7
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
SBA Unguaranteed Accrual Investments (1) (22)
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
Ralph Werner dba Werner
Transmission Inc
Robin C. & Charles E. Taylor &
Brigantine Aquatic Center LLC (#,^)
(#,^)
(#,^)
Professional, Scientific, and
Technical Services
Repair and Maintenance
Personal and Laundry Services
Food and Beverage Stores
Repair and Maintenance
Personal and Laundry Services
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,
AL 35648
Social Assistance
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
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
Term Loan
Prime plus 2%
10/18/2025
Term Loan
Prime plus 2.75%
5/18/2032
Term Loan
Prime plus 2.25%
9/7/2027
Term Loan
Prime plus 2.75%
2/5/2026
Term Loan
Prime plus 2.75%
1/5/2027
Term Loan
Prime plus 2.75%
1/27/2031
Term Loan
Term Loan
Prime plus 2.75%
Prime plus 2.75%
10/28/2026
5/31/2030
Term Loan
Prime plus 2.75%
5/2/2030
Term Loan
5.3%
Term Loan
6%
2/1/2025
8/26/2024
Term Loan
Prime plus 2.75%
7/30/2029
Term Loan
Prime plus 2.5%
2/27/2024
Term Loan
Prime plus 2%
4/9/2029
Term Loan
Prime plus 2.25%
11/10/2028
Term Loan
Prime plus 2.75%
1/30/2028
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
259 East Central Ave, Bangor, PA
18013
3118 Bayshore Ave, Brigantine,
NJ 08203
Repair and Maintenance
Term Loan
Prime plus 2.5%
4/5/2029
Motor Vehicle and Parts Dealers
Food Services and Drinking
Places
Gasoline Stations
Amusement, Gambling, and
Recreation Industries
Term Loan
6%
8/17/2023
Term Loan
Prime plus 2%
6/29/2025
Term Loan
Prime plus 2.75%
12/29/2021
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
1.0
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
1.0
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
1.1
271346
0.01 %
— %
0.05 %
0.01 %
0.05 %
— %
— %
0.02 %
0.02 %
— %
— %
— %
— %
— %
— %
— %
0.01 %
— %
— %
— %
Term Loan
6%
9/14/2023
25.5
25.5
25.2
0.01 %
F-269
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
% of Net
Assets
SBA Unguaranteed Accrual Investments (1) (22)
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
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
(#,^)
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
193 Main St., Andover, NJ 07860
Ambulatory Health Care Services Term Loan
Plastics and Rubber Products
Manufacturing
Term Loan
Prime plus 2%
3/12/2022
Prime plus 2.75%
6/16/2025
Accommodation
Term Loan
Prime plus 2.25%
2/14/2025
Accommodation
Furniture and Home Furnishings
Stores
Term Loan
Prime plus 2.25%
11/25/2024
Term Loan
Prime plus 2.75%
3/13/2023
Accommodation
Term Loan
Prime plus 2.25%
5/31/2023
Accommodation
Term Loan
Prime plus 2.25%
3/31/2024
Social Assistance
Term Loan
Prime plus 2.75%
1/14/2023
Accommodation
Term Loan
Prime plus 2.25%
9/30/2023
Accommodation
Term Loan
Prime plus 2.75%
3/27/2023
Gasoline Stations
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
12/23/2022
Term Loan
Prime plus 2.75%
7/18/2021
Total SBA Unguaranteed Accrual Investments
1.6
3.5
19.0
14.6
4.1
11.9
19.2
3.6
33.2
1.6
4.9
1.6
3.5
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
2.4
370,612.2
2.4
2.5
370,612.2 $ 382,986.3
(#)
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
Custom Software, Inc. a
Colorado Corporation dba M-33
Access
(#)
(#)
(#)
200 North 8th St., Reading, PA
19601
1 Amboy Ave, Woodbridge, NJ
07095
1 Amboy Ave, Woodbridge, NJ
07095
380 E. Borden Rd, Rose City, MI
48654
141 South Waldron Lane,
Wynantskill, NY 12198
Event Mecca LLC
Hartford Cardiology Group LLC
and Ideal Nutrition of
Connecticut LLC
(#)
(#,^)
Food Manufacturing
Term Loan
6.25%
Food Manufacturing
Term Loan
7%
5/4/2028
6/24/2025
445.6
364.5
445.6
364.5
352.6
355.2
Food Manufacturing
Term Loan
7%
12/27/2023
455.7
455.7
414.2
0.13 %
Professional, Scientific, and
Technical Services
Term Loan
6.25%
Other Information Services
Term Loan
6%
6/17/2021
4/10/2023
233.3
11.0
233.3
11.0
114.4
0.04 %
1.2
— %
345 North Main St., West
Hartford, CT 06117
Ambulatory Health Care Services Term Loan
—%
5/15/2024
452.3
452.3
71.6
0.02 %
F-270
See accompanying notes to consolidated financial statements.
271346
— %
— %
0.01 %
— %
— %
— %
0.01 %
— %
0.01 %
— %
— %
— %
118.86 %
271346
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
% of Net
Assets
(#,^)
SBA Unguaranteed Non-Accrual Investments (3) (22)
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
(*,#)
(#,^)
(#,^)
(#)
(#)
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
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
(*,#,^)
Arclay, LLC
Arrow Freight Inc
Auto Shine Carwash Inc and
AKM R. Hossain and Jessica F.
Masud
(*,#,^)
(*,#,^)
(*,#)
6 Price Ave, Norwalk, CT 06854
31814 Crown Valley Rd, Acton,
CA 93510
12489 NW 44th St., Coral
Springs, FL 33065
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
49 Geyser Rd, Ste 100, Saratoga
Springs, NY 12866
1000 Jorie Blvd Ste 250, Oak
Brook, IL 60523
2646 South Rd, Poughkeepsie,
NY 12601
Amusement, Gambling, and
Recreation Industries
Transit and Ground Passenger
Transportation
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
Term Loan
6.75%
Term Loan
6.25%
Term Loan
Term Loan
Term Loan
Term Loan
15%
6.5%
8%
8%
Term Loan
8.25%
Term Loan
8%
Repair and Maintenance
Term Loan
7.75%
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
Repair and Maintenance
Professional, Scientific, and
Technical Services
Term Loan
7.75%
Term Loan
Prime plus 2.75%
3/13/2027
Ambulatory Health Care Services Term Loan
Printing and Related Support
Activities
Fabricated Metal Product
Manufacturing
Term Loan
Term Loan
8.25%
7.75%
8.25%
1/13/2029
6/27/2041
12/15/2041
Term Loan
Prime plus 2.75%
3/28/2027
Chemical Manufacturing
Furniture and Related Product
Manufacturing
Nonmetallic Mineral Product
Manufacturing
Term Loan
Term Loan
8%
8%
Truck Transportation
Term Loan
8.25%
11/1/2027
5/5/2030
3/30/2028
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
137.1
658.6
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
137.1
658.6
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
39.5
379.4
271346
— %
— %
0.07 %
0.01 %
0.01 %
0.07 %
0.01 %
0.11 %
— %
0.07 %
— %
0.08 %
0.07 %
0.17 %
— %
— %
0.01 %
0.12 %
Gasoline Stations
Term Loan
7.75%
9/26/2024
15.7
15.7
15.3
— %
F-271
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
% of Net
Assets
(*,#)
(*,#)
(*,#,^)
(*,#,^)
SBA Unguaranteed Non-Accrual Investments (3) (22)
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
Brandywine Picnic Park, Inc. and
B.Ross Capps & Linda Capps
Cagwin Trucking LLC
(*,#)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
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
190 Route 3, South China, ME
04358
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Term Loan
Term Loan
6%
7%
6%
Term Loan
8.25%
4/30/2025
8/27/2040
6/22/2035
9/23/2026
Term Loan
8.25%
11/30/2026
34.4
208.9
198.9
70.1
18.5
34.4
208.9
198.9
70.1
18.5
Nonstore Retailers
Term Loan
6%
3/29/2036
177.4
177.4
271346
— %
0.04 %
0.05 %
0.02 %
— %
0.02 %
1.4
139.2
168.2
48.5
—
59.4
Gasoline Stations
Term Loan
6%
9/30/2038
400.4
400.4
36.4
0.01 %
Accommodation
Accommodation
190 Rt 3, South China, ME 04358 Gasoline Stations
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
690 South Creek Rd, West
Chester, PA 19382
332 35th Ave, Fairbanks, AK
99701
Gasoline Stations
Food Services and Drinking
Places
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Repair and Maintenance
Amusement, Gambling, and
Recreation Industries
Truck Transportation
Term Loan
6.25%
8/15/2039
146.3
146.3
—
Term Loan
Prime plus 2.75%
8/12/2041
1,608.1
1,670.3
565.6
Term Loan
7.25%
12/30/2024
Term Loan
7.75%
Term Loan
7%
Term Loan
8.25%
3/28/2028
6/30/2042
7/31/2027
Term Loan
Prime plus 2.75%
3/13/2039
Term Loan
Prime plus 2.75%
6/30/2027
Term Loan
8.25%
Term Loan
8.25%
3/30/2031
9/29/2042
85.4
214.1
73.4
6.4
201.2
54.2
179.3
305.0
85.4
214.1
73.4
6.4
201.2
54.2
179.3
305.0
81.0
52.6
54.7
—
154.0
53.5
176.9
224.9
— %
0.18 %
0.03 %
0.02 %
0.02 %
— %
0.05 %
0.02 %
0.05 %
0.07 %
F-272
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)
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
(*,#,^)
(*,#,^)
(*,#)
(*,#)
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
Broadcasting (except Internet)
Term Loan
6.75%
Telecommunications
Term Loan
7%
2/27/2025
12/2/2026
724.2
189.1
724.2
189.1
—
30.9
Ambulatory Health Care Services Term Loan
7.75%
5/15/2025
556.4
556.4
322.9
0.10 %
Wood Product Manufacturing
Term Loan
Wood Product Manufacturing
Term Loan
8%
8%
12/14/2026
12/14/2041
Wood Product Manufacturing
Transit and Ground Passenger
Transportation
Term Loan
Prime plus 2.75%
10/27/2027
Term Loan
7.5%
9/30/2027
868.8
116.7
95.7
572.9
868.8
116.7
95.7
572.9
824.0
110.7
90.8
546.8
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
Conference Services
International ETC LLC
Custom Software, Inc. a
Colorado Corporation dba M-33
Access
CZAR Industries, Inc.
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#)
(*,#,^)
6/7/2029
307.2
307.2
303.2
12/22/2035
10/19/2022
8/29/2041
9/15/2027
59.0
43.5
73.3
58.6
59.0
43.5
73.3
58.6
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 Real Estate
15 Old Loudon Rd, Colonie, NY
12110
18360 Industrial Circle, Burton,
OH 44021
717 Titus Ave, Rochester, NY
14617
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Term Loan
Term Loan
8.25%
6.25%
6.25%
8%
Term Loan
8%
Real Estate
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
9/28/2041
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
4802 West Van Buren St.,
Phoenix, AZ 85007
380 E. Borden Rd, Rose City, MI
48654
1424 Heath Ave, Ewing, NJ
08638
Repair and Maintenance
Administrative and Support
Services
Term Loan
6.75%
Term Loan
8%
Broadcasting (except Internet)
Term Loan
6.25%
Machinery Manufacturing
Term Loan
8.25%
9/26/2039
8/14/2028
4/30/2022
12/19/2027
553.3
600.7
94.3
219.9
553.3
600.7
94.3
219.9
F-273
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
— %
0.01 %
0.26 %
0.03 %
0.03 %
0.17 %
0.09 %
0.02 %
0.01 %
0.01 %
— %
0.20 %
0.04 %
0.15 %
0.18 %
— %
0.03 %
56.0
41.2
18.9
—
651.8
118.9
484.0
592.9
—
80.6
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
Food Services and Drinking
Places
Term Loan
6.5%
12/16/2025
Ambulatory Health Care Services Term Loan
Prime plus 2.75%
12/20/2028
45.4
292.6
45.4
292.6
23.9
24.0
Support Activities for
Transportation
Term Loan
5.25%
12/28/2035
1,316.8
1,316.8
702.5
(*,#,^)
SBA Unguaranteed Non-Accrual Investments (3) (22)
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
Ericon, Inc.
Ericon, Inc. dba Quik Pik
Europlast Ltd
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
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
1515 Shopton Rd, Charlotte, NC
28217
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
740 Davenport Ave, Fremont, NE
68025
740 Davenport Ave, Freemont,
NE 68025
100 Industrial Lane, Endeavor,
WI 53930
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Term Loan
8.25%
Ambulatory Health Care Services Term Loan
Ambulatory Health Care Services Term Loan
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
7.5%
7.5%
8%
8%
7%
8%
6%
8%
8%
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
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/31/2022
Gasoline Stations
Term Loan
Prime plus 2.75%
3/24/2027
Gasoline Stations
Term Loan
8.25%
Gasoline Stations
Plastics and Rubber Products
Manufacturing
Term Loan
8.25%
Term Loan
6%
12/1/2041
12/15/2041
9/26/2022
F-274
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
0.01 %
0.01 %
0.22 %
0.03 %
0.02 %
— %
0.01 %
0.04 %
0.86 %
0.02 %
0.10 %
0.01 %
— %
95.1
80.2
—
38.2
71.9
333.6
42.8
—
596.4
0.19 %
—
— %
453.1
0.14 %
658.6
0.20 %
—
55.5
— %
0.02 %
155.9
81.3
869.9
122.3
726.2
129.0
53.4
155.9
81.3
869.9
122.3
726.2
129.0
53.4
72.8
338.0
43.9
54.2
705.6
322.8
312.9
72.8
338.0
43.9
54.2
705.6
322.8
312.9
210.1
210.1
131.2
4,705.2
4,815.4
2,773.9
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
SBA Unguaranteed Non-Accrual Investments (3) (22)
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 (*,#,^)
Florida Apnea Diagnostics, LLC (*,#,^)
Galaforo Construction and
Companies LLC
(*,#,^)
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
1405 Combermere Dr., Troy, MI
48083
1405 Combermer Dr., Troy, MI
48083
Plastics and Rubber Products
Manufacturing
Term Loan
6%
Wood Product Manufacturing
Animal Production and
Aquaculture
Term Loan
8.25%
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%
5/31/2023
3/16/2026
8/31/2042
8/30/2023
3/25/2026
7/8/2028
9/20/2027
73.4
912.8
637.5
66.8
95.2
32.4
88.8
73.4
912.8
637.5
66.8
95.2
32.4
88.8
Term Loan
7.75%
12/20/2027
286.5
286.5
Repair and Maintenance
Term Loan
7.75%
8/23/2037
251.5
251.5
162.3
0.05 %
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
1405 Combermere Drive, Troy,
MI 48083
1405 Combermere Drive, Troy,
MI 48083
Administrative and Support
Services
Administrative and Support
Services
Term Loan
7.75%
1/19/2026
67.8
67.8
Term Loan
7.75%
Term Loan
7.75%
12/21/2026
5/18/2027
39.0
138.9
39.0
138.9
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
2664 Cypress Ridge Blvd Ste
101&102, Wesley Chapel, FL
33624
1770 Stumpf Boulevard,
Terrytown, LA 70056
Specialty Trade Contractors
Term Loan
6.75%
6/17/2025
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 %
Ambulatory Health Care Services Term Loan
8.25%
Construction of Buildings
Term Loan
7.5%
7/24/2028
12/15/2042
20.1
33.6
20.1
33.6
—
31.9
— %
0.01 %
F-275
See accompanying notes to consolidated financial statements.
