Business
Newtek Small Business Finance Funded Approximately $1.125 Billion of Paycheck Protection Program (PPP) Loans To Date
BOCA RATON, Fla., July 14, 2020 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company
About this update from Newtekone, Inc.
[{"type":"text","content":"BOCA RATON, Fla., July 14, 2020 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that Newtek Small Business Finance, LLC (“NSBF”), the Company’s nationally licensed lender under the U.S. Small Business Administration (“SBA”) Section 7(a) Program, has funded approximately $1.125 billion of Paycheck Protection Program (“PPP”) loans of its total pipeline of $1.145 billion of PPP loans with SBA loan (E-Tran) numbers to date. NSBF estimates that upwards of 130,000 employees could be retained by NSBF’s PPP borrowers if NSBF’s total potential funding of $1.145 billion of PPP loans is reached. NSBF estimates it will fund in whole or part of its remaining $20 million of PPP loans with SBA loan (E-Tran) numbers. The PPP program is still ongoing and NSBF expects to accept PPP loan applications through August 8, 2020. As of Monday, July 6, 2020, there was in excess of $130 billion of appropriation remaining for PPP loans.\n Barry Sloane, Chairman, President and Chief Executive Officer said, “Despite the headwinds the United States is currently facing with regards to the COVID-19 pandemic and significant economic contraction, the Company and its management team has sharpened and narrowed its focus with the intent of being able to deliver results to its shareholders during these trying economic times. The tremendous media attention and its consistent discussion of uncertainty relating to the pandemic has created a level of fear and uncertainty in the economy, amongst its consumers and throughout the investment community. With the current backdrop, prior to our Q2 2020 earning’s release on August 5, 2020, we felt it relevant to release certain key metrics to our investors with respect to Newtek and the economy. NSBF funded and closed $1.1 billion of PPP loans for the quarter ended June 30, 2020. We are currently estimating that by August 8, 2020, which is the final date to apply for the current round of PPP funding, NSBF will have funded and closed between $1.14 billion to $1.16 billion of PPP loans. NSBF is beginning to rebuild its pipeline of SBA 7(a) loans and will provide additional guidance in this regard on our upcoming Q2 2020 shareholder conference call. Based upon early commentary from Senator Ben Cardin of Maryland, Senator Marco Rubio of F...