Table of Contents



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

FORM 10-Q

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


For the quarterly period ended September 30, 2017March 31, 2024


OR


o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from _____to__________to_____
Commission file number: 814-01035
NEWTEK BUSINESS SERVICES CORP.NEWTEKONE, INC.
(Exact name of registrant as specified in its charter)
 
Maryland46-3755188
Maryland46-3755188
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
4800 T Rex Avenue, Suite 120, Boca Raton, Florida33431
1981 Marcus Avenue, Suite 130, Lake Success, New York11042
(Address of principal executive offices)(Zip Code)
(212) 356-9500
(Registrant’s telephone number, including area code: (212) 356-9500code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.02 per shareNEWTNasdaq Global Market LLC
5.75% Notes due 2024NEWTLNasdaq Global Market LLC
5.50% Notes due 2026NEWTZNasdaq Global Market LLC
8.00% Notes due 2028NEWTINasdaq 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 and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted 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  ¨x    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, (all as defined” and “emerging growth company” in Rule 12b-2 of the Exchange Act).Act.



Large accelerated filerooAccelerated FilerAccelerated filerx
Non-accelerated filerooSmaller reporting companyo
Emerging growth companyo

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 November 7, 2017May 8, 2024, there were 18,004,24724,733,816 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.






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Defined Terms


We have used “we,” “us,” “our”,“our,” “our company”,company,” and “the Company” to refer to Newtek Business Services Corp.NewtekOne, Inc. and its subsidiaries in this report. We also have used several other terms in this report, which are explained or defined below:

Terms
Terms
1940 ActInvestment Company Act of 1940, as amended
2016-12017-1 TrustNewtek Small Business Loan Trust, Series 2016-12017-1, terminated in February 2023
20212018-1 TrustNewtek Small Business Loan Trust, Series 2018-1
2019-1 TrustNewtek Small Business Loan Trust, Series 2019-1
2021-1 TrustNewtek Small Business Loan Trust, Series 2021-1
2022-1 TrustNewtek Small Business Loan Trust, Series 2022-1
2023-1 TrustNewtek Small Business Loan Trust, Series 2023-1
2024 Notes5.75% Notes due 2024
2025 6.85% Notes6.85% Notes due 2025, redeemed in May 2022
2025 5.00% Notes5.00% Notes due 2025
2025 8.125% Notes8.125% Notes due 2025
2025 NotesCollectively, the 2025 6.85% Notes, the 2025 5.00% Notes and the 8.125% Notes due 2025
2026 Notes5.50% Notes due 2026
2028 Notes7%8.00% Notes due 20212028
2022 NotesABL7.5% Notes due 2022Asset based lending
ASCACLAllowance for credit losses
AcquisitionThe Company’s Acquisition of NBNYC, pursuant to which the Company acquired from the NBNYC shareholders all of the issued and outstanding stock of NBNYC
ALPAlternative Lending Program
ASCAccounting Standards Codification, as issued by the FASB
ASUAccounting Standards Updates, as issued by the FASB
2023 ATM Equity Distribution AgreementAtEquity Distribution Agreement, dated November 17, 2023, by and among the Market equity distribution agreement dated March 20, 2017 with JMP Securities, LLC, Compass Point Research & Trading, LLCCompany and Ladenburg Thalman & Co., Inc., each Placement Agents. Amended and restated on September 6, 2017 to include D.A. Davidson as a Placement Agentthe placement agents
BDCBusiness Development Company under the 1940 Act
BoardThe Company's board of directors
Capital OneCapital One Bank, N.A.National Association
CodeC&IConventional commercial and industrial loans
CodeInternal Revenue Code of 1986, as amended
DRIPCREDividendCommercial real estate
Deutsche BankDeutsche Bank AG
DIFDeposit Insurance Fund of the FDIC
DRIPThe Company's former dividend reinvestment plan
EBITDAEarnings before interest, taxes, depreciation and amortization
Equity2015 Stock Incentive PlanThe Company's 2015 EquityStock Incentive Plan
2023 Stock Incentive PlanThe Company’s 2023 Stock Incentive Plan
ESPPEmployee Stock Purchase Program
Exchange ActSecurities and Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
Goldman FacilityFederal ReserveCredit and Guaranty Agreement between UPSW and NTS and GS Bank; amended on September 18, to include Premier as a borrower; amended on June 21, 2017 to include BSP and SBL as borrowersBoard of Governors of the Federal Reserve System
Goldman SachsFDICGoldman Sachs BankFederal Deposit Insurance Corporation
LIBORFVFair Value
HFIHeld for investment
HFSHeld for sale
LIBORLondon Interbank Offered Rate
Related Party RLOCLCMUnsecured revolving lineLower of credit agreement between UPSW, NTS, Premier, BSP and SBL as lenders and Newtek as borroweramortized cost basis or fair value
4


LTVLoan-to-Value
PLPNAVNet Asset Value
NBNYCNational Bank of New York City, which has been renamed Newtek Bank, National Association
OCCOffice of the Comptroller of the Currency
PCDPurchased Financial Assets with Credit Deterioration
PLPPreferred LenderLenders Program, as authorized by the SBA
RICPPPPaycheck Protection Program
RICRegulated investment company under the Code
S&PStandard and Poor's
SBAUnited States Small Business Administration
SECU.S. Securities and Exchange Commission
SMBSmall-and-medium sized businesses
SterlingSPV I Capital One FacilitySterling National Bank
Sterling 504 FacilityLoanRevolving Credit and Security Agreement between NBCSNBL SPV I, LLC, a wholly-owned subsidiary of Holdco 6, and Sterling, as lender to fund SBA 504 loansCapital One
Sterling Receivable and InventorySPV II Deutsche Bank FacilityLoanRevolving Credit and Security Agreement between NBCSNBL SPV II, LLC, a wholly-owned subsidiary of Holdco 6, and Sterling, as lender to fund accounts receivable and inventory financing arrangementsDeutsche Bank
Taxable SubsidiariesSPV III One Florida Bank FacilityCompanies formed by Newtek which are taxed as corporations for income tax purposesRevolving Credit and Security Agreement between NBL SPV III, LLC, a wholly-owned subsidiary of Holdco 6, and One Florida Bank
TrusteeStock Purchase AgreementStock Purchase Agreement dated August 2, 2021, between the Company, NBNYC and certain NBNYC shareholders to acquire all of the issued and outstanding stock of NBNYC, as amended through December 12, 2022
TrusteeU.S. Bank, N.A.National Association
TSO IITSO II Booster Aggregator, L.P.
U.S. GAAP or GAAPGenerally accepted accounting principles in the United States
WebsterWebster Bank, N.A.
Portfolio Companies
Subsidiaries and SubsidiariesJoint Ventures



NSBF
NSBFNewtek Small Business Finance, LLC, a consolidated subsidiary which operates as a nationally licensed SBA lender under the federal Section 7(a) program with PLP status
UPSWNBLUniversal ProcessingNewtek Business Lending, LLC, a former wholly-owned subsidiary of Newtek Bank merged into SBL on May 2, 2023
NCLNewtek Commercial Lending, Inc, a consolidated subsidiary
NCL JVNewtek Conventional Lending, LLC, a 50% owned joint venture
Newtek BankNewtek Bank, National Association, a consolidated subsidiary
Holdco 6Newtek Business Services of Wisconsin, LLC dba Holdco 6, Inc., a consolidated subsidiary
TSO JVNewtek-TSO II Conventional Credit Partners, LP, a 50% owned joint venture
NMSNewtek Merchant Solutions, LLC, a wholly-owned controlled portfolio company which markets credit and debit card processing services, check approval services, processing equipment and softwareconsolidated subsidiary
PremierMobil MoneyPremier PaymentsMobil Money, LLC, a wholly-owned controlled portfolio company which markets credit and debit card processing services, check approval services, processing equipment and softwareconsolidated subsidiary
NTSNewtek Technology Solutions, Inc., a wholly-owned controlled portfolio company that provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery and other related servicesconsolidated subsidiary
IPMInternational Professional Marketing, Inc., a wholly-owned controlled portfolio company which provides consulting, design and implementation of technology solutions for enterprise and commercial clients
SIDCOSIDCO, LLC dba Cloud Nine, a wholly-owned controlled portfolio company which provides consulting, design and implementation of technology solutions for enterprise and commercial clients
EWSNBCExcel WebSolutions, LLC, a controlled portfolio company which provides web design services to SMB's
NBCSCDS Business Services, Inc. dba Newtek Business Credit Solutions, a wholly-owned controlled portfolio company which provides receivable and inventory financing, management services and managerial assistance to SMBs and originates loans under the SBA 504 loan programconsolidated subsidiary
SBLSmall Business Lending, LLC, a wholly-owned controlled portfolio company which provides third-party loan services for SBA and non-SBA loanswholly owned subsidiary of Newtek Bank
BSPPMTADR Partners, LLC dba banc-serv Partners, LLC, a wholly-owned controlled portfolio company which provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing
NPSPMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a wholly-owned controlled portfolio company which provides payroll management, payment and tax reporting services to SMBsconsolidated subsidiary
NIANewtek Insurance Agency, LLC, a wholly-owned controlled portfolio company which specializes in the sale of commercial and health/benefits insurance products to the SMB market as well as various personal lines of insuranceconsolidated subsidiary
TAMTitanium Asset Management, LLC, a wholly-owned controlled portfolio company which provides 24/7 customer service and call center supportconsolidated subsidiary
EMCAPEMCAP Loan Holdings, LLC
POSPOS on Cloud, LLC, dba Newtek Payment Systems, a 88.34% owned consolidated subsidiary
5







NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 September 30, 2017 December 31, 2016
ASSETS(Unaudited) (Note 1)
Investments, at fair value   
SBA unguaranteed non-affiliate investments (cost of $265,132 and $219,784, respectively; includes $176,934 and $197,927, respectively, related to securitization trusts)$257,136
 $211,471
SBA guaranteed non-affiliate investments (cost of $21,637 and $10,262, respectively)24,088
 11,512
Controlled investments (cost of $58,891 and $41,001, respectively)136,949
 121,302
Non-control/non-affiliate investments (cost of $0 and $904, respectively)
 904
Investments in money market funds (cost of $9 and $35, respectively)9
 35
Total investments at fair value418,182
 345,224
Cash and cash equivalents3,915
 2,051
Restricted cash26,602
 20,845
Broker receivable25,003
 2,402
Due from related parties2,553
 3,748
Servicing assets, at fair value19,092
 16,246
Other assets10,980
 10,934
Total assets$506,327
 $401,450
LIABILITIES AND NET ASSETS   
Liabilities:   
Bank notes payable$66,146
 $5,100
Notes due 2022 (Note 7)7,915
 7,853
Notes due 2021 (Note 7)39,027
 38,767
Notes payable - Securitization trusts (Note 7)95,376
 118,122
Notes payable - related parties20,541
 1,400
Due to related parties812
 1,227
Deferred tax liabilities5,240
 5,983
Accounts payable, accrued expenses and other liabilities15,658
 13,904
Total liabilities250,715
 192,356
Commitments 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, 17,730 and 14,624 issued and outstanding, respectively)355
 293
Additional paid-in capital234,955
 188,472
(Distributions in excess of)/undistributed net investment income(3,069) 8,092
Net unrealized appreciation, net of deferred taxes11,347
 13,008
Net realized gains/(losses)12,024
 (771)
Total net assets255,612
 209,094
Total liabilities and net assets$506,327
 $401,450
Net asset value per common share$14.40
 $14.30
NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, except for Per Share Data)
March 31, 2024December 31, 2023
ASSETS(Unaudited)
Cash and due from banks$12,295 $15,398 
Restricted cash35,759 30,919 
Interest bearing deposits in banks115,152 137,689 
Total cash and cash equivalents163,206 184,006 
Debt securities available-for-sale, at fair value28,127 32,171 
Loans held for sale, at fair value187,104 118,867 
Loans held for sale, at LCM59,880 56,607 
Loans held for investment, at fair value442,928 469,801 
Loans held for investment, at amortized cost, net of deferred fees and costs397,625 336,305 
Allowance for credit losses(16,126)(12,574)
Loans held for investment, at amortized cost, net381,499 323,731 
Federal Home Loan Bank and Federal Reserve Bank stock3,773 3,635 
Settlement receivable56,890 62,230 
Joint ventures, at fair value (cost of $45,108 and $37,864), respectively48,247 40,859 
Non-control investments (cost of $772 and $796), respectively728 728 
Goodwill and intangibles29,944 30,120 
Right of use assets5,193 5,701 
Deferred tax asset, net2,717 5,230 
Servicing assets41,172 39,725 
Other assets58,169 56,102 
Total assets$1,509,577 $1,429,513 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 Liabilities:
Deposits:
Noninterest-bearing$5,466 $10,053 
Interest-bearing507,476 453,452 
Total deposits512,942 463,505 
Borrowings662,488 644,122 
Dividends payable5,038 4,792 
Lease liabilities6,344 6,952 
Due to participants26,647 23,796 
Accounts payable, accrued expenses and other liabilities41,986 37,300 
Total liabilities1,255,445 1,180,467 
Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)19,738 19,738 
Common stock (par value $0.02 per share; authorized 199,980 shares, 24,715 and 24,680 shares issued and outstanding, respectively)493 492 
Additional paid-in capital201,431 200,913 
Retained earnings32,611 28,051 
Accumulated other comprehensive loss, net of income taxes(141)(148)
Total shareholders' equity254,132 249,046 
Total liabilities and shareholders' equity$1,509,577 $1,429,513 

1
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)
 Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Investment income:       
From non-affiliate investments:       
Interest income$4,363
 $2,583
 $13,233
 $7,404
Servicing income1,794
 1,551
 5,163
 4,581
Other income705
 692
 2,266
 1,913
Total investment income from non-affiliate investments6,862
 4,826
 20,662
 13,898
From controlled investments:       
Interest income188
 92
 456
 251
Dividend income2,551
 2,933
 7,326
 7,719
Other income
 
 54
 
Total investment income from controlled investments2,739
 3,025
 7,836
 7,970
Total investment income9,601
 7,851
 28,498
 21,868
Expenses:       
Salaries and benefits4,776
 3,665
 14,407
 10,638
Interest2,986
 2,341
 8,133
 5,804
Depreciation and amortization107
 84
 292
 209
Professional fees605
 807
 2,054
 2,519
Origination and servicing1,433
 1,537
 4,086
 4,190
Change in fair value of contingent consideration liabilities(748) 
 (748) 
Other general and administrative costs1,634
 1,542
 5,239
 6,094
Total expenses10,793
 9,976
 33,463
 29,454
Net investment loss(1,192) (2,125) (4,965) (7,586)
Net realized and unrealized gains (losses):       
Net realized gain on non-affiliate investments9,938
 8,716
 27,537
 22,536
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments1,151
 (78) 1,201
 690
Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments(1,023) 1,418
 238
 869
Net unrealized (depreciation) appreciation on controlled investments(500) 4,638
 (2,243) 10,362
Change in provision for deferred taxes on unrealized depreciation (appreciation) on investments335
 (2,028) 745
 (4,469)
Net unrealized depreciation on non-control/non-affiliate investments
 
 
 (43)
Net unrealized depreciation on servicing assets(632) (500) (1,601) (1,341)
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash
 (1) 
 (2)
Net realized and unrealized gains9,269
 12,165
 25,877
 28,602
Net increase in net assets$8,077
 $10,040
 $20,912
 $21,016
Net increase in net assets per share$0.46
 $0.69
 $1.22
 $1.45
Net investment loss per share$(0.07) $(0.15) $(0.29) $(0.52)
Dividends declared per common share$0.44
 $0.43
 $1.20
 $1.13
Weighted average shares outstanding17,487
 14,556
 17,076
 14,515

2
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)
 Nine Months Ended September 30, 2017
Increase in net assets: 
Net investment loss$(4,965)
Net realized gains on investments27,537
Net change in unrealized depreciation on investments(59)
Net change in unrealized depreciation on servicing assets(1,601)
Net increase in net assets20,912
Distributions to common stockholders: 
Dividends to common stockholders from net investment income(6,151)
Distributions to stockholders from net realized gains(14,686)
Total distributions to stockholders(20,837)
Capital share transactions: 
Issuance of common stock under dividend reinvestment plan475
Stock-based compensation expense904
Issuance of common stock in connection with investment in International Professional Marketing, Inc.1,000
Purchase of vested stock for employee payroll tax withholding(644)
Issuance of common stock, net of offering costs44,708
Net increase in net assets from capital share transactions46,443
Total increase in net assets46,518
Net assets at beginning of period209,094
Net assets at end of period (includes $3,069 of distributions in excess of net investment income)$255,612
Common shares outstanding at end of period17,750
Capital share activity: 
Shares issued under dividend reinvestment plan30
Shares issued in connection with public offerings3,043
Shares issued in connection with investment in International Professional Marketing, Inc.61
Purchase of vested stock for employee payroll tax withholding(38)
Restricted shares issued under Equity Incentive Plan, net of forfeitures10
Net increase in capital activity3,106

3
See accompanying notes to unaudited condensed consolidated financial statements.





NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Cash flows from operating activities:   
Net increase in net assets$20,912
 $21,016
Adjustments to reconcile net increase in net assets to net cash used in operating activities:   
Net unrealized depreciation (appreciation) on controlled investments2,243
 (10,362)
Net unrealized appreciation on non-affiliate investments(1,438) (1,516)
Net unrealized depreciation on servicing assets1,602
 1,341
Realized gains on non-affiliate investments(27,668) (23,299)
Realized losses on non-affiliate investments131
 763
Loss on lease249
 1,335
Amortization of deferred financing costs1,075
 921
Change in fair value of contingent consideration liabilities748
 
Deferred income taxes(745) 4,469
Depreciation and amortization292
 209
Purchase of loan from SBA(3,821) (2,057)
Purchase of SBA 7(a) loan portfolio(175) 
Funding of controlled investments(27,000) (6,175)
Funding of non-control/non-affiliate investments(3,255) (1,020)
Originations of SBA guaranteed non-affiliate investments(200,620) (166,212)
Principal payments received from controlled investments12,332
 1,800
Principal payments received from non-control/non-affiliate investments3,255
 910
Return of investment from controlled investment50
 
Proceeds from sale of SBA guaranteed non-affiliate investments217,016
 183,452
Originations of SBA unguaranteed non-affiliate investments(62,185) (51,567)
Payments received on SBA non-affiliate investments20,327
 15,336
Other, net1,139
 527
Changes in operating assets and liabilities:   
Net decrease in investments in money market funds26
 
Broker receivable(22,601) 10,588
Due to/from related parties780
 542
Other assets437
 470
Accounts payable, accrued expenses and other liabilities(133) 1,300
Change in restricted cash(4,585) (1,923)
Capitalized servicing assets(4,447) (3,919)
Other, net(80) 23
Net cash used in operating activities(76,139) (23,048)
Cash flows from investing activities:   
Purchase of fixed assets(345) (294)
Cash flows from financing activities:   
Net borrowings on bank lines of credit61,046
 20,819

4
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Net borrowings on related party line of credit19,141
 1,753
Repurchase of common stock under share repurchase plan
 (866)
Proceeds from common shares sold, net of offering costs44,708
 
Purchase of vested stock for employee payroll tax withholding(644) 
Proceeds from Notes due 2021
 40,250
Dividends paid(20,836) (22,168)
Payments on Notes Payable - Securitization Trusts(23,414) (16,297)
Change in restricted cash related to securitization trusts(1,172) 11
Additions to deferred financing costs(480) (1,740)
Other, net(1) (10)
Net cash provided by financing activities78,348
 21,752
Net increase (decrease) in cash and cash equivalents1,864
 (1,590)
Cash and cash equivalents—beginning of period2,051
 4,308
Cash and cash equivalents—end of period$3,915
 $2,718
    
Supplemental disclosure of cash flow activities:   
Non-cash operating, investing and financing activities:   
Reduction of credits in lieu of cash and notes payable in credits in lieu of cash balances due to delivery of tax credits$
 $652
Foreclosed real estate acquired$212
 $387
Issuance of common shares in connection with investment in International Professional Marketing, Inc.$1,000
 $
Issuance of common stock under dividend reinvestment plan$477
 $588
Fixed assets acquired from tenant improvement allowance$
 $1,288


5
See accompanying notes to unaudited condensed consolidated financial statements.





NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Performing SBA Unguaranteed Investments (1)                
Dan Cline Transport Inc. Truck Transportation Term Loan Prime plus 2.75% 9/29/2030
 $1,005.5
 $1,005.5
 $895.1
 0.35%
Lone Star Hardware and Home Decor, LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/29/2027
 72.5
 72.5
 62.8
 0.02%
Threads of Time LLC Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 9/29/2042
 137.5
 137.5
 136.6
 0.05%
Miechella Suzette Decker Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/29/2042
 100.0
 100.0
 105.6
 0.04%
Harco Metal Products Inc Primary Metal Manufacturing Term Loan Prime plus 2.75% 9/29/2042
 489.0
 489.0
 467.3
 0.18%
SSN GROUP LLC and Dockside Steel Processing LLC Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/29/2042
 1,250.0
 1,250.0
 1,264.9
 0.49%
Sashshel Corporation Food Services and Drinking Places Term Loan Prime plus 2.75% 9/29/2042
 212.5
 212.5
 224.4
 0.09%
Dr Richard Rolle JR, PLLC dba Rolle Oral & Facial Surgery PLLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/29/2042
 875.0
 875.0
 864.0
 0.34%
Cagwin Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 9/29/2042
 325.0
 325.0
 336.8
 0.13%
Pets A Go Go LLC Personal and Laundry Services Term Loan Prime plus 2.75% 9/28/2042
 198.1
 198.1
 202.6
 0.08%
Rhode Island Tennis Management LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/28/2042
 550.0
 550.0
 545.3
 0.21%
Nicholson Lumber Co Inc. Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/28/2030
 215.0
 215.0
 211.5
 0.08%
National Media Services, Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/28/2027
 18.8
 18.8
 16.2
 0.01%
Rhode Island Tennis Management LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/28/2042
 383.0
 383.0
 379.7
 0.15%
Moreno Brother's Inc. Food and Beverage Stores Term Loan Prime plus 2.75% 9/28/2027
 15.0
 15.0
 12.9
 0.01%
Complete Care IT LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/27/2027
 15.0
 15.0
 12.9
 0.01%
Technologist Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/27/2027
 434.5
 434.5
 411.9
 0.16%
Inspirations Food Design, Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 9/26/2042
 466.0
 466.0
 468.5
 0.18%

6
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEKONE, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Thousands, except for Per Share Data)
Three Months Ended March 31,
20242023
(as restated)
Interest income
Debt securities available-for-sale$460 $232 
Loans and fees on loans24,985 17,502 
Other interest earning assets1,622 981 
Total interest income27,067 18,715 
Interest expense
Deposits5,576 1,475 
Notes and securitizations10,827 8,718 
Bank and FHLB borrowings1,758 3,939 
Total interest expense18,161 14,132 
Net interest income8,906 4,583 
Provision for credit losses4,015 1,318 
Net interest income after provision for credit losses4,891 3,265 
Noninterest income
Dividend income386 504 
Loan servicing asset revaluation(1,735)919 
Servicing income5,357 4,403 
Net gains on sales of loans20,292 6,367 
Net gain on loans under the fair value option2,798 5,905 
Technology and IT support income5,770 6,709 
Electronic payment processing income10,987 10,328 
Other noninterest income5,512 7,221 
Total noninterest income49,367 42,356 
Noninterest expense
Salaries and employee benefits expense20,506 19,073 
Technology services expense3,408 3,803 
Electronic payment processing expense4,846 4,504 
Professional services expense4,565 3,440 
Other loan origination and maintenance expense2,244 2,781 
Depreciation and amortization532 791 
Other general and administrative costs5,058 4,631 
Total noninterest expense41,159 39,023 
Net income before taxes13,099 6,598 
Income tax expense (benefit)3,449 (11,952)
Net income9,650 18,550 
Dividends to preferred shareholders(400)(249)
Net income available to common shareholders$9,250 $18,301 
Earnings per common share:
Basic$0.38 $0.76 
Diluted$0.38 $0.74 
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Rollins Construction & Trucking LLC Construction of Buildings Term Loan Prime plus 2.75% 9/26/2027
 341.3
 341.3
 332.0
 0.13%
JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of Brooklyn Food Services and Drinking Places Term Loan Prime plus 2.75% 9/22/2027
 22.5
 22.5
 19.6
 0.01%
KB Waterjet Cutting LLC Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/22/2027
 10.2
 10.2
 9.3
 %
Magnation Corporation Utilities Term Loan Prime plus 2.75% 9/22/2027
 50.0
 50.0
 50.8
 0.02%
Sallee Pro-Custom Fabrication Shop LLC Repair and Maintenance Term Loan Prime plus 2.75% 9/21/2027
 9.0
 9.0
 9.2
 %
Excel, RP Inc. Machinery Manufacturing Term Loan Prime plus 2.75% 9/20/2027
 100.0
 100.0
 92.2
 0.04%
Denek Contracting Inc and Denek Leasing LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 9/20/2042
 209.8
 209.8
 221.5
 0.09%
Max Home Deliveries, Inc Couriers and Messengers Term Loan Prime plus 2.75% 9/20/2027
 80.8
 80.8
 73.8
 0.03%
CR Park Incorporated dba Define Body and Mind Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/20/2027
 100.0
 27.5
 26.8
 0.01%
Sound Manufacturing, Inc. & Monster Power Equipment, Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/20/2027
 200.0
 200.0
 189.1
 0.07%
Alpha Preparatory Academy LLC Social Assistance Term Loan Prime plus 2.75% 9/20/2042
 162.5
 162.5
 160.7
 0.06%
Montessori Community School Social Assistance Term Loan Prime plus 2.75% 9/20/2042
 391.5
 391.5
 380.8
 0.15%
NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York Rental and Leasing Services Term Loan Prime plus 2.75% 9/20/2027
 1,027.5
 1,027.5
 978.6
 0.38%
Imagine By Carleen, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 9/20/2027
 7.5
 7.5
 7.3
 %
Alexander Pierce Corporation Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/20/2042
 625.0
 625.0
 621.9
 0.24%
Venus Pizza, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 9/20/2042
 91.3
 91.3
 96.3
 0.04%
Insight Diagnostic Technologist Services Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/20/2027
 302.8
 302.8
 271.7
 0.11%
Commonwealth Diagnostics International, Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/20/2027
 1,250.0
 1,250.0
 1,271.2
 0.50%
Stone's Construction and Remodeling, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 9/19/2027
 5.3
 5.3
 4.5
 %
CIS BIG DOG, LLC Administrative and Support Services Term Loan Prime plus 2.75% 9/19/2027
 61.3
 61.3
 61.1
 0.02%

7
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(In Thousands, except for Per Share Data)
Three Months Ended March 31,
20242023
(as restated)
Net income$9,650 $18,550 
Other comprehensive gain (loss) before tax:
Net unrealized gain (loss) on debt securities available-for-sale during the period(113)
Other comprehensive gain (loss) before tax(113)
Income tax (expense) benefit(2)31 
Other comprehensive income (loss), net of tax(82)
Comprehensive income$9,657 $18,468 
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Party By Design Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 9/18/2042
 1,205.0
 1,205.0
 1,188.4
 0.46%
Li Family Spokane LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/15/2042
 384.5
 384.5
 395.6
 0.15%
SD Kickboxing LLC dba CKO Kickboxing Dan Diego Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/15/2027
 40.0
 40.0
 36.0
 0.01%
Clark Realty LLC Real Estate Term Loan Prime plus 2.75% 9/15/2027
 62.5
 62.5
 57.3
 0.02%
Inglis Food Mart Inc. Food and Beverage Stores Term Loan Prime plus 2.75% 9/15/2027
 22.5
 22.5
 22.3
 0.01%
Clinton Food Market LLC Gasoline Stations Term Loan Prime plus 2.75% 9/15/2042
 262.5
 262.5
 262.1
 0.10%
Tarleton & Family Landscaping, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/15/2027
 83.8
 83.8
 74.7
 0.03%
Alaska Motor Home Inc Rental and Leasing Services Term Loan Prime plus 2.75% 9/13/2027
 331.5
 331.5
 285.7
 0.11%
Fox Valley Rentals & Investments, LLC Food Services and Drinking Places Term Loan Prime plus 3.75% 9/13/2027
 7.5
 7.5
 7.5
 %
Nails By Mercede LLC Personal and Laundry Services Term Loan Prime plus 2.75% 9/13/2027
 14.3
 14.3
 13.3
 0.01%
Town & Country Transportation Co. and Popco, LLC. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/12/2042
 168.8
 168.8
 178.2
 0.07%
Rajbai Maa Inc. dba Nara Lounge Food Services and Drinking Places Term Loan Prime plus 2.75% 9/12/2042
 388.1
 388.1
 375.6
 0.15%
Morgan Lynn Kerstetter dba Catherine School of Dance Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 9/11/2027
 7.5
 7.5
 7.6
 %
Health & Performance Center, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/11/2027
 20.4
 20.4
 17.6
 0.01%
Foxtail, LLC and Tottly New Services Corp Social Assistance Term Loan Prime plus 2.75% 9/8/2042
 291.3
 291.3
 291.8
 0.11%
Desert Ribs, LLC and Famous Charlie, LLC and Famous Freddie, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/8/2042
 1,250.0
 1,250.0
 1,177.4
 0.46%
Echelon Planning Group, LLC dba Echelon Financial Services Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 9/8/2027
 7.5
 7.5
 7.3
 %
South Fulton Landscape & Nursery, Inc. Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/7/2042
 100.0
 100.0
 105.6
 0.04%
Crazy Beatz Productions LLC Motion Picture and Sound Recording Industries Term Loan Prime plus 3.75% 9/7/2027
 5.3
 5.3
 5.0
 %

8
See accompanying notes to unaudited condensed consolidated financial statements.



Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Dreaming Big Learning Center Inc Social Assistance Term Loan Prime plus 2.75% 9/5/2042
 367.8
 367.8
 368.2
 0.14%
Big Coop's Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 9/1/2027
 100.0
 100.0
 93.8
 0.04%
Blue Eagel Transport Inc Couriers and Messengers Term Loan Prime plus 2.75% 8/31/2027
 383.5
 383.5
 330.6
 0.13%
Evernook Valley Milk LLC Animal Production and Aquaculture Term Loan Prime plus 2.75% 8/31/2042
 642.5
 642.5
 639.5
 0.25%
Bark Life, Inc. Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/31/2027
 22.5
 22.5
 19.4
 0.01%
The Pink Alli, LLC dba The Alli Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/30/2027
 18.0
 18.0
 16.1
 0.01%
Busby Outdoor LLC Real Estate Term Loan Prime plus 2.75% 8/29/2042
 700.0
 700.0
 631.0
 0.25%
Busby Outdoor LLC Real Estate Term Loan Prime plus 2.75% 8/29/2042
 550.0
 550.0
 495.8
 0.19%
Lake County Tow LLC Support Activities for Transportation Term Loan Prime plus 2.75% 8/25/2042
 87.5
 87.5
 87.0
 0.03%
Parlay Disributors LLC Educational Services Term Loan Prime plus 2.75% 8/25/2027
 112.5
 112.5
 98.5
 0.04%
InUSA Ventures Inc dba InUSA Services Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 8/24/2027
 25.0
 25.0
 21.5
 0.01%
Genuine Ventures LLC and Seaweed Ventures LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 8/24/2030
 557.8
 557.8
 521.4
 0.20%
R & R Strength & Conditioning Corp dba Crossfit Light House Point Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 8/23/2042
 82.5
 82.5
 87.1
 0.03%
Delicias de Minas Restaurant, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 8/22/2027
 206.3
 206.3
 201.2
 0.08%
The Holder Grooup LLC Repair and Maintenance Term Loan Prime plus 2.75% 8/22/2027
 7.5
 7.5
 6.5
 %
L&V Auto Sales, Inc. Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 8/21/2027
 18.0
 18.0
 18.3
 0.01%
M.E. Interiors LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/21/2027
 16.5
 16.5
 14.2
 0.01%
Damiano Global Corp Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/21/2027
 22.5
 22.5
 21.1
 0.01%
Tier1Solutions, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/18/2027
 18.8
 18.8
 16.8
 0.01%
NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In Thousands, except for Per Share Data)
 Common stock Preferred stock Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total equity
 Shares Amount Shares Amount
Balance at December 31, 202324,680 $492 20 $19,738 $200,913 $(148)$28,051 $249,046 
Stock-based compensation expense, net of forfeitures— — — — 681 — — 681 
Dividends declared related to RSA, net of accrued dividends forfeited— — — 73 — (73)— 
Purchase of vested stock for employee payroll tax withholding(21)— — — (253)— — (253)
Restricted stock awards, net of forfeitures45 — — — — — 
ESPP issuances— — — 56 — — 56 
Amortization of offering costs— — — — (39)— — (39)
Dividends declared common shares ($0.19/share)— — — — — — (4,617)(4,617)
Dividends declared preferred shares ($20.00/share)— — — — — — (400)(400)
Net income (loss)— — — — — — 9,650 9,650 
Other comprehensive loss, net of tax— — — — — — 
Balance at March 31, 202424,715 $493 20 $19,738 $201,431 $(141)$32,611 $254,132 