271346
— %
0.16 %
0.15 %
0.02 %
— %
0.01 %
— %
0.01 %
—
514.6
468.2
52.8
—
31.0
—
40.0
—
—
—
—
— %
— %
— %
— %
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
SBA Unguaranteed Non-Accrual Investments (3) (22)
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
J and K Fitness L.L.C. dba
Physiques Womens Fitness
Center
J&K Fitness, LLC dba Physiques
Womens Fitness Center
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
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
Construction of Buildings
Nonmetallic Mineral Product
Manufacturing
Term Loan
7.5%
Term Loan
8.25%
Miscellaneous Manufacturing
Term Loan
8.25%
Real Estate
Term Loan
Miscellaneous Manufacturing
Term Loan
Specialty Trade Contractors
Furniture and Related Product
Manufacturing
Repair and Maintenance
Waste Management and
Remediation Services
Repair and Maintenance
Heavy and Civil Engineering
Construction
Truck Transportation
Truck Transportation
Food Services and Drinking
Places
6%
8%
6%
Term Loan
Term Loan
8.25%
Term Loan
Term Loan
Term Loan
8%
6%
7%
Term Loan
Term Loan
7.5%
7.5%
Term Loan
6.25%
Rental and Leasing Services
Term Loan
8%
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
3/9/2028
6/29/2030
6/30/2040
11/30/2025
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
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
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
271346
0.01 %
0.11 %
0.01 %
0.01 %
— %
— %
0.06 %
0.08 %
— %
— %
0.11 %
0.01 %
0.10 %
— %
— %
Term Loan
8.25%
12/31/2028
4899 Griggs Rd, Houston, TX
77021
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
2505 Verot School RD, Lafayette,
LA 70508
2505 Verot School Rd, Lafayette,
LA 70508
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
8.25%
Term Loan
8%
2/28/2041
6/8/2036
29.6
90.1
14.6
29.6
90.1
14.6
29.2
0.01 %
—
11.0
— %
— %
F-276
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)
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
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
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#)
2040 5 1/2 Mile Rd, Racine, WI
53402
2040 5 1/2 Mile Rd, Racine, WI
53402
311 Ryan St, Holmen, WI 54636
3666 East 116th, Cleveland, OH
44105
200 West Adams St, Cochranton,
PA 16314
2850 Audubon Drive, Audubon,
PA 19403
Truck Transportation
Term Loan
7.25%
Truck Transportation
Term Loan
7.25%
Truck Transportation
Social Assistance
Term Loan
Term Loan
6%
6%
Motor Vehicle and Parts Dealers
Amusement, Gambling, and
Recreation Industries
Term Loan
6.25%
Term Loan
8.25%
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
526 Perry House Rd, Fitzgerald,
GA 31750
526 Perry House Rd, Fitzgerald,
GA 31750
526 Perry House Rd, Fitzgerald,
GA 31750
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
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
General Merchandise Stores
Merchant Wholesalers,
Nondurable Goods
Support Activities for Agriculture
and Forestry
Support Activities for Agriculture
and Forestry
Term Loan
6.25%
Term Loan
7.25%
Term Loan
8.25%
Term Loan
8.25%
Term Loan
8.25%
Term Loan
7.25%
Term Loan
7.5%
Term Loan
6%
Term Loan
7.5%
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
3/21/2023
4/30/2020
7/10/2020
F-277
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
— %
— %
18.7
29.6
18.7
29.6
—
4.5
628.4
628.4
47.1
0.01 %
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
197.4
54.2
27.4
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
197.4
54.2
27.4
1.2
5.2
— %
— %
25.8
0.01 %
11.4
10.7
14.9
9.2
33.3
—
90.4
58.3
42.3
197.9
26.7
59.9
53.5
20.3
— %
— %
— %
— %
0.01 %
— %
0.03 %
0.02 %
0.01 %
0.06 %
0.01 %
0.02 %
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
% of Net
Assets
SBA Unguaranteed Non-Accrual Investments (3) (22)
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
Paragon Global, LLC and
Paragon Fabricators Inc and
Paragon Field
Peter K Lee MD, PC dba Atlanta
Primary Care
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
(*,#)
(*,#,^)
(*,#,^)
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
Merchant Wholesalers,
Nondurable Goods
Term Loan
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%
12/15/2021
10/31/2024
3/11/2029
3/18/2026
9/19/2028
133.8
11.5
186.2
42.8
133.8
11.5
186.2
42.8
49.9
9.0
85.9
18.0
1,168.6
1,168.6
1,017.8
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
2520 Pennsylvania Ave, Ogden,
UT 84401
Electrical Equipment, Appliance,
and Component Manufacturing
Publishing Industries (except
Internet)
Term Loan
7%
11/25/2025
Term Loan
Prime plus 2.75%
3/31/2042
Broadcasting (except Internet)
Amusement, Gambling, and
Recreation Industries
Term Loan
6%
Term Loan
8.25%
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%
3/14/2041
Truck Transportation
Term Loan
8%
Truck Transportation
Fabricated Metal Product
Manufacturing
Term Loan
8.25%
Term Loan
Prime plus 2.75%
12/15/2042
Repair and Maintenance
Term Loan
7%
Truck Transportation
Term Loan
8.25%
1/29/2026
6/20/2028
11/20/2027
11/20/2042
10.5
84.9
725.0
197.3
78.7
71.3
385.5
175.3
625.0
96.9
547.8
10.5
84.9
725.0
197.3
78.7
71.3
385.5
175.3
625.0
96.9
547.8
1.8
63.2
289.7
208.6
74.6
67.7
86.9
147.2
444.2
—
71.3
271346
0.02 %
— %
0.03 %
0.01 %
0.32 %
— %
0.02 %
0.09 %
0.06 %
0.02 %
0.02 %
0.03 %
0.05 %
0.14 %
— %
0.02 %
412 and 500 Main St., La
Marque, TX 77568
Heavy and Civil Engineering
Construction
Term Loan
7%
9/28/2026
570.7
570.7
27.3
0.01 %
412 and 500 Main St., La
Marque, TX 77568
211 Roberson Mill Rd,
Milledgeville, GA 31061
Heavy and Civil Engineering
Construction
Term Loan
7%
Ambulatory Health Care Services Term Loan
8.25%
9/28/2041
9/13/2043
110.1
859.6
110.1
859.6
77.2
826.1
0.02 %
0.26 %
F-278
See accompanying notes to consolidated financial statements.
% of Net
Assets
271346
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)
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.
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
(*,#,^)
(*,#,^)
(*,#,^)
(*,#,^)
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
176 Country Club Drive,
Waynesville, NC 28786
5245 Bucks Bar Rd, Placerville,
CA 95667
6160 Granite Spring Rd,
Somerset, CA 95684
611 East Southerland St.,
Wallace, NC 28466
611 E Southerland St, Wallace,
NC 28466
Ambulatory Health Care Services Term Loan
8.25%
9/13/2028
381.0
381.0
366.2
0.11 %
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%
7/23/2040
Accommodation
Term Loan
Prime plus 2.75%
12/1/2027
Accommodation
Transit and Ground Passenger
Transportation
Term Loan
8.25%
Term Loan
8.25%
5/19/2042
1/13/2027
Truck Transportation
Term Loan
Prime plus 2.75%
7/31/2029
Specialty Trade Contractors
Term Loan
Specialty Trade Contractors
Term Loan
Specialty Trade Contractors
Term Loan
7%
7%
7%
9/15/2027
11/12/2025
12/31/2028
Ambulatory Health Care Services Term Loan
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Term Loan
Term Loan
8.25%
8%
Prime plus 2.75%
12/28/2028
1/27/2027
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
—
52.7
9.4
14.8
— %
0.01 %
0.07 %
0.03 %
0.19 %
0.02 %
— %
0.02 %
— %
— %
10/10/2039
1,154.0
1,154.0
1,094.5
0.34 %
Beverage and Tobacco Product
Manufacturing
Crop Production
Food Services and Drinking
Places
Food Services and Drinking
Places
Term Loan
8.25%
Term Loan
8.25%
1/19/2030
8/8/2042
Term Loan
Prime plus 2.75%
9/14/2026
Term Loan
8.25%
11/9/2026
230.9
902.1
121.8
37.1
230.9
902.1
121.8
37.1
219.0
663.8
25.9
—
0.07 %
0.21 %
0.01 %
— %
F-279
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
% of Net
Assets
SBA Unguaranteed Non-Accrual Investments (3) (22)
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
Street Magic Enterprise LLC dba
New Lisbon Travel Mart
(*,#,^)
(*,#,^)
Suncrest Stone Products LLC
(*,#,^)
Suncrest Stone Products LLC
(*,#,^)
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
1007 Lancaster Pike, Quarryville,
PA 17566
2100 Ponce De Leon Blvd #1290,
Coral Gables, FL 33134
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
1700 East Bridge St., New
Lisbon, WI 53950
341 County Farm Rd, Ashburn,
GA 31714
341 County Farm Rd, Ashburn,
GA 31714
Food Services and Drinking
Places
Truck Transportation
Food Services and Drinking
Places
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Merchant Wholesalers,
Nondurable Goods
Term Loan
6.25%
Term Loan
7.5%
Term Loan
8.25%
Term Loan
7.5%
Term Loan
8.25%
Term Loan
7.5%
Repair and Maintenance
Term Loan
7%
Building Material and Garden
Equipment and Supplies Dealers
Merchant Wholesalers, Durable
Goods
Electrical Equipment, Appliance,
and Component Manufacturing
Furniture and Related Product
Manufacturing
Term Loan
7.5%
Term Loan
8.25%
Term Loan
7.5%
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%
Gasoline Stations
Nonmetallic Mineral Product
Manufacturing
Nonmetallic Mineral Product
Manufacturing
Term Loan
7.5%
Term Loan
7.25%
Term Loan
7.5%
F-280
See accompanying notes to consolidated financial statements.
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
6/30/2041
2/7/2024
5/9/2037
9/23/2025
11/25/2024
12/21/2027
11/7/2042
8/29/2041
8/29/2026
Term Loan
Prime plus 2.75%
12/26/2043
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
419.0
620.8
536.6
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
419.0
620.8
536.6
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
—
239.9
564.7
459.9
271346
0.01 %
0.01 %
0.08 %
0.02 %
0.05 %
0.01 %
0.01 %
— %
0.01 %
0.15 %
0.01 %
0.04 %
— %
— %
— %
— %
0.07 %
0.18 %
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 Non-Accrual Investments (3) (22)
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
(*,#,^)
(*,#,^)
(*,#)
(*,#)
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
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%
Term Loan
7.25%
Term Loan
7.25%
Term Loan
7.75%
3/31/2025
6/17/2026
12/7/2026
6/21/2042
Term Loan
Prime plus 2.75%
10/24/2042
23.0
204.5
95.2
97.8
74.8
23.0
204.5
95.2
97.8
74.8
—
—
93.9
82.5
71.0
% of Net
Assets
271346
— %
— %
0.03 %
0.03 %
0.02 %
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
Work of Heart Inc dba Little Nest
Portraits
Work of Heart Inc dba Little Nest
Portraits
(*,#)
(*,#)
(*,#,^)
29291 Amerihost Drive,
Dowagiac, MI 49047
3510 Bear Creek Rd,
Franklinville, NY 14737
1007 &1009 Old Route 119,
Hunker, PA 15639
226 Maple Ave, Cheshire, CT
06410
20390 County RD 424, Defiance,
OH 43512
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
1000 Merdian Blvd, Ste 112,
Franklin, TN 37067
1000 Merdian Blvd, Ste 112,
Franklin, TN 37067
Accommodation
Term Loan
8.25%
12/5/2041
335.1
335.1
322.1
0.10 %
Accommodation
Term Loan
7%
9/29/2039
489.6
489.6
464.4
0.14 %
Telecommunications
Food Services and Drinking
Places
Term Loan
7%
Term Loan
8.25%
Motor Vehicle and Parts Dealers
Term Loan
Repair and Maintenance
Food Services and Drinking
Places
Term Loan
Term Loan
8%
7.5%
7.5%
Ambulatory Health Care Services
Term Loan
7.25%
12/2/2041
2/22/2042
9/29/2029
11/21/2027
5/3/2028
7/19/2027
Truck Transportation
Food Services and Drinking
Places
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Term Loan
8.25%
12/15/2026
Term Loan
7.5%
Term Loan
7.25%
Term Loan
Term Loan
7.5%
7.5%
3/11/2026
3/28/2039
1/10/2028
7/28/2027
F-281
See accompanying notes to consolidated financial statements.
