10-Q 1 newt3312010q.htm 10-Q Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)    
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 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
 
46-3755188
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
4800 T Rex Avenue, Suite 120, Boca Raton, Florida
 
33431
(Address of principal executive offices)
 
(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
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.02 per share
 
NEWT
 
Nasdaq Global Market LLC
6.25% Notes due 2023
 
NEWTI
 
Nasdaq Global Market LLC
5.75% Notes due 2024
 
NEWTL
 
Nasdaq Global Market LLC

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
 
o
Accelerated filer
 
x
 
 
 
 
 
 
Non-accelerated filer
 
o
Smaller reporting company
 
o
 
 
 
 
 
 
 
 
 
Emerging growth company
 
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 is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x
As of May 8, 2020, there were 20,903,645 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.




TABLE OF CONTENTS
 
 
 
Page
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.




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
Investment Company Act of 1940, as amended
2010-1 Trust
Newtek Small Business Loan Trust, Series 2010-1, terminated in March 2019
2013-1 Trust
Newtek Small Business Loan Trust, Series 2013-1, terminated in October 2018
2014-1 Trust
Newtek Small Business Loan Trust, Series 2014-1, terminated in July 2019
2016-1 Trust
Newtek Small Business Loan Trust, Series 2016-1
2017-1 Trust
Newtek Small Business Loan Trust, Series 2017-1
2018-1 Trust
Newtek Small Business Loan Trust, Series 2018-1
2019-1 Trust
Newtek Small Business Loan Trust, Series 2019-1
2021 Notes
7.00% Notes due 2021, redeemed in March 2018
2022 Notes
7.50% Notes due 2022, redeemed in August 2019
2023 Notes
6.25% Notes due 2023
2024 Notes
5.75% Notes due 2024
Amended 2019 ATM Distribution Agreement
First Amendment and Supplement to the Equity Distribution Agreement, dated as of February 28, 2020, by and among the Company and the placement agents
ASC
Accounting Standards Codification, as issued by the FASB
ASU
Accounting Standards Updates, as issued by the FASB
2017 ATM Equity Distribution Agreement
Second Amended and Restated Equity Distribution Agreement, dated August 31, 2018 by and among the Company and the placement agents
2019 ATM Equity Distribution Agreement
Equity Distribution Agreement, dated July 10, 2019 by and among the Company and the placement agents
BDC
Business Development Company under the 1940 Act
Board
The Company's board of directors
Capital One
Capital One Bank, National Association
Code
Internal Revenue Code of 1986, as amended
DRIP
The Company's dividend reinvestment plan
EBITDA
Earnings before interest, taxes, depreciation and amortization
Equity Incentive Plan
The Company's 2015 Equity Incentive Plan
Exchange Act
Securities and Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
LIBOR
London Interbank Offered Rate
NAV
Net Asset Value
NBL Facility
Revolving Credit and Security Agreement between NBL SPV1, LLC, a wholly-owned subsidiary of NBL and Capital One
Related Party RLOC
Unsecured revolving line of credit agreement between NMS as lender and Newtek as borrower
PLP
Preferred Lender Program, as authorized by the SBA
RIC
Regulated investment company under the Code
S&P
Standard and Poor's
SBA
United States Small Business Administration
SBLC
Small Business Lending Company
SEC
Securities and Exchange Commission
SMB
Small-and-medium sized businesses

3


Sterling
Sterling National Bank
Sterling Receivable and Inventory Facility
Loan and Security Agreement between NBC and Sterling, as lender to fund accounts receivable and inventory financing arrangements
Taxable Subsidiaries
Companies formed by Newtek which are taxed as corporations for income tax purposes
Trustee
U.S. Bank, National Association
U.S. GAAP or GAAP
Generally accepted accounting principles in the United States
 
 
Portfolio Companies and Subsidiaries
 
NSBF
Newtek Small Business Finance, LLC, a consolidated subsidiary
NBL
Newtek Business Lending, LLC, a wholly-owned controlled portfolio company
NCL
Newtek Conventional Lending, LLC, a 50% owned portfolio company
Exponential
Exponential Business Development Co., Inc., a Taxable Subsidiary
NMS
Newtek Merchant Solutions, LLC (formerly Universal Processing Services of Wisconsin LLC), a wholly-owned controlled portfolio company
Premier
Premier Payments LLC, a former wholly-owned controlled portfolio company which merged into NMS at December 31, 2018
Mobil Money
Mobil Money, LLC, a wholly-owned controlled portfolio company
NTS
Newtek Technology Solutions, Inc., a wholly-owned controlled portfolio company
IPM
International Professional Marketing, Inc., a wholly-owned controlled portfolio company
SIDCO
SIDCO, LLC dba Cloud Nine Services, a wholly-owned controlled portfolio company
EWS
Excel WebSolutions, LLC, a wholly-owned controlled portfolio company
NBC
CDS Business Services, Inc. dba Newtek Business Credit Solutions, a wholly-owned controlled portfolio company
SBL
Small Business Lending, LLC, a wholly-owned controlled portfolio company
BSP
ADR Partners, LLC dba banc-serv Partners, LLC, a wholly-owned controlled portfolio company
NPS or PMT
PMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a wholly-owned controlled portfolio company
NIA
Newtek Insurance Agency, LLC, a wholly-owned controlled portfolio company
TAM
Titanium Asset Management LLC, a wholly-owned controlled portfolio company
EMCAP
EMCAP Loan Holdings, LLC
POS
POS on Cloud, LLC, a controlled portfolio company