9
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(As Restated)
(In Thousands, except for Per Share Data)
Common stockPreferred stockAdditional paid-in-capitalAccumulated other comprehensive incomeAccumulated undistributed earningsRetained earningsTotal equity
SharesAmountSharesAmount
Balance at December 31, 202224,609 $492 — $— $354,243 $— $20,623 $— $375,358 
Conversion from BDC to Bank Holding Company Adjustments:
Change in presentation— — — — 20,623 — (20,623)— — 
Removal of fair value adjustments— — — — (138,043)— — — (138,043)
Consolidation of controlled investments— — — 245 (57,970)— — — (57,725)
Reassessment of deferred tax assets and liabilities— — — — 19,266 — — — 19,266 
DRIP shares issued— — — 72 — — — 72 
Stock-based compensation expense, net of forfeitures— — — — 738 — — — 738 
Dividends declared related to RSA, net of accrued dividends forfeited— — — 59 — — (59)— 
Purchase of vested stock for employee payroll tax withholding(11)(1)— — (428)— — — (429)
Issuance of Preferred stock— — 20 20,000 — — — — 20,000 
Preferred stock issuance costs— — — (507)— — — — (507)
Dividends declared common shares ($0.18/share)— — — — — — — (4,363)(4,363)
Dividends declared preferred shares ($12.27/share)— — — — — — — (249)(249)
Net income (loss)— — — — — — — 18,550 18,550 
Other comprehensive loss, net of tax— — — — — (82)— — (82)
Balance at March 31, 202324,609 $491 20 $19,738 $198,560 $(82)$— $13,879 $232,586 
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Tony Herring & Associates, Inc Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 8/17/2027
 7.5
 7.5
 6.5
 %
Chester's World Enterprise LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 8/16/2027
 22.5
 22.5
 20.3
 0.01%
D'Amato & Sons Construction, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 8/11/2027
 8.3
 8.3
 7.5
 %
HTP LLC dba Hot Tomatoes Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 8/11/2027
 11.3
 11.3
 10.5
 %
Roundhay Partners LLC and Roundhay Farming LLC Crop Production Term Loan Prime plus 2.75% 8/8/2042
 912.5
 912.5
 830.5
 0.32%
Splashlight LLC, Splashlight Photographic and Digital Studios, LLC Management of Companies and Enterprises Term Loan Prime plus 2.75% 8/7/2027
 500.0
 500.0
 446.8
 0.17%
L & J Corporate Services Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/4/2027
 7.5
 7.4
 6.5
 %
Furniture Masters Limited Liability Company Repair and Maintenance Term Loan Prime plus 2.75% 8/3/2027
 9.0
 9.0
 7.8
 %
HMG Strategy LLC, Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/2/2027
 50.0
 50.0
 43.1
 0.02%
Hope Health Care, LLC Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 7/31/2027
 10.5
 10.4
 9.0
 %
Bowl Mor LLC dba Bowl Mor Lanes Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/31/2027
 7.5
 7.5
 6.4
 %
Royal Blue Investments, Inc. and Cleland Pharmacy LLC Health and Personal Care Stores Term Loan Prime plus 2.75% 7/31/2042
 53.0
 52.9
 54.7
 0.02%
Raffi's Inc dba Atlantic Auto Center Repair and Maintenance Term Loan Prime plus 2.75% 7/31/2027
 14.3
 14.2
 14.1
 0.01%
Sharon G McMillen, MA Psychologist, Inc. Ambulatory Health Care Services Term Loan Prime plus 2.75% 7/28/2027
 18.6
 18.5
 15.9
 0.01%
Work of Heart Inc.dba Little Nest Portraits Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/28/2027
 50.0
 21.4
 18.7
 0.01%
HQTRONIC LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 7/27/2027
 22.5
 22.4
 19.3
 0.01%
Oberon IT, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/26/2027
 218.7
 217.5
 198.7
 0.08%
Gilles Peress Studio LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/25/2027
 62.5
 62.1
 53.6
 0.02%
Ocean Trans LLC Truck Transportation Term Loan Prime plus 2.75% 7/21/2027
 37.5
 37.3
 32.1
 0.01%

10
See accompanying notes to unaudited condensed consolidated financial statements.



Table of Contents

NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
Three Months Ended March 31,
20242023
(as restated)
Cash flows from operating activities:
Net income$9,650 $18,550 
Adjustments to reconcile net income to net cash used in operating activities:
Net appreciation on joint ventures and non-control investments(169)(2,000)
Net gain on loans accounted for under the fair value option(2,798)(5,905)
Net unrealized depreciation (appreciation) on servicing assets1,735 (919)
Net unrealized (appreciation) depreciation on derivative transactions(592)495 
Net gain on sales of loans(20,292)(6,367)
Net accretion of premium/discount(61)— 
Amortization of deferred financing costs987 1,249 
Provision for credit losses4,015 (1,318)
Lower of cost or market adjustment on loans held for sale221 — 
Allowance for doubtful accounts167 — 
Stock compensation expense681 739 
Deferred income tax expense (benefit)2,513 (11,739)
Depreciation and amortization532 791 
Proceeds from sale of loans held for sale184,332 121,575 
Sale (purchase) of loans held for sale from affiliate22,531 (5,295)
Purchase of loans held for sale— (5,797)
Funding of loans held for sale(255,727)(156,742)
Principal received on loans held for sale1,638 1,347 
Other, net— 180 
Changes in operating assets and liabilities:
Settlement receivable5,340 (41,427)
Capitalized servicing asset— (2,164)
Other assets(1,430)6,692 
Dividends payable246 — 
Due to participants2,852 (7,447)
Accounts payable, accrued expenses and other liabilities4,955 (20,816)
Other, net— (41)
Net cash used in operating activities(38,674)(116,359)
Cash flows from investing activities:
Net decrease (increase) in loans held for investment, at fair value21,688 (7,595)
Net (increase) decrease in loans held for investment, at cost(62,123)269 
Contributions to joint ventures(7,243)— 
Purchase of fixed assets(57)(165)
Return of capital - non-control investments24 — 
Net (increase) decrease in Federal Home Loan and Federal Reserve Bank stock(138)242 
Sales (purchases) of available-for-sale securities, net of maturities4,044 (27,901)
Acquisitions, net of cash acquired— 11,252 
Net cash used in investing activities(43,805)(23,898)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Obok LLC Food Manufacturing Term Loan Prime plus 2.75% 7/21/2027
 12.0
 11.9
 11.1
 %
Lil Tots' Learning Center LLC Social Assistance Term Loan Prime plus 2.75% 7/21/2042
 47.5
 47.4
 47.2
 0.02%
Nova Solutions, Inc. Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 7/19/2027
 25.0
 24.9
 24.3
 0.01%
Webb Eye Associates, PA Ambulatory Health Care Services Term Loan Prime plus 2.75% 7/19/2027
 73.8
 73.3
 69.5
 0.03%
Matrix Z LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 3.75% 7/19/2027
 7.5
 7.5
 7.6
 %
Aitheras Aviation Group, LLC, Aitheras Aviation Group, LLC Air Transportation Term Loan Prime plus 2.75% 7/18/2027
 825.0
 819.9
 711.5
 0.28%
Wildflour Bakery & Cafe, LLC Food Manufacturing Term Loan Prime plus 2.75% 7/17/2027
 22.5
 22.4
 22.7
 0.01%
Florida Home and Kitchen LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/14/2027
 12.0
 11.9
 10.3
 %
Koep Companies dba Pipestone True value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 7/14/2042
 326.5
 326.1
 318.4
 0.12%
Rocks Auto Exchange LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 7/13/2027
 15.0
 14.9
 12.9
 0.01%
McCord Holdings, Inc. dba Fast Signs 176101 Administrative and Support Services Term Loan Prime plus 2.75% 7/7/2027
 18.7
 18.6
 16.4
 0.01%
Thrifty Market Inc dba Thrifty Foods Food and Beverage Stores Term Loan Prime plus 2.75% 7/6/2027
 102.5
 101.9
 92.1
 0.04%
New Chicago Wholesale Bakery Inc. Food Manufacturing Term Loan Prime plus 2.75% 6/30/2027
 15.0
 14.8
 14.2
 0.01%
The Country House Restaurant, LLC and Pelton Real Estate, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2042
 50.0
 49.9
 51.4
 0.02%
Qycell Corporation Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 6/30/2027
 76.3
 75.4
 76.6
 0.03%
Bone Bar & Grill LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2042
 73.5
 73.4
 75.0
 0.03%
J. T. O'Neill Company, L.L.C Real Estate Term Loan Prime plus 2.75% 6/30/2027
 15.0
 14.8
 12.8
 0.01%
Hamilton & Associates Real Estate and Investments Firm LLC Real Estate Term Loan Prime plus 2.75% 6/30/2042
 54.0
 53.9
 54.5
 0.02%
J&M Civil Construction Services LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/30/2027
 100.0
 98.8
 85.1
 0.03%
BQRS, Inc. DBA Gresham Meineke Car Care Center Repair and Maintenance Term Loan Prime plus 2.75% 6/30/2027
 62.5
 61.8
 54.3
 0.02%

11
See accompanying notes to unaudited condensed consolidated financial statements.



Table of Contents

NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
Three Months Ended March 31,
20242023
(as restated)
Cash flows from financing activities:
Net borrowings on bank notes payable43,814 47,274 
Net increase in deposits49,098 105,933 
Repayment of Federal Home Loan Bank advances(3,484)(3,699)
Proceeds from preferred stock, net of offering costs— 19,493 
Proceeds from 2025 8.125% Notes— 50,000 
Payments on Notes Payable - Securitization Trusts(22,954)(31,015)
Dividends paid, net of dividend reinvestment plan(4,771)— 
Payments of deferred financing costs(24)(1,087)
Net cash provided by financing activities61,679 186,899 
Net (decrease) increase in cash and restricted cash(20,800)46,642 
Cash and restricted cash—beginning of period (Note 2)184,006 125,606 
Consolidation of cash and restricted cash from controlled investments and business combinations, net of cash paid— 24,896 
Cash and restricted cash—end of period (Note 2)$163,206 $197,144 
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired$1,447 $694 
Dividends declared but not paid during the period$4,617 $4,363 
Issuance of common shares under dividend reinvestment plan$— $72 
Supplemental disclosure of cash flow information:
Interest paid$19,079 $12,259 
Income taxes paid$73 $4,539 


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
JWH Designs, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/30/2027
 106.3
 105.0
 90.4
 0.04%
Safeguard Construction Company, Inc. Construction of Buildings Term Loan Prime plus 2.75% 6/30/2027
 76.3
 75.4
 64.9
 0.03%
Veola's Day Spa and Wellness Center Inc. Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/30/2027
 9.1
 9.0
 8.1
 %
Steigelbauer Associates Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 6/29/2027
 309.0
 305.4
 310.4
 0.12%
Best Bees Company Animal Production and Aquaculture Term Loan Prime plus 2.75% 6/29/2027
 22.5
 22.2
 19.2
 0.01%
Greensboro Plastic Surgical Associates, PA Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/29/2042
 578.0
 576.9
 572.0
 0.22%
Ocean Trans LLC and Dehal Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 6/29/2027
 602.5
 595.5
 512.9
 0.20%
HG Ventures, Inc. dba Diamond Head Trucking Truck Transportation Term Loan Prime plus 2.75% 6/29/2030
 1,006.7
 1,000.4
 870.4
 0.34%
Malhame & Company Publishers & Importers Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/29/2027
 90.0
 89.1
 76.9
 0.03%
Intellixion LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/29/2027
 3.7
 3.7
 3.2
 %
Oakhill Farms, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/29/2030
 100.0
 99.2
 101.0
 0.04%
ElKareh Brothers Investment, LLC (OC) Best Choice Meats Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 6/29/2027
 448.7
 443.5
 450.8
 0.18%
Miguel Fernando Borda PA dba BGR Dental Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/29/2027
 50.0
 49.4
 44.2
 0.02%
Foxhop Fitness, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/28/2027
 91.3
 91.3
 79.4
 0.03%
Akal Express Inc. dba Truck Trailer Service Stop Repair and Maintenance Term Loan Prime plus 2.75% 6/28/2042
 60.0
 59.8
 61.9
 0.02%
Old Dominion Transportation Group, Inc. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 6/28/2027
 1,133.9
 1,121.1
 987.3
 0.39%
Citibin, Inc. Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 6/27/2027
 125.0
 123.5
 106.4
 0.04%
Auxiliary Systems Inc.,Sharrick Company, LLC & KMN, LLC Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 6/27/2030
 245.3
 243.3
 241.9
 0.09%
WB Cleaners Inc. DBA $2.75 Cleaners Personal and Laundry Services Term Loan Prime plus 2.75% 6/27/2027
 22.5
 22.2
 21.9
 0.01%
Four Seasons Laser Center Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 6/26/2042
 216.3
 216.3
 215.8
 0.08%

12
See accompanying notes to unaudited condensed consolidated financial statements.



Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Ains Holding Company, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/26/2027
 1,175.0
 1,161.7
 1,023.7
 0.40%
Rustic LLC Personal and Laundry Services Term Loan Prime plus 2.75% 6/23/2042
 18.8
 18.7
 16.8
 0.01%
Vella Construction Enterprises, Inc. dba Vella Construction Construction of Buildings Term Loan Prime plus 2.75% 6/23/2027
 22.5
 22.2
 19.2
 0.01%
Northern Industries, LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 6/23/2042
 57.8
 57.6
 60.8
 0.02%
Birches Group, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/22/2027
 50.0
 49.4
 42.6
 0.02%
Tarver-Henley Inc. and Tar-Hen LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/21/2042
 320.0
 319.2
 316.6
 0.12%
704 Meat Center Inc. dba El Mercado and La Plaza Mercado Food and Beverage Stores Term Loan Prime plus 2.75% 6/20/2042
 175.0
 174.5
 180.4
 0.07%
Sanabi Investment ,,LLC dba Oscar's Moving and Storage Truck Transportation Term Loan Prime plus 2.75% 6/20/2027
 124.0
 122.6
 111.2
 0.04%
Scarlet Spartan Inc.dba FastSigns of Brighton Administrative and Support Services Term Loan Prime plus 2.75% 6/19/2027
 55.0
 55.0
 48.5
 0.02%
Don G. Timpton DDS & Associates PA and Indsaad Properties,LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/16/2042
 400.0
 399.0
 383.4
 0.15%
JAM Media Solutions, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/15/2027
 62.5
 61.8
 53.2
 0.02%
All Regional Recyclers of Wood LLC dba ARROW,Superior Carting, LLC Waste Management and Remediation Services Term Loan Prime plus 2.75% 6/15/2042
 314.0
 313.3
 309.2
 0.12%
Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/14/2042
 92.5
 92.3
 94.9
 0.04%
Susan Hughes dba Aloha Junction B and B Accommodation Term Loan Prime plus 2.75% 6/14/2042
 62.5
 61.9
 65.3
 0.03%
ESA 365 Corp and Lucathor Realty LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/14/2042
 22.5
 22.4
 22.7
 0.01%
Hull's Kitchen, LLC and HK Too, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/14/2042
 96.3
 96.2
 100.8
 0.04%
Yachting Solutions LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 6/12/2027
 118.8
 117.4
 110.2
 0.04%
Refoleen Inc dba Spice and Tea Exchange Food and Beverage Stores Term Loan Prime plus 2.75% 6/8/2027
 3.5
 3.5
 3.0
 %
Earth First Recycling, LLC and 191 Clark Road, LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/5/2027
 354.5
 352.3
 351.6
 0.14%

13
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Skydive California, LLC Educational Services Term Loan Prime plus 2.75% 6/2/2027
 55.0
 54.5
 55.4
 0.02%
SCW, LLC dba Arthur Murray Dance Studio Educational Services Term Loan Prime plus 2.75% 6/2/2042
 146.0
 145.6
 145.6
 0.06%
Speaker City, Inc.and Speaker Town, LLC dba Rollin Thunder Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 6/1/2042
 45.6
 45.5
 46.3
 0.02%
Sage Oil LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 5/31/2027
 22.5
 22.1
 19.0
 0.01%
Impact Grounds Maintenance and Design, Inc.dba Impact Landscaping Administrative and Support Services Term Loan Prime plus 2.75% 5/31/2042
 79.4
 79.2
 82.1
 0.03%
Ricnet III, Inc. dba Edible Arrangements Food and Beverage Stores Term Loan Prime plus 2.75% 5/31/2027
 15.0
 14.6
 12.8
 0.01%
Funtime, LLC and Universal Entertainment Group LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 5/31/2027
 66.2
 65.1
 57.0
 0.02%
Haroon Baig,Inc.dba US1 Petrol Gasoline Stations Term Loan Prime plus 2.75% 5/31/2042
 264.0
 263.0
 277.5
 0.11%
Eagle Wood Works LLC Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 5/26/2027
 12.0
 11.8
 10.8
 %
Hurricane Group, Inc. Other Information Services Term Loan Prime plus 2.75% 5/26/2027
 75.0
 73.7
 63.5
 0.02%
Mitchell Auto Repair, LLC and and C&M Mitchell, LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/26/2042
 193.2
 193.0
 197.3
 0.08%
Swantown Inn & Spa LLC Accommodation Term Loan Prime plus 2.75% 5/26/2042
 116.0
 28.4
 30.0
 0.01%
Chet Lemon Enterprises LLC dba All American Sports Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/26/2042
 792.5
 789.4
 833.0
 0.33%
Demand Printing Solutions Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 5/25/2027
 213.3
 209.5
 197.3
 0.08%
Beyond Waves A Unique Salon LLC and Lori Ann Carlson Personal and Laundry Services Term Loan Prime plus 2.75% 5/25/2027
 15.0
 14.7
 12.8
 0.01%
Jung Design Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/25/2027
 9.0
 8.8
 7.6
 %
Locavore LLC dba Paloma Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 5/25/2027
 50.0
 49.1
 43.9
 0.02%
Abdul Naushad MD PC dba Advanced Pain Centers Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/25/2042
 393.8
 392.2
 403.0
 0.16%
Shaffer Automotive Repair, LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/24/2030
 135.8
 134.1
 125.5
 0.05%
Juliador Resources LLC DBA Cue Hair Salon and Skin Care Personal and Laundry Services Term Loan Prime plus 2.75% 5/24/2027
 22.5
 22.1
 19.0
 0.01%

14
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Innovim, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/24/2027
 337.5
 331.5
 285.5
 0.11%
Southeast Recycling, LLC and Southeast Land Holdings LLC dba 67 Motor Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 5/23/2042
 181.4
 180.7
 188.8
 0.07%
Gill Express Inc. and Gill Express 2 LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/23/2042
 338.7
 337.4
 333.6
 0.13%
Prestige Construction of Florida, LLC Construction of Buildings Term Loan Prime plus 2.75% 5/23/2042
 336.4
 335.1
 326.1
 0.13%
Enfield Tractor & Equipment Co. Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/19/2027
 296.3
 291.2
 278.7
 0.11%
PS Camping, Inc. dba Prospectors RV Resort Accommodation Term Loan Prime plus 2.75% 5/19/2042
 257.7
 256.7
 269.3
 0.11%
GEM2K, LLC dba Precision Precast Group Miscellaneous Manufacturing Term Loan Prime plus 2.75% 5/19/2027
 162.5
 159.6
 143.2
 0.06%
Hayden Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 5/19/2027
 262.5
 257.9
 237.8
 0.09%
Tres K Deli,Grocery,Fruit and Meat Inc. Food and Beverage Stores Term Loan Prime plus 2.75% 5/19/2027
 8.3
 8.1
 7.5
 %
Iron Men Home Repair, Inc. and Ironmen House Lifting Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 5/19/2042
 582.5
 580.2
 585.6
 0.23%
J Harris Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 5/19/2027
 19.5
 19.2
 18.2
 0.01%
New Image Building Services, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 5/18/2027
 150.8
 148.1
 132.4
 0.05%
Bay Car Wash LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/18/2042
 120.7
 120.3
 121.7
 0.05%
Mr. B's Bicycles & Mopeds, Inc. Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 5/18/2042
 146.7
 146.2
 146.7
 0.06%
Waterford Plumbing Co, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 5/18/2027
 50.0
 49.1
 43.1
 0.02%
Computech Computers Inc. Educational Services Term Loan Prime plus 2.75% 5/17/2027
 50.0
 49.1
 42.3
 0.02%
Arco Electrical Contractors Inc. dba Arco Construction Group Specialty Trade Contractors Term Loan Prime plus 2.75% 5/16/2027
 360.0
 353.6
 325.1
 0.13%
5 Stars Learning Center Inc Social Assistance Term Loan Prime plus 2.75% 5/16/2042
 61.8
 61.5
 61.9
 0.02%
Batter & Company,LLC dba Batter Co. Dessert Collection Food and Beverage Stores Term Loan Prime plus 2.75% 5/16/2027
 53.8
 52.8
 46.5
 0.02%
Band Sawn Lumber,LLC and Nathan Ryan Adams Wood Product Manufacturing Term Loan Prime plus 2.75% 5/15/2042
 113.8
 113.3
 111.6
 0.04%

15
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Keys Armored Express, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 5/12/2027
 40.0
 39.3
 35.3
 0.01%
Sanderson Distribution Inc. Truck Transportation Term Loan Prime plus 2.75% 5/12/2027
 10.5
 10.3
 8.9
 %
SG Linke LLC Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 5/12/2027
 108.3
 108.3
 106.3
 0.04%
B G F Bobby Q's Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 5/11/2027
 7.5
 7.4
 7.2
 %
Estelle Finkel Educational Associates,LLC Educational Services Term Loan Prime plus 2.75% 5/11/2027
 118.7
 117.8
 101.5
 0.04%
Labmates,LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 5/10/2027
 100.0
 98.2
 93.9
 0.04%
NHS, LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/9/2027
 88.5
 86.9
 78.2
 0.03%
NHS, LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/9/2042
 21.9
 21.8
 20.5
 0.01%
Innovation Transport, LLC Truck Transportation Term Loan Prime plus 2.75% 5/9/2027
 86.3
 84.7
 80.0
 0.03%
1872 Rosecrans, LLC dba Goodbar Food Services and Drinking Places Term Loan Prime plus 2.75% 5/9/2027
 62.5
 62.2
 54.0
 0.02%
Arclay ,LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 5/5/2030
 145.9
 144.1
 132.8
 0.05%
Benchmark Building, Inc. Construction of Buildings Term Loan Prime plus 2.75% 5/5/2027
 22.5
 22.1
 19.0
 0.01%
Cable Management LLC Waste Management and Remediation Services Term Loan Prime plus 2.75% 5/3/2027
 59.6
 58.5
 54.9
 0.02%
Fine Arts Center of Easley, Inc. dba Midtown Music Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 5/2/2042
 116.3
 116.1
 122.5
 0.05%
Zahmel Restaurant Suppliers Corp dba Cash & Carry Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 4/28/2027
 88.8
 86.6
 75.6
 0.03%
Love and Glory Learning Center, Inc. Social Assistance Term Loan Prime plus 2.75% 4/28/2042
 78.0
 77.6
 77.1
 0.03%
Georgia Productions Services LLC Rental and Leasing Services Term Loan Prime plus 2.75% 4/28/2027
 91.2
 89.1
 81.8
 0.03%
JMA Inc. dba Primecut and Mezzo; Primecut at Marquee Food Services and Drinking Places Term Loan Prime plus 2.75% 4/27/2042
 222.5
 221.3
 233.6
 0.09%
Sneads Ferry Foods, Inc. dba DQ Grill & Chill Food Services and Drinking Places Term Loan Prime plus 2.75% 4/27/2042
 618.3
 330.0
 348.2
 0.14%

16
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Asheville's Fun Depot, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/26/2027
 87.5
 85.4
 86.8
 0.03%
Carl Joseph Johnston dba Viking Transport Truck Transportation Term Loan Prime plus 2.75% 4/26/2027
 53.3
 31.8
 30.1
 0.01%
Resident Research, LLC Other Information Services Term Loan Prime plus 2.75% 4/24/2027
 100.0
 97.6
 84.1
 0.03%
Getting Even LLC dba The Zoo Health Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/21/2027
 7.5
 7.3
 6.6
 %
Ralph's Hair Salon, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 4/21/2042
 50.0
 49.7
 50.6
 0.02%
M.E. Interiors LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/20/2027
 139.2
 135.9
 117.0
 0.05%
MJ and M Home Improvements LLC DBA House Doctors Repair and Maintenance Term Loan Prime plus 2.75% 4/20/2027
 20.5
 20.0
 17.6
 0.01%
Condron Brothers LLC DBA Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/19/2027
 116.0
 116.0
 105.0
 0.04%
Affordable Auto Transport LLC Truck Transportation Term Loan Prime plus 2.75% 4/17/2027
 12.8
 12.4
 11.6
 %
Carpeteria (Markarian) Co. Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 4/13/2027
 132.8
 129.7
 128.6
 0.05%
Bloomer Machine & Fab, Inc and Dale Stertz Properties Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 4/13/2042
 205.5
 204.4
 210.6
 0.08%
Butternuts Beer and Ale LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 4/12/2027
 73.7
 72.0
 73.2
 0.03%
Citizens Lanes, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/31/2042
 619.4
 616.1
 648.1
 0.25%
The Altitude Group, LLC and Core Home Security, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 3/31/2027
 50.0
 48.6
 41.4
 0.02%
Golden Hen Inc. dba Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 3/31/2027
 64.8
 62.9
 54.4
 0.02%
Shelter Harbor Inn, Inc. Accommodation Term Loan Prime plus 2.75% 3/31/2042
 207.5
 206.4
 217.1
 0.08%
Landmark Ventures USA, Inc. Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 3/31/2027
 187.5
 182.1
 155.4
 0.06%
MIT LLC Publishing Industries (except Internet) Term Loan Prime plus 2.75% 3/31/2042
 87.5
 87.0
 91.6
 0.04%

17
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Applied Integrated Technologies, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/31/2027
 125.0
 121.4
 103.7
 0.04%
Bear Trail Lodge LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/31/2042
 552.5
 549.6
 571.2
 0.22%
KWG Industries LLC dba Peterson & Marsh Metal Industries Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 3/30/2027
 30.0
 29.1
 28.4
 0.01%
Sea Smoke Barbeque, Corp and Danwen LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/30/2042
 236.5
 233.6
 235.0
 0.09%
Signature Rooms, Inc dba Gallery Furniture Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 3/30/2042
 495.8
 493.1
 514.8
 0.20%
Schafer Fisheries Inc. Food Manufacturing Term Loan Prime plus 2.75% 3/30/2042
 258.6
 251.5
 257.2
 0.10%
Douglas K. Soderblom . dba Loma Linda Optometry Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/29/2027
 100.0
 97.1
 87.3
 0.03%
Discount Price, LLC dba Robert's Market Gasoline Stations Term Loan Prime plus 2.75% 3/29/2042
 206.3
 205.2
 208.2
 0.08%
First Sail Group Inc. and Omen Board Industires LLC Nonstore Retailers Term Loan Prime plus 2.75% 3/29/2027
 20.0
 19.4
 17.8
 0.01%
Gauri Hospitality Group LLC dba Microtel Inns & Suites by Wyndham Accommodation Term Loan Prime plus 2.75% 3/29/2042
 1,056.3
 1,050.6
 1,096.2
 0.43%
H and H Hotshot Services, Inc. dba AA Hotshot & Logistics Couriers and Messengers Term Loan Prime plus 2.75% 3/29/2030
 97.5
 95.6
 82.5
 0.03%
New England Country Day School, Inc. and Thomas D. Walker Social Assistance Term Loan Prime plus 2.75% 3/28/2042
 362.8
 362.6
 364.1
 0.14%
American Pharmaceutical Innovation Company, LLC Chemical Manufacturing Term Loan Prime plus 2.75% 3/28/2027
 30.0
 29.1
 25.0
 0.01%
Heil & Hornik LLC dba Elysium Tennis Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/27/2042
 928.6
 923.6
 921.1
 0.36%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 3/27/2042
 582.9
 137.2
 144.3
 0.06%
Ericon Inc. dba Quik Pik Gasoline Stations Term Loan Prime plus 2.75% 3/24/2027
 62.5
 60.7
 58.3
 0.02%
Robert Dixon PA dba Law Offices of Robert Dixon Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/24/2042
 435.5
 424.2
 443.0
 0.17%
Denton Bio Fuels LLC and American Bio Source LLC Waste Management and Remediation Services Term Loan Prime plus 2.75% 3/23/2027
 59.3
 57.5
 52.3
 0.02%
Color Graphic Press, Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 3/23/2027
 120.0
 116.5
 118.0
 0.05%

18
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
JBK Truck Trailer and Bus Inc. Repair and Maintenance Term Loan Prime plus 2.75% 3/23/2042
 88.8
 78.8
 79.5
 0.03%
Executive Fitness & Nutrition Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/23/2027
 20.3
 19.7
 19.2
 0.01%
Baton Rouge Cargo Services Inc. and 6507 Westport, LLC Truck Transportation Term Loan Prime plus 2.75% 3/22/2042
 643.0
 639.6
 656.4
 0.26%
Vehicle Safety supply LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/21/2027
 22.5
 21.8
 18.7
 0.01%
J Sivilis LLC dba Pet Wants Personal and Laundry Services Term Loan Prime plus 2.75% 3/17/2027
 12.3
 12.0
 10.5
 %
Reservoir International LLC Educational Services Term Loan Prime plus 2.75% 3/16/2027
 100.0
 97.1
 89.8
 0.04%
The Purple Cow House of Pancake Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 3/16/2042
 162.5
 160.9
 169.2
 0.07%
Texcor, Inc.dba Texas Corral,Texas Coral Restaurants II, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 3/16/2027
 300.0
 291.4
 295.2
 0.12%
Alive Design, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/13/2027
 22.5
 22.0
 18.8
 0.01%
1MTX LLC and Sunrise Transportation and Logistics, LLC Truck Transportation Term Loan Prime plus 2.75% 3/13/2027
 702.8
 683.0
 583.0
 0.23%
Dwayne Bernard Tate Truck Transportation Term Loan Prime plus 2.75% 3/10/2027
 10.5
 10.2
 9.3
 %
Elegant Occasions, LLC dba E Productions Personal and Laundry Services Term Loan Prime plus 2.75% 3/10/2042
 588.2
 586.1
 587.5
 0.23%
Anthony LLC dba Star of Woodward Market Food and Beverage Stores Term Loan Prime plus 2.75% 3/9/2042
 115.0
 114.5
 120.4
 0.05%
E & P Holdings 1 LLC and Evans & Paul Unlimited Corp. Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 3/9/2027
 125.0
 121.4
 106.1
 0.04%
Allegro Assisted Living Of Texas Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 3/6/2027
 96.0
 93.2
 94.4
 0.04%
Robbie E. Bakery and Cafe LLC Food and Beverage Stores Term Loan Prime plus 2.75% 3/3/2027
 62.5
 60.7
 51.8
 0.02%
Podium Auto Sales Inc and RRS Property, LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/3/2042
 90.7
 90.3
 89.8
 0.04%
SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express Truck Transportation Term Loan Prime plus 2.75% 2/28/2027
 235.5
 227.3
 194.1
 0.08%
Weeping Willow Kennels, Inc and Aileen N Black Personal and Laundry Services Term Loan Prime plus 2.75% 2/28/2042
 140.0
 139.1
 141.5
 0.06%
Getting Even LLC dba The Zoo Health Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2027
 96.3
 92.9
 82.7
 0.03%

19
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Total Document Solutions Inc and,TDS Services, LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 2/27/2030
 312.5
 305.1
 279.9
 0.11%
Teracore Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/27/2027
 163.7
 158.0
 134.9
 0.05%
John Finn Associates LLC, Greenslate LLC, Finn Technology, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/27/2027
 675.0
 651.3
 623.5
 0.24%
McNally Enterprises Inc. Administrative and Support Services Term Loan Prime plus 2.75% 2/27/2027
 65.0
 62.7
 55.8
 0.02%
B & J Bicycle Shop Inc. Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 2/24/2027
 15.0
 14.5
 14.7
 0.01%
3W Enterprises LLC Textile Product Mills Term Loan Prime plus 2.75% 2/24/2042
 81.8
 81.2
 81.5
 0.03%
TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 2/24/2027
 106.3
 103.7
 96.4
 0.04%
Victorian Restaurant and Tavern, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 2/22/2042
 107.5
 106.8
 104.7
 0.04%
DER Services, LLC dba A.K.A. Sports Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 2/17/2042
 40.0
 39.8
 41.8
 0.02%
Bike Slug, LLC, Bike Slug Holdings Inc. and Seven Rivers Group ,LLC Repair and Maintenance Term Loan Prime plus 2.75% 2/17/2027
 19.5
 18.8
 16.1
 0.01%
Ameritube, LLC and Ravone Properties, LLC Primary Metal Manufacturing Term Loan Prime plus 2.75% 2/14/2042
 185.0
 183.8
 193.4
 0.08%
R&S Barnes Enterprises, Inc. dba Massage Envy Spa Personal and Laundry Services Term Loan Prime plus 2.75% 2/10/2027
 93.8
 90.5
 78.2
 0.03%
Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC Truck Transportation Term Loan Prime plus 2.75% 2/10/2042
 247.5
 245.8
 252.3
 0.10%
Sushiya Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 2/10/2027
 18.8
 18.1
 16.0
 0.01%
Select Propane & Fuel Inc. and Select Fuel & Convenience LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 2/10/2030
 1,250.0
 1,222.6
 1,121.1
 0.44%
Maximo Canot dba Wash and Dry Laundrymat Personal and Laundry Services Term Loan Prime plus 2.75% 2/10/2042
 137.5
 136.7
 140.7
 0.06%
Marvic Enterprises Inc dba Jordan's Liquor Food and Beverage Stores Term Loan Prime plus 2.75% 2/10/2042
 219.0
 217.6
 221.8
 0.09%
Harrison Logging Company LLC Forestry and Logging Term Loan Prime plus 2.75% 2/9/2027
 106.3
 102.5
 92.6
 0.04%
8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C. Repair and Maintenance Term Loan Prime plus 2.75% 2/7/2042
 327.5
 325.5
 319.9
 0.13%
Christopher Borgia Food Services and Drinking Places Term Loan Prime plus 2.75% 2/6/2027
 12.9
 12.5
 10.8
 %