64.7
104.4
289.3
349.2
20.1
71.2
937.3
93.2
402.7
5.2
47.1
64.7
104.4
289.3
349.2
20.1
71.2
937.3
93.2
402.7
5.2
47.1
—
88.5
— %
0.03 %
125.8
0.04 %
—
2.8
36.1
912.8
90.8
265.5
5.1
45.9
— %
— %
0.01 %
0.28 %
0.03 %
0.08 %
— %
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
% of Net
Assets
271346
Transit and Ground Passenger
Transportation
Merchant Wholesalers,
Nondurable Goods
Term Loan
Prime plus 2.75%
9/27/2028
677.3
677.3
607.5
0.19 %
Term Loan
8.25%
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 %
3200 Wilshire Blvd Ste 1000, Los
Angeles, CA 90010
33-51 11th St., Astoria, NY 11106
SBA Unguaranteed Non-Accrual Investments (3) (22)
Zeeba Company, Inc dba Zeeba
Rent-A-Van & 5 Star Rent- A-
Van
Zahmel Restaurant Suppliers
Corp dba Cash & Carry; Zahners
Hardware
(*,#,^)
(*,#,^)
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.
AA Horseplay, LLC
Campuscuts LLC
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
34565 Ranch Drive, Brownsville,
OR 97327
930 Robtrice Ct, Edmond, OK
73430
Nonmetallic Mineral Product
Manufacturing
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
Truck Transportation
Professional, Scientific, and
Technical Services
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Professional, Scientific, and
Technical Services
Personal and Laundry Services
Animal Production and
Aquaculture
Term Loan
Prime plus 6.5%
2/27/2029
Term Loan
Prime plus 6.5%
4/17/2029
Term Loan
Prime plus 6.5%
4/17/2029
Term Loan
Prime plus 6.5%
4/25/2029
Term Loan
Prime plus 6.5%
4/30/2029
Term Loan
Prime plus 6.5%
5/6/2029
Term Loan
Prime plus 6.5%
5/9/2029
Term Loan
Prime plus 6.5%
5/23/2029
Term Loan
Prime plus 6.5%
5/23/2029
Term Loan
Prime plus 6.5%
6/6/2029
Term Loan
Prime plus 6.5%
6/10/2029
Term Loan
Prime plus 6.5%
6/13/2029
Term Loan
Prime plus 6.5%
6/17/2029
Term Loan
Prime plus 6.5%
6/20/2029
Personal and Laundry Services
Term Loan
Prime plus 6.5%
6/21/2029
F-282
See accompanying notes to consolidated financial statements.
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
12.2
7.3
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
12.2
7.3
271,346
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
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
12.2
7.3
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 Guaranteed Accrual Investments (4a)
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
Sean McNamara
Bucklin Sumner & Associates
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
5639 Wood Lane, Allentown, PA
18106
650 NE Holladay St. Ste 1600,
Portland, OR 97232
Repair and Maintenance
Term Loan
Prime plus 6.5%
6/21/2029
Ambulatory Health Care Services
Food Services and Drinking
Places
Professional, Scientific, and
Technical Services
Term Loan
Prime plus 6.5%
7/10/2029
Term Loan
Prime plus 6.5%
7/17/2029
Term Loan
Prime plus 6.5%
7/19/2029
Nonstore Retailers
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%
7/30/2029
Term Loan
Prime plus 6.5%
8/7/2029
Term Loan
Prime plus 6.5%
8/26/2029
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 6.5%
8/30/2029
Term Loan
Prime plus 6.5%
9/11/2029
Term Loan
Prime plus 6.5%
9/18/2029
Real Estate
Term Loan
Prime plus 6.5%
9/19/2029
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 6.5%
10/11/2029
General Merchandise Stores
Term Loan
Prime plus 6.5%
10/11/2029
Machinery Manufacturing
Term Loan
Prime plus 6.5%
10/16/2029
Specialty Trade Contractors
Professional, Scientific, and
Technical Services
Amusement, Gambling, and
Recreation Industries
Nonstore Retailers
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
Term Loan
Prime plus 6.5%
10/16/2029
Term Loan
Prime plus 6.5%
10/22/2029
Term Loan
Prime plus 6.5%
11/7/2029
Term Loan
Prime plus 6.5%
11/14/2029
Term Loan
Prime plus 6.5%
11/14/2029
F-283
See accompanying notes to consolidated financial statements.
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
12.5
12.5
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
12.5
12.5
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
12.5
12.5
% of Net
Assets
271,346
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
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)
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
Oak Park Social
Natalie Hart LLC
The Cow Harbor Beer Company
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
14691 W 11 Mile Rd, Oak Park,
MI 48237
1702 Fawn Gate St, San Antonio,
TX 78248
19 Scudder Ave, Northport, NY
11768
Social Assistance
Term Loan
Prime plus 6.5%
11/14/2029
Specialty Trade Contractors
Insurance Carriers and Related
Activities
Building Material and Garden
Equipment and Supplies Dealers
Professional, Scientific, and
Technical Services
Miscellaneous Store Retailers
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 6.5%
11/21/2029
Term Loan
Prime plus 6.5%
12/5/2029
Term Loan
Prime plus 6.5%
12/6/2029
Term Loan
Prime plus 6.5%
12/17/2029
Term Loan
Prime plus 6.5%
12/20/2029
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
Term Loan
Prime plus 2.75%
6/27/2029
3,660.2
3,660.2
4,057.4
Term Loan
Prime plus 2.75%
3/16/2029
Term Loan
Prime plus 2.75%
7/15/2029
123.3
442.9
123.3
442.9
132.7
479.4
Term Loan
Prime plus 2.75%
9/30/2029
3,678.2
3,678.2
4,082.8
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
Term Loan
Prime plus 2.75%
8/31/2044
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/23/2029
Food Manufacturing
Amusement, Gambling, and
Recreation Industries
Amusement, Gambling, and
Recreation Industries
Food Services and Drinking
Places
Food Services and Drinking
Places
Personal and Laundry Services
Beverage and Tobacco Product
Manufacturing
Term Loan
Prime plus 2.75%
4/21/2045
Term Loan
Prime plus 2.75%
2/27/2030
Term Loan
Prime plus 2.75%
3/9/2030
Term Loan
Prime plus 2.75%
2/15/2030
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
F-284
See accompanying notes to consolidated financial statements.
810.1
129.1
230.6
394.7
298.8
73.9
290.6
100.1
272.9
810.1
129.1
230.6
394.7
298.8
73.9
290.6
100.1
272.9
895.2
141.5
257.6
434.7
329.2
81.4
325.7
110.4
300.7
% of Net
Assets
271,346
— %
— %
— %
— %
— %
— %
1.26 %
0.04 %
0.15 %
1.27 %
0.33 %
1.00 %
0.28 %
0.04 %
0.08 %
0.13 %
0.10 %
0.03 %
0.10 %
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 Guaranteed Accrual Investments (4a)
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
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
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
(*)
(*)
(*)
(*)
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
700 Ramona Ave, Philadelphia,
PA 19120
Total SBA Guaranteed Non-Accrual Investments
Total SBA Guaranteed Investments
Total SBA Unguaranteed and Guaranteed Investments
Food Services and Drinking
Places
Food Services and Drinking
Places
Computer and Electronic Product
Manufacturing
Term Loan
Prime plus 2.75%
12/25/2029
Term Loan
Prime plus 2.75%
11/25/2029
Term Loan
Prime plus 2.75%
5/12/2045
78.2
60.0
78.8
78.2
60.0
78.8
Ambulatory Health Care Services Term Loan
Food Services and Drinking
Places
Term Loan
Prime plus 2.75%
3/21/2030
177.4
177.4
Prime plus 2.75%
12/6/2029
Term Loan
Prime plus 2.75%
3/19/2045
99.8
27.9
99.8
27.9
Term Loan
Prime plus 2.75%
12/24/2029
402.5
402.5
86.2
66.1
88.4
195.5
109.9
31.4
443.4
Accommodation
Transit and Ground Passenger
Transportation
Food Services and Drinking
Places
Chemical Manufacturing
Publishing Industries (except
Internet)
Fabricated Metal Product
Manufacturing
Food Services and Drinking
Places
Electrical Equipment, Appliance,
and Component Manufacturing
Term Loan
Prime plus 2.75%
4/26/2030
728.8
16,555.0 $
728.8
16,555.0 $
802.8
18,213.1
$
Term Loan
Prime plus 2.75%
3/28/2027
Term Loan
Prime plus 2.75%
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
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
23,345.5 $
23,345.5 $
25,003.6
$
$
% of Net
Assets
271,346
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 %
$ 452,870.3 $ 453,042.7 $ 442,226.7
137.24 %
F-285
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
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
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
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
Professional, Scientific, and
Technical Services
Type of
Investment
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
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net
Assets
—%
3%
—%
—%
10%
10%
—%
10%
—%
—%
10%
10%
12%
10%
—%
10%
—%
Dec 2014
Dec 2020
April 2020
Nov 2028
Oct 2021
May 2020
May 2020
July 2020
June 2021
—%
Prime plus 0.5%
April 2021
—
381.0
—
—
5,000.0
—
—
10,361.0
—
381.0
—
4,428.0
5,000.0
—
8,384.0
10,361.0
—
—
—
3,000.0
5,000.0
—
9,000.0
10,361.0
271346
— %
— %
— %
0.93 %
1.55 %
— %
2.79 %
3.22 %
—
135.0
2,215.0
0.69 %
—
435.0
750.0
500.0
1,000.0
—
400.0
—
—
—
1,728.1
435.0
750.0
500.0
1,000.0
598.0
400.0
7,085.2
4,000.0
—
—
—
—
—
—
9,650.4
400.0
—
4,150.0
—
— %
— %
— %
— %
— %
2.99 %
0.12 %
— %
1.29 %
— %
—
—
—
—
—
—
—
—
—
F-286
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
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)
Newtek Business Lending, LLC (*,#) (10)
1981 Marcus Ave., Lake Success,
NY 11042
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)
—%
—%
—%
—%
10%
—%
10%
—
10%
—
—%
Prime plus 0.5%
July 2020
—
100.0
7,119.7
850.0
6,649.7
850.0
% of Net
Assets
271346
2.06 %
0.26 %
5.00 %
0.12 %
— %
— %
— %
—
—
—
—
—
—
—
—
—
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
—
—
—
—
—
—
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
—%
Total Investments
— $
— $
1,000.0 $
1,000.0
0.31 %
$ 473,631.5 $ 561,342.9 $ 659,043.7
204.53 %
F-287
See accompanying notes to consolidated financial statements.
^ Denotes investment has been pledged as collateral under the Securitization Trusts.
* 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. Management’s estimate of the 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 of our annual report on Form 10-K filed with the SEC on March 16, 2020 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-288
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-289
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 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
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.
Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.
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.
290
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, 2020, cash deposits in excess of insured amounts totaled $27,815,000. The Company has not experienced any losses with respect to cash 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, 2020.
Restricted Cash
Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of a voluntary agreement with the SBA, and cash reserves associated with
securitization transactions. As of December 31, 2020, total restricted cash was $49,352,000.
The following table provides a reconciliation of cash and restricted cash as of December 31, 2020, 2019, 2018, and 2017:
December 31, 2020
December 31, 2019
December 31, 2018
December 31, 2017
Cash
Restricted cash
Cash and restricted cash
$
$
2,073 $
49,352
51,425 $
291
1,762 $
31,445
33,207 $
2,316 $
29,034
31,350 $
2,464
18,074
20,538
Broker Receivable
Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.
Servicing Assets
The Company accounts for servicing assets in accordance with ASC 860-50 Transfers and Servicing - Servicing Assets and Liabilities. Servicing assets are measured at fair value at each reporting
date and the Company reports changes in the fair value of servicing assets in earnings in the period in which the changes occur. The Company earns servicing fees from the guaranteed portions of
SBA 7(a) loans it originates and sells. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate.
Considerable judgement is required to estimate the fair value of servicing assets and as such these assets are classified as Level 3 in our fair value hierarchy.
Income Taxes
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020 and made significant prospective and retroactive changes to the U.S. federal income tax
laws (and certain corresponding state and local conformity measures) including: 1) 5-year net operating loss (“NOL”) carrybacks with no taxable income limitation, 2) relaxation of the limitations on
interest expense deductions, 3) qualified improvement property eligible for bonus depreciation, 4) acceleration of alternative minimum tax credits and related quick tax refunds, and 5) indirect tax
measures, including workplace tax credits and deferral of social security payroll tax. Management has considered the impact of the CARES Act on the Company, its Taxable Subsidiaries, and the
underlying portfolio companies, and the Company has reflected these potential impacts in the financial statements, related tax disclosures, and the value of the investments.
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 2017 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, 2020, 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 $11,406,000 and $12,405,000 at December 31, 2020 and December 31, 2019, 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.
292
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.
In addition, the first round of PPP began in the second quarter of 2020. The SBA reimburses the Company for originating loans and such SBA reimbursements are included as interest income on PPP
loans. Such fees are accounted for under ASC-310 Receivables and deferred until the loan is sold to one of our PPP Participants. Income earned in connection with the PPP should not be viewed as
recurring. The first round of PPP closed on August 8, 2020. See “Recent Developments - PPP Additional Rounds.”
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.
New Accounting Standards
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,(“ASU 2020-04”). ASU 2020-04
provides optional expedients and exceptions for applying GAAP to contracts and transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be
discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications on a prospective basis. While the Company is currently assessing
the impact of ASU 2020-04, the Company does not expect the adoption to have a material impact on its consolidated financial statements.
In May 2020, the SEC adopted amendments to the financial disclosure requirements in Regulation S-X including the significance tests in the “significant subsidiary” definition in Rule 1-02(w),
Securities Act Rule 405, and Exchange Act Rule 12b-2 to improve their application and to assist registrants in making more meaningful determinations of whether a subsidiary or an acquired or
disposed business is significant. In addition, to address the unique attributes of investment companies and business development companies, the SEC updated the significance tests in Rule 1-02(w),
Securities Act Rule 405, and Exchange Act Rule 12b-2 by (i) revising the investment test to compare the registrant’s investments in and advances to the acquired or disposed business to the
registrant’s aggregate worldwide market value if available; (ii) revising the income test by adding a revenue component; (iii) expanding the use of pro forma financial information in measuring
significance; and (iv)
293
conforming, to the extent applicable, the significance threshold and tests for disposed businesses to those used for acquired businesses. The amendment became effective January 1, 2021; however,
voluntary compliance with the final amendments will be permitted in advance of the effective date. No significant changes to our significant subsidiaries are expected.