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 
March 31, 2020
 
December 31, 2019
ASSETS
(Unaudited)
 
 
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $436,474 and $429,697, respectively; includes $353,846 and $364,063, respectively, related to securitization trusts)
$
419,486

 
$
417,223

SBA guaranteed non-affiliate investments (cost of $23,676 and $23,345, respectively)
25,152

 
25,004

Controlled investments (cost of $118,995 and $107,300, respectively)
216,723

 
215,817

Non-control/affiliate investments (cost of $1,000 and $1,000, respectively)
1,000

 
1,000

Total investments at fair value
662,361

 
659,044

Cash
37,073

 
1,762

Restricted cash
33,452

 
31,445

Broker receivable
1,683

 
51,173

Due from related parties
3,853

 
2,972

Servicing assets, at fair value
26,309

 
24,411

Right of use assets
7,724

 
7,990

Other assets
19,022

 
18,614

Total assets
$
791,477

 
$
797,411

 
 
 
 
LIABILITIES AND NET ASSETS
 
 
 
Liabilities:
 
 
 
Bank notes payable
$
44,069

 
$
30,000

Notes due 2023 (par: $57,500 as of March 31, 2020 and December 31, 2019, Note 7)
56,152

 
56,035

Notes due 2024 (par: $63,250 as of March 31, 2020 and December 31, 2019, Note 7)
61,460

 
61,354

Notes payable - Securitization trusts (par: $261,082 and $276,637 as of March 31, 2020 and December 31, 2019, Note 7)
257,056

 
272,376

Notes payable - related parties
24,213

 
12,163

Due to related parties
338

 
131

Lease liabilities
9,596

 
9,897

Deferred tax liabilities
9,494

 
12,405

Accounts payable, accrued expenses and other liabilities
16,634

 
20,824

Total liabilities
479,012

 
475,185

 
 
 
 
Commitment and contingencies (Note 8)
 
 
 
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, 20,838 and 20,530 issued and outstanding, respectively)
417

 
411

Additional paid-in capital
296,577

 
289,963

Accumulated undistributed earnings
15,471

 
31,852

Total net assets
312,465

 
322,226

Total liabilities and net assets
$
791,477

 
$
797,411

Net asset value per common share
$
15.00

 
$
15.70


1


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)
 
 
 
Three Months Ended March 31,
 
2020
 
2019
Investment income
 
 
 
From non-affiliate investments:
 
 
 
Interest income
$
7,322

 
$
7,017

Servicing income
2,715

 
2,428

Other income
906

 
921

Total investment income from non-affiliate investments
10,943

 
10,366

From non-control/affiliate investments:
 
 
 
Dividend income
20

 
31

From controlled investments:
 
 
 
Interest income
457

 
217

Dividend income
4,382

 
3,150

Total investment income from controlled investments
4,839

 
3,367

Total investment income
15,802

 
13,764

Expenses:
 
 
 
Salaries and benefits
3,447

 
3,588

Interest
5,184

 
4,735

Depreciation and amortization
115

 
129

Professional fees
964

 
984

Origination and loan processing
1,824

 
1,653

Origination and loan processing - related party
2,638

 
2,188

Change in fair value of contingent consideration liabilities
54

 
46

Other general and administrative costs
1,858

 
1,427

Total expenses
16,084

 
14,750

Net investment loss
(282
)
 
(986
)
Net realized and unrealized gains (losses):
 
 
 
Net realized gain on non-affiliate investments - SBA 7(a) loans
4,513

 
9,344

Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments
(183
)
 
70

Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
(4,511
)
 
2,629

Net unrealized (depreciation) appreciation on controlled investments
(10,789
)
 
(1,947
)
Change in deferred taxes
2,911

 
529

Net unrealized (depreciation) appreciation on servicing assets
1,088

 
(556
)
Net realized and unrealized gains (losses)
$
(6,971
)
 
$
10,069

Net (decrease) increase in net assets resulting from operations
$
(7,253
)
 
$
9,083

Net (decrease) increase in net assets resulting from operations per share
$
(0.35
)
 
$
0.48

Net investment loss per share
$
(0.01
)
 
$
(0.05
)
Dividends and distributions declared per common share
$
0.44

 
$
0.40

Weighted average number of shares outstanding
20,738

 
19,003


2
See accompanying notes to consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)
 
 
 