20
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Splashlight LLC, Splashlight Photographic & Digital Studios LLC Management of Companies and Enterprises Term Loan Prime plus 2.75% 2/2/2027
 750.0
 723.8
 641.9
 0.25%
DBMS Consulting, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/1/2042
 185.0
 183.8
 180.6
 0.07%
Brandco, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 1/31/2027
 43.7
 41.9
 35.8
 0.01%
Chidlren's House Learning, Inc and Tarps Investment Group Social Assistance Term Loan Prime plus 2.75% 1/31/2042
 321.3
 319.1
 319.5
 0.12%
Grand Center Inn L.P. dba Grand Center Inn Accommodation Term Loan Prime plus 2.75% 1/31/2027
 15.0
 14.4
 14.6
 0.01%
AP6 LLC and Amishp LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 1/30/2042
 127.5
 107.8
 113.4
 0.04%
Fave Realty, Inc. Real Estate Term Loan Prime plus 2.75% 1/30/2042
 54.5
 54.1
 54.8
 0.02%
ZMKNY Tires Inc dba Houston International Tires Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 1/27/2042
 107.5
 106.8
 112.3
 0.04%
House of Bread & Coffee Corp dba Casa Do Pao Food Services and Drinking Places Term Loan Prime plus 2.75% 1/27/2042
 176.0
 135.7
 131.9
 0.05%
SRC Publishing LLC Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 1/27/2027
 22.5
 21.6
 18.4
 0.01%
Return to Excellence Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 1/27/2027
 17.7
 17.0
 17.2
 0.01%
Sideways Sports Lounge and Jonathan E. McGrew and Patricia C. McGrew Food Services and Drinking Places Term Loan Prime plus 2.75% 1/23/2027
 18.0
 17.3
 14.7
 0.01%
Fox Valley Rentals & Investments LLC and Brian M Tomaszewski Food Services and Drinking Places Term Loan Prime plus 2.75% 1/20/2042
 42.5
 42.2
 42.0
 0.02%
Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc. Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 1/19/2030
 250.4
 243.4
 224.5
 0.09%
Jolibe LLC and Jolibe Atelier LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 1/18/2027
 10.5
 10.1
 8.9
 %
Eickmann Management Group LLC dba Jimmy Johns of Dundee Food Services and Drinking Places Term Loan Prime plus 2.75% 1/17/2027
 93.7
 93.0
 91.3
 0.04%
Ramjay Inc. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 1/13/2027
 435.0
 420.4
 381.1
 0.15%
Fullbro Trust dba Menemsha Blues Miscellaneous Store Retailers Term Loan Prime plus 2.75% 1/13/2027
 22.5
 21.6
 21.9
 0.01%

21
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Echelon Enterprises, Inc Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 1/10/2027
 50.0
 48.0
 48.6
 0.02%
Fort Smith Wings Inc. dba Wing Stop Food Services and Drinking Places Term Loan Prime plus 2.75% 12/28/2026
 19.5
 18.6
 16.6
 0.01%
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point Food Services and Drinking Places Term Loan Prime plus 2.75% 12/27/2041
 419.9
 417.1
 412.2
 0.16%
Joshua L. Baker Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 12/23/2026
 15.7
 15.0
 12.8
 0.01%
Jacliff Investments Inc. dba International health Technologies Publishing Industries (except Internet) Term Loan Prime plus 2.75% 12/23/2026
 125.0
 119.1
 101.6
 0.04%
New Image Building Services, Inc.dba The Maids Servicing Oakland Administrative and Support Services Term Loan Prime plus 2.75% 12/21/2026
 43.8
 41.7
 37.0
 0.01%
Chestnut Street Associates, LLC and Metropolitan Solutions, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/19/2041
 275.0
 272.3
 261.6
 0.10%
Means Enterprises LLC dba FastFrame Frisco Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 12/16/2026
 22.5
 21.4
 18.6
 0.01%
Soon Im. Chin dba Stan C-Store Gasoline Stations Term Loan Prime plus 2.75% 12/15/2041
 212.5
 210.4
 217.6
 0.09%
Sempco, Inc. Miscellaneous Manufacturing Term Loan Prime plus 2.75% 12/15/2041
 42.0
 41.6
 43.7
 0.02%
Allied Welding Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 12/15/2041
 750.0
 744.7
 731.9
 0.29%
Ericon, Inc. dba Quik Pik Gasoline Stations Term Loan Prime plus 2.75% 12/15/2041
 332.2
 329.5
 328.3
 0.13%
White Hawk Inc. Truck Transportation Term Loan Prime plus 2.75% 12/15/2026
 1,097.7
 1,047.7
 893.6
 0.35%
Elita 7, LLC Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 12/15/2041
 712.5
 705.5
 718.9
 0.28%
New Chicago Wholesale Bakery, Inc. Food Manufacturing Term Loan Prime plus 2.75% 12/15/2041
 452.7
 448.3
 442.6
 0.17%
Techni-Pro Institute LLC Educational Services Term Loan Prime plus 2.75% 12/15/2026
 190.0
 181.0
 159.2
 0.06%
Trison Enterprises Inc.dba Lee's Automotive Repair and Maintenance Term Loan Prime plus 2.75% 12/14/2041
 407.5
 403.5
 407.7
 0.16%
Cardinal Homes Inc. and Bret A Berneche Wood Product Manufacturing Term Loan Prime plus 2.75% 12/14/2041
 121.3
 120.0
 125.9
 0.05%
HMG Strategy, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/14/2026
 50.0
 47.6
 40.6
 0.02%
D and E Hardware Co. and D and E Pump Sales and Service Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 12/14/2041
 528.6
 523.4
 520.2
 0.20%

22
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Cardinal Homes Inc,.Alouette Holdings Inc. Wood Product Manufacturing Term Loan Prime plus 2.75% 12/14/2026
 1,071.3
 1,020.5
 1,032.9
 0.40%
AGG Management Team LLC dba Chevron Gasoline Stations Term Loan Prime plus 2.75% 12/14/2041
 287.5
 284.7
 299.3
 0.12%
Wayfarer Bicycle LLC Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 12/13/2041
 92.5
 91.6
 89.1
 0.03%
Success Advertising Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/13/2041
 466.5
 461.9
 478.5
 0.19%
Roast Beef Levittown LLC dba Arby's Food Services and Drinking Places Term Loan Prime plus 2.75% 12/13/2026
 465.0
 447.7
 453.1
 0.18%
Queen Express LLC Gasoline Stations Term Loan Prime plus 2.75% 12/13/2041
 187.5
 185.6
 192.5
 0.08%
Recycling Revolution,LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/9/2041
 92.2
 91.3
 90.7
 0.04%
Myndshft Technologies LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/9/2026
 775.0
 738.3
 657.7
 0.26%
Mack Team Enterprises Inc.dba The UPS Store #6815 Couriers and Messengers Term Loan Prime plus 2.75% 12/9/2026
 20.4
 19.4
 17.4
 0.01%
^New Life Hospital LLC Hospitals Term Loan Prime plus 2.75% 12/8/2041
 1,195.5
 1,184.9
 1,245.8
 0.49%
Imagine By Carleen Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 12/8/2041
 52.5
 52.0
 52.1
 0.02%
Hanson's Greeks LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/8/2026
 11.3
 10.7
 10.8
 %
Yachting Solutions LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 12/7/2029
 71.2
 68.9
 65.1
 0.03%
T and B Boots Inc dba Takken's Shoes Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 12/7/2026
 100.0
 95.7
 89.5
 0.04%
Lan Doctors, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/7/2026
 237.5
 226.2
 222.1
 0.09%
Lilo Holdings LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 12/5/2026
 15.9
 15.1
 13.7
 0.01%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites Accommodation Term Loan Prime plus 2.75% 12/5/2041
 352.5
 349.6
 360.6
 0.14%
^Ericon, Inc. Gasoline Stations Term Loan Prime plus 2.75% 12/1/2041
 726.0
 720.2
 721.4
 0.28%
Noso Development LLC Construction of Buildings Term Loan Prime plus 2.75% 12/1/2026
 75.0
 71.4
 60.9
 0.02%

23
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Quick Ship, LLC Couriers and Messengers Term Loan Prime plus 2.75% 11/30/2026
 10.5
 9.9
 8.5
 %
^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 11/30/2041
 67.5
 66.7
 70.2
 0.03%
Sharaz Shah DBA Thomas Jewelers Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 11/30/2026
 8.1
 7.7
 6.5
 %
Choe Trading Group, Inc.dba Rapid Printers of Monterey Printing and Related Support Activities Term Loan Prime plus 2.75% 11/30/2026
 22.5
 21.3
 20.9
 0.01%
Studio Find It Georgia, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/30/2026
 7.5
 7.1
 6.2
 %
RD Management, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2026
 213.8
 202.3
 174.8
 0.07%
Imaginarium Foods LLC, Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2042
 376.7
 370.5
 376.2
 0.15%
B4 Fitness LLC dba The Zoo Health Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/30/2026
 22.5
 21.3
 19.0
 0.01%
^Usman Jalil, LLC dba Food Mart Gasoline Stations Term Loan Prime plus 2.75% 11/29/2041
 233.2
 230.7
 223.6
 0.09%
Honor Mansion, Inc. Accommodation Term Loan Prime plus 2.75% 11/29/2026
 87.5
 82.8
 83.8
 0.03%
Access Staffing, LLC Administrative and Support Services Term Loan Prime plus 2.75% 11/29/2026
 1,125.0
 1,064.6
 908.0
 0.36%
Merchant Coterie, Inc. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 11/23/2026
 125.0
 118.3
 100.9
 0.04%
CRK Mens, LLC dba Spiff for Men Personal and Laundry Services Term Loan Prime plus 2.75% 11/23/2026
 106.3
 100.7
 87.8
 0.03%
WPN Recycling Company LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 11/23/2026
 22.5
 21.3
 21.5
 0.01%
Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901 Administrative and Support Services Term Loan Prime plus 2.75% 11/23/2026
 60.0
 56.8
 49.1
 0.02%
Rognes Corp dba RTS Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 11/22/2026
 389.2
 366.9
 335.5
 0.13%
Bouquet Restaurant LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/22/2041
 125.0
 123.6
 124.6
 0.05%
^J.B.K Truck Trailer and Bus Inc Repair and Maintenance Term Loan Prime plus 2.75% 11/22/2041
 435.0
 430.1
 428.7
 0.17%
6E Technologies LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/22/2026
 175.0
 163.8
 150.9
 0.06%

24
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Broms Asset Management LLC Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 11/22/2026
 125.0
 118.3
 100.9
 0.04%
Skaggs RV Outlet LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 11/21/2026
 100.0
 94.6
 95.8
 0.04%
Catherine Christine Morin dba Purr-Fect Pets Personal and Laundry Services Term Loan Prime plus 2.75% 11/17/2026
 18.7
 17.7
 15.1
 0.01%
Stratmar Systems Inc dba Stratmar Retail Services Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/16/2026
 68.5
 64.8
 65.6
 0.03%
Hoosier Health Plus, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/15/2026
 125.0
 118.3
 111.4
 0.04%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/10/2041
 446.0
 440.9
 451.4
 0.18%
Hackensack Steel Corporation and Luzerne Ironworks Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 11/10/2026
 239.2
 226.3
 228.9
 0.09%
^Panther Ironworks and Rigging Solutions LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 11/10/2026
 151.3
 143.1
 131.2
 0.05%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/10/2026
 188.7
 178.6
 176.9
 0.07%
MIK LLC dba Firehouse Subs Food Services and Drinking Places Term Loan Prime plus 2.75% 11/9/2026
 200.0
 192.9
 166.8
 0.07%
^Rich's Food Stores LLC dba Hwy 55 of Wallace Food Services and Drinking Places Term Loan Prime plus 2.75% 11/9/2026
 43.7
 41.4
 38.6
 0.02%
^Dyer Properties, LLC Health and Personal Care Stores Term Loan Prime plus 2.75% 11/9/2041
 240.3
 237.5
 234.5
 0.09%
^Big Apple Entertainment Partners LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/9/2026
 175.0
 165.6
 141.2
 0.06%
^Bovill Creative,LLC Real Estate Term Loan Prime plus 2.75% 11/9/2041
 281.2
 278.2
 292.5
 0.11%
Surgarloaf Concepts LLC dba Fat Biscuit Food Services and Drinking Places Term Loan Prime plus 2.75% 11/8/2026
 168.8
 165.0
 167.0
 0.07%
^Fine Line Interiors, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 11/4/2041
 87.5
 82.4
 86.7
 0.03%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero Food Services and Drinking Places Term Loan Prime plus 2.75% 11/3/2041
 127.5
 125.1
 127.8
 0.05%
^Veracruz Shabo, LLC; Waterfalls Quick Lube LLC Repair and Maintenance Term Loan Prime plus 2.75% 11/1/2041
 118.7
 117.9
 120.3
 0.05%
Glocecol LLC Administrative and Support Services Term Loan Prime plus 2.75% 11/1/2026
 75.0
 70.9
 71.8
 0.03%

25
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Middlesex Auto Sales Corp Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 10/31/2041
 125.0
 123.5
 126.3
 0.05%
^Moolchan Enterprises LLC dba Staying Green Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/31/2026
 18.1
 17.1
 16.1
 0.01%
^Bloomquist Communications Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/31/2026
 60.0
 56.4
 48.1
 0.02%
^Woodstock Enterprises Corp dba True Scent Candle Co. Miscellaneous Manufacturing Term Loan Prime plus 2.75% 10/31/2041
 88.8
 87.7
 85.4
 0.03%
^Patina Investment, Inc and Ram & Sons, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 10/27/2041
 175.0
 172.8
 181.6
 0.07%
Elite Structures Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 10/27/2029
 225.0
 218.3
 212.7
 0.08%
^FibAire Communications, LLC Telecommunications Term Loan Prime plus 2.75% 10/27/2026
 107.5
 101.0
 92.7
 0.04%
^Bonita Stone LLC and Castone Creations Inc Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 10/25/2041
 264.4
 261.0
 259.9
 0.10%
^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc. Nonstore Retailers Term Loan Prime plus 2.75% 10/25/2026
 131.2
 123.4
 124.9
 0.05%
Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 10/24/2026
 425.0
 399.5
 398.7
 0.16%
Eco Vehicle Systems LLC Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 10/21/2026
 955.5
 898.9
 900.9
 0.35%
Worldwide Estate, Inc. dba Washington Heights Manor Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 10/21/2041
 225.0
 221.7
 233.1
 0.09%
^Gold Wind Logistics LLC Truck Transportation Term Loan Prime plus 2.75% 10/20/2041
 175.0
 173.4
 182.3
 0.07%
^Speaker City, Inc. dba Rollin Thunder Electronics and Appliance Stores Term Loan Prime plus 2.75% 10/14/2041
 125.0
 123.4
 125.6
 0.05%
^Maine Service Corp Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 10/13/2026
 206.3
 192.5
 180.6
 0.07%
^Justin Partlow Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 10/13/2026
 19.5
 18.3
 15.6
 0.01%
^Reliable Recovery Services LLC Support Activities for Transportation Term Loan Prime plus 2.75% 10/7/2026
 112.5
 105.7
 96.3
 0.04%
^Ailky Corporation Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 10/3/2026
 250.0
 235.0
 206.0
 0.08%
^Wyspen Corporation dba Charlestown Ace Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 10/3/2026
 36.0
 33.8
 28.9
 0.01%
^MegaPhase, LLC Computer and Electronic Product Manufacturing Term Loan Prime plus 2.75% 9/30/2026
 150.0
 139.9
 135.1
 0.05%

26
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Seaway LLC and Reklaw LLC dba Allure Lounge Food Services and Drinking Places Term Loan Prime plus 2.75% 9/30/2041
 137.5
 135.4
 142.3
 0.06%
^JJA Transportation Management Inc. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2026
 52.5
 49.0
 41.7
 0.02%
^Adelwerth Bus Corp. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2041
 242.8
 239.3
 237.0
 0.09%
Adelwerth Bus Corporation, Transportation Leasing Corp. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2029
 654.0
 624.3
 601.6
 0.24%
Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/29/2029
 671.5
 640.3
 600.1
 0.23%
^Las Casuelas Del Este Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 9/29/2041
 800.0
 791.6
 814.7
 0.32%
^Thunderdome Racing Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/29/2026
 19.0
 17.8
 17.6
 0.01%
^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med Printing and Related Support Activities Term Loan Prime plus 2.75% 9/28/2041
 850.0
 836.9
 879.5
 0.34%
^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Services Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/28/2041
 405.8
 400.1
 382.5
 0.15%
^Beadon Inc Food and Beverage Stores Term Loan Prime plus 2.75% 9/28/2026
 22.5
 21.0
 21.0
 0.01%
^CNC Precision Machine, Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/28/2041
 1,250.0
 1,235.9
 1,236.2
 0.48%
^CD Game Exchange Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/28/2026
 22.5
 21.0
 17.9
 0.01%
Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/28/2026
 648.0
 608.3
 559.8
 0.22%
^Kyle M Walker DDS,PC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/27/2026
 217.8
 204.7
 180.1
 0.07%
Reynolds Fence & Guardrail Inc. Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/27/2026
 629.6
 587.1
 560.5
 0.22%
^Luna Nueva LLC dba Bio Builders Specialty Trade Contractors Term Loan Prime plus 2.75% 9/27/2026
 15.0
 14.0
 12.4
 %
^Luv 2 Play Nor Cal, LLC dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/27/2026
 52.5
 49.0
 43.8
 0.02%
^Sarah S Olelewe MD Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/26/2041
 292.4
 288.5
 289.4
 0.11%
^TPFC,LLC dbaThe Picture Frame Company Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/26/2041
 58.8
 57.9
 58.1
 0.02%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 9/26/2026
 9.0
 8.4
 8.3
 %

27
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^PeopleBest Inc. Administrative and Support Services Term Loan Prime plus 2.75% 9/26/2026
 15.0
 14.0
 11.9
 %
^Mr. Mulch, Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/23/2041
 405.7
 399.5
 375.3
 0.15%
^B4 Fitness LLC dba The Zoo Health Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/23/2026
 87.5
 81.6
 72.7
 0.03%
^InformationTelevision Network Inc Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 9/22/2041
 836.8
 825.5
 858.5
 0.34%
^GRA Financial Services Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/22/2026
 12.0
 11.2
 9.5
 %
^Wrecking Crew Media LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 9/21/2026
 50.0
 46.6
 39.7
 0.02%
^Cuppiecakes LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/21/2041
 22.5
 22.2
 22.2
 0.01%
^Benoit's Towing and Recovery LLC Support Activities for Transportation Term Loan Prime plus 2.75% 9/20/2026
 12.0
 11.2
 9.7
 %
^Consulting Solutions Inc. and Mark Luciani Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/20/2026
 22.5
 21.0
 19.8
 0.01%
^Brittany Burns LLC dba Dreams Come True Personal and Laundry Services Term Loan Prime plus 2.75% 9/19/2026
 12.9
 12.0
 12.2
 %
^Eyncon LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/16/2041
 50.0
 49.2
 49.9
 0.02%
^Tresa S.Parris dba Wagging Tails Grooming Personal and Laundry Services Term Loan Prime plus 2.75% 9/16/2026
 8.0
 7.6
 6.5
 %
^The Merrin Group LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/15/2026
 175.0
 163.2
 157.0
 0.06%
^Rich's Food Stores LLC dba Hwy 55 of Wallace Food Services and Drinking Places Term Loan Prime plus 2.75% 9/14/2026
 145.5
 135.9
 126.7
 0.05%
^Atlantic Alarm Systems and Services LLC Administrative and Support Services Term Loan Prime plus 2.75% 9/14/2026
 15.4
 14.4
 12.7
 %
^Metropet Dog Center, Inc Personal and Laundry Services Term Loan Prime plus 2.75% 9/13/2041
 109.2
 107.6
 109.3
 0.04%
^Marquis Cattle Company Animal Production and Aquaculture Term Loan Prime plus 2.75% 9/13/2026
 50.0
 47.1
 47.6
 0.02%
^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company Food Services and Drinking Places Term Loan Prime plus 2.75% 9/12/2041
 82.5
 81.2
 79.6
 0.03%
^Artisan Infrastructure Holdings, LLC Data Processing, Hosting, and Related Services Term Loan Prime plus 2.75% 9/7/2026
 125.0
 116.6
 99.3
 0.04%

28
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^SRA Mechanicial Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 9/6/2041
 43.8
 43.1
 45.1
 0.02%
^Sandia Enterprises Inc dba Massage Envy Spa Personal and Laundry Services Term Loan Prime plus 2.75% 9/6/2026
 62.5
 58.3
 49.7
 0.02%
^Animal Intrusion Prevention Systems Holding Company, LLC Administrative and Support Services Term Loan Prime plus 2.75% 8/30/2026
 125.0
 115.9
 101.5
 0.04%
^Suncrest Stone Products LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 8/29/2026
 586.7
 543.4
 487.2
 0.19%
^Suncrest Stone Products LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 8/29/2041
 649.6
 638.7
 595.9
 0.23%
^Clark Realty LLC Real Estate Term Loan Prime plus 2.75% 8/29/2041
 237.5
 233.5
 224.8
 0.09%
^Raem Corporation dba Dryclean Express Personal and Laundry Services Term Loan Prime plus 2.75% 8/29/2041
 72.5
 71.3
 74.0
 0.03%
^Warren Dale Warrington dba Custom Paint and Body Repair and Maintenance Term Loan Prime plus 2.75% 8/26/2041
 101.2
 99.5
 101.8
 0.04%
^TAGR Inc dba Miami Grill 137and John Nakis Food Services and Drinking Places Term Loan Prime plus 2.75% 8/26/2026
 106.8
 98.9
 86.6
 0.03%
^Albert Basse Associates Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 8/25/2026
 62.5
 57.9
 58.4
 0.02%
^Avery Management Inc. dba Whetstone Upholstery Repair and Maintenance Term Loan Prime plus 2.75% 8/25/2026
 10.6
 9.9
 8.4
 %
^Dean Technology Inc Electrical Equipment, Appliance, and Component Manufacturing Term Loan Prime plus 2.75% 8/25/2041
 387.1
 380.6
 397.1
 0.16%
^Rosmel Pools Inc Repair and Maintenance Term Loan Prime plus 2.75% 8/25/2026
 22.5
 20.8
 18.2
 0.01%
^Tabadesa Associates Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/25/2026
 22.5
 20.8
 17.8
 0.01%
^TR Companies LLC dba True Value Rental and Liberty Rental 4 U Rental and Leasing Services Term Loan Prime plus 2.75% 8/25/2026
 90.0
 83.4
 71.1
 0.03%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/24/2041
 500.0
 492.0
 513.3
 0.20%
^Tim's Tire & Automotive Center, LLC Support Activities for Transportation Term Loan Prime plus 2.75% 8/16/2026
 816.6
 768.3
 697.1
 0.27%
^Luv 2 Play Temecula, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 8/15/2026
 60.0
 55.6
 47.4
 0.02%
Bear Creek Entertainment LLC dba The Woods at Bear Creek Accommodation Term Loan Prime plus 2.75% 8/12/2041
 437.5
 390.8
 387.5
 0.15%
^2 Cool Beans LLC dba Menchies's Frozen Yogurt Food Services and Drinking Places Term Loan Prime plus 2.75% 8/11/2026
 82.5
 76.4
 65.1
 0.03%

29
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Grayson O Company Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 8/10/2041
 625.0
 614.5
 641.0
 0.25%
^Charal Investments LLC dba Orange Theory Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 8/10/2026
 87.5
 81.0
 69.1
 0.03%
^PCNKC Inc dba Plato's Closet Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/10/2026
 18.7
 3.0
 2.9
 %
^Paul Belanger dba Paul Belanger Landscaping Administrative and Support Services Term Loan Prime plus 2.75% 8/9/2026
 15.0
 13.9
 11.8
 %
^Nicolette Reiser dba Comfort & Balance Personal and Laundry Services Term Loan Prime plus 2.75% 7/29/2041
 75.0
 73.6
 75.2
 0.03%
^USA General Investment LLC dba Braniff Paint and Body Shop Repair and Maintenance Term Loan Prime plus 2.75% 7/29/2026
 22.5
 20.7
 18.2
 0.01%
^The Hungry Rhino LLC Real Estate Term Loan Prime plus 2.75% 7/29/2041
 76.2
 74.9
 74.9
 0.03%
^303 Tower Drive LLC Repair and Maintenance Term Loan Prime plus 2.75% 7/29/2041
 400.3
 392.9
 404.0
 0.16%
^Little Tree Huggers Child Care LLC Social Assistance Term Loan Prime plus 2.75% 7/29/2041
 140.0
 137.4
 144.2
 0.06%
^676 Club LP dba The Green Door Tavern/The Drifter Food Services and Drinking Places Term Loan Prime plus 2.75% 7/28/2041
 670.0
 657.7
 682.3
 0.27%
^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second Administrative and Support Services Term Loan Prime plus 2.75% 7/28/2041
 587.0
 576.2
 579.4
 0.23%
^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/28/2026
 300.0
 275.9
 235.1
 0.09%
^MacIver Corporation dba Division Camera Rental and Leasing Services Term Loan Prime plus 2.75% 7/28/2026
 1,250.0
 1,149.6
 1,086.0
 0.42%
^J And G Group Services LLC and United Vending of Florida Inc. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 7/28/2026
 31.5
 29.6
 26.5
 0.01%
^Intrepid Trinity LLC Nonstore Retailers Term Loan Prime plus 2.75% 7/28/2041
 62.5
 61.4
 62.5
 0.02%
^Apple Tree NC Inc dba Williams Farm & Garden Center Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 7/28/2041
 337.0
 330.8
 327.9
 0.13%
^Kidtastic LLC dba The Little Gym of Audubon Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/27/2026
 53.8
 52.2
 44.5
 0.02%
^GF Libations Inc dba Minuteman Press Printing and Related Support Activities Term Loan Prime plus 2.75% 7/27/2041
 40.5
 38.8
 34.6
 0.01%
^EPEC Juice LLC dba Jamba Juice Food Services and Drinking Places Term Loan Prime plus 2.75% 7/27/2026
 82.5
 76.8
 65.5
 0.03%
^Pinco Pizza LLC dba Jet's Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 7/27/2026
 72.9
 68.0
 67.2
 0.03%

30
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Peckett's Inc Crop Production Term Loan Prime plus 2.75% 7/27/2041
 225.0
 219.6
 230.7
 0.09%
^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar Food Services and Drinking Places Term Loan Prime plus 2.75% 7/27/2026
 125.0
 115.0
 98.0
 0.04%
^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 7/26/2026
 91.0
 83.6
 76.4
 0.03%
^Gino Italian American Deli and Meat Market Inc Food and Beverage Stores Term Loan Prime plus 2.75% 7/25/2041
 536.8
 530.2
 527.9
 0.21%
^My Sainath Inc dba Motel 6 Accommodation Term Loan Prime plus 2.75% 7/22/2041
 305.4
 299.8
 309.1
 0.12%
^Robert G Larson State Farm Insurance Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 7/22/2026
 22.5
 20.7
 17.6
 0.01%
^J and D Resources LLC dba Aqua Science Specialty Trade Contractors Term Loan Prime plus 2.75% 7/19/2026
 130.5
 120.0
 103.4
 0.04%
^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop Miscellaneous Store Retailers Term Loan Prime plus 2.75% 7/18/2026
 15.8
 14.5
 12.3
 %
Franklin Firm LLC dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/15/2041
 173.3
 170.6
 171.7
 0.07%
^Billingsworks LLC dba Spoon Shine Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 7/15/2026
 9.7
 8.9
 9.0
 %
^Be Beautiful LLC Personal and Laundry Services Term Loan Prime plus 2.75% 7/14/2041
 66.5
 65.3
 67.3
 0.03%
^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego Administrative and Support Services Term Loan Prime plus 2.75% 7/13/2026
 46.2
 42.5
 36.2
 0.01%
^Jacob Rugs LLC dba Rugs Outlet Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 7/13/2026
 65.6
 60.4
 61.0
 0.02%
^RM Hawkins LLC dba Pure Water Tech West Nonstore Retailers Term Loan Prime plus 2.75% 7/7/2026
 50.0
 46.0
 44.2
 0.02%
^Dino Smiles Children's Cosmetic Dentistry Ambulatory Health Care Services Term Loan Prime plus 2.75% 7/7/2026
 14.3
 13.1
 11.5
 %
Nevey's LLC dba Stark Food III Food and Beverage Stores Term Loan Prime plus 2.75% 6/30/2041
 293.9
 289.1
 299.1
 0.12%
^Soregard Inc Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 6/30/2041
 278.8
 273.2
 262.0
 0.10%
^P L H Pharmaco Inc dba Farmacia San Jose Health and Personal Care Stores Term Loan Prime plus 2.75% 6/30/2026
 175.0
 159.8
 158.4
 0.06%
^Martin Inventory Management LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/30/2026
 105.8
 96.6
 97.6
 0.04%
^Desert Tacos LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2026
 98.8
 92.6
 87.3
 0.03%

31
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^VMA Technologies LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/30/2026
 22.5
 20.5
 17.5
 0.01%
^Corning Lumber Company Inc and Frank R Close and Son Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/30/2029
 195.5
 183.8
 187.5
 0.07%
^Castone Creations Inc Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 6/29/2026
 87.5
 79.9
 71.3
 0.03%
^WGI, LLC dba Williams Grant Inn Accommodation Term Loan Prime plus 2.75% 6/29/2041
 131.2
 128.6
 129.5
 0.05%
^KWG Industries, LLC dba Peterson & Marsh Metal Industries Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 6/29/2041
 304.5
 299.0
 305.7
 0.12%
^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/29/2026
 140.0
 127.8
 112.0
 0.04%
^Ninsa LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/29/2041
 112.5
 110.3
 115.8
 0.05%
^E & P Holdings 1 LLC and Evans & Paul LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 6/28/2026
 125.0
 114.3
 101.0
 0.04%
^MaidPro Marin dba MaidPro Administrative and Support Services Term Loan Prime plus 2.75% 6/28/2026
 17.6
 16.0
 13.6
 0.01%
^All Printing Solutions, Inc. dba Pryntcomm Printing and Related Support Activities Term Loan Prime plus 2.75% 6/27/2041
 545.6
 535.4
 517.5
 0.20%
^Edge Pest Control LLC Administrative and Support Services Term Loan Prime plus 2.75% 6/27/2026
 750.0
 684.9
 583.2
 0.23%
^Jumbomarkets Inc dba Rines Jumbomarkets Food and Beverage Stores Term Loan Prime plus 2.75% 6/24/2026
 50.0
 45.7
 38.9
 0.02%
^El Basha Inc dba RPM West San Fernando Valley Real Estate Term Loan Prime plus 2.75% 6/24/2026
 22.5
 17.8
 15.1
 0.01%
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast Accommodation Term Loan Prime plus 2.75% 6/24/2041
 101.2
 99.2
 104.2
 0.04%
^Yellow Cab Company of Kissimmee Inc Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 6/24/2041
 56.8
 55.7
 53.5
 0.02%
Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/23/2041
 494.8
 488.4
 478.5
 0.19%
^Visual Advantage LLC dba Signs Now Perryberg Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/23/2041
 91.2
 89.4
 89.2
 0.03%
^Long Island Comedy LLC dba Governors and New York Comedy, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/23/2041
 187.5
 183.8
 185.5
 0.07%
^SNS of Central Alabama, LLC dba Steak N Shake dba Steak N Shake Food Services and Drinking Places Term Loan Prime plus 2.75% 6/21/2026
 57.5
 52.5
 47.9
 0.02%

32
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Evergreen Investment & Property Management LLC ,Universal Kidney Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/20/2041
 1,250.0
 1,229.1
 1,269.8
 0.50%
^Italian Heritage Tile and Stone Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 6/20/2026
 62.5
 57.1
 48.6
 0.02%
^Bagelicious, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/17/2026
 54.5
 49.8
 42.7
 0.02%
^T and B Boots Inc dba Takken's Shoes Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 6/17/2026
 225.0
 206.1
 208.3
 0.08%
^NKJ Lusby Donuts LLC Food and Beverage Stores Term Loan Prime plus 2.75% 6/16/2026
 22.5
 20.5
 17.5
 0.01%
^Winegirl Wines LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 6/16/2026
 11.3
 10.3
 10.4
 %
^Blue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle Transport Couriers and Messengers Term Loan Prime plus 2.75% 6/16/2026
 583.0
 524.9
 447.0
 0.17%
^Jai-Alexia Consulting, Inc. Couriers and Messengers Term Loan Prime plus 2.75% 6/15/2026
 11.8
 10.8
 9.2
 %
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares Social Assistance Term Loan Prime plus 2% 6/15/2041
 515.2
 503.9
 487.6
 0.19%
^Strag Industries LLC dba Meineke Car Care Center 841 Repair and Maintenance Term Loan Prime plus 2.75% 6/15/2026
 15.0
 13.7
 12.7
 %
^Luv 2 Play AZ LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/10/2026
 62.5
 57.1
 56.0
 0.02%
^Refoleen Inc dba Spice and Tea Exchange Food and Beverage Stores Term Loan Prime plus 2.75% 6/10/2026
 85.0
 79.1
 67.3
 0.03%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden Food Services and Drinking Places Term Loan Prime plus 2.75% 6/8/2026
 84.0
 76.7
 65.3
 0.03%
^ScimTech Industries Inc dba Archer Aerospace Computer and Electronic Product Manufacturing Term Loan Prime plus 2.75% 6/6/2026
 12.0
 11.0
 9.3
 %
^Larry H. Patterson and Rainbow Movers, Inc Truck Transportation Term Loan Prime plus 2.75% 6/6/2026
 22.5
 20.5
 17.6
 0.01%
^Solvit Inc and Solvit North Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 6/3/2026
 250.0
 229.5
 206.0
 0.08%
^AP5 LLC dba Krauser's Food Store Food and Beverage Stores Term Loan Prime plus 2.75% 6/2/2041
 242.5
 237.7
 240.5
 0.09%
^ATI Jet Inc Air Transportation Term Loan Prime plus 2.75% 5/31/2026
 518.8
 470.4
 421.1
 0.16%
^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 5/31/2026
 50.0
 45.3
 45.8
 0.02%
Angelo Faia dba AVF Construction Construction of Buildings Term Loan Prime plus 2.75% 5/27/2041
 100.0
 97.4
 97.8
 0.04%