In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs, (“ASU 2020-08”). This ASU clarifies that an
entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply ASU 2020-08 on a prospective basis as of the
beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption to have a material impact on its consolidated financial
statements since the Company does not have any convertible debt.
In December 2020, Rule 2a-5 under the 1940 Act was adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. We are evaluating the
impact of adopting Rule 2a-5 on the consolidated financial statements and intend to comply with the new rule's requirements on or before the compliance date in September 2022.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 815), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the
general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The
standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption was permitted. The
Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements.
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:
Non-affiliate debt investments
Non-control investments:
Equity
Debt
Controlled investments:
Equity
Equity interest in NCL (Joint Venture)
Debt
Total investments
December 31, 2020
December 31, 2019
Cost
Fair Value
Cost
Fair Value
437,364 $
425,570 $
453,043 $
442,227
1,000
5,447
92,958
19,002
26,931
582,702 $
1,000
5,447
199,342
20,028
19,801
671,188 $
1,000
—
71,519
14,270
21,511
561,343 $
1,000
—
181,917
16,123
17,777
659,044
$
$
SBA unguaranteed investments consisted of the following breakdown of accrual and non-accrual loans at:
Accrual
Non-Accrual
Total SBA unguaranteed investments
December 31, 2020
December 31, 2019
Cost
Fair Value
Cost
Fair Value
364,957 $
55,443
420,400 $
378,329 $
29,419
407,748 $
370,612 $
59,085
429,697 $
382,986
34,237
417,223
$
$
294
SBA guaranteed investments consisted of the following breakdown of accrual and non-accrual loans at:
Accrual
Non-Accrual
Total SBA guaranteed investments
December 31, 2020
December 31, 2019
Cost
Fair Value
Cost
Fair Value
$
$
15,889 $
1,075
16,964 $
16,747 $
1,075
17,822 $
16,555 $
6,790
23,345 $
18,213
6,791
25,004
On March 27, 2020, Congress passed, and the President of the United States signed into law, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act provided an
over $2.0 trillion stimulus package to certain businesses and individuals affected by the COVID-19 pandemic, with subsidies to certain existing SBA 7(a) borrowers in which the SBA paid all
principal, interest, and fees on existing performing SBA 7(a) loans for six months beginning with such borrowers’ April 2020 payments. Among other things, the CARES Act allowed NSBF, as an
SBA 7(a) lender, to originate loans under the newly-established Paycheck Protection Program (“PPP”) as an expansion of the existing SBA Section 7(a) loan program through June 30, 2020. On July
4, 2020, the President of the United States signed a bill to re-open the application window for the PPP until August 8, 2020. The first round of PPP closed on August 8, 2020. See “Recent
Developments - PPP Additional Rounds.”
Under the PPP, SBA 7(a) lenders were automatically approved to extend 100% federally guaranteed PPP loans to certain small businesses for amounts up to 2.5 times of those businesses’ average
monthly payroll expenses (capped at $10 million). The interest rate on PPP loans is capped at 1.0%, and the loans are forgivable after an 8 up to a 24 week forgiveness period, provided that the
borrower uses the loans for eligible purposes (e.g., payroll/benefits (excluding employee compensation above $100,000), mortgage interest, rent and utilities) and maintains its payroll levels. The
amount of loan forgiveness will be reduced if the borrower reduces salaries or terminates employees during the forgiveness period.
As a result of the uncertain economic impact to U.S. small businesses created by the COVID-19 pandemic, the Company’s Executive Committee and Lending Team temporarily shifted the focus of
NSBF from originating SBA 7(a) loans to originating PPP loans beginning in March 2020. On June 29, 2020, NSBF restarted its SBA 7(a) loan program and began accepting SBA 7(a) loan
applications. During the duration of the PPP, NSBF funded approximately 10,570 PPP loans totaling $1.19 billion though the PPP. Pursuant to the PPP, the SBA reimbursed a lender authorized to
make a PPP loan at a rate, based on the balance of the financing outstanding at the time of disbursement of the PPP loan, of: (i) 5% for PPP loans of not more than $350,000; (ii) 3% for loans of more
than $350,000 and less than $2,000,000; and (iii) 1% for loans of not less than $2,000,000.
To facilitate NSBF’s involvement as an authorized lender in the PPP, during the second quarter of 2020, NSBF entered into PPP loan participation agreements where NSBF originated PPP loans and
sold 90% participating interests to UBS Bank USA (“UBS”), Stifel Bank (“Stifel”), Morgan Stanley Bank, N.A. (“Morgan Stanley”), and Amalgamated Bank (“Amalgamated”), collectively the
“Participants.” The participations were sold at par due to the short term maturity of the loans. NSBF and the Participants share proportionally in all interest and principal payments made on the loans.
Subsequently, UBS, Stifel, and Amalgamated amended their agreements with NSBF to allow the banks to purchase 100% participation interests in certain of the PPP loans originated by NSBF. In
connection with the amendments, UBS, Stifel, and Amalgamated purchased the remaining 10% participation interests in their participation loans, bringing their participation interests to 100%, while
Morgan Stanley continues to hold 90% participation interests as of December 31, 2020. During the year ended December 31, 2020, NSBF sold participations in $1.19 billion of PPP loans. NSBF
continues to hold the PPP loan notes and the PPP loan documents in order to service the loans. The servicing liability in connection with the PPP loans was deemed immaterial. PPP loan origination
fees are recognized as interest income on sale of PPP loan participations.
In accordance with the terms of the PPP participation agreements and SBA regulations and guidance, NSBF, as the originating lender, must continue to hold the PPP loan notes, the PPP loan
documents and service the PPP loans (i.e., retain all servicing rights). Moreover, as the originating lender, NSBF is the party responsible to the SBA with respect to all servicing actions, including
requests for advance purchases and loan forgiveness, and will be the party eligible for the guarantee purchase of the PPP loan. In the event of a loss resulting from a default on a PPP loan and a
determination by the SBA that there was a deficiency in the manner in which the PPP loan was originated, funded, or serviced by NSBF, the SBA may deny its liability under the guaranty, reduce the
amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of any loss related to the deficiency. NSBF has agreed that it will repurchase from the Participant on demand the
Participant’s Percentage of any outstanding principal and interest under the applicable PPP Loan under certain standard representations and warranties, including in the event of a loss due to fraud,
gross negligence or willful misconduct on the part of NSBF or any failure to recover under the SBA guarantee as a result of any deficiency in documenting or servicing such PPP Loan by NSBF.
295
The following table shows the Company’s SBA guaranteed accrual loans by SBA loan type at:
7(a)
1
PPP
Accrual SBA guaranteed investments
(1)
10% participation interests in 666 SBA guaranteed loans originated under the PPP by NSBF.
The following table shows the Company’s portfolio investments by industry at:
Data Processing, Hosting, and Related Services
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
Truck Transportation
Repair and Maintenance
Ambulatory Health Care Services
Specialty Trade Contractors
Fabricated Metal Product Manufacturing
Personal and Laundry Services
Administrative and Support Services
Food Manufacturing
Merchant Wholesalers, Nondurable Goods
Merchant Wholesalers, Durable Goods
Accommodation
Social Assistance
Rental and Leasing Services
Gasoline Stations
Machinery Manufacturing
Building Material and Garden Equipment and Supplies Dealers
PPP
Nonstore Retailers
Motor Vehicle and Parts Dealers
NCL (Joint Venture)
Other
Total
Newtek Conventional Lending, LLC
December 31, 2020
December 31, 2019
Cost
Fair Value
Cost
Fair Value
$
$
9,369 $
6,520
15,889 $
10,227 $
6,520
16,747 $
16,555 $
—
16,555 $
18,213
—
18,213
December 31, 2020
December 31, 2019
Cost
Fair Value
Cost
Fair Value
$
$
56,900 $
63,635
38,142
26,571
25,187
30,684
17,650
20,365
17,207
15,834
13,303
14,612
13,923
13,607
12,507
11,704
10,075
8,955
7,928
7,119
6,660
6,520
6,403
5,838
19,002
112,371
582,702 $
156,874 $
61,135
38,832
25,998
25,509
24,341
18,521
17,626
16,673
16,484
14,192
13,962
12,990
12,853
12,843
12,072
11,147
8,505
7,727
6,969
6,862
6,520
6,319
5,863
20,028
110,343
671,188 $
45,154 $
37,930
40,331
41,514
25,343
30,172
20,308
22,146
16,460
18,230
11,856
13,733
11,063
12,230
10,524
11,508
9,849
9,223
9,387
1,985
8,352
—
6,942
7,655
14,270
125,178
561,343 $
146,320
42,079
40,516
41,330
26,787
25,920
20,451
20,409
15,650
17,845
12,446
12,696
9,161
11,900
10,713
11,506
10,683
8,780
8,756
1,621
8,605
—
6,725
7,783
16,123
124,239
659,044
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).
The following table shows NCL’s individual investments as of December 31, 2020:
296
Portfolio Company
10 28th Ave SW Associates LLC
10 28th Ave SW Associates LLC
Cocoa Beach Office LLC
Foxhall Hospitality, LLC
Foxhall Hospitality, LLC
Industry
Fitness and Recreational Sport Centers
Fitness and Recreational Sport Centers
Other Activities Related to Credit
Intermediation
Hotels (except Casino Hotels) and
Motels
Hotels (except Casino Hotels) and
Motels
Commecial & Industrial Machinery &
Equipment
Full-Service Restaurant
Fitness and Recreational Sport Centers
Investment Type
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
The Camera Division, LLC
The Emerald Green Group, LLC
XL Soccer World Orlando II LLC
XL Sports World NJ LLC and XL Soccer World Orlando
LLC
XL Sports World NJ LLC and XL Soccer World Orlando
LLC
Fitness and Recreational Sport Centers
JW Aviation LLC and 21 Air LLC and AMN Doral LLC Other Nonscheduled Air Transportation
Nursing Care Facillities(Skilled Nursing
Facilities)
Tricare Unlimited LLC and Geron Enterprises LLC
Fitness and Recreational Sport Centers
E Entities LLC
Exterminating & Pest Control Services
Term Loan
Trinity MCC Realty, LLC
Motor Vehicle and Parts Dealers
Term Loan
Jaffe Real Estate LLC
Berry Ventures Inc
Total
Full-Service Restaurant
Term Loan
Painting & Wall Covering Contractors
Term Loan
(1)
Fair value determined using significant unobservable inputs.
The following table shows NCL’s individual investments as of December 31, 2019:
Portfolio Company
10 28th Ave SW Associates LLC
10 28th Ave SW Associates LLC
Industry
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
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 Other Nonscheduled Air Transportation
Nursing Care Facillities(Skilled Nursing
Facilities)
Tricare Unlimited LLC and Geron Enterprises LLC
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
Term Loan
E Entities LLC
Total
Exterminating & Pest Control Services
Term Loan
(1)
Fair value determined using significant unobservable inputs.
297
Interest Rate
5 Yr Libor plus 5.50%
5 Yr Libor plus 5.50%
Maturity
4/1/2045
4/1/2045
2 Yr Libor plus 5.70%
8/1/2044
5 Yr Libor plus 6.00%
11/1/2044
5 Yr Libor plus 6.00%
11/1/2044
5 Yr Libor plus 7.25%
2 Yr Libor plus 5.65%
Prime plus 3.25%
9/1/2029
8/1/2029
11/1/2045
5 Yr Libor plus 5.50%
8/1/2044
5 Yr Libor plus 5.50%
2 Yr Libor plus 8.25%
2 Yr Treasury plus
6.51%
5 Yr Treasury plus
7.71%
5 Yr Treasury plus
6.58%
5 Yr Treasury plus
7.93%
5 Yr Treasury plus
7.25%
8/1/2044
12/1/2044
1/1/2045
1/1/2030
2/1/2045
4/1/2045
4/1/2045
1
Fair Value
$
Principal
$
Cost
$
2,268
1,277
429
10,470
6,124
11,144
6,127
4,557
6,193
4,762
2,497
5,695
5,656
5,240
2,257
2,223
1,248
414
10,261
6,002
10,802
5,947
4,405
6,039
4,644
2,410
5,538
5,515
5,096
2,195
$
472
75,168
$
459
73,198
$
Prime plus 3.0%
4/1/2045
$
2,295
$
2,249
$
Prime plus 3.0%
4/1/2045
1,292
1,263
2 Yr Libor plus 5.70%
8/1/2044
5 Yr Libor plus 5.50%
8/1/2044
5 Yr Libor plus 5.50%
2 Yr Libor plus 5.65%
5 Yr Libor plus 7.25%
8/1/2044
8/1/2029
9/1/2029
Prime plus 3.25%
5 Yr Libor plus 6.00%
5 Yr Libor plus 6.00%
2 Yr Libor plus 8.25%
2 Yr Treasury plus
6.51%
5 Yr Treasury plus
7.71%
11/1/2045
11/1/2044
11/1/2044
12/1/2044
1/1/2045
1/1/2030
435
6,246
4,803
6,503
11,318
770
10,586
6,192
2,520
5,760
420
6,090
4,683
6,309
10,952
616
10,374
6,068
2,432
5,602
$
6,000
64,720
$
5,850
62,908
$
2,130
1,199
430
10,840
6,340
11,144
6,049
4,517
6,544
4,970
2,497
6,145
6,028
5,616
2,257
513
77,219
2,488
1,401
443
6,703
5,093
6,462
11,514
845
11,121
6,505
3,036
6,316
6,499
68,426
Investment Type
Interest Rate
Maturity
Principal
Cost
1
Fair Value
The following tables show certain summarized financial information for NCL:
Selected Statement of Assets and Liabilities Information
Cash
Investments in loans, at fair value (amortized cost of $73,197,000 and $62,908,000, respectively)
Other assets
Total assets
Bank notes payable
Other liabilities
Total liabilities
Net assets
Total liabilities and net assets
Selected Statements of Operations Information
Interest and other income
Total expenses
Net investment (loss) income
Net unrealized appreciation (depreciation) on investments
Net increase in net assets resulting from operations
Non-Control Debt Investments
December 31, 2020
(Unaudited)
December 31, 2019
1,493 $
77,219
1,274
79,986 $
38,792 $
1,138
39,930
40,056
79,986 $
Year Ended December 31,
2020
2019
6,136 $
3,401
2,735
(1,496)
1,239 $
1,299
68,426
1,094
70,819
36,938
1,635
38,573
32,246
70,819
1,344
1,192
152
5,517
5,669
$
$
$
$
$
$
On September 1, 2020, the Company purchased three loans from NBL, a wholly-owned controlled portfolio company. The purchases were made at par and no realized or unrealized gains or losses
have been recorded related to the transaction. As of December 31, 2020, two of the loans have paid off and one remains on the Company’s balance sheet. The Company is not affiliated with the
borrowers of the loans.
