NEW YORK, Oct. 22, 2012 /PRNewswire/ -- Newtek Business Services, NASDAQ: NEWT, The Small Business Authority®, announced today that Newtek Small Business Finance, Inc., a subsidiary, has assumed the servicing of a portfolio of loans originated by Aurora Bank FSB.
The portfolio of loans are all SBA 7(a) loans which are in a securitization trust established in 2006. Currently they consist of 64 loans with an outstanding balance of $30.4 million. The transaction has received the approvals of the Small Business Administration and U.S. Bank as trustee for the securitization.
Barry Sloane, Chairman and Chief Executive Officer of Newtek, said: "We are continuing to evidence our capability and appreciate the agreement with Aurora. Our current rating by Standard and Poor's is a 'select servicer' for small balance commercial loans. Creating recurring revenue from servicing small balance commercial loans, and supporting our lending platform, is consistent with our goal of being the premier service provider to small- and medium-sized businesses nationwide. In particular, credit unions, community banks, hedge funds and other investors who have difficulty servicing nationwide pools of small balanced commercial loans have repeatedly turned to Newtek for its quality loan servicing. We are working actively to expand this servicing business. We are proud of our capability to service these types of loans for the private sector and are equally proud of our multi-year relationship servicing similar assets for the Federal Deposit Insurance Corporation. This is the second small balance commercial loan securitization where Newtek is the servicer of record on a transaction rated by Standard and Poor's."
About Newtek Business Services, Inc.Newtek Business Services, The Small Business Authority®, provides the following products and services:
- Electronic Payment Processing : eCommerce, electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
- Managed Technology Solutions (Cloud Computing): Full-service web host, which offers eCommerce solutions, shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
- eCommerce : A suite of services that enable small businesses to get up and running on-line quickly and cost effectively, with integrated web design, payment processing and shopping cart services.
- Business Lending : Broad array of lending products including SBA 7(a) and SBA 504 loans through our lending subsidiary, Newtek Small Business Finance, Inc.
- Insurance Services : Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
- Web Services : Customized web design and development services.
- Data Backup, Storage and Retrieval : Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
- Accounts Receivable Financing : Receivable purchasing and financing services.
- Payroll : Complete payroll management and processing services.