33
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Premier Athletic Center of Ohio, Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/27/2026
 87.5
 79.3
 80.2
 0.03%
^Mersada Holdings LLC Nonstore Retailers Term Loan Prime plus 2.75% 5/26/2026
 337.5
 306.0
 309.3
 0.12%
^Jack Frost Firewood Inc. and David Dubinsky Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/26/2041
 206.2
 201.8
 201.3
 0.08%
^Southwest Division Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 5/26/2026
 8.3
 7.5
 6.8
 %
^PennyLion LLC dba Creamistry Food Services and Drinking Places Term Loan Prime plus 2.75% 5/25/2026
 81.0
 74.4
 65.3
 0.03%
^International Kitchen Supply LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 5/25/2026
 186.7
 169.3
 152.9
 0.06%
^Groth Lumber Co. Inc. dba True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/25/2026
 22.5
 20.4
 20.6
 0.01%
^Island Life Graphics Inc dba FASTSIGNS #576 Miscellaneous Manufacturing Term Loan Prime plus 2.75% 5/24/2026
 22.5
 20.4
 17.7
 0.01%
^Powerspec Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/24/2026
 87.5
 79.4
 67.6
 0.03%
^Horseshoe Barbecue, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 5/23/2029
 15.0
 12.8
 13.1
 0.01%
^Elderfriend Inc dba Granny Nannies dba GN Live Scan Social Assistance Term Loan Prime plus 2.75% 5/20/2026
 12.7
 11.6
 9.8
 %
^National Air Cargo Holdings Inc Air Transportation Term Loan Prime plus 2.75% 5/20/2026
 1,250.0
 1,133.4
 1,123.0
 0.44%
^Pro Auto Repair LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/20/2026
 7.5
 6.7
 6.6
 %
^HBA LLC dba Palmetto Twist-Vista Repair and Maintenance Term Loan Prime plus 2.75% 5/18/2026
 22.5
 17.7
 15.5
 0.01%
^J&A Laundromat Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 5/18/2026
 67.5
 61.2
 53.7
 0.02%
^Dedicated Incorporated Administrative and Support Services Term Loan Prime plus 2.75% 5/18/2041
 46.5
 45.5
 46.2
 0.02%
^J Harris Trucking, LLC Truck Transportation Term Loan Prime plus 2.75% 5/13/2026
 60.0
 39.2
 35.7
 0.01%
^FJN Catering Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 5/13/2041
 262.5
 257.3
 268.3
 0.10%
^LED Lighting Enterprises LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 5/13/2026
 22.5
 20.4
 17.9
 0.01%
^Studio Find It Georgia Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/13/2026
 22.5
 20.4
 18.0
 0.01%

34
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Luv 2 Play OC Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/12/2026
 62.5
 60.8
 51.8
 0.02%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano Social Assistance Term Loan Prime plus 2.75% 5/12/2041
 132.5
 129.7
 129.9
 0.05%
^The Delon Group LLC dba I Love Juice Bar Food Services and Drinking Places Term Loan Prime plus 2.75% 5/12/2026
 55.0
 19.8
 16.9
 0.01%
^Sabir Inc. dba Bear Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 5/11/2041
 123.8
 121.3
 124.8
 0.05%
^Gator D'Lites LLC dba D'Lites Emporium Food and Beverage Stores Term Loan Prime plus 2.75% 5/5/2026
 22.5
 20.4
 17.4
 0.01%
^Warner Home Comfort, LLC dba Smith Piping Specialty Trade Contractors Term Loan Prime plus 2.75% 4/29/2041
 82.5
 80.6
 80.9
 0.03%
^Keller, Fishback & Jackson LLP Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/29/2026
 131.7
 117.6
 118.9
 0.05%
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/29/2026
 22.5
 20.3
 17.2
 0.01%
^Euro Car Miami LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 4/29/2026
 62.5
 56.3
 56.9
 0.02%
^Hard Exercise Works Winter Park LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/29/2026
 40.8
 36.7
 31.2
 0.01%
^Loriet LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 4/29/2026
 7.5
 6.8
 5.8
 %
^La Nopalera Mexicano 2, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 4/29/2026
 125.5
 84.7
 85.6
 0.03%
^May-Craft Fiberglass Products Inc Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 4/29/2041
 247.5
 241.8
 254.0
 0.10%
^Alpha Omega Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 4/29/2041
 175.7
 171.9
 180.6
 0.07%
^Empowerschool LLC and Empower Autism Academy, LLC Social Assistance Term Loan Prime plus 2.75% 4/29/2041
 151.9
 148.4
 155.9
 0.06%
^Scoler LLC dba Gold's Gym Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/29/2026
 262.5
 236.3
 211.8
 0.08%
^Inner Beauty Salon and Suite LLC Personal and Laundry Services Term Loan Prime plus 2.75% 4/28/2041
 65.0
 63.5
 66.1
 0.03%
^Atlantic Restaurant Associates LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/28/2041
 262.5
 256.5
 264.4
 0.10%
^Costume World Inc Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 4/28/2041
 1,250.0
 1,225.3
 1,287.0
 0.50%

35
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Pecos Inn LLC dba Econo Lodge Accommodation Term Loan Prime plus 2.75% 4/28/2041
 677.5
 659.9
 679.8
 0.27%
^North American Manufacturing Company Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 4/28/2026
 160.0
 144.0
 145.6
 0.06%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma Real Estate Term Loan Prime plus 2.75% 4/28/2026
 9.0
 8.1
 6.9
 %
^Knowledge First Inc dba Magic Years of Learning Social Assistance Term Loan Prime plus 2.75% 4/27/2026
 80.0
 72.1
 68.7
 0.03%
^Green Country Filter Manufacturing LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 4/27/2026
 84.2
 76.6
 67.1
 0.03%
^Accent Comfort Services, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 4/26/2026
 90.0
 81.0
 69.0
 0.03%
^Homecare Casa Rhoda 123 Inc Ambulatory Health Care Services Term Loan Prime plus 2% 4/26/2041
 675.0
 657.8
 645.8
 0.25%
^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 4/22/2041
 250.0
 244.3
 235.7
 0.09%
^McIntosh Trail Management Services Organization Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/22/2041
 425.0
 415.3
 436.2
 0.17%
^Jande Graphics LLC dba FastSigns #103201 Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/21/2026
 56.0
 50.4
 42.9
 0.02%
^AAA Mill Direct, Inc. dba Carpet Mill Outlets Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 4/21/2026
 7.9
 7.1
 7.2
 %
^Miguel Fernando Borda, P.A. dba BGR Dental Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/15/2026
 22.5
 20.3
 17.9
 0.01%
^LE & JS dba Laredo Mercado Y Carniceria Food and Beverage Stores Term Loan Prime plus 2.75% 4/13/2026
 19.9
 18.5
 15.8
 0.01%
^Sushiya Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 4/12/2026
 87.5
 78.8
 70.1
 0.03%
^Sierra Foothill Cremation & Funeral Service, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 4/7/2026
 53.0
 47.8
 40.7
 0.02%
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC Repair and Maintenance Term Loan Prime plus 2.75% 4/6/2041
 271.3
 268.2
 274.0
 0.11%
^KNS Early Learning Academy LLC Social Assistance Term Loan Prime plus 2.75% 4/6/2041
 51.0
 49.9
 49.7
 0.02%
^Vehicle Safety Supply LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/31/2026
 22.5
 20.1
 18.4
 0.01%
^Men of Steel Enterprises LLC and Vogelbacher Properties LLC Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 3/31/2041
 393.5
 383.9
 384.3
 0.15%
^Gill Express Inc and Blue Speed LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/31/2041
 518.0
 505.4
 524.2
 0.21%

36
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Dana A. Farley dba Independent Cabinets Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 3/31/2041
 67.5
 65.9
 70.2
 0.03%
^Christian Soderquist dba Soderquist Plumbing and Heating LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 3/31/2041
 56.8
 55.4
 59.0
 0.02%
^Duke's Cleaners Inc Personal and Laundry Services Term Loan Prime plus 2.75% 3/31/2026
 47.0
 42.0
 40.7
 0.02%
^Cameo Carter, MD A Professional Corporation dba The Garden Pediatric Group Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/31/2026
 75.0
 67.0
 61.4
 0.02%
^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant and Marvin Food Services and Drinking Places Term Loan Prime plus 2.75% 3/31/2026
 66.8
 56.0
 51.3
 0.02%
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn Accommodation Term Loan Prime plus 2.75% 3/30/2026
 22.5
 20.4
 20.8
 0.01%
^MTS Car Service LLC Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 3/30/2026
 10.5
 9.4
 8.6
 %
^NOSO Development, LLC Construction of Buildings Term Loan Prime plus 2.75% 3/30/2026
 187.5
 167.5
 153.5
 0.06%
^Wyldewood Cellars, Inc. Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 3/30/2041
 986.7
 974.2
 987.2
 0.39%
^Tom Sawyer Country Restaurant LLC and AM 3208 LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/30/2041
 257.5
 252.0
 266.1
 0.10%
^Beale Street Blues Company-West Palm Beach, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 3/30/2026
 93.7
 83.8
 78.2
 0.03%
^Barrocas Gym LLC dba Snap Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/29/2026
 22.5
 17.8
 17.2
 0.01%
^Lust for Life Footwear, LLC Leather and Allied Product Manufacturing Term Loan Prime plus 2.75% 3/29/2026
 375.0
 335.1
 307.0
 0.12%
^Vinmar Inc. dba Locanda Portofino Food Services and Drinking Places Term Loan Prime plus 2.75% 3/29/2026
 81.3
 72.6
 66.5
 0.03%
^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane Clothing and Clothing Accessories Stores Term Loan Prime plus 2% 3/29/2041
 525.0
 495.2
 500.5
 0.20%
^Marathon Engineering Corporation Miscellaneous Manufacturing Term Loan Prime plus 2.75% 3/28/2041
 45.0
 43.9
 46.1
 0.02%
^ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstry Administrative and Support Services Term Loan Prime plus 2.75% 3/28/2026
 12.4
 11.1
 11.2
 %
^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp. Food Services and Drinking Places Term Loan Prime plus 2.75% 3/28/2026
 50.0
 44.7
 42.5
 0.02%
^Revolution Physical Therapy LLC dba Apex Network Physical Therapy Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/25/2026
 22.5
 20.4
 19.0
 0.01%
^RCB Enterprises, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 3/25/2026
 56.3
 50.3
 46.1
 0.02%

37
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Excel RP Inc Machinery Manufacturing Term Loan Prime plus 2.75% 3/25/2026
 125.0
 111.7
 106.7
 0.04%
^ActKnowledge, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 3/24/2026
 125.0
 111.7
 113.9
 0.04%
^International Construction Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 3/24/2041
 50.0
 48.9
 50.4
 0.02%
^Lowgap Grocery & Grill LLC General Merchandise Stores Term Loan Prime plus 2.75% 3/24/2041
 167.5
 163.4
 174.2
 0.07%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring Specialty Trade Contractors Term Loan Prime plus 2.75% 3/24/2026
 50.0
 44.8
 45.0
 0.02%
^Acton Hardware LLC and Mark Allgood & Jamie Allgood Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/24/2041
 498.6
 486.8
 496.1
 0.19%
^Magnation Corporation and Misha Family Trust Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 3/22/2041
 101.3
 99.1
 105.6
 0.04%
^growth.period LLC and Potomac Recruiting LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/21/2026
 156.3
 139.6
 127.9
 0.05%
^Precious Care LLC and Precious Care Management LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/21/2026
 557.5
 498.9
 459.2
 0.18%
^Media Capital Partners, Inc Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 3/21/2026
 22.5
 20.5
 18.8
 0.01%
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc Repair and Maintenance Term Loan Prime plus 2.75% 3/18/2041
 80.7
 78.8
 83.5
 0.03%
^ERT Group Inc and Curt's Tools Inspection Inc Support Activities for Mining Term Loan Prime plus 2.75% 3/18/2041
 1,250.0
 1,229.9
 1,272.0
 0.50%
^Kekoa Enterprises Inc dba Signarama Sandy Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/18/2026
 49.5
 44.2
 40.5
 0.02%
^Mariam Diner Inc dba Country Kitchen Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 3/18/2026
 52.5
 46.9
 43.0
 0.02%
^Brian T Rice dba BD Logging Forestry and Logging Term Loan Prime plus 2.75% 3/17/2026
 15.8
 14.1
 13.5
 0.01%
^Auto and Property Insurance Solutions Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 3/16/2026
 16.4
 14.5
 13.2
 0.01%
^Demand Printing Solutions Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 3/16/2026
 21.8
 19.4
 19.2
 0.01%
^LAN Doctors Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/16/2026
 55.0
 49.2
 50.2
 0.02%
^Evergreen Pallet LLC and Evergreen Recycle LLC Wood Product Manufacturing Term Loan Prime plus 2.75% 3/16/2026
 1,039.2
 931.4
 886.2
 0.35%

38
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^K Soles Corp dba Max Collections Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/16/2026
 22.5
 20.1
 18.4
 0.01%
^R & D Enterprises Inc dba My Pool Man Administrative and Support Services Term Loan Prime plus 2.75% 3/15/2026
 50.0
 44.7
 40.9
 0.02%
^Mustafa Inc and Raouf Properties LLC Food and Beverage Stores Term Loan Prime plus 2.75% 3/14/2041
 75.0
 73.2
 77.4
 0.03%
^HEWZ, LLC dba Hard Exercise Works Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/14/2026
 22.5
 20.1
 18.4
 0.01%
^Country Paint and Hardware Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/11/2026
 87.4
 78.1
 72.6
 0.03%
^Wilban LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/11/2026
 105.0
 95.0
 93.8
 0.04%
^Dupre Capital LLC dba Fastsigns Miscellaneous Manufacturing Term Loan Prime plus 2.75% 3/11/2026
 58.4
 52.2
 47.8
 0.02%
^Magill Truck Line LLC and Jeff J. Ralls Truck Transportation Term Loan Prime plus 2.75% 3/11/2029
 210.8
 195.3
 187.6
 0.07%
^Accuair Control Systems LLC dba Accuair Suspension Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 3/11/2026
 150.0
 134.0
 124.7
 0.05%
^ABCs & 123s Infant and Child Care Center LP Social Assistance Term Loan Prime plus 2.75% 3/11/2026
 11.2
 10.1
 9.2
 %
^State Painting & Decorating Co., Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 3/10/2026
 103.8
 92.7
 84.9
 0.03%
^B.P.T.M. of NV LLC and Agentis Bros., LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/9/2041
 525.0
 512.2
 532.4
 0.21%
^Step Up Academy of the Arts LLC Educational Services Term Loan Prime plus 2.75% 3/9/2026
 8.0
 7.2
 6.6
 %
^A & A Auto Care LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/9/2026
 12.1
 10.9
 10.9
 %
^Faith Summit Supply Inc dba Summit Supply and Summit True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/9/2026
 22.5
 20.1
 19.3
 0.01%
^Swerve Salon LLC Personal and Laundry Services Term Loan Prime plus 2.75% 3/8/2026
 79.0
 70.6
 64.7
 0.03%
^J & W Hardwood Flooring Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 3/7/2026
 7.5
 6.7
 6.1
 %
^Labmates LLC and POV Holdings LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 3/4/2041
 109.3
 106.6
 113.6
 0.04%
^Hueston and Company CPA LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/4/2026
 8.3
 7.3
 6.8
 %
^Almost Home Daycare LLC Social Assistance Term Loan Prime plus 2.75% 3/3/2026
 50.0
 45.0
 45.3
 0.02%

39
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Miles of Smiles Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 3/2/2026
 93.5
 85.1
 79.1
 0.03%
^Living Essentials HVAC Corp Specialty Trade Contractors Term Loan Prime plus 2.75% 2/28/2026
 15.0
 13.3
 12.3
 %
^Consulting Solutions, Inc. and Mark Luciani Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/28/2026
 11.2
 10.0
 10.1
 %
^Powerpits CS1, LLC dba Pita Pit Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2026
 18.8
 16.6
 15.8
 0.01%
^Drug Detection Laboratories, Inc. and Minh Tran Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/28/2026
 19.8
 17.5
 16.3
 0.01%
^Doxa Deo Inc dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2026
 105.0
 97.3
 91.2
 0.04%
^The River Beas, LLC dba Subway and Punam Singh Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2041
 135.9
 132.7
 140.4
 0.05%
^Blackstones Hairdressing LLC Personal and Laundry Services Term Loan Prime plus 2.75% 2/23/2026
 52.0
 46.5
 42.9
 0.02%
^Aaradhya LLC dba Market Square Laundry Personal and Laundry Services Term Loan Prime plus 2.75% 2/23/2026
 80.0
 70.9
 65.0
 0.03%
^R-No-Landscaping LLC Personal and Laundry Services Term Loan Prime plus 2.75% 2/19/2026
 8.3
 7.3
 6.8
 %
^BER Enterprise 332 Inc dba Edible Arrangements Food and Beverage Stores Term Loan Prime plus 2.75% 2/19/2026
 22.5
 20.0
 18.4
 0.01%
^R & K Contracting Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 2/18/2026
 15.8
 14.1
 14.1
 0.01%
^Pacific Coast Medical Group LLC dba Celebrity Laser Spa and Advanced Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/17/2026
 245.0
 217.3
 221.6
 0.09%
^B for Blonde, LLC dba Blo Blow Dry Bar Personal and Laundry Services Term Loan Prime plus 2.75% 2/12/2026
 62.0
 55.7
 51.1
 0.02%
^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/12/2029
 310.3
 286.3
 277.9
 0.11%
^Ei3 Corporation Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/12/2026
 326.9
 289.9
 295.7
 0.12%
^Jersey Shore Marina & Boat Sales, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/12/2041
 625.0
 609.7
 650.0
 0.25%
^Base USA, Inc. Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 2/2/2026
 50.0
 44.4
 45.3
 0.02%
^Zouk Ltd dba Palma Food Services and Drinking Places Term Loan Prime plus 2.75% 1/29/2026
 22.5
 19.8
 20.2
 0.01%

40
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Tammy Lavertue Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 1/28/2026
 11.3
 9.9
 9.9
 %
^SuzyQue's LLC dba SuzyQue's Food Services and Drinking Places Term Loan Prime plus 2.75% 1/28/2026
 22.5
 19.8
 20.2
 0.01%
^Wildflour Bakery & Cafe LLC Social Assistance Term Loan Prime plus 2.75% 1/28/2026
 62.5
 55.0
 55.5
 0.02%
^New Image Building Services, Inc. dba The Maids serving Oakland Administrative and Support Services Term Loan Prime plus 2.75% 1/19/2026
 83.1
 73.2
 69.3
 0.03%
^Oak Tree Storage LLC Other Information Services Term Loan Prime plus 2.75% 1/19/2026
 78.8
 69.3
 64.3
 0.03%
^Gendron Funeral and Cremation Services, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 1/11/2041
 112.5
 108.0
 115.1
 0.05%
^Dolarian Realty LLC and OV's Restaurant Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 1/5/2041
 67.8
 66.0
 70.4
 0.03%
#CIRCULAR! Food and Beverage Stores Term Loan Prime plus 2.75% 12/29/2025
 112.5
 98.3
 92.4
 0.04%
^MCF Forte LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 12/29/2025
 18.8
 16.4
 15.1
 0.01%
^Panditos LLC dba White Lotus Home Miscellaneous Manufacturing Term Loan Prime plus 2.75% 12/28/2025
 15.9
 13.9
 12.7
 %
^Bright Dialysis LLC and Ft Pierce Kidney Care LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/28/2025
 1,250.0
 1,092.1
 1,002.2
 0.39%
^V2 Tango LLC dba Palette 22 Food Services and Drinking Places Term Loan Prime plus 2.75% 12/23/2025
 250.0
 218.4
 204.3
 0.08%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/23/2040
 102.5
 99.5
 103.9
 0.04%
^Optima Health Care Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/23/2025
 62.5
 54.6
 55.7
 0.02%
^800 on the Trax LLC and Matrix Z LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 12/23/2040
 240.0
 234.1
 243.4
 0.10%
^Joyce Outdoor Advertising Chicago LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/22/2040
 300.0
 293.1
 303.6
 0.12%
^The LAX Shop Inc Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 12/22/2025
 125.0
 85.4
 87.1
 0.03%
^Premier Athletic Center of Ohio Inc. and Gates Investments Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/22/2028
 882.0
 804.8
 829.2
 0.32%
#CIRCULAR! Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/21/2025
 18.0
 15.7
 14.9
 0.01%

41
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
#CIRCULAR! Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/18/2040
 1,025.0
 994.8
 1,060.0
 0.41%
#CIRCULAR! Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/18/2025
 175.0
 152.9
 140.0
 0.05%
#CIRCULAR! Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/18/2025
 73.0
 65.4
 61.1
 0.02%
#CIRCULAR! Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/18/2025
 36.0
 30.4
 28.2
 0.01%
^Accent Tag and Label Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 12/18/2040
 665.8
 644.4
 671.7
 0.26%
^Labmates LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 12/18/2040
 162.5
 157.7
 168.0
 0.07%
^Abbondanza Market LLC dba Hampton Falls Village Market Food and Beverage Stores Term Loan Prime plus 2.75% 12/18/2025
 73.7
 58.8
 55.0
 0.02%
^Mustafa Inc dba Adiba Grocery Food and Beverage Stores Term Loan Prime plus 2.75% 12/17/2025
 103.8
 91.2
 92.9
 0.04%
^Learning Skills LLC and Christopher Shrope Educational Services Term Loan Prime plus 2.75% 12/17/2025
 10.8
 9.4
 8.6
 %
^New York Home Health Care Equipment, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/16/2025
 875.0
 767.0
 775.6
 0.30%
^Moments to Remember USA LLC dba Retain Loyalty Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/16/2025
 75.0
 65.6
 64.2
 0.03%
^Swalm Sreet LLC and New York Home Health Care Equipment LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/16/2040
 375.0
 365.3
 385.8
 0.15%
^Abitino's JFK LLC dba Abitino's Food Services and Drinking Places Term Loan Prime plus 2.75% 12/16/2022
 125.0
 102.0
 96.2
 0.04%
^JAG Unit 1, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 12/16/2025
 250.0
 218.4
 200.0
 0.08%
^SDA Holdings LLC and Les Cheveux Salon Inc Personal and Laundry Services Term Loan Prime plus 2.75% 12/15/2040
 428.8
 418.2
 431.3
 0.17%
^Evans & Paul LLC and E&P Holdings I LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 12/15/2025
 125.0
 109.2
 102.3
 0.04%
^Basista Family Limited Partnership and UPE, Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/14/2040
 342.5
 332.4
 345.5
 0.14%
^DC Enterprises Ltd. dba Lakeview True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 12/14/2025
 22.5
 19.7
 19.5
 0.01%
^Tri-State Remodeling & Investments, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 12/11/2025
 15.9
 13.9
 13.9
 0.01%
^AGR Foodmart Inc dba Nashua Road Mobil Gasoline Stations Term Loan Prime plus 2.75% 12/11/2025
 22.5
 19.7
 19.4
 0.01%

42
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Alexandra Afentoulides dba Vi's Pizza Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 12/11/2040
 46.3
 44.9
 47.8
 0.02%
#CIRCULAR! Social Assistance Term Loan Prime plus 2.75% 12/10/2025
 7.5
 6.6
 6.7
 %
#CIRCULAR! Specialty Trade Contractors Term Loan Prime plus 2.75% 12/9/2025
 100.0
 87.4
 82.0
 0.03%
#CIRCULAR! Food Services and Drinking Places Term Loan Prime plus 2.75% 12/8/2025
 108.7
 95.0
 89.4
 0.03%
#CIRCULAR! Administrative and Support Services Term Loan Prime plus 2.75% 12/7/2025
 56.3
 30.9
 28.3
 0.01%
^Food & Fuel Company LLC dba Lowery Food Mart Food and Beverage Stores Term Loan Prime plus 2.75% 12/4/2040
 122.5
 118.9
 126.7
 0.05%
^Blue Ox Trucking Inc. Truck Transportation Term Loan Prime plus 2.75% 12/4/2025
 12.3
 4.7
 4.7
 %
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC Repair and Maintenance Term Loan Prime plus 2.75% 12/4/2040
 502.5
 488.4
 512.4
 0.20%
#CIRCULAR! Accommodation Term Loan Prime plus 2.75% 12/4/2040
 293.0
 284.4
 298.8
 0.12%
^Tariq, LLC dba 76 Food Mart Gasoline Stations Term Loan Prime plus 2.75% 12/2/2040
 375.0
 363.9
 382.2
 0.15%
^401 JJS, Corp and G. Randazzo's Trattoria Corporation Food Services and Drinking Places Term Loan Prime plus 2.75% 12/1/2040
 52.7
 51.5
 53.5
 0.02%
^Delta Aggregate, LLC Mining (except Oil and Gas) Term Loan Prime plus 2.75% 11/30/2025
 100.0
 90.8
 92.6
 0.04%
^Block and Grinder LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2025
 200.0
 55.3
 56.4
 0.02%
^Hurshell Leon Dutton dba High Jump Party Rentals Rental and Leasing Services Term Loan Prime plus 2.75% 11/30/2025
 17.6
 15.2
 15.4
 0.01%
^Japp Business Inc dba Pick and Eat and Japp Drink Corp. Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2025
 125.0
 108.9
 103.3
 0.04%
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2025
 125.0
 108.4
 100.7
 0.04%
^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad Electrical Equipment, Appliance, and Component Manufacturing Term Loan Prime plus 2.75% 11/25/2025
 22.5
 19.5
 17.9
 0.01%
^DWeb Studio, Inc. Educational Services Term Loan Prime plus 2.75% 11/25/2025
 11.3
 9.8
 8.9
 %
#CIRCULAR! Specialty Trade Contractors Term Loan Prime plus 2.75% 11/25/2025
 100.0
 62.7
 57.4
 0.02%
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/23/2040
 750.0
 738.3
 782.8
 0.31%

43
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Play and Learn Child Care and School Inc Social Assistance Term Loan Prime plus 2.75% 11/23/2025
 11.1
 9.6
 9.8
 %
^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy Health and Personal Care Stores Term Loan Prime plus 2.75% 11/20/2025
 89.0
 78.2
 72.6
 0.03%
^Haven Hospitality Group Inc. dba Haven Gastropub Food Services and Drinking Places Term Loan Prime plus 2.75% 11/20/2025
 132.5
 114.9
 106.5
 0.04%
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/20/2040
 244.4
 237.1
 238.0
 0.09%
^S.B.B. Enterprises Inc dba Williamston Hardware Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/19/2040
 108.8
 105.1
 105.8
 0.04%
^Key Pix Productions Inc. dba Air Bud Entertainment Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 11/18/2040
 839.8
 813.6
 867.0
 0.34%
^RDT Enterprises, L.L.C. Specialty Trade Contractors Term Loan Prime plus 2.75% 11/12/2025
 22.5
 19.5
 19.2
 0.01%
^E.S.F.P. LLC dba Volusia Van and Storage Truck Transportation Term Loan Prime plus 2.75% 11/11/2025
 91.3
 77.2
 71.8
 0.03%
^Green Life Lawnscapes LLC dba Green Life Lawn Care Administrative and Support Services Term Loan Prime plus 2.75% 11/6/2025
 127.3
 110.3
 111.1
 0.04%
^Jumbomarkets Inc dba Rines Jumbomarkets Food and Beverage Stores Term Loan Prime plus 2.75% 11/4/2025
 306.2
 265.5
 266.6
 0.10%
^Bisson Transportation Inc dba I & R Associates and Document Secutiry Truck Transportation Term Loan Prime plus 2.75% 10/30/2025
 22.5
 19.3
 19.0
 0.01%
^L.M. Jury Enterprises, Inc dba Midwest Monograms Textile Product Mills Term Loan Prime plus 2.75% 10/28/2025
 77.0
 66.2
 61.5
 0.02%
^Top Cat Ready Mix, LLC, Ples Investments LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 10/28/2025
 711.3
 611.6
 574.7
 0.22%
^Financial Network Recovery Administrative and Support Services Term Loan Prime plus 2.75% 10/26/2025
 40.0
 34.4
 31.5
 0.01%
^Windsor Direct Distribution LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 10/26/2025
 14.2
 12.3
 11.2
 %
^Tannehill Enterprises Inc dba Hobbytown USA Folsom Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 10/14/2025
 87.4
 75.1
 68.8
 0.03%
^ADMO Inc dba Mid States Equipment Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 10/8/2025
 22.5
 19.3
 18.0
 0.01%
^Recycling Consultants, Inc. and Prairie State Salvage and Recycling Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/30/2027
 767.5
 679.9
 651.9
 0.26%
^Bat Bridge Investments Inc dba Kalologie 360 Spa Personal and Laundry Services Term Loan Prime plus 2.75% 9/30/2025
 85.5
 74.4
 68.1
 0.03%
^Binky's Vapes LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/30/2025
 22.5
 19.2
 17.6
 0.01%

44
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^SCJEN Management Inc dba Bowl of Heaven Food Services and Drinking Places Term Loan Prime plus 2.75% 9/30/2025
 71.2
 61.4
 56.2
 0.02%
^Naeem Khan LTD Apparel Manufacturing Term Loan Prime plus 2.75% 9/30/2025
 125.0
 106.6
 97.5
 0.04%
^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City Specialty Trade Contractors Term Loan Prime plus 2.75% 9/30/2028
 66.5
 59.7
 60.1
 0.02%
^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 9/30/2040
 143.0
 138.1
 146.9
 0.06%
^R.H. Hummer Jr., Inc. Truck Transportation Term Loan Prime plus 2.75% 9/30/2025
 375.0
 335.1
 332.6
 0.13%
^Greensward of Marco Inc. Administrative and Support Services Term Loan Prime plus 2.75% 9/28/2040
 87.5
 84.5
 87.5
 0.03%
^RIM Investments LLC and RIM Architects LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/28/2040
 399.0
 385.3
 397.8
 0.16%
^The Grasso Companies LLC and Grasso Pavement Maintenance LLC Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/28/2025
 518.7
 438.2
 446.2
 0.17%
^South Towne Dental Center, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/25/2025
 50.0
 42.7
 43.5
 0.02%
^Sandlot Ventures LLC and Sandbox Ventures LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/25/2040
 442.5
 430.0
 439.6
 0.17%
^Yachting Solutions LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/25/2040
 962.5
 929.5
 949.4
 0.37%
^Prestigious LifeCare for Seniors LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/25/2025
 9.8
 8.4
 8.1
 %
^Daniel W. Stark dba Mountain Valley Lodge and RV Park Accommodation Term Loan Prime plus 2.75% 9/25/2040
 13.5
 13.0
 13.9
 0.01%
^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/24/2025
 21.0
 18.0
 18.3
 0.01%
^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn Accommodation Term Loan Prime plus 2.75% 9/24/2040
 625.0
 603.5
 628.6
 0.25%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/24/2040
 327.5
 316.3
 336.8
 0.13%
^Rutledge Enterprises Inc dba BLC Property Management Administrative and Support Services Term Loan Prime plus 2.75% 9/23/2040
 62.5
 59.9
 62.4
 0.02%
^Finish Strong Inc dba FASTSIGNS St Peters Miscellaneous Manufacturing Term Loan Prime plus 2.75% 9/23/2025
 50.0
 42.7
 39.0
 0.02%
^J3K LLC dba Ronan True Value Hardware Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/23/2025
 152.5
 130.1
 119.0
 0.05%
^Nova Solutions Inc Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 9/22/2040
 320.0
 309.0
 322.1
 0.13%

45
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Pine Belt Wood Products LLC Forestry and Logging Term Loan Prime plus 2.75% 9/22/2040
 163.7
 158.1
 156.6
 0.06%
^IIoka Inc dba New Cloud Networks Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/21/2025
 665.0
 570.1
 521.4
 0.20%
^Sound Manufacturing Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/21/2025
 50.0
 42.7
 40.5
 0.02%
^MiJoy Inc dba Imo's Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 9/18/2025
 8.2
 7.0
 6.4
 %
^Vanderhoof LLC dba Soxfords Apparel Manufacturing Term Loan Prime plus 2.75% 9/18/2025
 15.9
 13.6
 12.4
 %
^Naeem Khan LTD Apparel Manufacturing Term Loan Prime plus 2.75% 9/17/2025
 125.0
 106.6
 97.5
 0.04%
^Import Car Connection Inc dba Car Connection Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/16/2040
 407.5
 393.5
 416.2
 0.16%
^FirstVitals Health and Wellness Inc Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/15/2025
 150.0
 128.0
 117.0
 0.05%
^Almost Home Daycare LLC Social Assistance Term Loan Prime plus 2.75% 9/11/2025
 62.5
 53.7
 54.5
 0.02%
^Veliu LLC dba FASTSIGNS #15901 Miscellaneous Manufacturing Term Loan Prime plus 2.75% 9/10/2025
 50.0
 43.2
 40.3
 0.02%
^B and A Friction Materials Inc Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/9/2025
 102.5
 85.2
 77.9
 0.03%
^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 9/8/2040
 140.0
 135.2
 144.0
 0.06%
^AIG Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 9/4/2040
 363.8
 351.3
 356.0
 0.14%
^Empower Autism Academy Social Assistance Term Loan Prime plus 2.75% 9/4/2040
 685.0
 661.5
 704.4
 0.28%
^Higher Grounds Community Coffeehouse, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/2/2025
 8.3
 7.0
 6.6
 %
^Delray Scrap Recycling LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 8/31/2025
 22.5
 18.8
 17.2
 0.01%
^The Camera House Inc Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 8/31/2025
 1,250.0
 1,057.8
 1,022.6
 0.40%
^LAN Doctors Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/28/2025
 81.2
 68.8
 66.1
 0.03%
^Elite Institute LLC dba Huntington Learning Center Educational Services Term Loan Prime plus 2.75% 8/28/2025
 15.0
 12.9
 11.8
 %
^J and K Fitness L.L.C. dba Physiques Womens Fitness Center Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2041
 93.7
 91.5
 96.2
 0.04%