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, 2020 were as follows:
Portfolio Company
Controlled Investments
Newtek Merchant Solutions, LLC (NMS)
Mobil Money, LLC
1
Newtek Technology Solutions, Inc. (NTS)
CDS Business Services, Inc.
Small Business Lending, LLC
Newtek Insurance Agency, LLC
PMTWorks Payroll, LLC
Titanium Asset Management LLC
Fair Value at
December 31, 2019
Purchases (Cost)
Principal
Received
Net Realized
Gains/(Losses)
Net Unrealized
Gains/(Losses)
Fair Value at
December 31, 2020
Interest and
Other Income
Dividend Income
$
121,250 $
3,750
31,011
8,000
10,050
2,215
—
390
— $
—
1,210
4,560
—
—
150
—
— $
—
(625)
—
—
—
—
—
— $
—
—
—
—
—
—
—
(9,750) $
(1,250)
10,200
(6,660)
—
(65)
(150)
265
111,500 $
2,500
41,796
5,900
10,050
2,150
—
655
— $
—
1,129
654
41
—
—
—
9,450
—
1,175
—
—
—
—
—
298
POS on Cloud, LLC
Excel WebSolutions, LLC
Newtek Conventional Lending, LLC
Advanced Cyber Security Systems, LLC
Newtek Business Lending, LLC
Total Controlled Investments
Non-Control Investments
EMCAP Loan Holdings, LLC
Total Affiliate Investments
775
—
16,123
—
22,253
215,817 $
275
—
4,957
—
40,285
51,437 $
—
—
(225)
—
(18,996)
(19,846) $
1,000 $
216,817 $
— $
51,437 $
— $
(19,846) $
$
$
$
—
—
—
—
—
— $
— $
— $
—
—
(827)
—
—
(8,237) $
— $
(8,237) $
1,050
—
20,028
—
43,542
239,171 $
1,000 $
240,171 $
87
—
—
22
—
1,933 $
— $
1,933 $
—
—
1,227
—
1,600
13,452
104
13,556
(1)
On January 1, 2021, IPM and SIDCO became subsidiaries of NTS. The above table reflects the combined fair values, unrealized appreciation and amount of dividends credited to income. During
the year ended December 31, 2020, $10,200,000 of unrealized appreciation related to the investment in NTS. During the year ended December 31, 2020, $350,000 and $825,000 of dividend
income was earned from IPM and SIDCO, respectively.
Related Party Transactions
Notes 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, 2020, the Related Party RLOC interest rate was 2.74%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings from NMS at December 31,
2020 under the Related Party RLOC were $24,090,000.
For the years ended December 31, 2020, 2019 and 2018, interest expense was $430,000, $911,000 and $916,000, 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
Loan servicing
Referral fees
Payroll processing fees
Total
December 31, 2020
Year Ended
December 31, 2019
December 31, 2018
$
$
1,754 $
9,886
37
—
34
11,711 $
1,026 $
9,975
—
—
35
11,036 $
725
41
—
104
42
912
The Company also sub-leases portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged were as follows:
299
Portfolio Company
Newtek Merchant Solutions, LLC
Newtek Technology Solutions, Inc.
Small Business Lending, LLC
Newtek Insurance Agency, LLC
CDS Business Services, Inc.
1
Premier Payments LLC
PMTWorks Payroll, LLC
Newtek Business Lending, LLC
Total
(1)
On December 31, 2018, Premier was merged into NMS.
December 31, 2020
Year Ended
December 31, 2019
December 31, 2018
$
$
221 $
11
292
58
82
—
30
6
700 $
232 $
11
244
61
69
—
44
8
669 $
166
11
75
88
57
38
32
2
469
Amounts due from related parties were $6,112,000 and $2,972,000 at December 31, 2020 and December 31, 2019, respectively. Amounts due to related parties were $2,133,000 and $131,000 at
December 31, 2020 and December 31, 2019, respectively.
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. Fees are recorded on a quarterly basis,
are recurring in nature, and are charged consistently based on estimates of time and effort spent by certain employees providing managerial services. 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
2
Newtek Technology Solutions, Inc.
PMTWorks Payroll, LLC
Newtek Insurance Agency, LLC
banc-serv Partners, LLC
1
Premier Payment LLC
CDS Business Services, Inc.
2
International Professional Marketing, Inc.
2
SIDCO, LLC
Mobil Money, LLC
Newtek Business Lending, LLC
Small Business Lending, LLC
Total
(1)
On December 31, 2018, Premier was merged into NMS.
(2)
On January 1, 2021, IPM and SIDCO became subsidiaries of NTS.
Other Transactions with Related Parties
December 31, 2020
Year Ended
December 31, 2019
December 31, 2018
$
$
402 $
509
105
127
—
—
123
91
96
121
135
507
2,216 $
373 $
476
185
185
87
—
88
93
111
133
93
449
2,273 $
385
508
85
175
248
172
88
89
93
67
12
366
2,288
The Company was a party to an advisory services agreement (the “AK Agreement”) with AK Capital, LLC (“AK Capital”) to provide 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 agreement was terminated in November 2019. During the years ended December 31,
2020, 2019 and 2018 the Company incurred $0, $9,000 and $14,000 in fees respectively, from AK Capital. The Company’s Chief Executive Officer was a director of AK Capital during 2019 and
2018.
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 2018,
2019, and 2020.
300
Table of Contents
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, 2020 and December 31, 2019:
Fair Value
1
Discount factor
Cumulative prepayment rate
Average cumulative default rate
$
December 31, 2020
December 31, 2019
26,061
$
11.24 %
20.00 %
25.00 %
24,411
13.38 %
26.00 %
22.00 %
(1)
Determined based on risk spreads and observable secondary market transactions.
Servicing fee income earned for the years ended December 31, 2020, 2019, and 2018 was $11,154,000, $10,078,000, and $8,552,000, 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, 2020 or 2019.
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.
301
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.
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. In addition, the COVID-19 pandemic is an unprecedented circumstance that could further negatively impact the fair value of the Company’s investments
after December 31, 2020 by circumstances and events that are not yet known.
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, 2020 and December 31, 2019:
Assets:
SBA unguaranteed non-affiliate investments
SBA guaranteed non-affiliate investments
Controlled investments
1
Other real estate owned
Non-control investments
Servicing assets
2
Controlled investments measured at NAV
Total assets
Fair Value Measurements at December 31, 2020
Total
Level 1
Level 2
Level 3
$
$
407,748 $
17,822
219,143
2,717
6,447
26,061
20,028
699,966 $
— $
—
—
—
—
—
—
— $
— $
17,822
—
2,717
—
—
—
20,539 $
407,748
—
219,143
—
6,447
26,061
—
659,399
(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.
The change in unrealized appreciation (depreciation) included in the consolidated statements of operations attributable to Level 3 investments held at December 31, 2020 includes $176,000 in
unrealized depreciation on SBA unguaranteed non-affiliate investments, $7,410,000 in unrealized appreciation on controlled investments and $1,525,000 in unrealized depreciation on servicing
assets.
Assets:
SBA unguaranteed non-affiliate investments
SBA guaranteed non-affiliate investments
Controlled investments
1
Other real estate owned
Non-control investments
Servicing assets
2
Controlled investments measured at NAV
Total assets
Liabilities:
3
Contingent consideration liabilities
(1)
Included in Other Assets on the Consolidated Statements of Assets and Liabilities
302
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
685,993 $
621 $
— $
—
—
—
—
—
—
— $
— $
— $
25,004
—
2,539
—
—
—
27,543 $
417,223
—
199,694
—
1,000
24,411
—
642,328
— $
621
(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 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, 2020 and 2019:
Fair value, December 31, 2019
Net change in unrealized appreciation (depreciation)
Realized loss
SBA unguaranteed non-affiliate investments, funded
Foreclosed real estate acquired
Purchase of investments
Purchase of loans from SBA
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
Fair value, December 31, 2020
SBA Unguaranteed
Investments
Controlled
Investments
Servicing Assets
Non-Control
Investments
Contingent
Consideration
1
Liabilities
Year Ended December 31, 2020
$
$
417,223 $
(176)
(8,367)
48,824
(1,588)
—
6,804
—
—
(172)
—
(54,800)
—
407,748 $
199,694 $
(7,410)
—
—
—
46,480
—
—
—
—
(18,996)
(625)
—
219,143 $
24,411 $
(1,525)
—
—
—
—
—
—
—
—
—
—
3,175
26,061 $
1,000 $
—
—
—
—
15,296
—
—
—
—
—
(9,849)
—
6,447 $
621
—
—
—
—
—
—
54
(675)
—
—
—
—
—
(1)
Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities
Fair value, December 31, 2018
Net change in unrealized appreciation (depreciation)
Realized gain (loss)
SBA unguaranteed non-affiliate investments, funded
Foreclosed real estate acquired
Purchase of investments
Return of investment
Net accretion of premium/discount
Change in fair value of contingent consideration liabilities
Payment of contingent consideration
Principal payments received on debt investments
Additions to servicing assets
Fair value, December 31, 2019
SBA Unguaranteed
Investments
Controlled
Investments
Servicing Assets
Non-Control
Investments
Contingent
Consideration
1
Liabilities
Year Ended December 31, 2019
$
$
349,402 $
(6,291)
(3,924)
130,214
(2,540)
—
—
(8)
—
—
(49,630)
—
417,223 $
171,585 $
9,358
—
—
—
25,380
(4,200)
—
—
—
(2,429)
—
199,694 $
21,360 $
(5,178)
—
—
—
—
—
—
—
—
—
8,229
24,411 $
1,000 $
—
—
—
—
—
—
—
—
—
—
—
1,000 $
1,733
—
—
—
—
—
—
—
42
(1,154)
—
—
621
(1)
Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities
The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2020 and December 31, 2019. 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, 2020 and December 31, 2019.
303
Fair Value as of
December 31, 2020
Unobservable Input
Weighted
1
Average
Range
Minimum
Maximum
Assets:
SBA unguaranteed non-affiliate investments -
accrual loans
SBA unguaranteed non-affiliate investments - non-
accrual loans
1
Controlled equity investments
Controlled debt investments
Non-control equity investments
Non-control debt investments
Servicing assets
(1)
Weighted by relative fair value.
$
$
$
$
$
$
$
378,329 Market yields
29,419 Market yields
2
199,342 EBITDA multiples
2
Revenue multiples
2
Weighted average cost of capital
19,801 Market yields
1,000 Asset value
5,447 Recent transaction
26,061 Market yields
4.00 %
4.34 %
9.20x
1.17x
12.73 %
9.69 %
N/A
N/A
11.24 %
4.00 %
4.34 %
6.00x
1.0x
11.10 %
3.80 %
N/A
N/A
11.24 %
4.00 %
4.34 %
10.00x
2.30x
18.40 %
10.00 %
N/A
N/A
11.24 %
(2)
The Company valued $143,650,000 of investments using an equal weighting of EBITDA and revenue multiples in the overall valuation approach which included the use of market comparable
companies. The Company valued $55,692,000 of investments using only discounted cash flows.
Fair Value as of
December 31, 2019
Unobservable Input
Weighted
1
Average
Range
Minimum
Maximum
Assets:
SBA unguaranteed non-affiliate investments -
accrual loans
SBA unguaranteed non-affiliate investments - non-
accrual loans
1
Controlled equity investments
Controlled debt investments
Non-control equity investments
Servicing assets
Liabilities:
Contingent consideration liabilities
$
$
$
$
$
$
$
382,986 Market yields
34,237 Market yields
2
181,917 EBITDA multiples
2
Revenue multiples
2
Weighted average cost of capital
17,777 Market yields
1,000 Asset value
24,411 Market yields
621 Projected EBITDA and probability of achievement
5.20 %
5.33 %
8.20x
1.07x
11.92 %
9.03 %
N/A
13.38 %
N/A
5.20 %
5.33 %
4.50x
0.15x
10.70 %
5.25 %
N/A
13.38 %
5.20 %
5.33 %
9.00x
2.30x
18.50 %
10.00 %
N/A
13.38 %
N/A
N/A
(1)
(2)
Weighted by relative fair value.
The Company valued $143,265,000 of investments using an equal weighting of EBITDA and revenue multiples in the overall valuation approach which included the use of market comparable
companies. The Company valued $38,653,000 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, 2020 and December 31, 2019:
1
Due to participants and SBA
Accrued payroll and related expenses
Accrued interest
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.
304
December 31, 2020
December 31, 2019
18,361 $
1,507
1,484
2,655
—
3,601
27,608
11,169
2,337
1,200
3,023
621
2,474
20,824
$
$
NOTE 8—BORROWINGS:
At December 31, 2020 and December 31, 2019, the Company had borrowings comprised of the following:
1
Capital One line of credit - guaranteed
1
Capital One line of credit - unguaranteed
Notes due 2023
Notes due 2024
Notes due 2025
Notes payable - related parties
Notes payable - Securitization Trusts
Total
Commitments
December 31, 2020
Borrowings
Outstanding
Weighted Average
Interest Rate
Commitments
December 31, 2019
Borrowings
Outstanding
Weighted Average
Interest Rate
$
$
150,000 $
—
57,500
63,250
5,000
50,000
221,752
547,502 $
52,500
33,839
56,505
61,774
4,735
24,090
218,339
451,782
2.50 % $
3.50 %
6.25 %
5.75 %
6.85 %
2.74 %
2.39 %
3.54 % $
150,000 $
—
57,500
63,250
—
50,000
276,637
597,387 $
30,000
—
56,035
61,354
—
12,163
272,376
431,928
4.00 %
5.00 %
6.25 %
5.75 %
— %
4.71 %
3.97 %
4.61 %
(1)
Total combined commitments of the guaranteed and unguaranteed lines of credit were $150,000,000 at December 31, 2020 and December 31, 2019.
As of December 31, 2020, our asset coverage was 174%.