 
 
Three Months Ended March 31,
 
2020
 
2019
Increase in net assets:
 
 
 
Net investment loss
$
(282
)
 
$
(986
)
Net realized gains on investments
4,513

 
9,344

Net unrealized (depreciation) appreciation on investments
(11,484
)
 
725

Net (decrease) increase in net assets resulting from operations
(7,253
)
 
9,083

Distributions to common stockholders
(9,106
)
 
(7,574
)
Capital share transactions:
 
 
 
Issuance of common stock under dividend reinvestment plan
224

 
218

Stock-based compensation expense
171

 
160

Issuance of common stock, net of offering costs
6,203

 
2,544

Net increase in net assets from capital share transactions
6,598

 
2,922

Impact of ASC 842 adoption

 
130

Total (decrease) increase in net assets
(9,761
)
 
4,561

Net assets at beginning of period
322,226

 
287,445

Net assets at end of period
$
312,465

 
$
292,006

Common shares outstanding at end of period
20,838

 
19,073

Capital share activity:
 
 
 
Shares issued under dividend reinvestment plan
18

 
12

Shares issued in connection with sales of common stock
290

 
135

Restricted shares issued under Equity Incentive Plan, net of forfeitures

 
8

Net increase in capital activity
308

 
155


3
See accompanying notes to consolidated financial statements.





NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
Three Months Ended March 31,
 
2020
 
2019
Cash flows from operating activities:
 
 
 
Net (decrease) increase in net assets resulting from operations
$
(7,256
)
 
$
9,083

Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash used in operating activities:
 
 
 
Net unrealized depreciation (appreciation) on controlled investments
10,789

 
1,947

Net unrealized depreciation (appreciation) on non-affiliate investments
4,694

 
(2,699
)
Net unrealized (appreciation) depreciation on servicing assets
(1,088
)
 
556

Net realized gains on non-affiliate investments
(4,513
)
 
(9,344
)
Allowance for doubtful accounts

 
(45
)
Change in fair value of contingent consideration liabilities
54

 
46

Amortization of deferred financing costs
490

 
540

Deferred income taxes
(2,911
)
 
(529
)
Depreciation and amortization
115

 
129

Purchase of loans
(5,522
)
 

Funding of guaranteed non-affiliate SBA loans
(39,799
)
 
(73,538
)
Funding of unguaranteed non-affiliate SBA loans
(13,042
)
 
(24,241
)
Funding of controlled investments
(12,820
)
 
(3,206
)
Proceeds from sale of non-affiliate SBA loans
43,035

 
83,849

Principal received on SBA non-affiliate investments
12,536

 
8,676

Principal received from controlled investments
425

 
1,050

Return of investment from controlled investments
700

 
500

Other, net
(44
)
 
132

Changes in operating assets and liabilities:
 
 
 
Broker receivable
49,490

 
(2,738
)
Due to/from related parties
(671
)
 
(320
)
Other assets
(151
)
 
(235
)
Accounts payable, accrued expenses and other liabilities
(4,277
)
 
(5,313
)
Capitalized servicing asset
(810
)
 
(1,535
)
Other, net
19

 
95

Net cash provided by (used in) operating activities
29,443

 
(17,140
)
Cash flows from investing activities:
 
 
 
Purchase of fixed assets
(4
)
 
(132
)
Cash flows from financing activities:
 
 
 
Net borrowings on bank notes payable
14,069

 
29,800

Proceeds from common shares sold, net of offering costs
6,203

 
2,544

Net (repayments) proceeds under related party line of credit
12,050

 
9,050

Payments on Notes Payable - Securitization Trusts
(15,555
)
 
(18,365
)
Dividends paid
(8,882
)
 
(7,354
)
Additions to deferred financing costs
(6
)
 
(16
)
Net cash provided by financing activities
7,879

 
15,659

Net increase (decrease) in cash and restricted cash
37,318

 
(1,613
)

4
See accompanying notes to consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
Three Months Ended March 31,
 
2020
 
2019
Cash and restricted cash—beginning of period (Note 2)
33,207

 
31,350

Cash and restricted cash—end of period (Note 2)
$
70,525

 
$
29,737

 
 
 
 
Non-cash operating, investing and financing activities:
 
 
 
Foreclosed real estate acquired
$
196

 
$
441

Issuance of common shares under dividend reinvestment plan
$
224

 
$
220

            



5
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
Montana Custom Log Homes, Inc.
(#)
2036 US Highway 93 North, Victor, MT 59875
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2045
 
$
366.3

 
$
366.3

 
$
407.1

 
0.13
%
JS Randhawa, Inc. dba Deli Delicious 34, SK Randhawa Inc. HSR Inc & R
(#)
570 W Olive Ave,, Merced, CA 95348
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030
 
