Business
Newtek Small Business Finance Has Funded and Approved Approximately $700 Million of Paycheck Protection Program (PPP) Loans To Date
Obtained SBA Loan (E-Tran) Numbers for $1.15 Billion of PPP Loans BOCA RATON, Fla., May 12, 2020 (GLOBE NEWSWIRE) -- Newtek Business Services Corp., (Nasdaq:
About this update from Newtekone, Inc.
[{"type":"text","content":"Obtained SBA Loan (E-Tran) Numbers for $1.15 Billion of PPP Loans\nBOCA RATON, Fla., May 12, 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 and approved for funding approximately $700 million of Paycheck Protection Program (“PPP”) loans of its total $1.15 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 $1.15 billion of PPP loans is reached. While NSBF estimates it has $1.15 billion of PPP loans with SBA loan (E-Tran) numbers, there is no assurance that it will ultimately fund all of these loans. The PPP program is still ongoing and NSBF is still accepting PPP loan applications as of the date of this release. As of Sunday, May 10, 2020, there was approximately $120 billion of SBA 7(a) appropriation remaining for PPP loans and SBA 7(a) loans. As a result, the Company believes the gross amount of PPP loan approvals can increase or decrease from the current level. \n Stifel Financial, UBS, and Amalgamated Bank as well as other existing partners of Newtek, are providing NSBF with PPP loan referrals and additional term financing to originate PPP loans. Barry Sloane, Chairman, President and Chief Executive Officer said, “We are pleased to announce the continued increase in funding and closing, to date, of approximately $700 million of PPP loans out of our $1.15 billion of PPP loans with SBA loan (E-Tran) numbers. Between the first and second rounds of government allocations of PPP funding, NSBF has closed or funded 64% of NSBF’s total pipeline of current PPP opportunities. As of Sunday, May 10, 2020, there was approximately $120 billion remaining for funding PPP loans and SBA 7(a) loans. The SBA reported that the average loan size in the second round of government allocation of PPP funding has been approximately $73,000 per borrower as of May 10, 2020. NSBF continues to accept new PPP loan applications. We currently forecast that we will fund approximately $1.15 billion PPP loans.” Capital One Bank, N.A., NSBF’s warehouse c...