Business
Newtek Small Business Finance Funded $518.2 Million of Paycheck Protection Program Loans From First Government Allocation of PPP Funding
Current Loan Pipeline of Approximately $900 Million as Part of Additional Government Allocation of Funding BOCA RATON, Fla., April 27, 2020 (GLOBE NEWSWIRE)
About this update from Newtekone, Inc.
[{"type":"text","content":"Current Loan Pipeline of Approximately $900 Million as Part of Additional Government Allocation of Funding\nBOCA RATON, Fla., April 27, 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, funded $518.2 million of Paycheck Protection Program (“PPP”) loans, as of 12:00 p.m. EDT today, from the first government allocation of $349 billion in PPP funding. NSBF estimates that these PPP loans resulted in approximately 66,000 employees being retained on the payroll of NSBF’s PPP borrowers. NSBF estimates that it has an additional $24.9 million in PPP loans with SBA E-Tran (loan) numbers that are expected to fund this week, which would bring NSBF’s total PPP loan fundings to $543.1 million from the first government allocation of PPP funding. NSBF has funded approximately 90% to 95% of the PPP loans for which NSBF received SBA E-Tran numbers.\n In addition, NSBF currently has a pipeline of approximately $900 million of additional PPP loans that are internally approved and awaiting SBA E-Tran (loan) numbers. These additional PPP loans are positioned for the second round - $320 billion - of government-approved PPP funding. The Company presently estimates that based on its current pipeline of approximately $900 million of PPP loans, together with the $518.2 million of funded PPP loans, and the $24.9 million of PPP loans expected to fund this week, NSBF could fund upwards of $1.5 billion in PPP loans. While NSBF estimates it has approximately $900 million of PPP loans to be submitted to the SBA for E-Tran loan numbers, it cannot estimate the number of PPP loans that will ultimately receive SBA E-Tran numbers. The Company estimates that approximately 130,000 employees could be retained on the payroll of NSBF’s PPP borrowers based on NSBF’s total potential funding of $1.5 billion in PPP loans. Stifel Financial Corp. and UBS, as well as other existing partners of Newtek, are providing NSBF with referrals and financing to originate PPP loans. Barry Sloane, Chairman, President and Chief Executive Officer said, “We want to thank Stifel Financial Corp. and UBS for working with NSBF by referr...