100.0

 
100.0

 
88.3

 
0.03
%
Blackwater Diving LLC
(#)
112 Forrest Rd, Morgan City, LA 70380
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/30/2030
 
375.0

 
375.0

 
325.2

 
0.10
%
Suburban Transmission of Northern Illinois, Inc.
(#)
1714 E Oakton St, Des Plaines, IL 60018
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/27/2045
 
150.0

 
150.0

 
167.6

 
0.05
%
Tomco Inc. dba Rental City dba Tomco Equiptment Sales
(#)
6470 State St., Saginaw, MI 48603
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/27/2030
 
22.5

 
22.5

 
18.2

 
0.01
%
Dunaway and Hart, Inc
(#)
575 Harkrider St., Conway, AR 72032
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/26/2030
 
50.0

 
50.0

 
40.5

 
0.01
%
Yachting Solutions, LLC
(#)
56 New County Rd, Rockland, ME 04841
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/24/2030
 
182.5

 
182.5

 
168.9

 
0.05
%
Supermarket Source, Inc
(#)
2741 West 76th St., Hialeah, FL 33016
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2030
 
212.5

 
212.5

 
221.5

 
0.07
%
Kris-Leigh Catered Living at Severna Park,LLC
(#)
831 Richie Highway, Severna Park, MD 21146
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
3/20/2030
 
530.0

 
530.0

 
552.3

 
0.18
%
Patoruzu Inc dba Sharkey's Cuts for Kids
(#)
18121 Tuckerton Rd, Ste 130, Cypress, TX 77433
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2030
 
13.5

 
13.5

 
11.0

 
%
Firefly Developement LLC dba Firefly Earthworks
(#)
4810 Vicksburg St., Dallas, TX 75207
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/19/2045
 
300.5

 
300.5

 
305.6

 
0.10
%
Coffeestamp LLC
(#)
2511 S Jefferson Ave, St. Louis, MO 63104
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/17/2030
 
4.5

 
4.5

 
4.0

 
%
Forest Scientific Corporation
(#)
668 Elm St., Tionesta, PA 16353
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/17/2030
 
75.0

 
75.0

 
78.2

 
0.03
%
Mid Ohio Hospitality, LLC dba Bucks Bar and Grill
(#)
192 E Main St, Mansfield, OH 44904
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/17/2045
 
229.3

 
229.3

 
259.8

 
0.08
%
Kanga Lean, Inc. dba F45 Training Trinity
(#)
8900 Strength Ave, New Port Richie, FL 34655
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/16/2030
 
31.7

 
31.7

 
28.3

 
0.01
%
Integrated Equipment Inc
(#)
5701 Brittmoore Rd, Houston, TX 77041
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/13/2045
 
1,250.0

 
1,250.0

 
1,416.6

 
0.45
%
Native Fields Landscaping LLC and My Two Girls LLC
(#)
73 Taylor Rd, Warton, NJ 07885
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/13/2045
 
272.5

 
272.5

 
307.7

 
0.10
%
Rapid Trucking and
(#)
4225 W Capitol Ave, West Sacramento, CA 95691
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/13/2045
 
762.5

 
762.5

 
864.1

 
0.28
%
Signet Media dba Signet Media inc.
(#)
630 S 1st St, San Jose, CA 95113
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2030
 
343.8

 
343.8

 
357.0

 
0.11
%
Astoria-Pacific Inc
(#)
15130 SE 82nd Dr, Clackamas, OR 97015
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/13/2030
 
125.0

 
125.0

 
130.3

 
0.04
%
Stretch of NW Georgia, LLC dba Stretch Zone
(#)
1430 Towne Lake Pkwy, Woodstock, GA 30189
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2030
 
14.7

 
14.7

 
11.9

 
%

6
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
Mark Allen Taylor dba Taylor Auction
(#)
20 & 68 Westfield Rd, Nicholls, GA 31554
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2030
 
139.0

 
139.0

 
120.6

 
0.04
%
GQ Investments LLC
(#)
5772 Miami Lakes Drive, Miami Lakes, FL 33014
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/12/2030
 
150.0

 
150.0

 
121.4

 
0.04
%
C3 Capital, Inc
(#)
10010 North Hampton Cove Lane, Indianapolis, IN 46236
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/11/2030
 
566.3

 
566.3

 
552.9

 
0.18
%
Quarles Service Systems, Inc.
(#)
1740 September Ave, Memphis, TN 38116
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2045
 
96.5

 
96.5

 
101.9

 
0.03
%
Blue Dot Trading Inc
(#)
3100 NW 72nd Ave, Miami, FL 33122
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/10/2030
 
56.3

 
56.3

 
45.5

 
0.01
%
The Ugly Mug's Coffee and Tea Inc.
(#)
1390 Broadway Ste C, Placerville, CA 95667
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/9/2030
 