46
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon Personal and Laundry Services Term Loan Prime plus 2.75% 8/28/2025
 81.3
 71.3
 66.2
 0.03%
^B and J Catering Inc dba Culinary Solutions Food Services and Drinking Places Term Loan Prime plus 2.75% 8/27/2040
 547.5
 532.9
 546.2
 0.21%
^3000 CSI Property LLC and Consulting Solutions Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/20/2040
 137.5
 132.6
 140.0
 0.05%
^God Be Glorified Inc dba GBG Inc Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 8/20/2025
 53.0
 44.9
 41.0
 0.02%
^GDP Gourmet LLC dba Joe and John's Pizza Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 8/19/2040
 145.0
 139.8
 145.0
 0.06%
^Gold Jet Corp. Couriers and Messengers Term Loan Prime plus 2.75% 8/14/2025
 68.3
 61.0
 58.6
 0.02%
^SKJ Inc dba Subway Food Services and Drinking Places Term Loan Prime plus 2.75% 8/13/2025
 84.8
 71.7
 66.2
 0.03%
^LP Industries Inc dba Childforms Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 7/29/2025
 125.0
 105.2
 103.1
 0.04%
^Pauley Tree and Lawn Care Inc Administrative and Support Services Term Loan Prime plus 2.75% 7/28/2025
 65.8
 56.1
 53.4
 0.02%
^Beale Street Blues Company-West Palm Beach LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 7/24/2025
 66.3
 55.6
 52.2
 0.02%
^Forever & Always of Naples Inc dba Island Animal Hospital Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/24/2025
 107.5
 82.9
 80.2
 0.03%
^Smart Artists Inc. Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 7/23/2025
 22.5
 18.9
 17.3
 0.01%
^Pooh's Corner Realty LLC and Pooh's Corner Inc Social Assistance Term Loan Prime plus 2.75% 7/23/2040
 103.8
 100.3
 106.4
 0.04%
^Free Ion Advisors LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/21/2025
 64.3
 53.9
 49.3
 0.02%
^Murrayville Donuts, Inc dba Dunkin' Donuts Food and Beverage Stores Term Loan Prime plus 2.75% 7/15/2040
 344.5
 335.4
 343.5
 0.13%
^Union 2 LLC dba The Standard Food Services and Drinking Places Term Loan Prime plus 2.75% 7/10/2025
 91.5
 82.9
 80.2
 0.03%
^BJ's Tavern LLC and BJ's Cabana Bar Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2040
 212.5
 204.2
 212.6
 0.08%
^Jonathan E Nichols and Nichols Fire and Security LLC Administrative and Support Services Term Loan Prime plus 2.75% 6/30/2025
 75.0
 62.4
 61.9
 0.02%
^Thrifty Market, Inc. dba Thrifty Foods Food and Beverage Stores Term Loan Prime plus 2.75% 6/30/2030
 262.5
 237.8
 228.2
 0.09%
^Danny V, LLC dba Hugo's Taproom Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2040
 54.0
 45.7
 46.1
 0.02%

47
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Anglin Cultured Stone Products LLC dba Anglin Construction Specialty Trade Contractors Term Loan Prime plus 2.75% 6/30/2025
 281.7
 234.5
 221.3
 0.09%
^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/29/2025
 337.5
 280.9
 260.0
 0.10%
^Summit Beverage Group LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 8/29/2030
 291.9
 264.9
 257.8
 0.10%
^Myclean Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 6/29/2025
 15.9
 13.2
 12.1
 %
^E & G Enterprises LLC dba Comfort Keepers Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/26/2025
 22.5
 18.7
 17.2
 0.01%
^SofRep, Inc dba Force 12 Media Other Information Services Term Loan Prime plus 2.75% 6/26/2025
 66.3
 55.1
 50.4
 0.02%
^TJU-DGT Inc dba The Lorenz Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 6/26/2029
 20.6
 18.5
 19.1
 0.01%
^Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling Gasoline Stations Term Loan Prime plus 2.75% 6/26/2040
 380.0
 365.1
 378.2
 0.15%
^CEM Autobody LLC dba Dawn's Autobody Repair and Maintenance Term Loan Prime plus 2.75% 6/26/2040
 135.5
 130.2
 133.9
 0.05%
^Wolf Enviro Interests, LLC and Enviromax Services Inc Administrative and Support Services Term Loan Prime plus 2.75% 6/25/2040
 246.5
 237.2
 237.4
 0.09%
^Ohs Auto Body, Inc. dba Ohs Body Shop Repair and Maintenance Term Loan 7.465% 6/25/2040
 1,207.5
 1,172.3
 1,204.2
 0.47%
^Evinger PA One, Inc. dba Postal Annex, Falcon Miscellaneous Store Retailers Term Loan Prime plus 2.75% 6/24/2025
 22.5
 18.7
 17.9
 0.01%
^Amboy Group, LLC dba Tommy's Moloney's Food Manufacturing Term Loan Prime plus 2.75% 6/24/2025
 454.0
 387.4
 394.2
 0.15%
^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical Specialty Trade Contractors Term Loan Prime plus 2.75% 6/23/2040
 551.7
 530.1
 564.2
 0.22%
^RJI Services, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/23/2025
 22.5
 18.6
 17.0
 0.01%
^Real Help LLC dba Real Help Decorative Concrete Administrative and Support Services Term Loan Prime plus 2.75% 6/22/2025
 53.1
 44.2
 44.7
 0.02%
^PM Cassidy Enterprises, Inc. dba Junk King Waste Management and Remediation Services Term Loan Prime plus 2.75% 6/19/2025
 14.9
 12.4
 11.3
 %
^KRN Logistics, LLC and Newsome Trucking, Inc Truck Transportation Term Loan Prime plus 2.75% 6/19/2025
 543.5
 455.7
 438.7
 0.17%
^Inverted Healthcare Staffing of Florida LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/18/2025
 61.3
 51.0
 46.6
 0.02%
^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/17/2025
 437.5
 378.7
 383.3
 0.15%
^AM PM Properties, LLC and AM PM Willington, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/17/2040
 87.1
 83.4
 88.1
 0.03%

48
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Nelson Sargsyan dba HDA Trucking Support Activities for Transportation Term Loan Prime plus 2.75% 6/16/2025
 130.5
 108.6
 99.2
 0.04%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/12/2040
 338.8
 133.3
 130.4
 0.05%
^Bizzare Foods Inc dba Trooper Foods Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 6/12/2025
 125.0
 99.0
 90.5
 0.04%
^Anturio Marketing Inc dba Logic Consulting Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/12/2040
 290.2
 278.9
 296.8
 0.12%
^Eldredge Tavern LLC dba Gonyea's Tavern Food Services and Drinking Places Term Loan Prime plus 2.75% 6/8/2040
 56.3
 54.0
 57.5
 0.02%
^Nicor LLC dba Fibrenew Sacramento Repair and Maintenance Term Loan Prime plus 2.75% 6/5/2022
 13.8
 10.1
 9.2
 %
^Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta Food Services and Drinking Places Term Loan Prime plus 2.75% 6/5/2025
 16.0
 13.1
 11.9
 %
^ViAr Visual Communications, Inc. dba Fastsigns 281701 Miscellaneous Manufacturing Term Loan Prime plus 2.75% 6/5/2025
 62.0
 51.6
 48.0
 0.02%
^Video Vault & Tanning LLC and Mosaic Salon LLC Rental and Leasing Services Term Loan Prime plus 2.75% 6/4/2040
 90.5
 87.1
 92.7
 0.04%
^Medworxs LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/3/2025
 125.0
 104.0
 95.7
 0.04%
^XCESSIVE THROTTLE, INC dba Jake's Roadhouse Food Services and Drinking Places Term Loan Prime plus 2.75% 5/29/2025
 8.2
 6.8
 6.2
 %
^God is Good LLC dba BurgerFi Food Services and Drinking Places Term Loan Prime plus 2.75% 5/27/2025
 67.2
 11.7
 11.9
 %
^Villela CPA PL Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/27/2025
 9.0
 7.4
 7.0
 %
^Pen Tex Inc dba The UPS Store Administrative and Support Services Term Loan Prime plus 2.75% 5/20/2025
 22.0
 18.2
 16.6
 0.01%
^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse Accommodation Term Loan Prime plus 2.75% 5/20/2040
 174.1
 167.0
 175.2
 0.07%
^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/15/2025
 717.2
 594.5
 553.0
 0.22%
^15 McArdle LLC and No Other Impressions Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 5/15/2040
 257.1
 246.6
 250.3
 0.10%
^Guard Dogs MFS LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/8/2025
 65.0
 53.6
 49.3
 0.02%
^George S Cochran DDS Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/7/2025
 130.0
 107.9
 98.8
 0.04%
^South Park Properties LLC and Midlothian Hardware LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/6/2040
 170.5
 162.4
 172.9
 0.07%

49
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Matthew Taylor and Landon Farm LLC Personal and Laundry Services Term Loan Prime plus 2.75% 5/4/2040
 100.0
 96.6
 95.1
 0.04%
^Cares Inc dba Dumpling Grounds Day Care Center Social Assistance Term Loan Prime plus 2.75% 5/1/2040
 81.9
 77.7
 82.7
 0.03%
^Orchid Enterprises Inc dba Assisting Hands of Sussex County Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/24/2025
 15.0
 12.3
 11.2
 %
^Ragazza Restaurant Group, Inc. dba Bambolina Food Services and Drinking Places Term Loan Prime plus 2.75% 4/21/2025
 22.5
 18.2
 17.2
 0.01%
^Diamond Solutions LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 4/21/2025
 22.5
 17.6
 16.0
 0.01%
^Giacchino Maritime Consultants Inc Personal and Laundry Services Term Loan Prime plus 2.75% 4/17/2025
 22.5
 18.4
 16.8
 0.01%
^Sound Coaching Inc Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 4/14/2025
 44.4
 36.3
 33.2
 0.01%
^Faramarz Nikourazm dba Car Clinic Center Repair and Maintenance Term Loan Prime plus 2.75% 4/3/2040
 73.8
 70.4
 72.9
 0.03%
^Advance Case Parts RE Holdings LLC and Advance Case Parts Inc Repair and Maintenance Term Loan Prime plus 2.75% 3/31/2040
 758.3
 707.0
 751.3
 0.29%
^T and B Boots Inc dba Takken's Shoes Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 3/31/2025
 807.8
 130.3
 134.1
 0.05%
^HAVANA CENTRAL NJ1, LLC dba Havana Central Food Services and Drinking Places Term Loan Prime plus 2.75% 3/31/2025
 250.0
 218.9
 225.1
 0.09%
^Mid-South Lumber Co. of Northwest Florida, Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 3/31/2040
 428.7
 409.8
 434.7
 0.17%
^Copper Beech Financial Group LLC Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 3/30/2025
 125.0
 101.4
 102.4
 0.04%
^Delta Aggregate LLC Mining (except Oil and Gas) Term Loan Prime plus 2.75% 3/30/2025
 90.0
 79.2
 81.5
 0.03%
^Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac Accommodation Term Loan Prime plus 2.75% 3/27/2040
 301.8
 288.4
 312.6
 0.12%
^Shorr Enterprises Inc dba New Design Furniture Manufacturers Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 3/27/2025
 106.5
 86.4
 87.6
 0.03%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC Real Estate Term Loan Prime plus 2.75% 3/27/2025
 1,238.3
 1,004.5
 993.7
 0.39%
^Shellhorn and Hill Inc dba Total Fleet Service Nonstore Retailers Term Loan Prime plus 2.75% 3/27/2040
 1,040.2
 990.4
 1,050.6
 0.41%
^Geo Los Angeles LLC dba Geo Film Group Rental and Leasing Services Term Loan Prime plus 2.75% 3/26/2025
 130.0
 105.5
 106.8
 0.04%
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/26/2040
 54.0
 51.6
 55.8
 0.02%

50
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Zero-In Media Inc Data Processing, Hosting, and Related Services Term Loan Prime plus 2.75% 3/25/2025
 22.5
 18.3
 18.1
 0.01%
^Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 3/25/2040
 810.0
 774.2
 838.2
 0.33%
^Loriet LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/24/2025
 12.0
 9.7
 9.6
 %
^Shelton Incorporated dba Mrs. Winners Food Services and Drinking Places Term Loan Prime plus 2.75% 3/20/2040
 112.5
 107.5
 116.5
 0.05%
^Jaymie Hazard dba Indigo Hair Studio and Day Spa Personal and Laundry Services Term Loan Prime plus 2.75% 3/20/2040
 42.9
 41.1
 44.0
 0.02%
^R & R Security and Investigations Inc dba Pardners Lake Buchanan Food Services and Drinking Places Term Loan Prime plus 2.75% 3/19/2040
 85.4
 81.7
 88.5
 0.03%
^MMS Realty, LLC and Molecular MS Diagnostics LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/18/2040
 160.7
 153.6
 164.3
 0.06%
^Royal Crest Motors LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/16/2040
 91.2
 87.2
 93.6
 0.04%
^BND Sebastian Limited Liability Company and Sebastian Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/16/2040
 172.5
 164.9
 177.7
 0.07%
^Douglas Printy Motorsports, Inc. dba Blackburn Trike Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/9/2040
 191.8
 183.3
 196.0
 0.08%
^Luigi's on Main LLC and Luigi's Main Street Pizza Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 3/4/2025
 11.3
 9.1
 9.4
 %
^Baystate Firearms and Training, LLC Educational Services Term Loan Prime plus 2.75% 2/27/2025
 63.4
 50.8
 50.4
 0.02%
^Kingseal LLC dba Desoto Health and Rehab Center Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 2/26/2040
 1,250.0
 1,192.7
 1,292.8
 0.51%
^Pace Motor Lines, Inc. Truck Transportation Term Loan Prime plus 2.75% 2/26/2025
 66.2
 53.1
 54.7
 0.02%
^Nelson Financial Services LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/24/2025
 12.4
 10.0
 9.9
 %
^Kiddie Steps 4 You Inc. Social Assistance Term Loan Prime plus 2.75% 2/19/2040
 61.7
 59.0
 63.0
 0.02%
^Triangle Trash LLC dba Bin There Dump That Waste Management and Remediation Services Term Loan Prime plus 2.75% 2/18/2025
 74.4
 59.7
 60.2
 0.02%
^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 12/31/2018
 171.5
 163.8
 162.1
 0.06%
^740 Barry Street Realty LLC and Wild Edibles Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 2/10/2040
 492.5
 469.9
 509.4
 0.20%

51
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Kostekos Inc dba New York Style Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 2/6/2040
 66.2
 63.3
 67.9
 0.03%
^DuCharme Realty LLC and DuCharme Enterprises LLC Wood Product Manufacturing Term Loan Prime plus 2.75% 2/2/2040
 225.1
 214.8
 228.8
 0.09%
^Dean 1021 LLC dba Pure Pita Food Services and Drinking Places Term Loan Prime plus 2.75% 4/29/2025
 80.0
 64.3
 64.0
 0.03%
^Limameno LLC dba Sal's Italian Ristorante Food Services and Drinking Places Term Loan Prime plus 2.75% 1/23/2025
 83.3
 66.3
 66.1
 0.03%
^Palmabak Inc dba Mami Nora's Food Services and Drinking Places Term Loan Prime plus 2.75% 1/22/2025
 21.5
 13.3
 13.7
 0.01%
^Jung Design Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 1/20/2022
 8.4
 5.7
 5.6
 %
^Grand Blanc Lanes, Inc. and H, H and H, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/31/2039
 133.0
 126.9
 137.1
 0.05%
^Bear Creek Entertainment, LLC dba The Woods at Bear Creek Accommodation Term Loan Prime plus 2.75% 12/30/2024
 106.3
 86.2
 88.6
 0.03%
^Evans and Paul LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/30/2024
 223.7
 176.7
 180.8
 0.07%
^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern Food Services and Drinking Places Term Loan Prime plus 2.75% 12/30/2039
 245.5
 234.8
 249.5
 0.10%
^First Prevention and Dialysis Center, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/30/2024
 273.3
 228.1
 232.2
 0.09%
^Bowlerama Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/24/2039
 1,202.5
 1,145.0
 1,240.3
 0.49%
^The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/23/2039
 530.3
 504.1
 534.8
 0.21%
^401 JJS Corporation and G. Randazzo Corporation Food Services and Drinking Places Term Loan Prime plus 2.75% 12/23/2039
 473.5
 454.9
 490.3
 0.19%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 12/23/2039
 500.0
 475.4
 515.0
 0.20%
^Atlantis of Daytona LLC and Ocean Club Sportswear Inc Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 12/23/2039
 240.0
 197.2
 213.6
 0.08%
^Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Hall Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 12/22/2024
 187.5
 148.1
 148.3
 0.06%
^MM and M Management Inc dba Pizza Artista Food Services and Drinking Places Term Loan Prime plus 2.75% 4/19/2025
 46.3
 37.6
 37.4
 0.01%
^The Jewelers Inc. dba The Jewelers of Las Vegas Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 12/19/2024
 1,250.0
 987.5
 978.5
 0.38%

52
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^B.S. Ventures LLC dba Dink's Market Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/19/2039
 53.8
 51.1
 55.4
 0.02%
^B & W Towing, LLC and Boychucks Fuel LLC Repair and Maintenance Term Loan Prime plus 2.75% 12/17/2039
 164.5
 156.7
 167.2
 0.07%
^All American Games, LLC and Sportslink - The Game, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 12/10/2024
 400.0
 315.8
 317.0
 0.12%
^Kemmer LLC and Apples Tree Top Liquors LLC Food and Beverage Stores Term Loan Prime plus 2.75% 12/4/2039
 138.4
 131.6
 139.9
 0.05%
^The Red Pill Management, Inc. dba UFC Gym Matthews Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 11/26/2024
 54.3
 43.2
 43.2
 0.02%
^Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman Food Services and Drinking Places Term Loan Prime plus 2.75% 11/25/2039
 148.7
 141.7
 151.5
 0.06%
^DeRidder Chiropractic LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/25/2024
 13.2
 10.3
 10.6
 %
^Modern Manhattan LLC Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 11/25/2024
 220.0
 172.1
 170.8
 0.07%
^Legacy Estate Planning Inc dba American Casket Enterprises Personal and Laundry Services Term Loan Prime plus 2.75% 11/21/2024
 42.0
 32.9
 32.5
 0.01%
^J&D Resources, LLC dba Aqua Science Specialty Trade Contractors Term Loan Prime plus 2.75% 11/21/2024
 767.9
 594.9
 591.1
 0.23%
^DC Real LLC and DC Enterprises LTD dba Lakeview True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/20/2039
 119.4
 113.8
 122.6
 0.05%
^MLM Enterprises LLC and Demand Printing Solutions Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 11/18/2024
 70.5
 55.2
 56.0
 0.02%
^JEJE Realty LLC and La Familia Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 11/10/2039
 205.8
 172.3
 185.0
 0.07%
^Joey O's LLC and Jennifer Olszewski Specialty Trade Contractors Term Loan Prime plus 2.75% 11/7/2024
 13.1
 0.7
 0.7
 %
^Heartland American Properties LLC and Skaggs RV Outlet LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 10/31/2039
 479.0
 453.8
 488.4
 0.19%
^Golden Transaction Corporation dba Bleh Sunoco Gasoline Stations Term Loan Prime plus 2.75% 10/30/2039
 156.7
 148.4
 160.2
 0.06%
^Seelan Inc dba Candleridge Market Gasoline Stations Term Loan Prime plus 2.75% 10/27/2039
 90.5
 85.7
 91.7
 0.04%
^Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy Personal and Laundry Services Term Loan Prime plus 2.75% 10/24/2039
 89.0
 84.5
 89.8
 0.04%
^One Hour Jewelry Repair Inc Repair and Maintenance Term Loan Prime plus 2.75% 10/14/2024
 20.6
 15.9
 15.7
 0.01%
^DNT Storage and Properties LLC Real Estate Term Loan Prime plus 2.75% 10/10/2039
 101.7
 96.4
 104.1
 0.04%

53
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Sound Manufacturing Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 10/10/2024
 187.5
 145.3
 145.4
 0.06%
^Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 10/10/2039
 1,250.0
 1,198.8
 1,298.6
 0.51%
^Smith Spinal Care Center P.C. and James C. Smith Ambulatory Health Care Services Term Loan Prime plus 2.75% 10/8/2039
 60.0
 56.8
 61.1
 0.02%
^Doctors Express Management of Central Texas LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 10/8/2024
 105.0
 72.0
 73.6
 0.03%
^Michael Rey Jr. and Lynn J. Williams and GIG Petcare Personal and Laundry Services Term Loan Prime plus 2.75% 10/3/2039
 126.9
 117.7
 126.9
 0.05%
^Sumad LLC dba BrightStar Care of Encinitas Administrative and Support Services Term Loan Prime plus 2.75% 10/2/2024
 92.5
 41.2
 42.3
 0.02%
^Roccos LLC and Sullo Pantalone Inc dba Rocco's Food Services and Drinking Places Term Loan Prime plus 2.75% 9/30/2039
 255.8
 241.8
 258.0
 0.10%
^Keller Holdings LLC and David H Keller III and Carie C Keller Scenic and Sightseeing Transportation Term Loan Prime plus 2.75% 9/30/2039
 100.0
 94.6
 102.3
 0.04%
^Orange County Insurance Brokerage Inc dba Beaty Insurance Agency Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 9/29/2039
 325.1
 308.9
 334.4
 0.13%
^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC Accommodation Term Loan Prime plus 2.75% 9/29/2039
 513.3
 489.6
 530.0
 0.21%
^Keys Phase One LLC dba The Grand Guesthouse Accommodation Term Loan Prime plus 2.75% 9/26/2039
 736.2
 696.2
 749.8
 0.29%
^Gordon E Rogers dba Stonehouse Motor Inn Accommodation Term Loan Prime plus 2.75% 9/26/2039
 57.5
 54.4
 58.9
 0.02%
^Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud Gasoline Stations Term Loan Prime plus 2.75% 9/26/2024
 22.5
 17.3
 17.2
 0.01%
^6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc Administrative and Support Services Term Loan Prime plus 2.75% 9/24/2039
 452.5
 432.6
 457.1
 0.18%
^North Columbia LLC and Loop Liquor and Convenience Store LLC Food and Beverage Stores Term Loan Prime plus 2.75% 9/24/2039
 159.2
 150.7
 162.2
 0.06%
^R A Johnson Inc dba Rick Johnson Auto and Tire Repair and Maintenance Term Loan Prime plus 2.75% 9/23/2039
 301.2
 284.9
 308.4
 0.12%
^Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out Food Services and Drinking Places Term Loan Prime plus 2.75% 9/23/2024
 37.7
 25.6
 25.3
 0.01%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/17/2039
 145.5
 137.8
 149.2
 0.06%
^Modern Leather Goods Repair Shop Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/17/2024
 58.8
 44.6
 44.1
 0.02%
^RDT Enterprises LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 9/15/2027
 162.7
 136.9
 141.8
 0.06%
^Tavern Properties LLC and Wildwood Tavern LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/15/2039
 425.0
 404.5
 435.0
 0.17%

54
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Animal Intrusion Prevention Systems Holding Company, LLC Administrative and Support Services Term Loan Prime plus 2.75% 9/15/2024
 272.5
 211.9
 212.5
 0.08%
^KW Zion, LLC and Key West Gallery Inc Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/12/2039
 1,250.0
 1,182.1
 1,272.7
 0.50%
^Indy East Smiles Youth Dentistry LLC dba Prime Smile East Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/11/2024
 630.2
 484.0
 478.5
 0.19%
^B&P Diners LLC dba Engine House Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 9/10/2024
 80.0
 61.4
 60.6
 0.02%
^Feel The World Inc dba Xero Shoes and Invisible Shoes Leather and Allied Product Manufacturing Term Loan Prime plus 2.75% 9/5/2024
 51.9
 39.9
 39.6
 0.02%
^Delta Aggregate LLC Mining (except Oil and Gas) Term Loan Prime plus 2.75% 8/28/2039
 911.2
 859.0
 929.9
 0.36%
^Lamjam LLC (EPC) Goldsmith Lambros Inc Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 8/27/2024
 133.8
 102.7
 105.5
 0.04%
^Orange County Cleaning Inc Administrative and Support Services Term Loan Prime plus 2.75% 8/27/2024
 41.2
 24.3
 24.0
 0.01%
^Qycell Corporation Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 8/26/2024
 121.0
 92.0
 92.7
 0.04%
^Atlas Auto Body Inc dba Atlas Auto Sales Repair and Maintenance Term Loan Prime plus 2.75% 8/22/2039
 51.6
 48.7
 52.0
 0.02%
^Katie Senior Care LLC dba Home Instead Senior Care Social Assistance Term Loan Prime plus 2.75% 8/15/2024
 124.3
 94.5
 93.3
 0.04%
^Alpha Preparatory Academy LLC Social Assistance Term Loan Prime plus 2.75% 8/15/2039
 145.2
 137.6
 149.0
 0.06%
^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/15/2039
 433.5
 388.3
 420.3
 0.16%
^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook Motor Vehicle and Parts Dealers Term Loan 6% 8/8/2039
 188.4
 177.0
 191.6
 0.07%
^Almost Home Property LLC and Almost Home Daycare LLC Social Assistance Term Loan Prime plus 2.75% 8/7/2039
 715.8
 677.8
 731.8
 0.29%
^AGV Enterprises LLC dba Jet's Pizza #42 Food Services and Drinking Places Term Loan Prime plus 2.75% 7/31/2024
 54.8
 41.3
 41.0
 0.02%
^iFood, Inc. dba Steak N Shake Food Services and Drinking Places Term Loan Prime plus 2.75% 7/31/2024
 379.1
 296.7
 298.8
 0.12%
^575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST Food Services and Drinking Places Term Loan Prime plus 2.75% 7/30/2039
 22.5
 20.6
 22.3
 0.01%
^Honeyspot Investors LLP and Pace Motor Lines Inc Truck Transportation Term Loan Prime plus 2.75% 7/24/2039
 150.0
 141.3
 152.9
 0.06%
^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 7/17/2039
 100.0
 96.3
 103.4
 0.04%
^AMG Holding, LLC and Stetson Automotive, Inc Repair and Maintenance Term Loan Prime plus 2.75% 6/30/2039
 208.0
 195.6
 211.6
 0.08%

55
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Highway Striping Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 6/30/2024
 53.1
 39.6
 39.6
 0.02%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/30/2024
 100.0
 74.5
 76.5
 0.03%
^iFood, Inc. dba Steak N Shake Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2039
 629.8
 594.0
 628.4
 0.25%
^Honeyspot Investors LLP and Pace Motor Lines Inc Truck Transportation Term Loan Prime plus 2.75% 6/30/2039
 875.3
 824.3
 891.5
 0.35%
^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern Food Services and Drinking Places Term Loan Prime plus 2.75% 6/27/2039
 321.8
 302.7
 324.9
 0.13%
^Zinger Hardware and General Merchant Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/26/2024
 110.5
 82.4
 83.5
 0.03%
^JPM Investments LLC and Carolina Family Foot Care P.A. Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/26/2039
 136.1
 132.6
 142.6
 0.06%
^Nikobella Properties LLC and JPO Inc dba Village Car Wash Repair and Maintenance Term Loan Prime plus 2.75% 6/25/2039
 476.3
 449.3
 482.8
 0.19%
^Big Sky Plaza LLC and Strickland, Incorporated dba Livingston True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/20/2039
 233.4
 219.5
 235.6
 0.09%
^510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/19/2024
 332.0
 256.2
 262.9
 0.10%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn Accommodation Term Loan Prime plus 2.75% 6/17/2039
 920.3
 865.5
 936.2
 0.37%
^Hotels of North Georgia LLC dba Comfort Inn and Suites Accommodation Term Loan Prime plus 2.75% 6/17/2039
 837.5
 787.6
 852.0
 0.33%
^Global Educational Delivery Services LLC Educational Services Term Loan Prime plus 2.75% 6/16/2024
 60.0
 45.3
 46.5
 0.02%
^Rainbow Dry Cleaners Personal and Laundry Services Term Loan Prime plus 2.75% 6/13/2024
 122.5
 91.4
 91.5
 0.04%
^NVR Corporation dba Discount Food Mart Food and Beverage Stores Term Loan Prime plus 2.75% 6/11/2039
 68.3
 62.1
 67.2
 0.03%
^Sico & Walsh Insurance Agency Inc and The AMS Trust Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 6/6/2039
 250.0
 88.4
 95.6
 0.04%
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel Food and Beverage Stores Term Loan Prime plus 2.75% 6/3/2024
 22.5
 16.8
 16.7
 0.01%
^Long Island Barber + Beauty LLC Educational Services Term Loan Prime plus 2.75% 6/2/2039
 55.5
 52.2
 55.9
 0.02%
^CJR LLC and PowerWash Plus, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 5/30/2024
 53.0
 39.1
 39.9
 0.02%
^Pocono Coated Products, LLC Printing and Related Support Activities Term Loan Prime plus 2.75% 5/30/2024
 22.5
 16.6
 17.0
 0.01%

56
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Wilton Dental Care P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/29/2024
 128.1
 96.5
 95.5
 0.04%
^EGM Food Services Inc dba Gold Star Chili Food Services and Drinking Places Term Loan Prime plus 2.75% 5/29/2024
 19.2
 14.2
 14.2
 0.01%
^R. A. Johnson, Inc. dba Rick Johnson Auto & Tire Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 5/29/2039
 943.8
 522.0
 564.6
 0.22%
^Jonesboro Health Food Center LLC Health and Personal Care Stores Term Loan Prime plus 2.75% 5/27/2024
 60.0
 44.3
 43.8
 0.02%
^Bay State Funeral Services, LLC and Riley Funeral Home Inc Personal and Laundry Services Term Loan Prime plus 2.75% 5/21/2039
 134.9
 127.0
 137.4
 0.05%
^Hae M. and Jin S. Park dba Buford Car Wash Repair and Maintenance Term Loan Prime plus 2.75% 5/15/2039
 166.5
 155.6
 166.0
 0.06%
^Moochie's LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 5/13/2024
 100.5
 75.1
 74.6
 0.03%
^The River Beas LLC and Punam Singh Food Services and Drinking Places Term Loan Prime plus 2.75% 5/8/2039
 90.3
 85.3
 91.5
 0.04%
^AS Boyals LLC dba Towne Liquors Food and Beverage Stores Term Loan Prime plus 2.75% 4/29/2039
 117.5
 102.0
 110.4
 0.04%
^Complete Body & Paint, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 4/23/2039
 20.8
 19.5
 21.1
 0.01%
^Gerami Realty, LC Sherrill Universal City Corral, LP Food Services and Drinking Places Term Loan Prime plus 2.75% 4/23/2027
 78.7
 64.0
 66.5
 0.03%
^Island Wide Realty LLC and Long Island Partners, Inc. Real Estate Term Loan Prime plus 2.75% 4/22/2039
 103.8
 97.3
 105.3
 0.04%
^Wilshire Media Systems Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 4/17/2024
 186.2
 136.2
 135.5
 0.05%
^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 4/9/2039
 137.5
 127.9
 137.7
 0.05%
^Little People's Village II LLC and Iliopoulos Realty LLC Social Assistance Term Loan Prime plus 2.75% 3/31/2039
 92.1
 86.7
 93.9
 0.04%
^Dantanna's Tavern LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2024
 164.3
 121.2
 124.0
 0.05%
^Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 3/31/2039
 449.0
 419.9
 456.5
 0.18%
^RDT Enterprises, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 12/31/2028
 141.2
 119.0
 125.0
 0.05%
^Little People's Village II LLC and Iliopoulos Realty LLC Social Assistance Term Loan Prime plus 2.75% 3/31/2039
 101.5
 95.6
 103.5
 0.04%
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC Truck Transportation Term Loan Prime plus 2.75% 3/31/2024
 750.0
 542.5
 556.8
 0.22%
^Kemmer, LLC and Pitts Package Store, Inc. Food and Beverage Stores Term Loan Prime plus 2.75% 3/31/2039
 117.5
 110.1
 118.8
 0.05%