Outstanding borrowings under the 2023 Notes, 2024 Notes, 2025 Notes and Notes payable - Securitization Trusts consisted of the following:
Principal balance
Unamortized deferred financing costs
Net carrying amount
Notes Due 2023
$
57,500 $
(995)
56,505 $
$
December 31, 2020
December 31, 2019
Notes Due 2024
Notes Due 2025
Notes Payable-
Securitization Trusts
Notes Due 2023
Notes Due 2024
Notes Payable-
Securitization Trusts
63,250 $
(1,476)
61,774 $
5,000 $
(265)
4,735 $
221,752 $
(3,413)
218,339 $
57,500 $
(1,465)
56,035 $
63,250 $
(1,896)
61,354 $
276,637
(4,261)
272,376
At December 31, 2020 and December 31, 2019, 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, 2020, the closing price of the 2023 Notes was
$25.45 per note, or $58,535,000. On December 31, 2019, the closing price of the 2023 Notes was $25.68 per note, or $59,064,000. On December 31, 2020, the closing price of the 2024 Notes was
$25.26 per note, or $63,908,000. On December 31, 2019, the closing price of the 2024 Notes was $25.94 per note, or $65,628,000. These borrowings are not recorded at fair value on a recurring
basis. The fixed rate 2025 Notes are held at par as of December 31, 2020.
Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the year ended December 31, 2020, 2019, and 2018 was $17,875,000,
$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 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. In May 2020, the facility was amended to extend both the maturity date and date on which the facility will convert to a term loan by a period of three years. On May 7,
2020, NSBF amended its existing line of credit with Capital One
305
to, among other things, extend the maturity date on which the credit facility will convert into a term loan for a period of three years to May 7, 2023, with the term loan maturing on May 7, 2025.
At December 31, 2020, there was $52,500,000 and $33,839,000 outstanding under the guaranteed and unguaranteed lines of credit, respectively. At December 31, 2020, NSBF was in full compliance
with all applicable loan covenants.
For the years ended December 31, 2020, 2019 and 2018, interest expense including amortization of related deferred financing costs was $1,436,000, $2,122,000 and $1,473,000, respectively.
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.
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 year ended December 31, 2018 interest expense including amortization of related deferred financing costs was $718,000. No interest expense was incurred during the years ended December
31, 2020 and 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,
306
2019, through, but excluding, the redemption date.
No interest expense was incurred during the year ended December 31, 2020. For the years ended December 31, 2019 and 2018, interest expense including amortization of related deferred financing
costs was $469,000 and $707,000, respectively.
Notes dues 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.
On February 22, 2021, the Company redeemed all $57,500,000 in aggregate principal amount of the 2023 Notes on the redemption date of February 22, 2021, at 100% of their principal amount ($25
per Note), plus the accrued and unpaid interest thereon from December 1, 2020, through, but excluding, the redemption date. For more information, see “NOTE 19—SUBSEQUENT EVENTS.”
For the years ended December 31, 2020, 2019, and 2018 interest expense including amortization of related deferred financing costs was $4,064,000, $4,065,000, and $3,483,000, respectively.
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 years ended December 31, 2020 and 2019 interest expense including amortization of related deferred financing costs was $4,057,000 and $1,701,000. No interest expense was incurred during
the year ended December 31, 2018.
Notes due 2025
On November 27, 2020, the Company closed an exempt offering of $5,000,000 in aggregate principal amount of its 2025 Notes. The offering was consummated pursuant to the terms of a purchase
agreement dated November 27, 2020 among the Company and an accredited investor. The purchase agreement provided for the 2025 Notes to be issued to the Purchaser in a private placement in
reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes will mature on November 30, 2025 and may be redeemed in whole or in part at any time.
The 2025 Notes bear interest at a rate of 6.85% per year payable quarterly on February 28, May 31, August 31 and November 30, of each year, beginning February 28, 2021. Total net proceeds
received after deducting structuring fees and estimated offering expenses was $4.8 million. Under the Purchase Agreement, the Company may issue additional Notes in aggregate principal amount of
up to $10 million to the Purchaser by placement notice delivered to the Purchaser on or before March 31, 2021, and, by mutual agreement of the parties, of up to $15 million in aggregate principal
amount of additional Notes by placement notice delivered to the Purchaser after March 31, 2021 and before November 30, 2022.
For the year ended December 31, 2020 interest expense including amortization of related deferred financing costs was $37,000. No interest expense was incurred during the years ended December 31,
2019 and December 31, 2018.
307
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.
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, 2020, 2019 and 2018, interest expense including amortization of related deferred financing costs and discount was $7,853,000, $11,148,000, and $8,748,000,
respectively.
At December 31, 2020 and 2019, the assets of the consolidated Trusts totaled $323,000,000 and $375,295,000, respectively. The liabilities of the consolidated Trusts totaled $221,752,000 and
$276,637,000, respectively.
308
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, 2020, the Related Party RLOC interest rate was 2.74%. The Related Party RLOC has a maturity date of November 8, 2023. Outstanding borrowings from NMS at December 31,
2020 under the Related Party RLOC were $24,090,000.
For the years ended December 31, 2020, 2019 and 2018, interest expense was $430,000, $911,000 and $916,000, respectively.
Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:
December 31,
2021
2022
2023
2024
2025
Thereafter
NOTE 9—COMMITMENTS AND CONTINGENCIES:
Operating and Employment Commitments
Borrowings
—
—
167,929
63,250
5,000
221,752
457,931
$
$
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, 2020 for future minimum cash payments required under operating lease and employment agreements:
Year
2021
2022
2023
2024
2025
Thereafter
Total
Operating Leases
1
Employment Agreements
Total
$
$
1,604 $
1,576
1,619
1,663
1,708
1,962
10,132 $
403 $
—
—
—
—
—
403 $
2,007
1,576
1,619
1,663
1,708
1,962
10,535
(1)
Employment agreements with certain of 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.
309
As a result of a litigation brought by the Federal Trade Commission (the “FTC”) in October 2012, 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, 2020, total principal owed by NBC was $18,411,000. In addition, the Company
deposited $750,000 to collateralize the guarantee. At December 31, 2020, 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 November 2023. At December 31, 2020, total principal owed by NBL was $44,216,000. At December 31, 2020, 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, 2020, total principal outstanding was $36,375,000. At December 31, 2020, the Company determined that it is not probable that payments would be required to be
made under the guarantee.
Unfunded Commitments
At December 31, 2020, the Company had $3,263,000 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.
At December 31, 2020, NCL had $568,000 of unfunded commitments in connection with partial funding of certain of its non-conforming conventional commercial and industrial term loan
investments. NCL will fund 50% of the total unfunded commitments. NCL 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 data¹
Net asset value at beginning of period
Net investment income (loss)
Net realized gain on investments
Net unrealized appreciation (depreciation) 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 DRIP
(issuing shares above NAV per share)
Dilutive effect of restricted stock awards
Other⁴
Net asset value at end of period
$
$
2020
2019
2018
2017
2016
2015
Year Ended December 31,
Period Ended
7
Dec. 31, 2014
15.70 $
1.51
0.54
(0.44)
(0.07)
0.05
1.59
(2.05)
0.03
15.19 $
(0.29)
2.61
0.24
(0.27)
(0.16)
2.13
(2.15)
0.03
15.08 $
(0.40)
2.31
0.36
(0.30)
(0.06)
1.91
(1.80)
0.02
14.30 $
(0.45)
2.27
0.75
(0.20)
(0.12)
2.25
(1.64)
0.05
14.06 $
(0.64)
2.17
0.85
(0.16)
(0.34)
1.88
(1.53)
0.04
16.31 $
(0.57)
3.14
0.94
(0.13)
(0.06)
3.32
(4.45)
—
0.20
0.51
0.04
0.02
—
2.43
—
(0.01)
(0.01)
15.45 $
0.01
(0.01)
(0.01)
15.70 $
0.01
(0.08)
0.01
15.19 $
0.01
—
0.09
15.08 $
—
(0.11)
(0.01)
14.30 $
—
(3.07)
0.02
14.06 $
13.49
(0.33)
0.08
0.36
(0.02)
—
0.09
—
—
2.73
—
—
—
16.31
310
2020
2019
2018
2017
2016
2015
Year Ended December 31,
Period Ended
7
Dec. 31, 2014
Per share market value at end of period
Total return based on market value²
Total return based on average net asset value³
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 income (loss) to average net
assets
6
Portfolio turnover
Average debt outstanding
Average debt outstanding per share
Asset coverage ratio⁵
Senior securities outstanding
$
$
$
$
$
$
19.69
(2.12)%
11.46 %
21,970
$
22.65
17.55 %
17.48 %
20,530
$
17.44
4.06 %
12.67 %
18,919
339,353
$
322,225
$
287,445
$
18.64 %
21.29 %
20.15 %
9.90 %
206.49 %
406,005
18.48
174 %
457,931
$
$
$
(1.84)%
130.71 %
388,525
18.92
173 %
439,550
$
$
$
(2.65)%
130.41 %
279,254
14.76
185 %
337,501
$
$
$
$
18.49
26.60 %
16.92 %
18,457
278,329
$
19.20 %
(3.23)%
116.40 %
193,747
10.50
229 %
221,007
$
$
$
$
15.90
24.51 %
12.59 %
14,624
209,094
$
19.48 %
(4.48)%
109.60 %
151,502
10.36
222 %
176,019
$
$
$
$
14.32
24.46 %
13.52 %
14,509
203,949
$
17.42 %
(3.34)%
103.50 %
128,680
8.87
249 %
134,816
$
$
$
14.76
13.10 %
20.87 %
10,206
166,418
20.46 %
(11.99)%
5.08 %
108,483
10.63
223 %
122,543
(1)
(2)
(3)
(4)
(5)
(6)
(7)
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.
Total return based on market value is calculated based on the purchase of stock at the current market price on the first day and a sale at the current market price on the last day of each period
reported and assumes reinvestment of dividends at prices obtained by the Company's DRIP plan during the period. The return does not reflect any sales load that may be paid by an investor.
Total return based on change in NAV is calculated using the change in net asset value plus dividends to stockholders during the period, divided by the beginning net asset value.
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.
Calculated based on the amount of senior securities outstanding at period end.
Portfolio turnover is calculated by dividing (a) the lesser of purchases or sales of portfolio securities by (b) the average total
investments at fair value. The calculation includes PPP loan activity beginning in 2020.
The Company converted to a BDC on November 12, 2014 and therefore a partial period is shown through December 31, 2014.
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, 2020.
311
1
Restricted Stock authorized under the plan
Less net restricted stock (granted)/forfeited during:
Year ended December 31, 2016
Year ended December 31, 2017
Year ended December 31, 2018
Year ended December 31, 2019
Year ended December 31, 2020
Restricted stock available for issuance as of December 31, 2020
1,500,000
(120,933)
(5,007)
(93,568)
(6,285)
2,639
1,276,846
(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, 2020, there was $142,000 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 7 months as of December 31, 2020.
For the years ended December 31, 2020, 2019, and 2018, the Company recognized total stock-based compensation expense of $567,000, $636,000, and $585,000, 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 then-
existing ATM distribution agreement up to 4,400,000 shares of common stock from time to time through the ATM placement agents.
The following table summarizes the total shares sold and net proceeds received under the 2017 ATM Equity Distribution Agreement:
Shares sold
Net weighted average price per share
Net proceeds
Year Ended December 31, 2020
Year Ended December 31, 2019
Year Ended December 31, 2018
$
$
—
— $
— $
187,962
19.46 $
3,650 $
291,232
19.14
5,196
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 provided that the Company may offer and sell up to
3,000,000 shares of common stock from time to time through the placement agents. On February 28, 2020, we amended the 2019 ATM Equity Distribution Agreement to add UBS Securities LLC as
a placement agent. The company paid the placement agents $141,000 in compensation during the year ended December 31, 2020.
The following table summarizes the total shares sold and net proceeds received under the 2019 ATM Equity Distribution Agreement:
Year Ended December 31, 2020
Year Ended December 31, 2019
Year Ended December 31, 2018
Shares sold
Net weighted average price per share
Net proceeds
359,819
20.40 $
7,342 $
1,356,698
22.27 $
30,212 $
—
—
—
$
$
312
On June 24, 2020, the Company terminated the 2019 ATM Equity Distribution Agreement. As of June 24, 2020, the Company had sold 1,716,517 shares of its common stock under the Amended
2019 ATM Equity Distribution Agreement, and received net proceeds of $37,554,000. The Company paid the ATM placement agents a total of $758,000 in compensation under the 2019 ATM Equity
Distribution Agreement.
On June 25, 2020, the Company entered into the 2020 ATM Equity Distribution Agreement. The 2020 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 $374,000 in compensation during the year ended December 31, 2020. As
of December 31, 2020, there were 1,977,421 shares of common stock available for sale under the 2020 ATM Equity Distribution Agreement.
The following table summarizes the total shares sold and net proceeds received under the 2020 ATM Equity Distribution Agreement:
Shares sold
Net weighted average price per share
Net proceeds
Year Ended December 31, 2020
Year Ended December 31, 2019
Year Ended December 31, 2018
$
$
1,022,579
17.95 $
18,334 $
—
— $
— $
—
—
—
The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.
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.
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, 2020, 2019 and 2018:
Net increase in net assets resulting from operations
Weighted average shares outstanding
Net increase in net assets resulting from operations per share
NOTE 14—LEASES:
2020
Year Ended December 31,
2019
2018
$
$
33,619 $
21,146
1.59 $
41,135 $
19,326
2.13 $
35,678
18,714
1.91
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 6 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 and are excluded from our weighted-average remaining lease term.
313
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, 2020:
2020
1,646
6.12 years
4.76 %
840
Year Ended December 31,
2019
2018
$
$
1,609
7.03 years
4.76 %
941
$
Maturity of Lease Liabilities
2021
2022
2023
2024
2025
Thereafter
Total future minimum lease payments
Less: Imputed interest
Present value of future minimum lease payments
NOTE 15—DIVIDENDS AND DISTRIBUTIONS:
$
$
$
n/a
n/a
n/a
1,238
1,555
1,576
1,619
1,663
1,708
1,962
10,083
(1,386)
8,697
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, 2020 and 2019.