38.0

 
38.0

 
31.0

 
0.01
%
Phillip Showen, Peter and Suzanne Scott, Inc. & Bryan Phelan
(#)
2342 NY- 37, Port Covington, NY 12937
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/6/2030
 
140.0

 
140.0

 
135.6

 
0.04
%
KR Enterprises, Inc. dba Carriage Inn
(#)
1065 Tower Hill Rd, North Kingstown, RI 2852
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/6/2045
 
320.0

 
320.0

 
334.2

 
0.11
%
Big Brand Management LTD. CO. dba Ivox Media
(#)
512 E 11th St, Houston, TX 77008
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/6/2030
 
66.3

 
66.3

 
61.5

 
0.02
%
Advans IT Services, Inc.
(#)
65 Boston Post Rd W Ste 390, Marlborough, MA 01752
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
3/6/2030
 
125.0

 
125.0

 
101.2

 
0.03
%
Outcome Driven Innovation dba Spracht; Celltek, ODI, ODI Security
(#)
974 Commercial St, Palo Alto, CA 94303
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2030
 
387.5

 
387.5

 
313.7

 
0.10
%
Minifox Inc. dba Pho Hoa and Jazen Tea
(#)
10624 South Eastern Ave Stes R & S, Hendersen, NV 89502
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/5/2030
 
75.0

 
75.0

 
61.9

 
0.02
%
Jones Roger Sherman Inn, Inc. dba Jones Roger Sherman Inn
(#)
195 Oenoke Ridge, New Canaan, CT 06840
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/4/2030
 
28.8

 
28.8

 
30.0

 
0.01
%
Chet Lemon Enterprises, Inc. dba All American Sports
(#)
1544 Lane Park Cut off, Tavares, FL 32778
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/3/2030
 
83.8

 
83.8

 
87.6

 
0.03
%
14th State Learning, LLC dba Sylvan Learning, LLC
(#)
1 Market Pl #10, Essex Junction, VA 5452
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/2/2030
 
51.5

 
51.5

 
42.2

 
0.01
%
Toju Bay Inc. dba Fiesta Americana Restaurand and Club
(#)
1622-1624 N. Mannheim Rd, Stone Park, IL 60165
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2045
 
456.3

 
456.3

 
500.9

 
0.16
%
Custom Garages
(#)
110 2nd Ave South, Pacheco, CA 94553
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2030
 
138.8

 
138.8

 
117.9

 
0.04
%
LCSM Logistics Inc
(#)
15735 Spectrum Drive, Addison, TX 75001
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
2/28/2030
 
86.3

 
86.3

 
69.8

 
0.02
%

7
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
Crux Solutions LLC dba Waddell's Riverside Funeral Directors
(#)
6938 Westover St., Houston, TX 77087
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2045
 
81.0

 
81.0

 
86.9

 
0.03
%
Breakers Electric, LLC dba Merrill Sports
(#)
13600 Mustang Drive, Mead, CO 80542
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030
 
10.5

 
10.5

 
8.5

 
%
GRSC, Inc.
(#)
1643 NW Dove Ct, Stuart, FL 34994
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030
 
22.5

 
22.5

 
19.7

 
0.01
%
M & L ENTERPRIZES, LLC
(#)
2401 Wrightsville Ave, Wilmington, NC 28403
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/26/2030
 
50.0

 
50.0

 
52.1

 
0.02
%
Feras Alshadaida dba Allura Dairy
(#)
8809 N Grove Ave, Rancho Cucamonga, CA 91730
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/26/2030
 
60.5

 
60.5

 
51.3

 
0.02
%
Abe Chahrour Investment, LLC
(#)
4001 S Wayne Rd, Wayne, MI 48154
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2045
 
22.2

 
22.2

 
25.2

 
0.01
%
Bora Enterprises, LLC
(#)
1921 Las Plumas Ave Ste B, San Jose, CA 95133
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/21/2030
 
12.8

 
12.8

 
10.3

 
%
Skimino Enterprises LLC
(#)
197 Ewell Rd, Williamsburg, VA 23188
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/21/2030
 
75.0

 
75.0

 
60.8

 
0.02
%
Sherwood Sporthorses Inc.
(#)
20502 Forestview, Magnolia, TX 77355
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2045
 
134.1

 
134.1

 
151.4

 
0.05
%
Bell Oak LLC dba Bell Oak Academy & Paradise Strategics LLC
(#)
7215 Waelti Drive, Melbourne, FL 32940
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/21/2045
 
377.5

 
377.5

 
381.3

 
0.12
%
Alex Roit Chiropractic, P. C
(#)
55 Northern Blvd, Ste 103, Great Neck, NY 11021
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/19/2030
 
20.0

 
20.0

 
16.2

 
0.01
%
Little feet Academy of Jacksonville, LLC
(#)
10265 Normandy Blvd, Jacksonville, FL 32221
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/17/2045
 