57
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Lake Area Autosound LLC and Ryan H. Whittington Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 7/28/2039
 125.0
 118.6
 128.9
 0.05%
^Wilban LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/28/2039
 427.5
 402.7
 437.5
 0.17%
^Hascher Gabelstapler Inc Repair and Maintenance Term Loan Prime plus 2.75% 3/26/2024
 143.2
 107.7
 110.6
 0.04%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox Social Assistance Term Loan Prime plus 2.75% 3/21/2039
 145.0
 135.8
 147.2
 0.06%
^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co Primary Metal Manufacturing Term Loan Prime plus 2.75% 3/20/2039
 497.5
 74.9
 81.5
 0.03%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated Food and Beverage Stores Term Loan Prime plus 2.75% 3/20/2039
 110.8
 103.7
 113.0
 0.04%
^Kinisi, Inc. dba The River North UPS Store Administrative and Support Services Term Loan Prime plus 2.75% 3/18/2024
 41.3
 21.5
 22.1
 0.01%
^SE Properties 39 Old Route 146, LLC SmartEarly Clifton Park LLC Social Assistance Term Loan Prime plus 2.75% 3/14/2039
 408.0
 382.7
 416.7
 0.16%
^Tortilla King Inc. Food Manufacturing Term Loan Prime plus 2.75% 3/14/2039
 216.9
 203.7
 220.5
 0.09%
^Tortilla King, Inc. Food Manufacturing Term Loan Prime plus 2.75% 3/14/2029
 1,033.1
 888.4
 929.4
 0.36%
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/13/2039
 223.5
 209.0
 227.6
 0.09%
^Avayaan2 LLC dba Island Cove Gasoline Stations Term Loan Prime plus 2.75% 3/7/2039
 157.5
 147.3
 160.0
 0.06%
^Onofrio's Fresh Cut Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/6/2024
 75.0
 54.2
 55.8
 0.02%
^R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern Food and Beverage Stores Term Loan Prime plus 2.75% 2/28/2039
 417.5
 389.8
 423.1
 0.17%
^Summit Beverage Group LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 2/28/2024
 350.6
 251.0
 257.5
 0.10%
^Faith Memorial Chapel LLC Personal and Laundry Services Term Loan Prime plus 2.75% 2/28/2039
 214.2
 200.3
 217.1
 0.08%
^952 Boston Post Road Realty, LLC and HNA LLC dba Styles International Personal and Laundry Services Term Loan Prime plus 2.75% 2/28/2039
 211.0
 197.0
 213.6
 0.08%
^Choe Trade Group Inc dba Rapid Printers of Monterey Printing and Related Support Activities Term Loan Prime plus 2.75% 2/28/2024
 159.3
 114.0
 117.5
 0.05%
^96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki Food Services and Drinking Places Term Loan Prime plus 2.75% 2/12/2039
 141.2
 132.4
 144.2
 0.06%
^JWB Industries, Inc. dba Carteret Die Casting Primary Metal Manufacturing Term Loan Prime plus 2.75% 2/11/2024
 280.0
 200.4
 204.4
 0.08%

58
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Awesome Pets II Inc dba Mellisa's Pet Depot Miscellaneous Store Retailers Term Loan Prime plus 2.75% 2/7/2024
 83.2
 60.3
 61.5
 0.02%
^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 2/7/2039
 99.1
 92.9
 100.9
 0.04%
^Sarah Sibadan dba Sibadan Agency Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 1/27/2039
 129.4
 120.5
 131.1
 0.05%
^JDR Industries Inc dba CST-The Composites Store, JetCat USA Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 1/21/2024
 140.3
 99.3
 101.6
 0.04%
^Icore Enterprises Inc dba Air Flow Filters Inc Miscellaneous Manufacturing Term Loan Prime plus 2.75% 1/15/2024
 21.8
 15.4
 15.9
 0.01%
^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2027
 712.5
 587.9
 614.6
 0.24%
^Nutmeg North Associates LLC; Steeltech Building Products Inc Construction of Buildings Term Loan Prime plus 2.75% 12/31/2038
 897.8
 853.3
 924.3
 0.36%
^Shane M. Howell and Buck Hardware and Garden Center, LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 12/27/2038
 322.5
 300.4
 325.2
 0.13%
^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's Food Manufacturing Term Loan Prime plus 2.75% 12/27/2023
 656.2
 481.1
 495.0
 0.19%
^KK International Trading Corporation Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/23/2028
 190.0
 158.1
 165.7
 0.06%
^Kurtis Sniezek dba Wolfe's Foreign Auto Repair and Maintenance Term Loan Prime plus 2.75% 12/20/2038
 88.9
 82.6
 89.9
 0.04%
^Mosley Auto Group LLC dba America's Automotive Repair and Maintenance Term Loan Prime plus 2.75% 12/20/2038
 221.5
 206.0
 223.9
 0.09%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 12/19/2038
 555.2
 516.3
 559.6
 0.22%
^Lefont Theaters Inc. Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 12/19/2023
 14.4
 10.1
 10.3
 %
^TAK Properties LLC and Kinderland Inc Social Assistance Term Loan Prime plus 2.75% 12/18/2038
 405.0
 377.1
 409.0
 0.16%
^TOL LLC dba Wild Birds Unlimited Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 12/13/2023
 18.0
 13.0
 13.3
 0.01%
^920 CHR Realty LLC and V. Garofalo Carting Inc Waste Management and Remediation Services Term Loan Prime plus 2.75% 12/10/2038
 418.1
 388.8
 423.0
 0.17%
^DKB Transport Corp Truck Transportation Term Loan Prime plus 2.75% 12/5/2038
 138.8
 129.0
 140.4
 0.05%
^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle Specialty Trade Contractors Term Loan Prime plus 2.75% 12/3/2038
 104.2
 96.9
 104.7
 0.04%

59
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 12/2/2023
 387.3
 276.2
 282.5
 0.11%
^BVIP Limousine Service LTD Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 11/27/2038
 76.5
 71.0
 77.1
 0.03%
^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 11/27/2023
 67.2
 46.6
 47.4
 0.02%
^Wallace Holdings LLC and GFA International Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.5% 11/25/2023
 125.0
 86.3
 87.2
 0.03%
^AcuCall LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/21/2023
 15.8
 10.9
 11.0
 %
^Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/18/2023
 45.0
 31.8
 32.4
 0.01%
^Yousef Khatib dba Y&M Enterprises Wholesale Electronic Markets and Agents and Brokers Term Loan Prime plus 2.75% 11/15/2023
 75.0
 52.0
 52.9
 0.02%
^Howell Gun Works LLC Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 11/14/2023
 8.3
 4.6
 4.7
 %
^Polpo Realty, LLC and Polpo Restaurant, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/6/2038
 62.5
 57.8
 62.9
 0.02%
^Twinsburg Hospitality Group LLC dba Comfort Suites Accommodation Term Loan Prime plus 2.75% 10/31/2038
 945.0
 878.8
 952.4
 0.37%
^Mid-Land Sheet Metal Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 10/31/2038
 137.5
 127.6
 138.6
 0.05%
^Master CNC Inc & Master Properties LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/31/2038
 596.6
 552.6
 597.6
 0.23%
^Janice B. McShan and The Metropolitan Day School, LLC Social Assistance Term Loan Prime plus 2.75% 10/31/2023
 42.7
 30.1
 31.0
 0.01%
^1 North Restaurant Corp dba 1 North Steakhouse Food Services and Drinking Places Term Loan Prime plus 2.75% 10/31/2038
 212.5
 196.8
 213.9
 0.08%
^New Image Building Services Inc. dba New Image Repair Services Repair and Maintenance Term Loan Prime plus 2.75% 10/29/2023
 331.2
 227.0
 231.5
 0.09%
^Greenbrier Technical Services, Inc Repair and Maintenance Term Loan Prime plus 2.75% 10/24/2023
 240.1
 150.0
 154.3
 0.06%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd Specialty Trade Contractors Term Loan Prime plus 2.75% 10/24/2038
 246.3
 228.1
 247.0
 0.10%
^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash Repair and Maintenance Term Loan Prime plus 2.75% 10/18/2023
 87.5
 60.0
 61.2
 0.02%
^First Steps Real Estate Company, LLC and First Steps Preschool Social Assistance Term Loan Prime plus 2.75% 9/30/2038
 97.6
 90.2
 97.5
 0.04%

60
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Lenoir Business Partners LLC (EPC) LP Industries, Inc dba Childforms Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 9/30/2038
 322.7
 273.2
 296.6
 0.12%
^Top Properties LLC and LP Industries, Inc dba Childforms Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 9/30/2038
 120.0
 111.4
 121.1
 0.05%
^Onofrios Enterprises LLC and Onofrios Fresh Cut, Inc Food Manufacturing Term Loan Prime plus 2.75% 9/30/2038
 312.5
 289.9
 314.6
 0.12%
^Discount Wheel and Tire Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/30/2038
 223.8
 206.7
 223.9
 0.09%
^Cencon Properties LLC and Central Connecticut Warehousing Company, Inc Warehousing and Storage Term Loan Prime plus 2.75% 9/30/2038
 344.5
 318.7
 346.5
 0.14%
^Gabrielle Realty, LLC Gasoline Stations Term Loan Prime plus 2.75% 9/27/2038
 757.6
 699.8
 757.9
 0.30%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/27/2038
 335.1
 309.5
 335.6
 0.13%
^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Home Personal and Laundry Services Term Loan Prime plus 2.75% 9/26/2038
 100.0
 92.4
 100.4
 0.04%
^Eastside Soccer Dome, Inc . Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/26/2038
 463.7
 428.3
 465.7
 0.18%
^HJ & Edward Enterprises, LLC dba Sky Zone Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/26/2023
 262.5
 183.7
 188.3
 0.07%
^Southeast Chicago Soccer, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/26/2038
 51.3
 47.3
 51.5
 0.02%
^Kiddie Steps 4 You Inc. Social Assistance Term Loan Prime plus 2.75% 9/25/2038
 89.2
 83.5
 90.3
 0.04%
^Diamond Memorials Incorporated Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/25/2023
 14.2
 8.5
 8.6
 %
^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta Educational Services Term Loan Prime plus 2.75% 9/20/2023
 46.2
 31.5
 32.1
 0.01%
^Faith Memorial Chapel LLC Personal and Laundry Services Term Loan Prime plus 2.75% 9/20/2038
 268.4
 248.3
 269.2
 0.11%
^Westville Seafood LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/19/2038
 112.3
 103.7
 112.4
 0.04%
^Maynard Enterprises Inc dba Fastsigns of Texarkana Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/18/2023
 16.0
 11.0
 11.2
 %
^Grafio Inc dba Omega Learning Center-Acworth Educational Services Term Loan Prime plus 2.75% 9/13/2023
 156.2
 112.4
 114.5
 0.04%
^Sound Manufacturing Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/12/2028
 54.8
 44.9
 46.8
 0.02%
^The Berlerro Group, LLC dba Sky Zone Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/12/2023
 421.3
 295.0
 300.3
 0.12%

61
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Prospect Kids Academy Inc Educational Services Term Loan Prime plus 2.75% 9/11/2038
 124.3
 114.8
 124.6
 0.05%
^Alma J. and William R. Walton (EPC) and Almas Child Day Care Center Social Assistance Term Loan Prime plus 2.75% 9/11/2038
 39.5
 36.5
 39.7
 0.02%
^B for Brunette dba Blo Personal and Laundry Services Term Loan Prime plus 2.75% 9/10/2023
 53.4
 36.6
 37.2
 0.01%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC Personal and Laundry Services Term Loan Prime plus 2.75% 9/4/2038
 224.2
 205.8
 223.0
 0.09%
^Excel RP Inc Machinery Manufacturing Term Loan Prime plus 2.75% 8/30/2023
 130.2
 87.3
 89.7
 0.04%
^IlOKA Inc dba Microtech Tel and NewCloud Networks Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/30/2023
 687.5
 460.7
 470.0
 0.18%
^ACI Northwest Inc. Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 8/30/2023
 906.3
 410.9
 422.2
 0.17%
^Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis Social Assistance Term Loan Prime plus 2.75% 8/30/2023
 43.3
 29.0
 29.8
 0.01%
^Ramard Inc and Advanced Health Sciences Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 8/28/2023
 187.5
 125.7
 127.4
 0.05%
^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins Nonstore Retailers Term Loan Prime plus 2.75% 8/26/2023
 85.8
 54.3
 55.8
 0.02%
^JSIL LLC dba Blackstones Hairdressing Personal and Laundry Services Term Loan Prime plus 2.75% 8/16/2023
 19.5
 12.9
 13.1
 0.01%
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 8/14/2038
 445.0
 320.9
 347.1
 0.14%
^Caribbean Concepts, Inc. dba Quick Bleach Ambulatory Health Care Services Term Loan Prime plus 2.75% 8/12/2023
 22.5
 15.1
 15.4
 0.01%
^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic Specialty Trade Contractors Term Loan Prime plus 2.75% 7/26/2038
 190.0
 174.8
 189.3
 0.07%
^Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/24/2023
 11.2
 7.7
 7.9
 %
^Angkor Restaurant Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 7/19/2038
 93.0
 85.7
 93.1
 0.04%
^Harbor Ventilation Inc and Estes Investment, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 7/19/2038
 92.1
 3.8
 4.1
 %
^Tri County Heating and Cooling Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 7/19/2023
 87.8
 58.1
 59.7
 0.02%
^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC Truck Transportation Term Loan Prime plus 2.75% 7/17/2023
 53.7
 35.6
 36.1
 0.01%
^Maxiflex LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 6/28/2023
 153.5
 100.0
 102.7
 0.04%

62
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat Personal and Laundry Services Term Loan Prime plus 2.75% 6/28/2038
 97.5
 89.5
 97.2
 0.04%
^JRA Holdings LLC (EPC) Jasper County Cleaners Inc dba Superior Cleaner Personal and Laundry Services Term Loan Prime plus 2.75% 6/28/2038
 121.0
 109.6
 119.1
 0.05%
^2161 Highway 6 Trail, LLC and R. H. Hummer JR., Inc. Truck Transportation Term Loan Prime plus 2.75% 6/19/2026
 1,250.0
 722.4
 751.3
 0.29%
^Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 6/18/2028
 875.0
 705.0
 739.2
 0.29%
^KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 6/14/2023
 343.8
 225.0
 228.4
 0.09%
^Elite Structures Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 6/12/2038
 932.8
 835.3
 907.4
 0.35%
^Willowbrook Properties LLC Grove Gardens Landscaping Inc. Administrative and Support Services Term Loan Prime plus 2.75% 6/5/2038
 186.3
 171.1
 185.5
 0.07%
^Absolute Desire LLC and Mark H. Szierer Sophisticated Smile Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/5/2038
 188.3
 173.0
 186.9
 0.07%
^RXSB, Inc dba Medicine Shoppe Health and Personal Care Stores Term Loan Prime plus 2.75% 5/30/2023
 186.3
 120.5
 122.1
 0.05%
^Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/28/2023
 63.5
 41.6
 42.5
 0.02%
^Ryan D. Thornton and Thornton & Associates LLC Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 5/24/2023
 68.7
 32.2
 32.6
 0.01%
^PowerWash Plus, Inc. and CJR, LLC Repair and Maintenance Term Loan Prime plus 2.75% 4/30/2038
 550.0
 503.8
 545.2
 0.21%
^Peanut Butter & Co., Inc. Food Manufacturing Term Loan Prime plus 2.75% 4/30/2023
 100.0
 63.5
 64.4
 0.03%
^Brothers International Desserts Food Manufacturing Term Loan Prime plus 2.75% 4/26/2023
 230.0
 146.9
 150.2
 0.06%
^Kidrose, LLC dba Kidville Riverdale Educational Services Term Loan Prime plus 2.75% 4/22/2023
 78.7
 50.9
 51.9
 0.02%
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc Miscellaneous Store Retailers Term Loan Prime plus 2.75% 3/29/2038
 124.6
 113.7
 123.8
 0.05%
^Capital Scrap Metal, LLC and Powerline Investment, LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 3/29/2038
 500.0
 434.7
 474.2
 0.19%
^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads Food Manufacturing Term Loan Prime plus 2.75% 3/29/2038
 336.0
 307.2
 334.1
 0.13%
^Neyra Industries, Inc. and Edward Neyra Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 3/27/2023
 217.5
 137.2
 140.9
 0.06%
^A & M Commerce, Inc. dba Cranberry Sunoco Gasoline Stations Term Loan Prime plus 2.75% 3/27/2038
 330.3
 301.3
 328.4
 0.13%

63
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Xela Pack, Inc. and Aliseo and Catherine Gentile Paper Manufacturing Term Loan Prime plus 2.75% 3/27/2028
 271.8
 215.4
 226.5
 0.09%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/25/2038
 537.4
 490.6
 534.2
 0.21%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc. Miscellaneous Store Retailers Term Loan Prime plus 2.75% 3/22/2038
 67.5
 61.6
 67.1
 0.03%
^M & H Pine Straw Inc and Harris L. Maloy Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/21/2023
 288.7
 198.8
 204.1
 0.08%
^Truth Technologies Inc dba Truth Technologies Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/21/2023
 79.5
 50.1
 51.3
 0.02%
^J. Kinderman & Sons Inc., dba BriteStar Inc. Electrical Equipment, Appliance, and Component Manufacturing Term Loan Prime plus 2.75% 3/20/2023
 181.2
 116.7
 119.9
 0.05%
^Stellar Environmental LLC Waste Management and Remediation Services Term Loan Prime plus 2.75% 3/18/2023
 56.3
 35.5
 36.5
 0.01%
^Sound Manufacturing, Inc. and Monster Power Equipment Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 3/15/2023
 523.0
 328.5
 336.9
 0.13%
^Golden Gate Lodging LLC Accommodation Term Loan Prime plus 2.75% 3/12/2038
 115.0
 105.0
 114.4
 0.04%
^Bakhtar Group LLC dba Malmaison Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2023
 103.8
 65.2
 66.6
 0.03%
^River Club Golf Course Inc dba The River Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2038
 475.2
 432.8
 471.5
 0.18%
^Osceola River Mill, LLC and Ironman Machine, Inc. Machinery Manufacturing Term Loan Prime plus 2.75% 2/20/2038
 86.2
 78.6
 85.6
 0.03%
^Java Warung, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 2/19/2038
 51.0
 46.5
 50.7
 0.02%
^Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC Printing and Related Support Activities Term Loan Prime plus 2.75% 2/15/2038
 106.2
 96.8
 105.5
 0.04%
^Outcome Driven Innovation, Inc. dba ODI Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 2/12/2023
 84.9
 52.2
 53.3
 0.02%
^Knits R Us, Inc. dba NYC Sports / Mingle Textile Mills Term Loan Prime plus 2.75% 2/11/2038
 125.0
 114.0
 124.4
 0.05%
^North Country Transport, LLC Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 2/6/2023
 15.0
 9.3
 9.6
 %
^MJD Investments, LLC dba The Community Day School Social Assistance Term Loan Prime plus 2.75% 1/31/2038
 258.2
 234.8
 255.7
 0.10%
^Sherill Universal City dba Golden Corral Food Services and Drinking Places Term Loan Prime plus 2.75% 1/28/2038
 440.5
 402.0
 437.8
 0.17%

64
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Macho LLC Madelaine Chocolate Novelties Inc Food Manufacturing Term Loan Prime plus 2.75% 12/31/2037
 500.0
 455.9
 497.0
 0.19%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels Specialty Trade Contractors Term Loan Prime plus 2.75% 12/31/2022
 97.5
 59.2
 60.5
 0.02%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/28/2027
 46.3
 32.8
 34.2
 0.01%
^John Duffy Fuel Co., Inc. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/28/2022
 513.8
 312.2
 320.4
 0.13%
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 12/27/2037
 517.5
 470.2
 512.6
 0.20%
^Martin L Hopp, MD PHD A Medical Cor dba Tower ENT Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/21/2022
 66.3
 40.0
 40.9
 0.02%
^Ezzo Properties, LLC and Great Lakes Cleaning, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/20/2027
 389.6
 303.6
 317.4
 0.12%
^United Woodworking, Inc Wood Product Manufacturing Term Loan 6% 12/20/2022
 17.2
 11.1
 11.4
 %
^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 12/20/2022
 225.0
 136.1
 139.4
 0.05%
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/30/2037
 286.5
 262.0
 285.4
 0.11%
^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 11/28/2037
 223.8
 204.2
 222.6
 0.09%
^D&L Rescources, Inc. dba The UPS Store Miscellaneous Store Retailers Term Loan Prime plus 2.75% 11/27/2022
 9.8
 5.8
 6.0
 %
^Richmond Hill Mini Market, LLC Food and Beverage Stores Term Loan Prime plus 2.75% 11/27/2037
 185.3
 167.8
 182.7
 0.07%
^DRV Enterprise, Inc. dba Cici's Pizza # 339 Food Services and Drinking Places Term Loan Prime plus 2.75% 11/26/2022
 65.0
 36.2
 37.2
 0.01%
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart Gasoline Stations Term Loan Prime plus 2.75% 11/21/2037
 96.2
 87.1
 95.0
 0.04%
^Pioneer Windows Manufacturing Corp, Pioneer Windows Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 11/21/2022
 275.0
 164.2
 168.1
 0.07%
^R & J Petroleum LLC Manar USA, Inc. Gasoline Stations Term Loan Prime plus 2.75% 11/20/2037
 180.0
 162.9
 177.5
 0.07%
^St Judes Physical Therapy P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/19/2022
 21.0
 12.6
 12.9
 0.01%
^Hi-Def Imaging, Inc. dba SpeedPro Imaging Printing and Related Support Activities Term Loan Prime plus 2.75% 11/9/2022
 22.2
 13.3
 13.6
 0.01%
^Reidville Hydraulics Mfg Inc dba Summit Machinery Manufacturing Term Loan Prime plus 2.75% 11/2/2037
 265.9
 240.7
 261.5
 0.10%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe It or Not Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 10/26/2022
 180.0
 108.9
 111.1
 0.04%

65
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^LA Diner Inc dba Loukas L A Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 9/28/2037
 677.5
 618.7
 673.8
 0.26%
^University Park Retreat, LLC dba Massage Heights Personal and Laundry Services Term Loan Prime plus 2.75% 9/27/2022
 76.0
 44.2
 45.3
 0.02%
^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery Food and Beverage Stores Term Loan Prime plus 2.75% 9/26/2037
 183.8
 166.9
 181.5
 0.07%
^LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark Food Services and Drinking Places Term Loan Prime plus 2.75% 9/21/2037
 252.3
 227.3
 247.2
 0.10%
^O'Rourkes Diner LLC dba O'Rourke's Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 9/19/2037
 65.5
 59.0
 64.1
 0.03%
^AJK Enterprise LLC dba AJK Enterprise LLC Truck Transportation Term Loan Prime plus 2.75% 8/27/2022
 16.5
 9.4
 9.7
 %
^New Image Building Services, Inc. dba New Image Repair Services Repair and Maintenance Term Loan Prime plus 2.75% 8/23/2037
 285.7
 257.0
 278.9
 0.11%
^Suncoast Aluminum Furniture, Inc Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 8/17/2037
 360.0
 323.9
 352.8
 0.14%
^Georgia Safe Sidewalks LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 7/27/2022
 15.0
 8.4
 8.6
 %
^Hofgard & Co., Inc. dba HofgardBenefits Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 7/27/2022
 107.2
 60.7
 62.1
 0.02%
^Central Tire, Inc. dba Cooper Tire & Auto Services Repair and Maintenance Term Loan Prime plus 2.75% 6/29/2037
 288.5
 258.1
 280.4
 0.11%
^WPI, LLC Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 6/29/2024
 129.5
 84.8
 87.5
 0.03%
^Havana Central (NY) 5, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/29/2022
 1,166.8
 736.2
 753.5
 0.29%
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change Repair and Maintenance Term Loan Prime plus 2.75% 6/27/2037
 69.7
 62.4
 67.8
 0.03%
^KIND-ER-ZZ Inc dba Kidville Educational Services Term Loan Prime plus 2.75% 6/15/2022
 50.0
 27.6
 28.1
 0.01%
^Graphish Studio, Inc. and Scott Fishoff Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/14/2022
 20.2
 11.3
 11.5
 %
^ALF, LLC (EPC) Mulit-Service Eagle Tires Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 5/31/2037
 62.9
 56.2
 61.1
 0.02%
^Craig R Freehauf dba Lincoln Theatre Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 5/31/2022
 47.9
 19.4
 19.9
 0.01%
^Lefont Theaters, Inc. Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 5/30/2022
 137.0
 75.3
 77.0
 0.03%
^Christou Real Estate Holdings LLC dba Tops American Grill Food Services and Drinking Places Term Loan Prime plus 2.75% 5/17/2037
 284.0
 253.2
 275.5
 0.11%

66
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Tracey Vita-Morris dba Tracey Vita's School of Dance Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 5/10/2022
 22.5
 12.4
 12.6
 %
^Bisson Transportation, Inc. Truck Transportation Term Loan Prime plus 2.75% 5/7/2037
 588.1
 550.0
 597.0
 0.23%
^Bisson Moving & Storage Company Bisson Transportation Inc Truck Transportation Term Loan Prime plus 2.75% 5/7/2022
 528.7
 331.6
 339.3
 0.13%
^Fair Deal Food Mart Inc dba Neighbors Market Gasoline Stations Term Loan Prime plus 2.75% 5/3/2037
 381.3
 340.3
 370.3
 0.14%
^Tanner Optical, Inc. dba Murphy Eye Care Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/27/2022
 8.2
 4.4
 4.5
 %
^Zane Filippone Co Inc dba Culligan Water Conditioning Nonstore Retailers Term Loan Prime plus 2.75% 4/12/2022
 558.2
 302.4
 309.3
 0.12%
^Indoor Playgrounds Limited Liability Company dba Kidville Educational Services Term Loan Prime plus 2.75% 4/5/2022
 19.5
 5.8
 6.0
 %
^Access Staffing, LLC Administrative and Support Services Term Loan Prime plus 2.75% 3/30/2022
 187.5
 99.9
 101.9
 0.04%
^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/30/2031
 231.5
 189.5
 201.9
 0.08%
^Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/29/2037
 755.4
 674.1
 734.2
 0.29%
^DC Realty, LLC dba FOGO Data Centers Professional, Scientific, and Technical Services Term Loan 6% 3/23/2037
 3,133.8
 2,623.4
 2,857.6
 1.12%
^DC Realty, LLC dba FOGO Data Centers Professional, Scientific, and Technical Services Term Loan 6.25% 3/23/2022
 1,540.0
 771.7
 789.6
 0.31%
^Manuel P. Barrera and Accura Electrical Contractor, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 3/23/2028
 103.7
 78.9
 82.8
 0.03%
^Shweiki Media, Inc. dba Study Breaks Magazine Publishing Industries (except Internet) Term Loan Prime plus 2.75% 3/22/2027
 1,178.8
 868.8
 908.9
 0.36%
^ATI Jet, Inc. Air Transportation Term Loan Prime plus 2.75% 12/28/2026
 852.8
 604.2
 631.8
 0.25%
^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 12/22/2036
 495.0
 443.5
 482.7
 0.19%
^K's Salon, LLC d/b/a K's Salon Personal and Laundry Services Term Loan Prime plus 2.75% 12/20/2021
 73.6
 37.4
 38.0
 0.01%
^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 12/16/2021
 250.0
 125.1
 127.7
 0.05%
^M & H Pinestraw, Inc. and Harris L. Maloy Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/15/2021
 238.2
 135.5
 138.3
 0.05%

67
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Taylor Transport, Inc Truck Transportation Term Loan Prime plus 2.75% 12/8/2021
 515.5
 157.7
 161.2
 0.06%
^MRM Supermarkets, Inc. dba Constantin's Breads Food Manufacturing Term Loan Prime plus 2.75% 11/10/2021
 137.5
 68.5
 70.0
 0.03%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc Publishing Industries (except Internet) Term Loan Prime plus 2.75% 10/26/2021
 58.7
 29.2
 29.8
 0.01%
^28 Cornelia Street Properties, LLC and Zouk, Ltd. Food Services and Drinking Places Term Loan Prime plus 2.75% 10/25/2021
 22.5
 11.0
 11.2
 %
^39581 Garfield, LLC and Tri County Neurological Associates, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/30/2036
 83.3
 72.9
 79.2
 0.03%
^PTK, Incorporated dba Night N Day 24 HR Convenience Store Food and Beverage Stores Term Loan Prime plus 2.75% 9/30/2036
 137.5
 120.5
 131.0
 0.05%
^Robert E. Caves, Sr. and American Plank dba Caves Enterprises Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/30/2021
 302.5
 145.3
 148.3
 0.06%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/30/2036
 28.4
 24.8
 26.9
 0.01%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/28/2021
 1,070.0
 507.7
 516.6
 0.20%
^Equity National Capital LLC & Chadbourne Road Capital, LLC Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 9/26/2021
 62.5
 30.1
 30.7
 0.01%
^Bryan Bantry Inc. Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 9/8/2021
 400.0
 40.3
 41.0
 0.02%
^Michael S. Decker & Janet Decker dba The Hen House Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 8/30/2036
 16.4
 14.3
 15.5
 0.01%
^Qycell Corporation Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 8/19/2021
 187.5
 83.7
 85.3
 0.03%
^Trademark Equipment Company Inc and David A. Daniel Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/19/2036
 133.6
 116.8
 126.9
 0.05%
^Valiev Ballet Academy, Inc Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 8/12/2036
 91.5
 37.1
 40.3
 0.02%
^A & A Auto Care, LLC dba A & A Auto Care, LLC Repair and Maintenance Term Loan Prime plus 2.75% 8/12/2036
 101.0
 89.0
 96.8
 0.04%
^LaHoBa, LLC dba Papa John's Food Services and Drinking Places Term Loan Prime plus 2.75% 8/3/2036
 77.5
 67.3
 73.2
 0.03%
^Kelly Chon LLC dba Shi-Golf Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 7/29/2021
 17.5
 4.7
 4.8
 %
^MTV Bowl, Inc. dba Legend Lanes Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/30/2036
 248.5
 218.4
 237.0
 0.09%

68
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Lavertue Properties LLP dba Lavertue Properties Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 6/29/2036
 44.7
 39.1
 42.5
 0.02%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/29/2036
 338.1
 305.9
 332.2
 0.13%
^Pierce Developments, Inc. dba Southside Granite Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/13/2036
 256.1
 222.7
 241.5
 0.09%
^Major Queens Body & Fender Corp Repair and Maintenance Term Loan Prime plus 2.75% 6/10/2021
 28.6
 13.0
 13.2
 0.01%
^J&K Fitness, LLC dba Physiques Womens Fitness Center Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/8/2036
 449.3
 401.0
 435.4
 0.17%
^Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 6/3/2021
 65.5
 28.5
 29.0
 0.01%
^Demand Printing Solutions, Inc. and MLM Enterprises, LLC Printing and Related Support Activities Term Loan Prime plus 2.75% 5/27/2021
 16.5
 7.3
 7.5
 %
^Modern on the Mile, LLC dba Ligne Roset Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 5/25/2021
 212.5
 93.5
 95.1
 0.04%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C. Repair and Maintenance Term Loan Prime plus 2.75% 4/20/2036
 127.5
 110.3
 119.9
 0.05%
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store Nonstore Retailers Term Loan Prime plus 2.75% 4/18/2036
 129.5
 114.1
 124.0
 0.05%
^Michael S. Korfe dba North Valley Auto Repair Repair and Maintenance Term Loan Prime plus 2.75% 3/24/2036
 15.5
 13.4
 14.5
 0.01%
^Actknowledge,Inc dba Actknowledge Personal and Laundry Services Term Loan Prime plus 2.75% 3/21/2021
 57.3
 24.5
 25.0
 0.01%
^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins Food and Beverage Stores Term Loan Prime plus 2.75% 3/10/2021
 153.0
 65.6
 66.8
 0.03%
^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/25/2023
 63.0
 32.5
 33.5
 0.01%
^SuzyQue’s LLC dba Suzy Que’s Food Services and Drinking Places Term Loan Prime plus 2.75% 2/11/2036
 61.0
 52.7
 57.3
 0.02%
^Little People’s Village, LLC dba Little People’s Village Social Assistance Term Loan Prime plus 2.75% 1/31/2036
 31.1
 26.7
 29.0
 0.01%
^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc. Support Activities for Transportation Term Loan Prime plus 2.75% 1/28/2036
 113.4
 97.4
 105.9
 0.04%
^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel Food and Beverage Stores Term Loan Prime plus 2.75% 12/29/2020
 7.6
 2.9
 3.0
 %
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown Support Activities for Transportation Term Loan 5.25% 12/28/2035
 145.9
 131.7
 143.0
 0.06%

69
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Groundworks Unlimited LLC Specialty Trade Contractors Term Loan 6% 12/17/2023
 120.0
 74.1
 76.6
 0.03%
^Shree OM Lodging, LLC dba Royal Inn Accommodation Term Loan Prime plus 2.75% 12/17/2035
 27.7
 23.7
 25.8
 0.01%
^Lodin Medical Imaging, LLC dba Watson Imaging Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/1/2020
 66.4
 26.2
 26.6
 0.01%
^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center Repair and Maintenance Term Loan Prime plus 2.75% 11/30/2035
 34.0
 29.1
 31.6
 0.01%
^West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/12/2035
 148.7
 127.2
 138.1
 0.05%
^Lincoln Park Physical Therapy Ambulatory Health Care Services Term Loan Prime plus 2.75% 10/20/2020
 43.5
 14.2
 14.5
 0.01%
^K9 Bytes, Inc & Epazz, Inc Publishing Industries (except Internet) Term Loan Prime plus 2.75% 9/30/2020
 18.5
 7.0
 7.1
 %
^Elan Realty, LLC and Albert Basse Asociates, Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 9/30/2035
 228.2
 194.1
 210.6
 0.08%
^Success Express,Inc. dba Success Express Couriers and Messengers Term Loan Prime plus 2.75% 9/29/2020
 91.8
 33.6
 34.1
 0.01%
^Modern Manhattan, LLC Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 9/20/2020
 204.0
 76.2
 77.4
 0.03%
^Dirk's Trucking, L.L.C. dba Dirk's Trucking Truck Transportation Term Loan Prime plus 2.75% 9/17/2020
 17.7
 6.4
 6.5
 %
^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery Repair and Maintenance Term Loan Prime plus 2.75% 9/2/2035
 50.1
 42.5
 46.1
 0.02%
^Newsome Trucking Inc and Kevin Newsome Truck Transportation Term Loan Prime plus 2.75% 9/2/2035
 423.1
 206.1
 223.6
 0.09%
^California College of Communications, Inc. Educational Services Term Loan Prime plus 2.75% 11/2/2020
 172.5
 66.0
 67.1
 0.03%
^DDLK Investments LLC dba Smoothie King Food Services and Drinking Places Term Loan Prime plus 2.75% 8/30/2020
 7.5
 1.7
 1.7
 %
^Members Only Software Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/30/2020
 40.2
 14.3
 14.5
 0.01%
^ActKnowledge,Inc dba ActKnowledge Personal and Laundry Services Term Loan Prime plus 2.75% 6/30/2020
 50.0
 17.3
 17.6
 0.01%
^I-90 RV & Auto Supercenter Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 6/29/2035
 74.9
 63.1
 68.5
 0.03%
^Zouk, Ltd. dba Palma Food Services and Drinking Places Term Loan Prime plus 2.75% 8/25/2020
 27.5
 9.9
 10.1
 %
^CJ Park Inc. dba Kidville Midtown West Educational Services Term Loan Prime plus 2.75% 6/25/2020
 26.4
 7.2
 7.3
 %
^Tanner Optical Inc. dba Murphy Eye Care Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/22/2035
 94.6
 80.2
 86.9
 0.03%