Date Declared
Year ended December 31, 2020
February 5, 2020
June 12, 2020
July 20, 2020
November 11, 2020
Year ended December 31, 2019
February 15, 2019
May 1, 2019
August 21, 2019
October 10, 2019
Record Date
Payment Date
Amount Per Share
Cash Distribution
DRIP Shares
Issued
DRIP
Shares Value
March 18, 2020
July 15, 2020
September 21, 2020
March 31, 2020
July 31, 2020
September 30, 2020
December 18, 2020
December 30, 2020
March 15, 2019
June 14, 2019
September 20, 2019
December 16, 2019
March 29, 2019
June 28, 2019
September 30, 2019
December 30, 2019
$
$
$
$
$
$
$
$
0.44 $
0.56 $
0.58 $
0.47 $
0.40 $
0.46 $
0.58 $
0.71 $
8,882
11,450
12,107
10,144
7,355
8,482
10,899
14,034
18 $
13 $
13 $
7 $
12 $
12 $
14 $
16 $
224
235
231
121
220
260
300
347
During the years ended December 31, 2020 and 2019, an additional 12,400 and 12,200 shares valued at $228,000 and $267,000, 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, 2020, 2019 and 2018, the Company matched 50% of the
314
first 2% of employee contributions, resulting in $73,000, $131,000 and $126,000 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, 2020, 2019 and 2018.
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, 2020, the
Company decreased additional paid in capital by $412,000 and increased accumulated undistributed earnings by $412,000. 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.
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.
The following table reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2020, 2019 and 2018:
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, 2020
December 31, 2019
December 31, 2018
$
$
33,619 $
10,733
(999)
782
(99)
(705)
43,331 $
41,135 $
482
3,164
1,329
(24)
(4,500)
41,586 $
35,678
(1,069)
1,077
926
1,029
(3,844)
33,797
The tax character of distributions paid during the years ended December 31, 2020, 2019 and 2018 were as follows:
Ordinary income
Long-term capital gains
Return of capital
December 31, 2020
December 31, 2019
December 31, 2018
$
43,393 $
—
—
37,709 $
4,187
—
32,499
1,034
—
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 28% 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 on a book basis for the years ended December 31, 2020, 2019 and 2018 were as
follows:
Undistributed ordinary income - 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, 2020
December 31, 2019
December 31, 2018
$
$
3,577 $
7,077
(1,668)
13,294
22,280 $
3,713 $
16,811
(887)
12,215
31,852 $
4,045
20,457
442
7,624
32,568
315
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, 2020,
2019 and 2018 have been attached as exhibits.
In addition, we had one portfolio company that is required to have supplemental disclosure incorporated in our financial statements in accordance with Regulation S-X section 4-08(g), along with
summarized financial information. Accordingly, the summarized financial information of our unconsolidated subsidiary, NBL, which originates, purchases and sells commercial loans under the
SBA’s 504 loans program, is as follows:
Newtek Business Lending, LLC Balance Sheets
As of December 31, 2020
(unaudited)
As of December 31, 2019
Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Total member’s equity
Newtek Business Lending, LLC Statements of Income
Revenue
Expenses
Income from operations
Interest expense, net
Income (loss) before tax
Net unrealized appreciation on loans receivable - held for sale, at fair value
Income taxes
Net Income (Loss)
NOTE 19—SUBSEQUENT EVENTS:
Common Stock
86,858
653
87,511
3,318
44,216
47,534
39,977
Year Ended December 31,
2020
2019
$
$
$
$
6,069 $
3,037
3,032 $
1,427
1,605
1,402 $
(22)
2,985 $
30,021
528
30,549
1,080
12,165
13,246
17,303
3,228
2,955
273
1,465
(1,192)
160
—
(1,031)
From January 1, 2021 through March 26, 2021 the Company sold 430,470 shares of its common stock at a weighted average price of $20.93 per share under the 2020 ATM Equity Distribution
Agreement. Proceeds, net of offering costs and expenses were $9,011,000. As of March 26, 2021, there were 1,546,951 shares of common stock available for sale under the 2020 ATM Equity
Distribution Agreement.
Issuance of Notes due 2025
On January 6, 2021 the Company completed an offering of $10 million aggregate principal amount of its 6.85% notes due 2025. The offering was consummated pursuant to the terms of a purchase
agreement dated November 27, 2020 among the Company and an accredited investor by a placement notice delivered to the purchaser prior to March 31, 2021. The purchase agreement provides for
the Notes to be issued to the Purchaser in a private placement. The net proceeds from the sale of the
316
Table of Contents
Notes were approximately $9.7 million, after deducting structuring fees and estimated offering expenses, each payable by the Company. The Company intends to use the net proceeds from the sale of
the Notes to fund investments in debt and equity in accordance with its investment objectives and strategies. Under the Purchase Agreement, the Company may, by mutual agreement of the parties,
issue up to $15 million in aggregate principal amount of additional Notes by placement notice delivered to the Purchaser after March 31, 2021 and before November 30, 2022.
Issuance of Notes due 2026 and Redemption of Notes due 2023
On January 22, 2021, the Company closed a public offering of $115,000,000 in aggregate principal amount of its 2026 Notes, including $15,000,000 in aggregate principal amount sold pursuant to a
fully-exercised overallotment option. The 2026 Notes will mature on February 1, 2026 and may be redeemed in whole or in part at any time or from time to time at Newtek’s option on or after
February 1, 2022. The 2026 Notes bear interest at a rate of 5.50% per year payable quarterly on February 1, May 1, August 1 and November 1, of each year, beginning May 1, 2021. Total net
proceeds received after deducting underwriters’ discount and expenses was approximately $111,288,000. The 2026 Notes are listed on the Nasdaq Global Market under the trading symbol
“NEWTZ.” A portion of the proceeds was used to redeem the outstanding 2023 Notes.
Issuance of Additional Notes due 2024
On February 16, 2021, the Company issued an additional $5,000,000 in aggregate principal amount of its 2024 Notes. The Notes will be treated as a single series with the existing 2024 Notes and
will have the same terms as the Existing Notes. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing Notes. Upon issuance of the Notes, the
outstanding aggregate principal amount of the Company’s 5.75% Notes due 2024 increased to $68,250,000.
Dividends
On February 23, 2021, the Company declared a first quarter 2021 cash dividend of $0.50 per share, which is payable on March 31, 2021 to shareholders of record as of March 22, 2021.
PPP Additional Rounds
On December 27, 2020, the Economic Aid Act was enacted by Congress in order to provide additional assistance to the hardest-hit small businesses, nonprofits, and venues that are struggling to
recover from the impact of the COVID-19 pandemic. The Economic Aid Act provides funding for PPP loans through March 31, 2021 and a second round of forgivable loans through the PPP for
small businesses and nonprofits experiencing significant revenue losses, made programmatic improvements to PPP, funds grants to shuttered venues, and enacted emergency enhancements to other
SBA lending programs. This assistance will provide small business owners with the capital they need to survive the pandemic and includes critical resources for the smallest businesses. The
Economic Aid Act also provides additional subsidies to certain existing SBA 7(a) borrowers. Specifically, under the Economic Aid Act, the SBA will pay an additional three months of payments of
principal, interest, and fees on existing performing SBA 7(a) loans approved prior to March 27, 2020, capped at $9,000 per borrower per month and new SBA 7(a) borrowers with loans approved
from February 1, 2020 through September 30, 2021, will receive 5 months of payments of principal, interest, and fees, capped at $9,000 per month. Beginning in January 2021, NSBF began offering
PPP Second Draw Loans to eligible business. Eligibility for PPP Second Draw loans is limited to small businesses that have no more than 300 employees and demonstrate at least a 25 percent
reduction in gross revenues between comparable quarters in 2019 and 2020. PPP Second Draw loans have a maximum loan size of 2.5X average monthly payroll costs, up to $2 million. In addition,
small businesses assigned to the industry NAICS code 72 (Accommodation and Food Services) can receive PPP Second Draw loans equal to 3.5X average monthly payroll costs in order to helps
these businesses combat onerous State and local restrictions. Borrowers are eligible to receive full loan forgiveness if they spend at least 60 percent of their PPP Second Draw loan on payroll costs
over a time period of their choosing between 8 weeks and 24 weeks. In addition, NSBF is also offering PPP loans (first draw loans) through March 31, 2021. For PPP loans made on or after
December 27, 2020, SBA will pay lenders fees based on the balance of the financing outstanding at the time of disbursement of the loan, for processing PPP loans in the following amounts: (i) for
loans of not more than $50,000, an amount equal to the lesser of fifty (50) percent or $2,500; (ii) five (5) percent for loans of more than $50,000 and not more than $350,000; (iii) three (3) percent for
loans of more than $350,000 and less than $2,000,000; and (iv) one (1) percent for loans of at least $2,000,000.
As of the date of this filing, the PPP Extension Act of 2021 has been passed by Congress and the Senate and is pending signature by the President of the United States. The bill would extend the
deadline to submit PPP applications from March 31, 2021 to May 31, 2021.
317
Table of Contents
Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Year Ended December 31, 2020
Portfolio Company
1
Type of Investment
Advanced Cyber Security Systems, LLC
2
50% Membership Interest
Automated Merchant Services, Inc.
2
100% Common Stock
CDS Business Services, Inc.
7
Newtek Technology Solutions, Inc.
2
100% Common Stock
Line of Credit (10%)
2
100% Common Stock
Line of Credit (10%)
6
Line of Credit (Prime + 0.5%)
6
Line of Credit (Prime + 0.5%)
Newtek Insurance Agency, LLC
2
100% Membership Interest
PMTWorks Payroll, LLC
Small Business Lending, LLC
2
100% Membership Interest
2
Term Loans (10%-12%)
2
100% Membership Interest
Term Loan (10%)
banc-serv Partners, LLC
2
100% Membership Interest
Newtek Merchant Solutions, LLC
100% Membership Interest
Titanium Asset Management, LLC
2
100% Membership Interest
2
Term Loan (10%)
Newtek Business Lending, LLC
2
100% Membership Interest
Newtek Conventional Lending, LLC
50% Membership Interest
Amount of
Realized
Gain (Loss)
$
— $
Amount of
Unrealized
Appreciation
(Depreciation)
Amount of
Interest or
Dividends
Credited to
3
Income
Fair Value at
December 31,
2019
Gross
4
Additions
Gross
5
Reductions
Fair Value at
December 31,
2020
— $
22 $
— $
— $
— $
—
(3,000)
(3,660)
10,200
—
—
—
(65)
(150)
—
—
—
—
—
—
654
—
2,304
20
16
—
—
—
—
41
—
—
3,000
5,000
19,800
10,361
—
850
2,215
—
—
9,650
400
—
(9,750)
9,450
121,250
—
—
—
390
—
265
—
—
—
4,560
10,200
460
750
—
—
150
—
—
—
—
—
—
—
—
—
—
5,900
30,000
10,821
750
225
2,150
—
—
9,650
400
—
—
(3,000)
(3,660)
—
—
—
(625)
(65)
(150)
—
—
—
—
(9,750)
111,500
—
265
—
655
1,600
22,253
40,285
(18,996)
43,542
(827)
1,227
16,123
4,290
(385)
20,028
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
318
Table of Contents
Portfolio Company
Mobil Money, LLC
1
Type of Investment
100% Membership Interest
POS on Cloud, LLC
Excel WebSolutions LLC
Total Controlled Investments
Non-Control Investments
EMCAP Loan Holdings, LLC
Total Affiliate Investments
2
50.1% Membership Interest
Term Loan (10%)
2
Term Loans (10%)
2
100% Membership Interest
6.04% Membership Interest
Amount of
Realized
Gain (Loss)
—
Amount of
Unrealized
Appreciation
(Depreciation)
(1,250)
Amount of
Interest or
Dividends
Credited to
3
Income
—
—
—
—
—
—
—
—
Fair Value at
December 31,
2019
3,750
—
775
—
—
—
—
87
—
—
Gross
4
Additions
Gross
5
Reductions
Fair Value at
December 31,
2020
—
—
275
—
—
(1,250)
2,500
—
—
—
—
—
1,050
—
—
$
$
— $
(8,237) $
15,421 $
215,817 $
60,970 $
(37,616) $
239,171
—
—
104
1,000
—
—
1,000
— $
(8,237) $
15,525 $
216,817 $
60,970 $
(37,616) $
240,171
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)
(2)
(3)
(4)
(5)
(6)
(7)
The principal amount and ownership detail as shown in the Company’s Consolidated Schedule of Investments.
Represents non-income producing security.
Represents the total amount of interest, fees or dividends credited to income for the period.
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.
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.
Index based floating rate debt investments bear interest at rate of Prime plus a contractual spread which typically resets monthly. At December 31, 2020, the Prime rate in effect was 3.25%.
On January 1, 2021, IPM and SIDCO became subsidiaries of NTS. As a result, The Schedule of Investments in and Advances to Affiliates shows IPM and SIDCO under NTS.
319
Exhibit 4.2
DESCRIPTION OF SECURITIES
As of December 31, 2020, 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, 2020, 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
On April 27, 2015, the Compensation, Corporate Governance and Nominating Committee and the Board of Directors approved the Amended and Restated 2014 Stock Incentive Plan (the
“2015 Stock Plan”), subject to exemptive relief from the SEC and shareholder approval, in order to have increased flexibility to use restricted shares of common stock, in addition to stock options, to
assist the Company in achieving its objectives with respect to long-term equity incentive compensation. On May 10, 2016, we received an exemptive order from the SEC permitting us to award
restricted shares of common stock to our employees, officers, and non-employee directors, and on July 27, 2016, our shareholders approved the 2015 Stock Plan.
The 2015 Stock Plan permits us to issue awards of stock options and restricted shares of common stock in an aggregate amount of up to 20% of our issued and outstanding shares of common
stock (the “Plan Maximum
Shares”) as of the effective date of the plan. Under the 2015 Stock Plan, all of the Plan Maximum Shares are available for grants of stock options, and half of the Plan Maximum Shares (up to 10% of
our issued and outstanding shares of common stock as of the effective date of the 2015 Stock Plan) is available for grants of restricted shares of common stock. The Compensation, Corporate
Governance and Nominating Committee believes that restricted shares of common stock is the best method of encouraging stock ownership in the Company by eligible participants by giving them a
proprietary interest in the Company’s performance, which more closely aligns compensation with the Company’s performance and provides a means to attract and retain persons of outstanding ability
in key positions with the Company. If in the future we successfully grow our assets under management and our net asset value, we may choose to increase the number of employees of the Company.