47.3

 
47.3

 
48.7

 
0.02
%
E Center Marketing LLC
(#)
285 W Central Pkwy, Altamonte Springs, FL 32714
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/14/2030
 
22.5

 
22.5

 
18.3

 
0.01
%
All Modes Transportation & Logistics LLC
(#)
4313 Collingtree Drive, Rockledge, FL 32955
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 6.5%
 
2/14/2030
 
12.5

 
12.5

 
12.0

 
%
Romo Medical Equiptment LLC
(#)
3453 North Panam Expressway, San Antonio, TX 78219
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/14/2030
 
500.0

 
500.0

 
404.8

 
0.13
%
Lesher Transportation and Shipping, LLC
(#)
116 North Austin St., Oak Grove, MO 64075
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/13/2030
 
14.3

 
14.3

 
13.4

 
%
Red Rock Government Serviice, LLC
(#)
45240 Business Court, Sterling, VA 20166
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/13/2030
 
171.3

 
171.3

 
155.3

 
0.05
%
Shaw, Ltd dba Fitness 1440 North Coventry
(#)
54-58 Glocker Way, Pottstown, PA 19465
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/13/2030
 
60.7

 
60.7

 
52.2

 
0.02
%
Damiano Global Corp.
(#)
333 Birch Hills Dr, Rochester, NY 14622
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2030
 
50.0

 
50.0

 
40.5

 
0.01
%
Fortson Janitorial Inc
(#)
462-482 Chattahoochee St., Cornelia, GA 30531
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/5/2045
 
107.5

 
107.5

 
121.8

 
0.04
%

8
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
2'N1 Home and lawn LLC dba N1 Home an Lawn LLC
(#)
1300 Ridenour Blvd, Kennesaw, GA 30152
 
Administrative and Support Services
 
Term Loan
 
Prime plus 6.5%
 
2/3/2030
 
12.5

 
12.5

 
12.0

 
%
A1 Radon Services, LLC
(#)
9980 Dell Rd, Eden Prairie, MN 55347
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2030
 
89.2

 
89.2

 
72.3

 
0.02
%
Thisaflycloset, LC
(#)
12408 Kingsview St., Bowie, MD 20721
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 6.5%
 
1/30/2030
 
12.4

 
12.4

 
11.9

 
%
AA WST LLC
(#)
321 White Dogwood Lane, Ocoee, FL 34761
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/30/2030
 
22.1

 
22.1

 
19.9

 
0.01
%
Spinnaker PSL Inc., Spinnaker Subs- N-Shine& Spinnaker Vero Inc
(#)
6967 Hancock Drive, Port St Lucie, FL 34952
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
1/30/2045
 
316.1

 
316.1

 
322.3

 
0.10
%
Adorable Home Heath Care LLC
(#)
6110 W Capitol Drive, Milwaukee, WI 53216
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/30/2030
 
41.8

 
41.8

 
33.8

 
0.01
%
3 Fat Labs Inc. and Energy Conservation Solution Inc.
(#)
2001 S County Rd 400 W, Greencastle, IN 46135
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
1/30/2045
 
280.9

 
280.9

 
292.4

 
0.09
%
Daftarnow Inc dba Venture X Parsippany
(#)
8 Campus Drive. Ste 105, Parsippany, NJ 07054
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/30/2030
 
84.0

 
84.0

 
68.3

 
0.02
%
Codame Enterprises LLC dba Firehouse Subs
(#)
1547 Main St., Dunedin, FL 34698
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2030
 
105.2

 
105.2

 
85.1

 
0.03
%
Havana Knights LLC
(#)
65 Lindsey Lane, Havana, FL 32333
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
1/27/2030
 
39.3

 
39.3

 
34.7

 
0.01
%
Amina Financial Solutions LLC dba Expat Tax Solutions
(#)
1433 Chestnut St., Macon, GA 31201
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/24/2030
 
20.9

 
20.9

 
16.9

 
0.01
%
Affinity Integrated Solutions Inc.
(#)
115 Pomona Drive, Greensboro, NC 27402
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2045
 
299.7

 
299.7

 
311.7

 
0.10
%
Affinity Integrated Solutions Inc
(#)
115 Pomona Drive, Greensboro, NC 27407
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2030
 
223.7

 
223.7

 
181.1

 
0.06
%
Align Sports Management, LLC
(#)
15822 Caminito Cantaras, Del Mar, CA 92014
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
1/22/2030
 
22.4

 
22.4

 
18.3

 
0.01
%
Emmalina LLC
(#)
3602 Rock Bay Drive, Louisville, KY 40245
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/21/2030
 
6.7

 
6.7

 
6.2

 
%
Motorsport Imagery, Inc
(#)
16362 Cherokee Rd, Brooksville, FL 34601
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/17/2030
 
22.4

 
22.4

 
19.5

 
0.01
%
Lyon Cubs LLC dba Dayton Valley Learning Center
(#)
357 Dayton Valley Rd, Dayton, NV 89403
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/16/2045
 