70
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^M & H Pine Straw, Inc.and Harris Maloy Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 7/10/2020
 67.5
 28.2
 28.6
 0.01%
^Excel RP, Inc./Kevin and Joann Foley Machinery Manufacturing Term Loan Prime plus 2.75% 7/8/2028
 50.0
 36.2
 38.2
 0.01%
ValleyStar, Inc. dba BrightStar HealthCare Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/28/2020
 6.1
 2.1
 2.1
 %
^ValleyStar, Inc. dba BrightStar Healthcare Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/28/2020
 7.5
 2.6
 2.6
 %
^Diag, LLC dba Kidville Educational Services Term Loan Prime plus 2.75% 6/21/2020
 37.5
 12.5
 12.7
 %
^M & H Pine Straw, Inc and Harris L. Maloy Support Activities for Agriculture and Forestry Term Loan 6% 4/30/2020
 183.3
 57.0
 57.9
 0.02%
^New Economic Methods LLC dba Rita's Food Services and Drinking Places Term Loan Prime plus 2.75% 7/15/2020
 24.8
 0.6
 0.6
 %
^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/26/2020
 6.3
 2.0
 2.0
 %
^Lahoba,LLC dba Papa John's Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 12/30/2034
 42.5
 35.4
 38.3
 0.01%
^Animal Intrusion Prevention Systems Holding Company, LLC Administrative and Support Services Term Loan Prime plus 2.75% 3/29/2024
 126.5
 26.6
 27.5
 0.01%
^David A. Nusblatt, D.M.D, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/11/2019
 9.0
 2.5
 2.6
 %
^CMA Consulting dba Construction Management Associates Construction of Buildings Term Loan Prime plus 2.75% 12/11/2019
 58.5
 14.9
 15.1
 0.01%
^KMC RE, LLC & B&B Kennels Personal and Laundry Services Term Loan Prime plus 2.75% 11/19/2034
 58.3
 48.4
 52.4
 0.02%
^Demand Printing Solutions, Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 12/12/2019
 10.0
 2.8
 2.8
 %
^Demand Printing Solutions, Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 10/29/2034
 147.5
 122.0
 132.1
 0.05%
Rover Repairs Repair and Maintenance Term Loan Prime plus 2.5% 11/28/2029
 72.5
 52.1
 37.8
 0.01%
^Supreme Screw Products Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 4/17/2019
 308.2
 60.8
 61.3
 0.02%
^Gray Tree Service, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/18/2018
 50.0
 7.4
 7.5
 %
^Gourmet to You, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2019
 12.1
 2.4
 2.4
 %
^The Alba Financial Group, Inc. Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan 6% 1/10/2019
 22.5
 10.2
 10.3
 %

71
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Grapevine Professional Services, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 1/22/2019
 8.2
 1.3
 1.3
 %
^Inflate World Corporation Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/30/2018
 7.5
 0.7
 0.8
 %
^Peter Thomas Roth Labs LL Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/26/2018
 425.0
 54.5
 54.8
 0.02%
^CBA D&A Pope, LLC dba Christian Brothers Automotive Repair and Maintenance Term Loan Prime plus 2.75% 6/14/2018
 144.9
 15.5
 15.6
 0.01%
^Gilbert Chiropractic Clinic, Inc. Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/7/2018
 22.5
 0.5
 0.5
 %
^D & D's Divine Beauty School of Esther, LLC Educational Services Term Loan 6% 8/1/2031
 57.7
 49.6
 53.0
 0.02%
Bwms Management, LLC Food Services and Drinking Places Term Loan 0% 3/1/2018
 5.1
 0.2
 0.2
 %
Bliss Coffee and Wine Bar, LLC Food Services and Drinking Places Term Loan 6% 8/31/2019
 87.5
 68.6
 69.4
 0.03%
^Zog Inc. Other Information Services Term Loan 6% 3/17/2018
 97.5
 52.0
 52.2
 0.02%
^Saan M.Saelee dba Saelee's Delivery Service Truck Transportation Term Loan Prime plus 2.75% 3/12/2018
 9.8
 0.7
 0.7
 %
Integrity Sports Group, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan 6% 3/6/2018
 75.0
 30.9
 31.0
 0.01%
^Enewhere Custom Canvas, LLC Textile Product Mills Term Loan Prime plus 2.75% 2/15/2018
 12.0
 0.8
 0.8
 %
^A & A Acquisition, Inc. dba A & A International Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 2/15/2018
 100.0
 4.3
 4.3
 %
^All American Printing Printing and Related Support Activities Term Loan Prime plus 2.75% 10/26/2032
 69.7
 36.5
 39.3
 0.02%
^Seo's Paradise Cleaners, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 1/19/2018
 9.7
 0.2
 0.2
 %
Connect Litigation Technology, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2% 10/18/2025
 150.6
 25.8
 18.4
 0.01%
^Margab, Inc. dba Smoothie King Food Services and Drinking Places Term Loan Prime plus 2.75% 12/28/2017
 44.0
 1.4
 1.4
 %
^RCB Enterprises, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/18/2017
 21.1
 0.9
 0.9
 %
^Tammy's Bakery, Inc. dba Tammy's Bakery Food Manufacturing Term Loan Prime plus 2.75% 12/10/2017
 71.8
 3.1
 3.1
 %
^Kings Laundry,LLC Personal and Laundry Services Term Loan Prime plus 2.75% 10/30/2017
 64.5
 0.7
 0.7
 %

72
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^1911 East Main Street Holdings, Corp Repair and Maintenance Term Loan Prime plus 2.75% 5/18/2032
 15.8
 12.0
 12.9
 0.01%
^Water Works Laundromat, LLC Personal and Laundry Services Term Loan Prime plus 2.25% 9/7/2027
 267.3
 173.3
 178.1
 0.07%
^Dave Kris, and MDK Ram Corp. Food and Beverage Stores Term Loan Prime plus 2.75% 2/5/2026
 52.6
 30.2
 31.6
 0.01%
^Gill Express Inc. dba American Eagle Truck Wash Repair and Maintenance Term Loan Prime plus 2.75% 1/5/2027
 286.9
 177.3
 186.0
 0.07%
^Smooth Grounds, Inc. Food Services and Drinking Places Term Loan 7.75% 12/31/2018
 64.5
 28.3
 28.5
 0.01%
^Fran-Car Corporation dba Horizon Landscape Management Administrative and Support Services Term Loan Prime plus 2.75% 3/3/2028
 244.7
 65.7
 69.2
 0.03%
^Head To Toe Personalized Pampering, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 1/27/2031
 12.0
 8.7
 9.3
 %
^Christopher F. Bohon & Pamela D. Bohon Social Assistance Term Loan Prime plus 2.75% 10/28/2026
 5.1
 3.1
 3.2
 %
Mogas Limited Gasoline Stations Term Loan Prime plus 2.75% 5/31/2030
 100.0
 70.7
 54.0
 0.02%
^Shree Om Lodging, LLC dba Royal Inn Accommodation Term Loan Prime plus 2.75% 5/2/2030
 76.9
 62.4
 66.3
 0.03%
^Pedzik's Pets, LLC Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 3/31/2030
 12.3
 8.7
 9.2
 %
^Nancy Carapelluci & A & M Seasonal Corner Inc. Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/1/2025
 25.1
 13.5
 14.0
 0.01%
Patricia Hughes Jones, MD PC Ambulatory Health Care Services Term Loan Prime plus 2.75% 1/13/2020
 18.0
 4.1
 2.9
 %
^Moonlight Multi Media Production, Inc. Other Information Services Term Loan 5.3% 2/1/2025
 7.0
 2.9
 3.0
 %
David M. Goens dba Superior Auto Paint & Body, Inc. Repair and Maintenance Term Loan 6% 8/26/2024
 32.2
 16.3
 16.9
 0.01%
^McCallister Venture Group, LLC and Maw's Vittles, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 7/30/2029
 17.2
 11.1
 11.8
 %
^Computer Renaissance dba Dante IT Services, Inc. Electronics and Appliance Stores Term Loan Prime plus 3.75% 3/1/2018
 13.5
 0.6
 0.6
 %
^Chong Hun Im dba Kim's Market Food and Beverage Stores Term Loan Prime plus 2.5% 2/27/2024
 18.3
 8.6
 8.8
 %
Whirlwind Car Wash, Inc. Repair and Maintenance Term Loan Prime plus 2% 4/9/2029
 76.9
 65.2
 66.5
 0.03%
^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge Amusement, Gambling, and Recreation Industries Term Loan 6% 6/5/2026
 1,076.7
 836.0
 874.3
 0.34%
^Center-Mark Car Wash, Ltd Specialty Trade Contractors Term Loan Prime plus 2.75% 5/18/2024
 52.3
 25.6
 26.5
 0.01%

73
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Shuttle Car Wash, Inc. dba Shuttle Car Wash Repair and Maintenance Term Loan Prime plus 2.25% 11/10/2028
 25.3
 16.4
 17.0
 0.01%
^Min Hui Lin Food Services and Drinking Places Term Loan Prime plus 2.75% 1/30/2028
 28.8
 16.6
 17.5
 0.01%
^Delta Partners, LLC dba Delta Carwash Repair and Maintenance Term Loan Prime plus 2.5% 4/5/2029
 61.1
 40.8
 42.6
 0.02%
^Auto Sales, Inc. Motor Vehicle and Parts Dealers Term Loan 6% 8/17/2023
 17.2
 7.0
 7.3
 %
^B & J Manufacturing Corporation and Benson Realty Trust Fabricated Metal Product Manufacturing Term Loan Prime plus 2% 3/30/2021
 57.2
 16.6
 16.7
 0.01%
^RAB Services, Inc. & Professional Floor Installations Specialty Trade Contractors Term Loan Prime plus 2.5% 1/31/2023
 14.3
 6.3
 6.4
 %
^Taste of Inverness, Inc. dba China Garden Food Services and Drinking Places Term Loan Prime plus 2% 6/29/2025
 16.9
 8.2
 8.3
 %
^Ralph Werner dba Werner Transmissions Gasoline Stations Term Loan Prime plus 2.75% 12/29/2021
 6.0
 2.0
 2.1
 %
^M. Krishna, Inc. dba Super 8 Motel Accommodation Term Loan Prime plus 2% 3/20/2025
 53.2
 8.8
 8.9
 %
^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC Amusement, Gambling, and Recreation Industries Term Loan 6% 9/14/2023
 39.8
 30.1
 31.1
 0.01%
^OrthoQuest, P.C. Ambulatory Health Care Services Term Loan Prime plus 2% 3/12/2022
 13.0
 3.7
 3.7
 %
^CPN Motel, L.L.C. dba American Motor Lodge Accommodation Term Loan Prime plus 2.25% 4/30/2024
 68.1
 28.2
 28.8
 0.01%
^Track Side Collision & Tire, Inc. Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 6/16/2025
 10.2
 4.6
 4.7
 %
^Duttakrupa, LLC dba Birmingham Motor Court Accommodation Term Loan Prime plus 2.25% 9/8/2023
 22.6
 11.1
 11.3
 %
^Deesha Corporation, Inc. dba Best Inn & Suites Accommodation Term Loan Prime plus 2.25% 2/14/2025
 53.2
 25.4
 26.0
 0.01%
^Maruti, Inc Accommodation Term Loan Prime plus 2.25% 11/25/2024
 50.4
 23.5
 24.0
 0.01%
Willington Hills Equestrian Center LLC Animal Production and Aquaculture Term Loan Prime plus 2.75% 10/19/2022
 19.5
 12.5
 12.9
 0.01%
^LABH, Inc. t/a Ramada Ltd. Accommodation Term Loan Prime plus 2.25% 9/27/2024
 85.1
 37.7
 38.5
 0.02%
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 3/13/2023
 15.7
 6.3
 6.5
 %
^Gain Laxmi, Inc. dba Super 8 Motel Accommodation Term Loan Prime plus 2.25% 5/31/2023
 46.4
 18.1
 18.4
 0.01%
^Naseeb Corporation Accommodation Term Loan Prime plus 2.25% 3/31/2024
 62.9
 27.3
 27.8
 0.01%

74
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Stillwell Ave Prep School Social Assistance Term Loan Prime plus 2.75% 1/14/2023
 17.1
 5.7
 5.9
 %
^Karis, Inc. Accommodation Term Loan Prime plus 2% 12/22/2023
 34.1
 12.2
 12.3
 %
^Five Corners, Ltd. Gasoline Stations Term Loan Prime plus 2.75% 12/11/2019
 19.5
 3.6
 3.7
 %
^Alyssa Corp dba Knights Inn Accommodation Term Loan Prime plus 2.25% 9/30/2023
 65.7
 39.5
 40.2
 0.02%
^Bhailal Patel dba New Falls Motel Accommodation Term Loan Prime plus 2.75% 3/27/2023
 22.9
 3.2
 3.3
 %
^Pegasus Automotive, Inc. Gasoline Stations Term Loan Prime plus 2.75% 12/23/2022
 25.8
 9.8
 10.1
 %
^Delyannis Iron Works Fabricated Metal Product Manufacturing Term Loan 6% 12/8/2022
 68.4
 12.1
 12.5
 %
^P. Agrino, Inc. dba Andover Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 7/18/2021
 32.6
 7.5
 7.6
 %
^RJS Service Corporation Gasoline Stations Term Loan Prime plus 2.75% 8/20/2021
 18.1
 5.3
 5.4
 %
Total Performing SBA Unguaranteed Investments         $276,970.7
 $245,799.2
 $247,346.8
 96.77%
                 
Non-Performing SBA Unguaranteed Investments (3)                
*^200 North 8th Street Associates LLC and Enchanted Acres Farm Food Manufacturing Term Loan 6.25% 5/4/2028
 468.8
 469.3
 450.4
 0.18%
*^214 North Franklin, LLC and Winter Ventures, Inc. Nonstore Retailers Term Loan 6% 11/29/2037
 81.7
 81.7
 
 %
*^A + Quality Home Health Care, Inc. Ambulatory Health Care Services Term Loan 6% 8/1/2016
 1.1
 1.1
 1.0
 %
*^Advanced Machine & Technology, Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 7/29/2025
 67.1
 67.3
 37.7
 0.01%
*^Aegis Creative Communications, Inc. Professional, Scientific, and Technical Services Term Loan 6.5% 11/30/2022
 245.9
 246.5
 243.1
 0.10%
*^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc Motor Vehicle and Parts Dealers Term Loan 6.75% 11/25/2040
 68.3
 68.4
 42.0
 0.02%
*^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc Motor Vehicle and Parts Dealers Term Loan 6.25% 9/18/2040
 129.3
 129.5
 106.9
 0.04%
*^AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc. Ambulatory Health Care Services Term Loan 6% 3/14/2038
 305.3
 305.7
 
 %
*AWA Fabrication & Construction, L.L.C. Fabricated Metal Product Manufacturing Term Loan 6% 4/30/2025
 34.7
 34.8
 
 %
*^B&B Fitness and Barbell, Inc. dba Elevations Health Club Amusement, Gambling, and Recreation Industries Term Loan 6% 6/22/2035
 187.9
 188.2
 193.2
 0.08%
*Baker Sales, Inc. dba Baker Sales, Inc. Nonstore Retailers Term Loan 6% 3/29/2036
 177.0
 177.4
 77.1
 0.03%

75
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
*^Fieldstone Quick Stop LLC Barber Investments LLC Thadius M B Gasoline Stations Term Loan 6% 9/30/2038
 406.2
 407.3
 4.7
 %
*^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar Gasoline Stations Term Loan 6.25% 8/15/2039
 146.0
 146.3
 
 %
*^Calhoun Satellite Communications Inc and Transmission Solutions Group Broadcasting (except Internet) Term Loan Prime plus 2.75% 2/27/2025
 809.7
 811.7
 437.2
 0.17%
*Calhoun Satellite Communications, Inc. Telecommunications Term Loan Prime plus 2.75% 12/2/2026
 188.7
 189.1
 170.2
 0.07%
*^Carolina Beefs, LLC dba Beef O'Brady's Food Services and Drinking Places Term Loan 6.75% 4/13/2025
 16.5
 16.5
 
 %
*^Chickamauga Properties, Inc., MSW Enterprises, LLP Amusement, Gambling, and Recreation Industries Term Loan 6.25% 12/22/2035
 59.0
 59.0
 56.6
 0.02%
*^Chickamauga Properties, Inc. and MSW Enterprises, LLP Amusement, Gambling, and Recreation Industries Term Loan 6.25% 10/19/2022
 43.4
 43.5
 
 %
*^CM Lab Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/20/2026
 165.7
 166.1
 155.1
 0.06%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access Professional, Scientific, and Technical Services Term Loan 6.25% 6/17/2021
 274.0
 274.7
 241.4
 0.09%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access Broadcasting (except Internet) Term Loan 6.25% 4/30/2022
 94.1
 94.3
 
 %
*^D&G Capital LLC dba Miami Grill 277 Food Services and Drinking Places Term Loan 6.5% 12/16/2025
 81.8
 82.0
 53.3
 0.02%
*^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service Repair and Maintenance Term Loan Prime plus 2.75% 3/29/2018
 0.7
 0.7
 0.6
 %
*^Danjam Enterprises, LLC dba Ariel Dental Care Ambulatory Health Care Services Term Loan 6% 3/31/2035
 125.8
 126.0
 119.2
 0.05%
*^Danjam Enterprises, LLC dba Ariel Dental Care Ambulatory Health Care Services Term Loan 6% 3/29/2023
 64.7
 64.8
 61.3
 0.02%
*^Dill Street Bar and Grill Inc and WO Entertainment, Inc Food Services and Drinking Places Term Loan 6% 9/27/2027
 78.2
 78.4
 
 %
*Dr. Francis E. Anders, DVM Professional, Scientific, and Technical Services Term Loan 6% 8/9/2015
 1.6
 1.6
 1.5
 %
*^DTM Parts Supply Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/2/2025
 54.7
 54.8
 42.0
 0.02%
*^E & I Holdings, LP & PA Farm Products, LLC Food Manufacturing Term Loan 6% 4/30/2030
 4,874.0
 4,923.2
 2,836.0
 1.11%
*^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc Professional, Scientific, and Technical Services Term Loan 6.75% 4/25/2024
 386.4
 386.8
 87.2
 0.03%
*^ENI Inc. dba ENI Group, Inc Other Information Services Term Loan 6.75% 12/11/2025
 32.8
 32.8
 
 %

76
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
*^Europlast Ltd Plastics and Rubber Products Manufacturing Term Loan 6% 9/26/2022
 315.0
 315.8
 48.5
 0.02%
*^Europlast Ltd Plastics and Rubber Products Manufacturing Term Loan 6% 5/31/2023
 107.2
 107.4
 64.4
 0.03%
*^Event Mecca LLCOther Information Services Term Loan 6% 4/10/2023
 12.3
 12.3
 9.5
 %
*^EZ Towing, Inc. Support Activities for Transportation Term Loan 6% 1/31/2023
 86.2
 86.4
 8.3
 %
*^Gator Communications Group LLC dba Harvard Printing Group Printing and Related Support Activities Term Loan 6.25% 3/30/2022
 232.9
 233.5
 25.8
 0.01%
*^Gator Communications Group LLC dba Harvard Printing Group Printing and Related Support Activities Term Loan 6.25% 4/25/2022
 157.4
 157.8
 
 %
*^Gator Communications Group, LLC dba Harvard Printing Group Printing and Related Support Activities Term Loan 6.25% 3/27/2023
 13.3
 13.3
 
 %
*^Grand Manor Realty, Inc. & Kevin LaRoeReal Estate Term Loan 6% 2/20/2023
 18.9
 19.0
 17.7
 0.01%
*Guzman Group,LLC Rental and Leasing Services Term Loan 6% 9/30/2019
 182.8
 183.3
 167.6
 0.07%
*Harrelson Materials Management,Inc Waste Management and Remediation Services Term Loan 6% 6/24/2021
 464.0
 465.2
 25.0
 0.01%
*^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC Ambulatory Health Care Services Term Loan 6.25% 6/30/2026
 476.5
 477.6
 45.6
 0.02%
*^Hemingway Custom Cabinetry LLCFurniture and Related Product Manufacturing Term Loan 6.5% 9/25/2025
 198.1
 198.6
 71.7
 0.03%
*^Home Again Restaurant LLC Food Services and Drinking Places Term Loan 6.25% 6/30/2040
 58.7
 58.8
 47.6
 0.02%
*^J Olson Enterprises LLC and Olson Trucking Direct, Inc. Truck Transportation Term Loan 6% 6/28/2025
 626.9
 628.4
 79.0
 0.03%
*^J&M Concessions, Inc.dba A-1 Liquors Food and Beverage Stores Term Loan 6.25% 3/3/2039
 130.2
 130.6
 64.7
 0.03%
*^J&M Concessions Inc dba A 1 Liquors Food and Beverage Stores Term Loan Prime plus 2.75% 2/27/2025
 79.8
 80.0
 20.2
 0.01%
*^Jacksonville Beauty Institute Inc. dba Beauty Institute's Educational Services Term Loan Prime plus 2.75% 10/23/2025
 43.6
 43.7
 40.8
 0.02%
*Jenny's Wunderland, Inc. Social Assistance Term Loan 6% 6/29/2036
 128.5
 128.8
 32.0
 0.01%
*^Karykion, Corporation dba Karykion Corporation Professional, Scientific, and Technical Services Term Loan 6% 6/28/2022
 144.4
 144.8
 135.2
 0.05%
*^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto Motor Vehicle and Parts Dealers Term Loan 6.25% 10/29/2039
 64.1
 64.2
 57.5
 0.02%
*^Kids at Heart,LLC dba Monster Mini Golf Amusement, Gambling, and Recreation Industries Term Loan 6.75% 9/22/2026
 21.5
 21.6
 12.5
 %
*Krishna of Orangeburg, Inc. Accommodation Term Loan 6% 2/20/2032
 10.3
 10.3
 5.7
 %
*^Kup's Auto Spa Inc Repair and Maintenance Term Loan 6.25% 11/15/2038
 365.9
 366.8
 342.5
 0.13%

77
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
*Kup’s Auto Spa, Inc. Repair and Maintenance Term Loan 6.25% 10/23/2025
 54.6
 54.7
 51.1
 0.02%
*^Las Torres Development LLC dba Houston Event Centers Real Estate Term Loan 6% 8/27/2028
 51.0
 51.0
 
 %
*^M and C Renovations Inc Construction of BuildingsTerm Loan Prime plus 2.75% 10/31/2024
 13.7
 13.8
 10.7
 %
*^Matchless Transportation LLC dba First Class Limo Transit and Ground Passenger Transportation Term Loan 6.25% 8/3/2022
 125.6
 125.9
 111.8
 0.04%
*^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution Merchant Wholesalers, Durable Goods Term Loan 6% 6/10/2036
 25.6
 25.6
 
 %
*^Mojo Brands Media, LLC Broadcasting (except Internet) Term Loan 6% 8/28/2023
 723.1
 725.0
 340.6
 0.13%
*Morris Glass and Construction Specialty Trade Contractors Term Loan 6% 3/7/2021
 44.8
 44.8
 2.7
 %
*Municipal Hydro Sevices Inc. Rental and Leasing ServicesTerm Loan Prime plus 2.75% 3/30/2027
 258.4
 259.0
 159.0
 0.06%
*^New Paltz Dental Care, PLLC dba Ariel Dental Care Ambulatory Health Care Services Term Loan 6% 6/19/2025
 97.3
 97.5
 59.8
 0.02%
*^Colts V LLC and Nowatzke Service Center, Inc Repair and Maintenance Term Loan 6.75% 9/26/2039
 576.2
 577.6
 546.7
 0.21%
*^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer Repair and Maintenance Term Loan Prime plus 2.75% 1/29/2026
 96.7
 96.9
 91.8
 0.04%
*Our Two Daughters L.L.C. dba Washington's Restaurant Food Services and Drinking PlacesTerm Loan 6% 6/18/2026
 674.2
 681.0
 65.3
 0.03%
*^Planet Verte, LLC dba Audio Unlimited Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/20/2020
 16.4
 16.4
 13.9
 0.01%
*Professional Systems, LLC and Professional Cleaning Administrative and Support Services Term Loan 6% 7/30/2020
 131.6
 131.8
 2.4
 %
*^Route 130 SCPI Holdings LLC Route 130 SCPI Operations LLC Food Services and Drinking Places Term Loan 6.25% 9/30/2039
 535.1
 536.4
 306.4
 0.12%
*^Scoville Plumbing & Heating Inc and Thomas P. Scoville Specialty Trade Contractors Term Loan Prime plus 2.75% 7/25/2022
 32.0
 32.1
 30.4
 0.01%
*^Shivsakti, LLC dba Knights Inn Accommodation Term Loan 6.25% 12/20/2032
 8.0
 8.0
 
 %
*^Sourceco Limited Liability Company Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/17/2025
 44.9
 45.0
 43.2
 0.02%
*^Sovereign Communications LLC Broadcasting (except Internet) Term Loan Prime plus 2.75% 2/7/2024
 707.3
 709.1
 671.2
 0.26%
*^Square Deal Siding Company, LLC dba Square Deal Siding Company Specialty Trade Contractors Term Loan Prime plus 2.75% 6/18/2025
 20.2
 20.3
 19.4
 0.01%
*^STK Ventures Inc dba JP Dock Service & Supply Specialty Trade Contractors Term Loan 6% 5/9/2037
 31.6
 31.6
 
 %
*^Stormrider Inc dba Shirley's Stormrider Inc Truck Transportation Term Loan Prime plus 2.75% 9/23/2025
 60.2
 60.3
 
 %
*^Stormrider Inc dba Shirley's Stormrider, Inc Truck Transportation Term Loan Prime plus 2.75% 11/25/2024
 119.1
 119.4
 43.4
 0.02%

78
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
*Stormwise South Florida dba Stormwise Shutters Specialty Trade Contractors Term Loan 6% 11/7/2036
 110.9
 111.2
 
 %
*The Law Office of Joseph A. Foistner Esquire and Affiliates,PC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/26/2027
 62.3
 62.5
 
 %
*^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 11/16/2021
 34.3
 34.3
 32.5
 0.01%
*Transmission Solutions Group, Inc. and Calhoun Satellite Communications Telecommunications Term Loan Prime plus 2.75% 12/2/2041
 140.9
 141.3
 72.0
 0.03%
*^Will Zac Management LLC dba Papa John's Food Services and Drinking Places Term Loan 6.25% 12/19/2024
 42.4
 42.5
 39.7
 0.02%
*^Winter Ventures Inc and 214 N Franklin LLC Nonstore Retailers Term Loan 6% 4/29/2024
 56.5
 56.6
 
 %
*^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall Nonstore Retailers Term Loan 6% 12/23/2024
 149.1
 149.3
 
 %
*^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall Nonstore Retailers Term Loan 6% 4/3/2029
 134.4
 134.5
 
 %
*^Wired LLC and Moulison North Corporation Specialty Trade Contractors Term Loan 6.25% 6/30/2024
 320.6
 321.4
 312.7
 0.12%
*^Wired LLC and Moulison North Corporation Specialty Trade Contractors Term Loan 6.25% 7/3/2024
 137.9
 138.3
 23.0
 0.01%
Total Non-Performing Unguaranteed SBA Investments         19,246.5
 19,332.8
 9,789.2
 3.83%
                 
Total Unguaranteed SBA Investments         296,217.2
 265,132.0
 257,136.0
 100.60%
                 
Performing SBA Guaranteed Investments (4)                
Party By Design Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 9/18/2042
 3,615.0
 3,615.0
 4,075.9
 1.59%
NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York Rental and Leasing Services Term Loan Prime plus 2.75% 9/20/2027
 3,082.5
 3,082.5
 3,391.5
 1.33%
SSN GROUP LLC and Dockside Steel Processing LLC Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/29/2042
 3,750.0
 3,750.0
 4,125.9
 1.61%
Dan Cline Transport Inc. Truck Transportation Term Loan Prime plus 2.75% 9/29/2030
 3,016.5
 3,016.5
 3,272.9
 1.28%
Harco Metal Products Inc Primary Metal Manufacturing Term Loan Prime plus 2.75% 9/29/2042
 4,401.0
 4,401.0
 4,945.6
 1.93%
JBK Truck Trailer and Bus Inc. Repair and Maintenance Term Loan Prime plus 2.75% 3/23/2042
 236.3
 236.3
 269.0
 0.11%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 3/27/2042
 411.5
 411.5
 465.8
 0.18%
Swantown Inn & Spa LLC Accommodation Term Loan Prime plus 2.75% 5/26/2042
 85.3
 85.3
 97.1
 0.04%

79
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Bear Creek Entertainment LLC dba The Woods at Bear Creek Accommodation Term Loan Prime plus 2.75% 8/12/2041
 1,172.3
 1,172.3
 1,329.1
 0.52%
House of Bread & Coffee Corp dba Casa Do Pao Food Services and Drinking Places Term Loan Prime plus 2.75% 1/27/2042
 407.1
 407.1
 463.5
 0.18%
CR Park Incorporated dba Define Body and Mind Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/20/2027
 82.5
 82.5
 91.6
 0.04%
AP6 LLC and Amishp LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 1/30/2042
 323.3
 323.3
 368.1
 0.14%
Sneads Ferry Foods, Inc. dba DQ Grill & Chill Food Services and Drinking Places Term Loan Prime plus 2.75% 4/27/2042
 989.9
 989.9
 1,120.7
 0.44%
Work of Heart Inc.dba Little Nest Portraits Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/28/2027
 64.1
 64.1
 71.2
 0.03%
Total SBA Guaranteed Performing Investments         $21,637.3
 $21,637.3
 $24,088.0
 9.42%
                 
Total SBA Unguaranteed and Guaranteed Investments         $317,854.5
 $286,769.3
 $281,224.0
 110.02%
                 
Controlled Investments (5)                
*Advanced Cyber Security Systems, LLC (6), (18) Data processing, hosting and related services. 50% Membership Interest % 
 
 
 
 %
    Term Loan 3% December 2014
 1,120.0
 381.0
 
 %
*Automated Merchant Services, Inc. (7), (18) Data processing, hosting and related services. 100% Common Stock % 
 
 
 
 %
CDS Business Services, Inc. (8) Securities, Commodity Contracts, and Other Financial Investments and Related Activities 100% Common Stock % 
 
 4,428.0
 5,500.0
 2.15%
    Line of Credit Prime plus 2.5%
 August 2018
 7,895.0
 7,895.0
 7,895.0
 3.09%
Newtek Technology Solutions, Inc. (11) Data processing, hosting and related services. 100% Common Stock % 
 
 8,384.0
 16,000.0
 6.26%
*Fortress Data Management, LLC (18) Data processing, hosting and related services. 100% Membership Interest % 
 
 
 
 %
Newtek Insurance Agency, LLC (13), (18) Insurance Carriers and Related Activities 100% Membership Interest % 
 
 
 2,500.0
 0.98%
*PMTWorks Payroll, LLC (9) Data processing, hosting and related services. 100% Membership Interest % 
 
 725.1
 
 %
    Term Loan 10%-12%
 Various maturities through July 2019
 2,685.0
 2,685.0
 
 %
Secure CyberGateway Services, LLC (10), (18) Data processing, hosting and related services. 66.7% Membership Interest % 
 
 
 
 %
    Term Loan 7% June 2017
 2,400.0
 300.0
 
 %

80
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)

Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Small Business Lending, LLC (12), (18) Securities, Commodity Contracts, and Other Financial Investments and Related Activities 100% Membership Interest % 
 
 
 2,500.0
 0.98%
*Summit Systems and Designs, LLC (14), (18) Data processing, hosting and related services. 100% Membership Interest % 
 
 
 
 %
ADR Partners, LLC dba banc-serv Partners, LLC (12) Securities, Commodity Contracts, and Other Financial Investments and Related Activities 100% Membership Interest % 
 
 5,260.3
 3,400.0
 1.33%
Premier Payments LLC (11) Data processing, hosting and related services. 100% Membership Interest % 
 
 16,438.0
 21,000.0
 8.22%
International Professional Marketing, Inc. (17) Professional, Scientific, and Technical Services 100% Common Stock % 
 
 8,800.0
 8,800.0
 3.44%
    Line of Credit Prime plus 0.5%
 April 2018
 200.0
 200.0
 200.0
 0.08%
SIDCO, LLC (17) Professional, Scientific, and Technical Services 100% Membership Interest % 
 
 2,320.0
 2,320.0
 0.91%
    Line of Credit Prime plus 0.5%
 
 345.0
 345.0
 345.0
 0.13%
Universal Processing Services of Wisconsin, LLC (11) (18) Data processing, hosting and related services. 100% Membership Interest % 
 
 
 66,000.0
 25.82%
Titanium Asset Management, LLC (15) Administrative and Support Services Term Loan 3% July 2017
 2,200.0
 193.9
 
 %
    100% Membership Interest % 
 
 
 
 %
Excel WebSolutions, LLC (16) Data processing, hosting and related services. Term Loan 10% September 2018
 1,020.2
 535.4
 489.0
 0.19%
    50% Membership Interest % 
 
 
 
 %
Total Controlled Investments         $17,865.2
 $58,890.7
 $136,949.0
 53.58%
                 
                 
Investments in Money Market Funds                
UBS Select Treasury Institutional Fund - 0.84% yield         $9.4
 $9.4
 $9.4
 %
                 
Total Investments         $335,729.1
 $345,669.4
 $418,182.4
 163.60%

^ Denotes investment has been pledged as collateral under the Securitization Trusts.
* Denotes non-income producing security.
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The

81
See accompanying notes to unaudited condensed consolidated financial statements.




recovery assumption for each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded PLP status from the SBA. The portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to qualified investors.
(2) Prime Rate is equal to 4.25% as of September 30, 2017.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 18.35% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 31.8% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(9) 25% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by Exponential business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 66.7% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Banc-Serv Acquisition, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 30% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 17.8% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(16) 36.2% owned by Wilshire New York Partners V, LLC and 13.8% owned by Wilshire New York Partners IV, LLC (both subsidiaries of Newtek Business Services Corp.), 50% owned by non-affiliate.
(17) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.). During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $8,800,000 and $2,320,000, respectively. Refer to Note 3.
(18) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were expensed when incurred.
(19) All of the Company's investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(20) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At September 30, 2017, 4.9% of total assets are non-qualifying assets.


