Business
Newtek Business Services Corp. Increases its 2021 Annual Dividend Forecast to a Range of $2.40 to $2.90 per Share
Company Provides Forecasts on Key Metrics for 2021 BOCA RATON, Fla., March 22, 2021 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq: NEWT), an
About this update from Newtekone, Inc.
[{"type":"text","content":"Company Provides Forecasts on Key Metrics for 2021\nBOCA RATON, Fla., March 22, 2021 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that it is increasing its 2021 annual dividend forecast to a range of $2.40 to $2.901 per share, from the previous 2021 annual dividend forecast range of $2.00 to $2.50 per share. The midpoint of the 2021 annual dividend forecast range would represent an approximate 29% increase over the 2020 annual dividend. Barry Sloane, Chairman, President and Chief Executive Officer said, “After what had been an unprecedented year, and one of the most challenging in our 23-year operating history, I am pleased to say that we are extremely positive about the year ahead and feel that we are well positioned to capture market opportunities. As such, we are forecasting a record annual dividend for 2021 in the range of $2.40 to $2.90 per share, to reflect what we anticipate will be the effects of our growth throughout 2021. The midpoint of the 2021 annual dividend forecast range would represent an approximate 29% increase over the 2020 annual dividend. Of note, we recently declared our first quarter 2021 dividend of $0.50 per share payable on March 31, 2020 to shareholders of record as of March 22, 2021.” Mr. Sloane explained, “We are now operating on all cylinders across our and our portfolio companies’ business and finance solutions product offerings. We expect to achieve improved origination performance in our SBA 7(a) and portfolio company’s SBA 504 loan products throughout 2021 compared to 2020. In fact, we are forecasting Newtek Small Business Finance (“NSBF”) to fund approximately $600 million in SBA 7(a) loans in 2021, and Newtek Business Lending, Newtek’s wholly owned portfolio company that originates and funds SBA 504 loans, to fund between $35 and $40 million of SBA 504 loans in the first quarter of 2021, and approximately $125 million of SBA 504 loans in the full year 2021. In addition, NSBF is continuing to fund Paycheck Protection Program (“PPP”) loans through the third round of government stimulus. The company anticipates NSBF funding between $350 to $400 million of PPP loans by March 31, 2021. If Congress extends the PPP through June 30, 2021, NSBF believes it can ultimately fund $500 million of PPP loans in...