167.7

 
167.7

 
175.0

 
0.06
%
Jordi X Kellogg, M.D.,P.C
(#)
9200 SE 91st Ave STE 340, Happy Valley, OR 97086
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/10/2030
 
62.1

 
62.1

 
50.3

 
0.02
%
VetMed LLC
(#)
908 4th Ave, Decatur, AL 35601
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/10/2030
 
87.0

 
87.0

 
70.4

 
0.02
%
Luster Custom Homes LLC
(#)
18801 North Thompson Peak Pkwy, Ste 240, Scottsdale, AZ 85255
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
1/10/2030
 
46.0

 
46.0

 
37.2

 
0.01
%

9
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
CV Flores LLC dba A All Animal Control
(#)
2140 E Southlake Blvd L-503, Southlake, TX 76092
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/9/2030
 
6.1

 
6.1

 
5.0

 
%
Global Information Technology, Inc
(#)
1 Cragwood Rd, Ste 101, South Plainfield, NJ 07080
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/31/2029
 
561.1

 
561.1

 
454.2

 
0.15
%
Pecos Entertainment LLC dba State Theater
(#)
421 South Oak St, Pecos, TX 79772
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2029
 
128.5

 
128.5

 
133.9

 
0.04
%
Bearwaters Brewing Company
(#)
101 Park St, Canton, NC 28716
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2044
 
256.9

 
256.9

 
279.4

 
0.09
%
Nick's Country Kitchen, LLC
(#)
3 Flanders Rd, Bethlehem, CT 06751
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2044
 
286.8

 
286.8

 
304.3

 
0.10
%
VIP Construction Group Inc.
(#)
3332 W Mulberry Drive, Mequon, WI 53092
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
61.8

 
61.8

 
63.8

 
0.02
%
Spinnaker Vero Inc.
(#)
983 12th St., Vero Beach, FL 32960
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
785.6

 
785.6

 
791.7

 
0.25
%
Kiddie Garden Child Development Center, LLC
(#)
2809 W. Atkinson Ave, Milwaukee, WI 53209
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
43.0

 
43.0

 
46.7

 
0.01
%
Kwik Stop dba Dilpreet Hundai
(#)
1001 Sacramento Ave, West Sacramento, CA 95605
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
241.4

 
241.4

 
249.7

 
0.08
%
Jauchem & Meeh Inc.dba Gregory Meeh Design;Jermy Chernick Design;J&M S
(#)
524 Sackett St., Brooklyn, NY 11217
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
271.9

 
271.9

 
250.4

 
0.08
%
Home Decor Liquidators, LLC dba Home Decor Outlets;Home Decor Mattress
(#)
8780 Pershall Rd, Hazelwood, MO 63042
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
978.2

 
978.2

 
827.1

 
0.26
%
Destination Hope, Inc. and The Academy for Addiction Professionals, In
(#)
6555 NW 9th Ave, Fort Lauderdale, FL 33309
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2044
 
375.0

 
375.0

 
390.7

 
0.13
%
Larry J. Frick dba L & S Trucking
(#)
157571 E Wausau Ave, Wausau, WI 54403
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
48.9

 
48.9

 
43.1

 
0.01
%
Vance Ewing LLC
(#)
22940 Harlan Ln, St. Robert, MO 65584
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
111.2

 
111.2

 
114.7

 
0.04
%
Destination Hope, Inc, TrilogyTreatment & Wellness Center, Inc, The Ac
(#)
6555 NW 9th Ave, Fort Lauderdale, FL 33309
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2029
 
362.6

 
362.6

 
298.0

 
0.10
%
Irony LLC dba Mulberry’s Garment Care
(#)
2579 Fairview Ave North, Roseville, MN 55113
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
1,033.9

 
1,033.9

 
843.5

 
0.27
%
313 Air Duct LLC Dba Jouny Cleaning Services, M & J Restoration Emerge
(#)
25150 W Warren Ave., Dearborn Heights, MI 48127
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
249.4

 
249.4

 
266.7

 
0.09
%
American Landscaping Company
(#)
6151 S St., Anchorage, AK 99518
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
322.5

 
322.5

 
306.8

 
0.10
%
313 Air Duck LLC dba Jouny Cleaning Services, M & J Restoration Emerge
(#)
25150 W Warren Ave., Dearborn Heights, MI 48127
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
160.2

 
160.2

 
140.6

 
0.04
%

10
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
Pro-Tek Pest Control, Inc, Pro-Tek Nurseries, LLC, Pro-Tek Irrigation
(#)
8712 60th Terrace South, Lake Worth, FL 33467
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
184.1

 
184.1

 
157.7

 
0.05
%
American Landscaping Company and Ground Effects Landscaping, LLC
(#)
6151 A St., Anchorage, AK 99518
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
645.1