The Compensation, Corporate Governance and Nominating Committee may or may not choose to consider the use of stock options for incentive compensation of these employees.
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 2021, the second class expires in 2022, and the third class expires in 2023. 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
10, 2020, 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:
a.
b.
c.
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:
d.
e.
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:
f.
g.
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
•
•
5.75% Notes due 2024 (the “2024 Notes”); and
5.50% Notes due 2026 (the “2026 Notes,” and together with the 2024 Notes, the “Notes”).
The 2024 Notes
In July 2019, we issued $55,000,000 in aggregate principal amount of 5.75% notes due 2024 (the “2024 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, 2020, 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.”
The 2026 Notes
In January 2021, we issued $115,000,000 in aggregate principal amount of 5.50% notes due 2026 (the “2026 Notes,” and together with the 2024 Notes, the “Notes”). The 2026 Notes
including $15,000,000 in aggregate principal amount sold pursuant to a fully-exercised overallotment option. Total net proceeds received after deducting underwriters’ discount and expenses was
approximately $111,288,000. As of December 31, 2020, the outstanding principal balance of the 2024 Notes was $5.0 million.
The 2026 Notes were issues under the Seventh Supplemental Indenture (the “Seventh Supplemental Indenture”) to the Indenture, dated as of September 23, 2015, between the Company and
the Trustee (the “Base Indenture”, and together with the Seventh Supplemental Indenture, the “Indenture”). The 2026 Notes will mature on February 1, 2026 and may be redeemed in whole or in part
at any time or from time to time at Newtek’s option on or after February 1, 2022. The 2026 Notes bear interest at a rate of 5.50% per year payable quarterly on February 1, May 1, August 1 and
November 1, of each year, beginning May 1, 2021. The 2026 Notes are listed on the Nasdaq Global Market under the trading symbol “NEWTZ.”
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 2024 Notes and the 2026 may be redeemed in whole or in part at any time or from time to time at our option on or after August 1, 2020 and February 1, 2022, 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 WHEREAS, WHEREAS, NOW, THEREFORE, AGREED “Board” “Change in Control”
Common Stock” “Good Reason” “Just Cause” “Protected Period” “Trigger Event”
Participation in Retirement, Medical and Other Plans Executive Benefits; Expenses , ,
Just Cause Without Just Cause
Resignation by Executive with Good Reason Resignation by Executive without Good Reason Death, or Disability Non-Renewal Payment
Acceleration of Equity Awards
NEWTEK BUSINESS SERVICES CORP. EXECUTIVE
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 2021 (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”).
2 (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.
3 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, 2022 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
4 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
5 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.
6 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.
7 (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
8 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]
9 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written. NEWTEK BUSINESS SERVICES CORP. By: Barry Sloane, Chief Executive Officer EXECUTIVE By: Michael A. Schwartz
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 2021 (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
2 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.
3 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, 2022 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
4 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
5 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.
6 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.
7 (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
8 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. [signatures on following page]
9 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first hereinabove written. NEWTEK SMALL BUSINESS FINANCE, LLC By: Barry Sloane, Chief Executive Officer NEWTEK BUSINESS SERVICES CORP. By: Barry Sloane, Chief Executive Officer EXECUTIVE By: Peter Downs
NEWTEK BUSINESS SERVICES CORP.
SUBSIDIARIES
Name of Company
CCC Real Estate Holdings, LLC
Exponential Business Development Co., Inc.
NBSH Holdings, LLC
Newtek Asset Backed Securities, 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.
Newtek Commercial Lending, Inc.
Newtek LSP Holdco, LLC
Newtek Small Business Finance, 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
State of Incorporation/Organization
Delaware
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
District of Columbia
New York
Louisiana
Louisiana
Louisiana
Louisiana
New York
New York
Florida
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the Registration Statement on Form N-2 of Newtek Business Services Corp. and Subsidiaries (the Company) of our report dated
March 29, 2021, relating to the consolidated financial statements, appearing in the Form 10-K of the Company for the year ended December 31, 2020. We also consent to the
incorporation by reference in such Registration Statement of our report dated March 29, 2021, relating to the senior securities table, appearing in Part II, Item 5 of the Form 10-K of
the Company for the year ended December 31, 2020.
We also consent to the reference to our firm under the headings “Senior Securities” in the Form 10-K and "Independent Registered Public Accounting Firm” in such Registration
Statement on Form N-2.
Exhibit 23.1
/s/ RSM US LLP
New York, New York
March 29, 2021
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 29, 2021
/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, Nicholas Leger, 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 29, 2021
/S/ NICHOLAS LEGER
Nicholas Leger
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, 2020 (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 29, 2021
/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, 2020 (the “Report”) of Newtek Business Services Corp. (the “Company”), as filed with the Securities and
Exchange Commission on the date hereof, I, Nicholas Leger, 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 29, 2021
/S/ NICHOLAS LEGER
Nicholas Leger,
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, 2020
Newtek Merchant Solutions, LLC and Subsidiary Index Year Ended December 31, 2020 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 ............................................................................................ 6-13
1 INDEPENDENT AUDITOR’S REPORT To the Board of Directors and Stockholder of Newtek Merchant Solutions, LLC and Subsidiary We have audited the accompanying consolidated financial statements of Newtek Merchant Solutions, LLC and Subsidiary (“NMS”), a wholly-owned subsidiary of NBSH Holdings LLC, which comprise the consolidated balance sheets as of December 31, 2020, 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 audit. We conducted our audit 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 o
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 Subsidiary as of December 31, 2020, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Melville, New York March 11, 2021
Newtek Merchant Solutions, LLC and Subsidiary Consolidated Balance Sheet December 31, 2020 See notes to consolidated financial statements. 2 Assets Current assets: Cash 3,821,415$ Accounts receivable 2,836,108 Prepaid expenses and other current assets 293,963 Inventory 167,320 Total current assets 7,118,806 Fixed assets, net 434,915 Restricted cash 578,152 Customer merchant accounts, net 1,064,678 Due from related parties 282,890 Notes receivable - related party 24,090,000 Goodwill 13,813,812 Total assets 47,383,253$ Liabilities and Member's Equity Current liabilities: Accounts payable and accrued expenses 3,211,861$ Residuals payable 983,014 Chargeback reserves 999,497 Due to related parties 399,238 Line of credit 7,500,000 Bank notes payable, current 3,500,000 Total current liabilities 16,593,610 Bank notes payable, long-term, net (Note 6) 24,954,258 Total liabilities 41,547,868 Member's equity 5,835,385 Total liabilities and member's equity 47,383,253$
Newtek Merchant Solutions, LLC and Subsidiary Consolidated Statement of Income Year Ended December 31, 2020 See notes to consolidated financial statements. 3 Revenues Electronic payment processing 33,036,467$ Expenses Electronic payment processing costs 13,418,432 Salaries and benefits 5,678,172 Professional fees 870,510 Depreciation and amortization 1,536,116 Other general and administrative costs 1,284,599 Total expenses 22,787,829 Income from operations 10,248,638 Interest expense, net (1,182,591) Interest income - related parties 429,894 Total other expenses (752,697) Net income 9,495,941$
Newtek Merchant Solutions, LLC and Subsidiary Consolidated Statement of Changes in Member’s Equity Year Ended December 31, 2020 See notes to consolidated financial statements. 4 Member's Equity Balance, January 1, 2020 6,625,317$ Net income 9,495,941 Distributions (10,285,873) Balance, December 31, 2020 5,835,385$
Newtek Merchant Solutions, LLC and Subsidiary Consolidated Statement of Cash Flows Year Ended December 31, 2020 See notes to consolidated financial statements. 5 Cash flows from operating activities: Net income 9,495,941$ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,615,837 Amortization of deferred financing costs 150,290 Changes in operating assets and liabilities: Accounts receivable 214,888 Prepaid expenses and other current assets (86,993) Inventory (33,049) Accounts payable and accrued expenses (278,932) Due to/from related parties (226,465) Net cash provided by operating activities 10,851,517 Cash flows used in investing activities: Net drawdowns from related party note (11,927,499) Purchase of fixed assets (199,326) Net cash used in investing activities (12,126,825) Cash flows used in financing activities: Dividends paid to shareholder (10,285,873) Proceeds from line of credit 7,500,000 Principal payments to Webster Bank (3,500,000) Net cash used in financing activities (6,285,873) Net decrease in cash and restricted cash (7,561,182) Cash and restricted cash, beginning of year 11,960,749 Cash and restricted cash, end of year 4,399,567$ Supplemental disclosure of cash flow activities Interest paid 1,453,583$
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 6 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. Financial Instruments The Company’s financial instruments include cash, accounts receivable, notes receivable from related party, accounts payable, residuals payable, line of credit 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, line of credit 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, 2020, cash deposits in excess of insured amounts totaled approximately $3,547,000.
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 7 Restricted Cash Under the terms of the processing agreements between NMS and its processing banks, NMS maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account. The following table provides a reconciliation of cash and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows at December 31, 2020. Cash 3,821,415$ Restricted cash 578,152 Total cash and restricted cash 4,399,567$ 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, 2020. 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, 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.
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 8 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 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. 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.
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 9 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. ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" (“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, 2020 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. 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.
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 10 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, 2020, 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 subsidiary 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 11, 2021, the date these consolidated financial statements were available to be issued.
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 11 3. Fixed Assets The Company’s fixed assets are comprised of the following at December 31, 2020: Terminals 1,368,055$ Software 877,990 Telephone systems 96,717 Computer equipment 46,929 Automobile 24,576 Website 14,705 Leasehold improvements 5,170 2,434,142 Less: accumulated depreciation and amortization (1,999,227) 434,915$ Depreciation and amortization expense related to fixed assets for the year ended December 31, 2020 was approximately $254,000. 4. Goodwill The carrying value of goodwill at December 31, 2020 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, 2020 and that no further assessment was required. There were no changes to the carrying value of goodwill during the year ended December 31, 2020. 5. Customer Merchant Accounts The net carrying value of customer merchant accounts was approximately $1,065,000 at December 31, 2020. 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 $1,362,000 for the year ended December 31, 2020. Total expected amortization expense is as follows: Years Ending December 31, 2021 567,796 2022 333,690 2023 150,343 2024 12,848 1,064,678$
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 12 6. Line of Credit and 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 the Webster Term Loan provides for quarterly principal payments, 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, 2020 for the Webster Term Loan and Webster RLOC were 2.74% and 2.64%, respectively. The Webster Agreement requires certain restrictive covenants for which the Company was in compliance as of December 31, 2020. Total interest expense, excluding amortization of deferred financing costs, for the year ended December 31, 2020 was approximately $1,202,000. Amortization of deferred financing costs for the year ended December 31, 2020 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 wa
approximately $421,000 at December 31, 2020. Outstanding borrowings under the Webster RLOC was $7,500,000 at December 31, 2020. Outstanding borrowings under the Webster Term Loan consisted of the following at December 31, 2020: Principal 28,875,000$ Unamortized deferred financing costs (420,742) Net carrying amount 28,454,258$ Debt principal payments are as follows: Years Ending December 31, 2021 3,500,000$ 2022 4,812,500 2023 20,562,500 28,875,000$
Newtek Merchant Solutions, LLC and Subsidiary Notes to Consolidated Financial Statements Year Ended December 31, 2020 13 7. Notes Receivable – Related Party The Company has extended a line of credit to Newtek. The Company had approximately $24,090,000 outstanding on its revolving line of credit with Newtek, at December 31, 2020. 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 $430,000 during the year ended December 31, 2020. At December 31, 2020 there was approximately $192,000, 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”), Mobil Money LLC (“MOB”), Newtek Technology Solutions, Inc. (“NTS”) and PMTWorks Payroll, LLC (“PMT”). During the year ended December 31, 2020, the Company incurred residual expenses totaling approximately $136,000 from AMS and NTS, managed technology services costs of approximately $632,000 from NTS, licensing fees for zero cost payment processing of approximately $107,000 from MOB and payroll processing costs of approximately $28,000 from PMT. 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, 2020 were approximately $402,000. 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, 2020 was approximately $229,000. 9. Commitments and Contingencies 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.
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
1 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
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. 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
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Balance Sheet December 31, 2019 See notes to consolidated financial statements. 2 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$
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Income Year Ended December 31, 2019 See notes to consolidated financial statements. 3 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$
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Changes in Member’s Equity Year Ended December 31, 2019 See notes to consolidated financial statements. 4 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$
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statement of Cash Flows Year Ended December 31, 2019 See notes to consolidated financial statements. 5 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$
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 6 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 7 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 8 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 9 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 10 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 11 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 $1,661,000 for the year ended December 31, 2019.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 12 Total expected amortization expense for the next five fiscal years and thereafter is as follows: Years Ending December 31, 2020 1,361,986 2021 567,796 2022 333,690 2023 150,343 2024 12,853 2,426,669$ 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%.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 13 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 portfoli
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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2019 14 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.
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
1 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, 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 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.
2 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
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Balance Sheets December 31, 2018 See notes to consolidated financial statements. 3 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$
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Income Year Ended December 31, 2018 See notes to consolidated financial statements. 4 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$
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Changes in Member’s Equity Year Ended December 31, 2018 See notes to consolidated financial statements. 5 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$
Newtek Merchant Solutions, LLC and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2018 See notes to consolidated financial statements. 6 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$
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 7 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 8 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
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 9 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
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 10 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 11 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 $129,000. The purchase prices were based on contractual or agreed multiples of average monthly residuals.
These merchant accounts are being amortized over 66 months. Total expected amortization expense for the next five fiscal years and thereafter is as follows:
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 12 Years Ending December 31, 2019 1,593,606$ 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
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 13 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.
Newtek Merchant Solutions, LLC and Subsidiaries Notes to Consolidated Financial Statements Year Ended December 31, 2018 14 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.
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 referred to in our report dated March 29, 2021 (appearing herein),
and our audits of the consolidated financial statements referred to in our reports dated March 16, 2020, 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, 2020, 2019, 2018, 2017, 2016, 2015, 2014, and 2013 included in Part II, Item 5 of the December 31, 2020 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, 2020, 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 29, 2021