 
645.1

 
712.3

 
0.23
%
Mankamana Holdings, LLc dba Perfect Brow Art, Mankamana Holdings, LLC
(#)
7302 Kirby Ave, Lubbock, TX 79424
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
135.9

 
135.9

 
124.8

 
0.04
%
Tatoo Tony's Under My Skin LLC
(#)
73 Memorial Pkwy, Atlantic Highlands, NJ 07716
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
99.8

 
99.8

 
113.1

 
0.04
%
QXC Communications, Inc
(#)
4541 N Dixie Hwy, Boca Raton, FL 33431
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
519.0

 
519.0

 
421.5

 
0.13
%
K&S Hardware LLC dba Gopher Ace
(#)
1865 Wayzata Blvd, Long Lake, MN 55356
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
61.8

 
61.8

 
58.5

 
0.02
%
Protek Pest Control, Inc. Pro-tek Nurseries LLC, Pro-Tek Irrigation
(#)
8712 60TH TER South, Lake Worth, FL 33467
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
142.2

 
142.2

 
157.2

 
0.05
%
Watearth Inc
(#)
3371 Glendale Blvd Ste 208, Los Angeles, CA 90039
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2029
 
46.2

 
46.2

 
37.3

 
0.01
%
A Family Member Homecare Group Inc, A Family Member Homecare Holdings,
(#)
11788 Sample Rd, Coral Springs, FL 33065
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/27/2044
 
118.5

 
118.5

 
123.0

 
0.04
%
Icebox Cafe L.C. and Icebox Pantry, LLC
(#)
219 NE 3rd St., Hallendale Beach, FL 33009
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/26/2030
 
289.2

 
289.2

 
254.9

 
0.08
%
Bhatti LLC 2, Bhatti LLC
(#)
1451 Coral Ridge Ave, Coralville, IA 52241
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/26/2029
 
111.4

 
111.4

 
92.9

 
0.03
%
Ink! Coffee Company
(#)
2851 Larimer St., Denver, CO 80205
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
509.4

 
509.4

 
411.5

 
0.13
%
Richwood Enterprises, LLC, Richwood Transport LLC, Richwood Transport
(#)
2564 Branch St., Middleton, WI 53562
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
348.7

 
348.7

 
308.1

 
0.10
%
Synergistic-Designs, LLC
(#)
493 Wilson Mill Rd, New Wilmington, PA 16142
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/24/2029
 
7.4

 
7.4

 
6.0

 
%
Food Civilization Services LLC and 1701 W 15th St LLC
(#)
512 E 11th St., Houston, TX 77008
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/23/2044
 
149.6

 
149.6

 
167.7

 
0.05
%
Aitheras Aviation Group, LLC and International Aviation Sales, Ltd.
(#)
2301 N Marginal Rd, Cleveland, OH 44114
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/23/2029
 
521.5

 
521.5

 
444.1

 
0.14
%
512 E 11th Street LLC and Big Brand Management Ltd. Co.
(#)
512 E 11th St, Houston, TX 77008
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
12/23/2044
 
332.9

 
332.9

 
364.6

 
0.12
%

11
See accompanying notes to consolidated financial statements.



NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2020
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
312,465
The Lamkin Group LLC and National Championship Enterprises LLC
(#)
901 Lily Creek Rd, Ste 102, Louisville, KY 40243
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2029
 
661.0

 
661.0

 
534.9

 
0.17
%
Chris Farley DVM PA. dba Farley Veterinary Clinic
(#)
6487 Taft St., Hollywood, CA 33024
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
13.3

 
13.3

 
13.9

 
%
Freedom Enterprises, Inc
(#)
2431 14th Ave SE, Watertown, SD 57201
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
324.8

 
324.8

 
274.7

 
0.09
%
Shaddai Aesthetics Inc
(#)
706 W. 34th St., Austin, TX 78705
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2029
 
18.7

 
18.7

 
15.2

 
%
Macon Arts Center LLC
(#)
4570 Pio Nono Ave, Macon, GA 31206
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
623.5

 
623.5

 
681.6

 
0.22
%
Freedom Enterprises, Inc - New RE company to be formed
(#)
2431 14th Ave SE, Watertown, SD 57201
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
207.5

 
207.5

 
225.0

 
0.07
%
La Tradicion Cubana Inc
(#)
1336 SW 8th St., Miami, FL 33135
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 6.5%
 
12/20/2029
 
12.4

 
12.4

 
11.9

 
%
ACC International LLC
(#)
200 N Furnace St, Birdsboro, PA 19508
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
321.7

 
321.7

 
326.8

 
0.10
%
Romain Tower Inc.
(#)
215 S Persimmon St, Tomball, TX 77375
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
12/20/2044
 
897.5

 
897.5

 
898.5

 
0.29
%
Nebulos, LLC
(#)
5428 Twilight Way, Parker, CO 80134
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2029
 
61.8

 
61.8