82
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Performing SBA Unguaranteed Investments (1)                
Fort Smith Wings Inc. dba Wing Stop Food Services and Drinking Places Term Loan Prime plus 2.75% 12/28/2026 19.5
 19.5
 17.4
 0.01%
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point Food Services and Drinking Places Term Loan Prime plus 2.75% 12/27/2041 419.9
 419.9
 409.7
 0.20%
Joshua L. Baker Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 12/23/2026 15.8
 15.8
 13.4
 0.01%
Jacliff Investments Inc. dba International health Technologies Publishing Industries (except Internet) Term Loan Prime plus 2.75% 12/23/2026 125.0
 125.0
 106.7
 0.05%
New Image Building Services, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/21/2026 43.8
 43.8
 38.7
 0.02%
Chestnut Street Associates, LLC and Metropolitan Solutions, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/19/2041 275.0
 275.0
 261.1
 0.12%
Means Enterprises LLC dba FastFrame Frisco Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 12/16/2026 22.5
 22.5
 19.5
 0.01%
New Chicago Wholesale Bakery, Inc. Food Manufacturing Term Loan Prime plus 2.75% 12/15/2041 452.8
 452.8
 443.6
 0.21%
Soon Im. Chin dba Stan C-Store Gasoline Stations Term Loan Prime plus 2.75% 12/15/2041 212.5
 212.5
 216.6
 0.10%
Sempco, Inc. Miscellaneous Manufacturing Term Loan Prime plus 2.75% 12/15/2041 42.0
 42.0
 43.6
 0.02%
Allied Welding Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 12/15/2041 750.0
 750.0
 727.9
 0.35%
Ericon, Inc. dba Quik Pik Gasoline Stations Term Loan Prime plus 2.75% 12/15/2041 332.2
 332.2
 328.4
 0.16%
White Hawk Inc. Truck Transportation Term Loan Prime plus 2.75% 12/15/2026 1,097.8
 1,097.8
 937.2
 0.45%
Elita 7, LLC Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 12/15/2041 712.5
 712.5
 716.0
 0.34%
Techni-Pro Institute LLC Educational Services Term Loan Prime plus 2.75% 12/15/2026 190.0
 190.0
 166.9
 0.08%
HMG Strategy, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/14/2026 50.0
 50.0
 42.7
 0.02%
Cardinal Homes Inc. and Bret A Berneche Wood Product Manufacturing Term Loan Prime plus 2.75% 12/14/2041 121.3
 121.3
 125.3
 0.06%
Trison Enterprises Inc.dba Lee's Automotive Repair and Maintenance Term Loan Prime plus 2.75% 12/14/2041 407.5
 407.5
 406.2
 0.19%
AGG Management Team LLC dba Chevron Gasoline Stations Term Loan Prime plus 2.75% 12/14/2041 287.5
 287.5
 298.3
 0.14%

83
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Cardinal Homes Inc,.Alouette Holdings Inc. Wood Product Manufacturing Term Loan Prime plus 2.75% 12/14/2026 1,071.3
 1,071.3
 1,074.5
 0.51%
D and E Hardware Co. and D and E Pump Sales and Service Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 12/14/2041 528.6
 528.6
 518.6
 0.25%
Wayfarer Bicycle LLC Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 12/13/2041 92.5
 92.5
 88.9
 0.04%
Success Advertising Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/13/2041 466.5
 466.5
 476.4
 0.23%
Roast Beef Levittown LLC dba Arby's Food Services and Drinking Places Term Loan Prime plus 2.75% 12/13/2026 465.0
 54.6
 55.0
 0.03%
Queen Express LLC Gasoline Stations Term Loan Prime plus 2.75% 12/13/2041 187.5
 187.5
 191.6
 0.09%
Mack Team Enterprises Inc.dba The UPS Store #6815 Couriers and Messengers Term Loan Prime plus 2.75% 12/9/2026 20.4
 20.4
 18.2
 0.01%
Recycling Revolution,LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/9/2041 92.2
 92.2
 90.4
 0.04%
Myndshft Technologies LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/9/2026 775.0
 775.0
 731.8
 0.35%
^New Life Hospital LLC Hospitals Term Loan Prime plus 2.75% 12/8/2041 1,195.5
 1,195.5
 1,240.3
 0.59%
Imagine By Carleen Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 12/8/2041 52.5
 52.5
 53.3
 0.03%
Hanson's Greeks LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/8/2026 11.3
 11.3
 11.3
 0.01%
Yachting Solutions LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 12/7/2029 71.3
 71.3
 67.4
 0.03%
T & B Boots, Inc. dba Takken's Shoes Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 12/7/2026 100.0
 100.0
 93.0
 0.04%
Lan Doctors, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/7/2026 237.5
 237.5
 230.8
 0.11%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites Accommodation Term Loan Prime plus 2.75% 12/5/2041 352.5
 352.5
 358.5
 0.17%
Lilo Holdings LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 12/5/2026 15.9
 15.9
 14.3
 0.01%
 Transmission Solutions Group, Inc. and Calhoun Satellite Communications Telecommunications Term Loan Prime plus 2.75% 12/2/2041 141.3
 141.3
 130.2
 0.06%
Calhoun Satellite Communications, Inc. Telecommunications Term Loan Prime plus 2.75% 12/2/2026 192.5
 192.5
 171.7
 0.08%

84
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Noso Development LLC Construction of Buildings Term Loan Prime plus 2.75% 12/1/2026 75.0
 75.0
 64.0
 0.03%
^Ericon, Inc. Gasoline Stations Term Loan Prime plus 2.75% 12/1/2041 726.1
 726.1
 717.8
 0.34%
^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 11/30/2041 67.5
 67.5
 70.0
 0.03%
Sharaz Shah DBA Thomas Jewelers Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 11/30/2026 8.1
 8.1
 6.9
 %
Choe Trading Group, Inc.dba Rapid Printers of Monterey Printing and Related Support Activities Term Loan Prime plus 2.75% 11/30/2026 22.5
 22.5
 21.9
 0.01%
Studio Find It Georgia, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/30/2026 7.5
 7.5
 6.5
 %
^Quick Ship, LLC Couriers and Messengers Term Loan Prime plus 2.75% 11/30/2026 10.5
 10.5
 9.0
 %
B4 Fitness LLC dba The Zoo Health Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/30/2026 22.5
 22.5
 20.0
 0.01%
Imaginarium Foods LLC, Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2042 376.7
 124.4
 129.2
 0.06%
RD Management, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2026 213.8
 213.8
 184.7
 0.09%
^Usman Jalil, LLC dba Food Mart Gasoline Stations Term Loan Prime plus 2.75% 11/29/2041 233.3
 233.3
 223.3
 0.11%
Honor Mansion, Inc. Accommodation Term Loan Prime plus 2.75% 11/29/2026 87.5
 87.5
 88.1
 0.04%
Access Staffing, LLC Administrative and Support Services Term Loan Prime plus 2.75% 11/29/2026 1,125.0
 1,125.0
 960.4
 0.46%
WPN Recycling Company LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 11/23/2026 22.5
 22.5
 22.7
 0.01%
Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901 Administrative and Support Services Term Loan Prime plus 2.75% 11/23/2026 60.0
 60.0
 51.9
 0.02%
CRK Mens, LLC dba Spiff for Men Personal and Laundry Services Term Loan Prime plus 2.75% 11/23/2026 106.3
 106.3
 92.5
 0.04%
Merchant Coterie, Inc. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 11/23/2026 125.0
 125.0
 106.7
 0.05%
6E Technologies LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/22/2026 175.0
 175.0
 160.2
 0.08%

85
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Broms Asset Management LLC Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 11/22/2026 125.0
 125.0
 106.7
 0.05%
Rognes Corp dba RTS Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 11/22/2026 389.3
 389.3
 354.1
 0.17%
Bouquet Restaurant LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/22/2041 125.0
 125.0
 124.9
 0.06%
^J.B.K Truck Trailer and Bus Inc Repair and Maintenance Term Loan Prime plus 2.75% 11/22/2041 435.0
 435.0
 427.8
 0.20%
Skaggs RV Outlet LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 11/21/2026 100.0
 100.0
 100.7
 0.05%
Catherine Christine Morin dba Purr-Fect Pets Personal and Laundry Services Term Loan Prime plus 2.75% 11/17/2026 18.8
 18.8
 16.0
 0.01%
Stratmar Systems Inc dba Stratmar Retail Services Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/16/2026 68.5
 68.5
 69.0
 0.03%
Hoosier Health Plus, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/15/2026 125.0
 125.0
 116.8
 0.06%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/10/2041 446.0
 446.0
 450.1
 0.22%
Hackensack Steel Corporation and Luzerne Ironworks Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 11/10/2026 239.2
 239.2
 238.8
 0.11%
^Panther Ironworks and Rigging Solutions LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 11/10/2026 151.3
 151.3
 138.0
 0.07%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/10/2026 188.8
 188.8
 184.8
 0.09%
^Bovill Creative,LLC Real Estate Term Loan Prime plus 2.75% 11/9/2041 281.2
 281.1
 291.7
 0.14%
^Big Apple Entertainment Partners LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/9/2026 175.0
 175.0
 149.4
 0.07%
^Dyer Properties, LLC and Bayview Pharmacy, Inc. Health and Personal Care Stores Term Loan Prime plus 2.75% 11/9/2041 240.3
 240.3
 234.1
 0.11%
^Rich's Food Stores LLC dba Hwy 55 of Wallace Food Services and Drinking Places Term Loan Prime plus 2.75% 11/9/2026 43.8
 43.8
 40.5
 0.02%
MIK LLC dba Firehouse Subs Food Services and Drinking Places Term Loan Prime plus 2.75% 11/9/2026 200.0
 163.3
 141.6
 0.07%
Surgarloaf Concepts LLC dba Fat Biscuit Food Services and Drinking Places Term Loan Prime plus 2.75% 11/8/2026 168.8
 95.9
 96.6
 0.05%
^Fine Line Interiors, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 11/4/2041 87.5
 87.5
 90.8
 0.04%

86
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Pig-Sty BBQ, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/3/2026 71.3
 71.3
 71.8
 0.03%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero Food Services and Drinking Places Term Loan Prime plus 2.75% 11/3/2041 127.5
 35.8
 37.2
 0.02%
^Veracruz Shabo, LLC, Waterfalls Quick Lube LLC Repair and Maintenance Term Loan Prime plus 2.75% 11/1/2041 118.8
 118.8
 119.6
 0.06%
Glocecol LLC Administrative and Support Services Term Loan Prime plus 2.75% 11/1/2026 75.0
 75.0
 75.5
 0.04%
Middlesex Auto Sales Corp Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 10/31/2041 125.0
 47.5
 49.3
 0.02%
^Bloomquist Communications Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/31/2026 60.0
 59.6
 50.9
 0.02%
^Moolchan Enterprises LLC dba Staying Green Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/31/2026 18.2
 18.0
 16.9
 0.01%
^Woodstock Enterprises Corp dba True Scent Candle Company Miscellaneous Manufacturing Term Loan Prime plus 2.75% 10/31/2041 88.8
 88.6
 85.2
 0.04%
^Patina Investment, Inc and Ram & Sons, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 10/27/2041 175.0
 174.8
 181.3
 0.09%
Elite Structures Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 10/27/2029 225.0
 225.0
 217.4
 0.10%
^FibAire Communications, LLC Telecommunications Term Loan Prime plus 2.75% 10/27/2026 107.5
 106.8
 97.6
 0.05%
^Bonita Stone LLC and Castone Creations Inc Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 10/25/2041 264.4
 264.0
 259.4
 0.12%
^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc. Nonstore Retailers Term Loan Prime plus 2.75% 10/25/2026 131.3
 130.5
 131.4
 0.06%
Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 10/24/2026 425.0
 422.4
 416.6
 0.20%
Eco Vehicle Systems LLC Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 10/21/2026 955.5
 949.8
 940.4
 0.45%
Worldwide Estate, Inc. dba Washington Heights Manor Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 10/21/2041 225.0
 155.8
 161.6
 0.08%
^Gold Wind Logistics LLC Truck Transportation Term Loan Prime plus 2.75% 10/20/2041 175.0
 175.0
 181.6
 0.09%
^Speaker City, Inc. dba Rollin Thunder Electronics and Appliance Stores Term Loan Prime plus 2.75% 10/14/2041 125.0
 124.8
 125.3
 0.06%
^Maine Service Corp Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 10/13/2026 206.3
 204.3
 190.3
 0.09%
^Justin Partlow Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 10/13/2026 19.5
 19.4
 16.5
 0.01%

87
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Reliable Recovery Services LLC Support Activities for Transportation Term Loan Prime plus 2.75% 10/7/2026 112.5
 111.8
 101.4
 0.05%
^Ailky Corporation Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 10/3/2026 250.0
 248.5
 217.5
 0.10%
^Wyspen Corporation dba Charlestown Ace Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 10/3/2026 36.0
 35.8
 30.5
 0.01%
^JJA Transportation Management Inc. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2026 52.5
 51.9
 44.3
 0.02%
^MegaPhase, LLC Computer and Electronic Product Manufacturing Term Loan Prime plus 2.75% 9/30/2026 150.0
 148.2
 141.8
 0.07%
^Seaway LLC and Reklaw LLC dba Allure Lounge Food Services and Drinking Places Term Loan Prime plus 2.75% 9/30/2041 137.5
 137.1
 142.2
 0.07%
^Adelworth Bus Corp. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2041 242.8
 242.1
 236.6
 0.11%
Adelwerth Bus Corporation, Transportation Leasing Corp. Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2029 654.0
 648.5
 619.6
 0.30%
^Las Casuelas Del Este Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 9/29/2041 800.0
 799.4
 811.3
 0.39%
^Thunderdome Racing Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/29/2026 19.1
 18.8
 18.4
 0.01%
Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/29/2029 671.5
 665.8
 619.7
 0.30%
Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/28/2026 648.0
 640.1
 586.2
 0.28%
^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Service Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/28/2041 405.8
 404.6
 382.3
 0.18%
^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med Printing and Related Support Activities Term Loan Prime plus 2.75% 9/28/2041 850.0
 847.6
 879.0
 0.42%
^Beadon Inc Food and Beverage Stores Term Loan Prime plus 2.75% 9/28/2026 22.5
 22.2
 22.0
 0.01%
^CD Game Exchange Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/28/2026 22.5
 22.2
 19.0
 0.01%
^CNC Precision Machine, Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/28/2041 1,250.0
 1,246.5
 1,230.6
 0.59%
^Kyle M Walker DDS,PC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/27/2026 217.8
 215.1
 189.0
 0.09%
^Luna Nueva LLC dba Bio Builders Specialty Trade Contractors Term Loan Prime plus 2.75% 9/27/2026 15.0
 14.8
 13.0
 0.01%

88
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Reynolds Fence & Guardrail Inc. Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/27/2026 629.6
 621.9
 596.4
 0.29%
^Luv 2 Play Nor Call, LLC dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/27/2026 52.5
 51.9
 46.3
 0.02%
^Sarah S Olelewe MD Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/26/2041 292.4
 292.2
 289.2
 0.14%
^TPFC,LLC dbaThe Picture Frame Company Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/26/2041 58.8
 58.6
 58.1
 0.03%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 9/26/2026 9.0
 8.9
 8.7
 %
^PeopleBest Inc. Administrative and Support Services Term Loan Prime plus 2.75% 9/26/2026 15.0
 14.8
 12.6
 0.01%
^Mr. Mulch, Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/23/2041 405.8
 404.6
 375.8
 0.18%
^B4 Fitness LLC dba The Zoo Health Club Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/23/2026 87.5
 86.4
 76.8
 0.04%
^InformationTelevision Network Inc Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 9/22/2041 836.8
 835.6
 856.4
 0.41%
^Kids at Heart,LLC dba Monster Mini Golf Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/22/2026 22.5
 22.3
 19.3
 0.01%
^GRA Financial Services Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/22/2026 12.0
 11.9
 10.1
 %
^Wrecking Crew Media LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 9/21/2026 50.0
 49.4
 42.1
 0.02%
^Cuppiecakes LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/21/2041 22.5
 22.4
 22.1
 0.01%
^Benoit's Towing and Recovery LLC Support Activities for Transportation Term Loan Prime plus 2.75% 9/20/2026 12.0
 11.9
 10.3
 %
^Consulting Solutions Inc. and Mark Luciani Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/20/2026 22.5
 22.3
 20.8
 0.01%
^Brittany Burns LLC dba Dreams Come True Personal and Laundry Services Term Loan Prime plus 2.75% 9/19/2026 12.9
 12.7
 12.8
 0.01%
^Eyncon LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/16/2041 50.0
 49.9
 49.8
 0.02%
^Tresa S.Parris dba Wagging Tails Grooming Personal and Laundry Services Term Loan Prime plus 2.75% 9/16/2026 8.0
 7.9
 6.8
 %

89
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^The Merrin Group LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/15/2026 175.0
 172.9
 164.8
 0.08%
^Rich's Food Stores LLC dba Hwy 55 of Wallace Food Services and Drinking Places Term Loan Prime plus 2.75% 9/14/2026 145.5
 143.7
 133.2
 0.06%
^Atlantic Alarm Systems and Services LLC Administrative and Support Services Term Loan Prime plus 2.75% 9/14/2026 15.5
 15.3
 13.4
 0.01%
^Metropet Dog Center, Inc Personal and Laundry Services Term Loan Prime plus 2.75% 9/13/2041 109.3
 108.9
 109.2
 0.05%
^Marquis Cattle Company Animal Production and Aquaculture Term Loan Prime plus 2.75% 9/13/2026 50.0
 49.7
 50.1
 0.02%
^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company Food Services and Drinking Places Term Loan Prime plus 2.75% 9/12/2041 82.5
 82.3
 79.6
 0.04%
^Artisan Infrastructure Holdings, LLC Data Processing, Hosting, and Related Services Term Loan Prime plus 2.75% 9/7/2026 125.0
 123.5
 105.4
 0.05%
^SRA Mechanicial Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 9/6/2041 43.8
 43.6
 45.0
 0.02%
^Sandia Enterprises Inc dba Massage Envy Spa Personal and Laundry Services Term Loan Prime plus 2.75% 9/6/2026 62.5
 61.7
 52.7
 0.03%
^Animal Intrusion Prevention Systems Holding Company, LLC Administrative and Support Services Term Loan Prime plus 2.75% 8/30/2026 125.0
 123.0
 107.7
 0.05%
^Suncrest Stone Products LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 8/29/2026 586.8
 576.0
 514.8
 0.25%
^Clark Realty LLC Real Estate Term Loan Prime plus 2.75% 8/29/2041 237.5
 236.5
 225.0
 0.11%
^Raem Corporation dba Dryclean Express Personal and Laundry Services Term Loan Prime plus 2.75% 8/29/2041 72.5
 72.2
 73.9
 0.04%
^Suncrest Stone Products LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 8/29/2041 649.6
 646.9
 596.9
 0.29%
^TAGR Inc dba Miami Grill 137and John Nakis Food Services and Drinking Places Term Loan Prime plus 2.75% 8/26/2026 106.8
 104.8
 91.7
 0.04%
^Warren Dale Warrington dba Custom Paint and Body Repair and Maintenance Term Loan Prime plus 2.75% 8/26/2041 101.3
 100.8
 101.6
 0.05%
^Albert Basse Associates Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 8/25/2026 62.5
 61.4
 61.1
 0.03%
^Dean Technology Inc Electrical Equipment, Appliance, and Component Manufacturing Term Loan Prime plus 2.75% 8/25/2041 387.1
 385.5
 396.3
 0.19%
^Rosmel Pools Inc Repair and Maintenance Term Loan Prime plus 2.75% 8/25/2026 22.5
 22.1
 19.3
 0.01%
^Avery Management Inc. dba Whetstone Upholstery Repair and Maintenance Term Loan Prime plus 2.75% 8/25/2026 10.7
 10.5
 8.9
 %

90
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^TR Companies LLC dba True Value Rental and Liberty Rental 4 U Rental and Leasing Services Term Loan Prime plus 2.75% 8/25/2026 90.0
 88.4
 75.4
 0.04%
^Tabadesa Associates Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/25/2026 22.5
 22.1
 18.8
 0.01%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/24/2041 500.0
 366.5
 380.2
 0.18%
^Tim's Tire & Automotive Center, LLC Support Activities for Transportation Term Loan Prime plus 2.75% 8/16/2026 816.6
 797.7
 721.6
 0.35%
^Luv 2 Play Temecula, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 8/15/2026 60.0
 58.9
 50.3
 0.02%
Bear Creek Entertainment LLC dba The Woods at Bear Creek Accommodation Term Loan Prime plus 2.75% 8/12/2041 437.5
 279.1
 284.3
 0.14%
^2 Cool Beans LLC dba Menchies's Frozen Yogurt Food Services and Drinking Places Term Loan Prime plus 2.75% 8/11/2026 82.5
 81.0
 69.1
 0.03%
^Grayson O Company Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 8/10/2041 625.0
 622.4
 639.7
 0.31%
^Charal Investments LLC dba Orange Theory Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 8/10/2026 87.5
 85.9
 73.3
 0.04%
^PCNKC Inc dba Plato's Closet Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/10/2026 18.8
 18.5
 16.2
 0.01%
^Paul Belanger dba Paul Belanger Landscaping Administrative and Support Services Term Loan Prime plus 2.75% 8/9/2026 15.0
 14.7
 12.6
 0.01%
^R Performance LLC dba Performance Automotive of San Diego Repair and Maintenance Term Loan Prime plus 2.75% 7/29/2026 15.0
 14.6
 12.8
 0.01%
^The Hungry Rhino LLC Real Estate Term Loan Prime plus 2.75% 7/29/2041 76.3
 75.8
 74.9
 0.04%
^Nicolette Reiser dba Comfort & Balance Personal and Laundry Services Term Loan Prime plus 2.75% 7/29/2041 75.0
 74.6
 75.1
 0.04%
^USA General Investment LLC dba Braniff Paint and Body Shop Repair and Maintenance Term Loan Prime plus 2.75% 7/29/2026 22.5
 21.9
 19.3
 0.01%
^Little Tree Huggers Child Care LLC Social Assistance Term Loan Prime plus 2.75% 7/29/2041 140.0
 139.2
 143.9
 0.07%
^303 Tower Drive LLC Repair and Maintenance Term Loan Prime plus 2.75% 7/29/2041 400.3
 398.0
 403.4
 0.19%
^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second Administrative and Support Services Term Loan Prime plus 2.75% 7/28/2041 587.0
 583.7
 578.9
 0.28%
^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/28/2026 300.0
 292.6
 249.7
 0.12%

91
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^676 Club LP dba The Green Door Tavern/The Drifter Food Services and Drinking Places Term Loan Prime plus 2.75% 7/28/2041 670.0
 665.0
 679.9
 0.33%
^MacIver Corporation dba Division Camera Rental and Leasing Services Term Loan Prime plus 2.75% 7/28/2026 1,250.0
 1,219.3
 1,143.1
 0.55%
^J And G Group Services LLC and United Vending of Florida Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 7/28/2026 31.5
 30.8
 27.5
 0.01%
^Intrepid Trinity LLC Nonstore Retailers Term Loan Prime plus 2.75% 7/28/2041 62.5
 62.1
 62.4
 0.03%
^Apple Tree NC Inc dba Williams Farm & Garden Center Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 7/28/2041 337.0
 335.1
 327.8
 0.16%
^Kidtastic LLC dba The Little Gym of Audubon Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/27/2026 53.8
 52.8
 45.0
 0.02%
^GF Libations Inc dba Minuteman Press Printing and Related Support Activities Term Loan Prime plus 2.75% 7/27/2041 40.5
 39.5
 34.9
 0.02%
^EPEC Juice LLC dba Jamba Juice Food Services and Drinking Places Term Loan Prime plus 2.75% 7/27/2026 82.5
 81.5
 69.5
 0.03%
^Pinco Pizza LLC dba Jet's Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 7/27/2026 72.9
 72.0
 70.4
 0.03%
^Peckett's Inc Crop Production Term Loan Prime plus 2.75% 7/27/2041 225.0
 224.7
 233.0
 0.11%
^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar Food Services and Drinking Places Term Loan Prime plus 2.75% 7/27/2026 125.0
 121.9
 104.1
 0.05%
^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 7/26/2026 91.0
 88.9
 80.9
 0.04%
^Gino Italian American Deli and Meat Market Inc Food and Beverage Stores Term Loan Prime plus 2.75% 7/25/2041 536.8
 534.2
 525.0
 0.25%
^My Sainath Inc dba Motel 6 Accommodation Term Loan Prime plus 2.75% 7/22/2041 305.4
 303.7
 308.6
 0.15%
^Robert G Larson State Farm Insurance Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 7/22/2026 22.5
 21.9
 18.7
 0.01%
^J and D Resources LLC dba Aqua Science Specialty Trade Contractors Term Loan Prime plus 2.75% 7/19/2026 130.5
 127.3
 109.7
 0.05%
^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop Miscellaneous Store Retailers Term Loan Prime plus 2.75% 7/18/2026 15.8
 15.4
 13.1
 0.01%
Franklin Firm LLC dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/15/2041 173.3
 172.9
 171.6
 0.08%
^Billingsworks LLC dba Spoon Shine Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 7/15/2026 9.7
 9.4
 9.5
 %
^Be Beautiful LLC Personal and Laundry Services Term Loan Prime plus 2.75% 7/14/2041 66.5
 66.1
 67.2
 0.03%

92
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego Administrative and Support Services Term Loan Prime plus 2.75% 7/13/2026 46.3
 45.1
 38.5
 0.02%
^Jacob Rugs LLC dba Rugs Outlet Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 7/13/2026 65.6
 64.0
 64.5
 0.03%
^RM Hawkins LLC dba Pure Water Tech West Nonstore Retailers Term Loan Prime plus 2.75% 7/7/2026 50.0
 48.9
 46.5
 0.02%
^Dino Smiles Children's Cosmetic Dentistry Ambulatory Health Care Services Term Loan Prime plus 2.75% 7/7/2026 14.3
 13.9
 12.2
 0.01%
Nevey's LLC dba Stark Food III Food and Beverage Stores Term Loan Prime plus 2.75% 6/30/2041 293.9
 246.6
 254.5
 0.12%
^P L H Pharmaco Inc dba Farmacia San Jose Health and Personal Care Stores Term Loan Prime plus 2.75% 6/30/2026 175.0
 169.7
 165.5
 0.08%
^Soregard Inc Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 6/30/2041 278.8
 276.8
 260.2
 0.12%
^Martin Inventory Management LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/30/2026 105.8
 102.5
 102.8
 0.05%
^Desert Tacos LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2026 98.8
 98.3
 91.3
 0.04%
^VMA Technologies LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/30/2026 22.5
 21.8
 18.4
 0.01%
^Corning Lumber Company Inc and Frank R Close and Son Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/30/2029 195.5
 191.3
 193.4
 0.09%
^Castone Creations Inc Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 6/29/2026 87.5
 84.8
 74.7
 0.04%
^WGI, LLC dba Williams Grant Inn Accommodation Term Loan Prime plus 2.75% 6/29/2041 131.3
 130.3
 128.8
 0.06%
^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/29/2026 140.0
 135.7
 117.5
 0.06%
^KWG Industries, LLC dba Peterson & Marsh Metal Industries Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 6/29/2041 304.5
 302.8
 303.9
 0.15%
^Ninsa LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/29/2041 112.5
 111.7
 115.5
 0.06%
^E & P Holdings 1 LLC and Evans & Paul LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 6/28/2026 125.0
 121.4
 105.9
 0.05%
^MaidPro Marin dba MaidPro Administrative and Support Services Term Loan Prime plus 2.75% 6/28/2026 17.6
 17.0
 14.3
 0.01%
^Edge Pest Control LLC Administrative and Support Services Term Loan Prime plus 2.75% 6/27/2026 750.0
 726.9
 612.0
 0.29%
^All Printing Solutions, Inc. dba Pryntcomm Printing and Related Support Activities Term Loan Prime plus 2.75% 6/27/2041 545.6
 542.4
 513.8
 0.25%

93
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast Accommodation Term Loan Prime plus 2.75% 6/24/2041 101.3
 100.5
 103.9
 0.05%
^Jumbomarkets Inc dba Rines Jumbomarkets Food and Beverage Stores Term Loan Prime plus 2.75% 6/24/2026 50.0
 48.5
 40.8
 0.02%
^Yellow Cab Company of Kissimmee Inc Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 6/24/2041 56.8
 56.4
 53.2
 0.03%
^El Basha Inc dba RPM West San Fernando Valley Real Estate Term Loan Prime plus 2.75% 6/24/2026 22.5
 20.8
 17.5
 0.01%
^Long Island Comedy LLC dba Governors and New York Comedy, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/23/2041 187.5
 186.2
 184.4
 0.09%
^Visual Advantage LLC dba Signs Now Perryberg Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/23/2041 91.3
 90.6
 88.7
 0.04%
Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/23/2041 375.0
 375.0
 370.9
 0.18%
^SNS of Central Alabama, LLC dba Steak N Shake Food Services and Drinking Places Term Loan Prime plus 2.75% 6/21/2026 57.5
 55.7
 50.2
 0.02%
^Italian Heritage Tile and Stone Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 6/20/2026 62.5
 60.6
 51.0
 0.02%
^Evergreen Investment & Property Management LLC ,Universal Kidney Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/20/2041 1,250.0
 1,243.2
 1,261.1
 0.60%
^Bagelicious, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/17/2026 54.6
 52.9
 44.8
 0.02%
^T and B Boots Inc dba Takken's Shoes Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 6/17/2026 225.0
 218.4
 217.4
 0.10%
^NKJ Lusby Donuts LLC Food and Beverage Stores Term Loan Prime plus 2.75% 6/16/2026 22.5
 21.8
 18.4
 0.01%
^Winegirl Wines LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 6/16/2026 11.3
 10.9
 10.9
 0.01%
^Blue Eagle Transport Inc, Greeneagle Transport Inc Couriers and Messengers Term Loan Prime plus 2.75% 6/16/2026 583.0
 560.1
 471.5
 0.23%
^Jai-Alexia Consulting, Inc. Couriers and Messengers Term Loan Prime plus 2.75% 6/15/2026 11.8
 11.5
 9.6
 %
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares Social Assistance Term Loan Prime plus 2% 6/15/2041 515.3
 511.2
 484.8
 0.23%
^Strag Industries LLC dba Meineke Car Care Center 841 Repair and Maintenance Term Loan Prime plus 2.75% 6/15/2026 15.0
 14.5
 13.3
 0.01%
^Luv 2 Play AZ LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/10/2026 62.5
 60.6
 58.5
 0.03%

94
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Refoleen Inc dba Spice and Tea Exchange Food and Beverage Stores Term Loan Prime plus 2.75% 6/10/2026 85.0
 83.9
 70.7
 0.03%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden Food Services and Drinking Places Term Loan Prime plus 2.75% 6/8/2026 84.0
 81.4
 68.5
 0.03%
^ScimTech Industries Inc dba Archer Aerospace Computer and Electronic Product Manufacturing Term Loan Prime plus 2.75% 6/6/2026 12.0
 11.6
 9.8
 %
^Larry H. Patterson and Rainbow Movers, Inc Truck Transportation Term Loan Prime plus 2.75% 6/6/2026 22.5
 21.8
 18.5
 0.01%
^Solvit Inc and Solvit North Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 6/3/2026 250.0
 242.3
 214.7
 0.10%
^AP5 LLC dba Krauser's Food Store Food and Beverage Stores Term Loan Prime plus 2.75% 6/2/2041 242.5
 240.8
 239.1
 0.11%
^ATI Jet Inc Air Transportation Term Loan Prime plus 2.75% 5/31/2026 518.8
 499.9
 441.7
 0.21%
^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 5/31/2026 50.0
 48.1
 48.3
 0.02%
Angelo Faia dba AVF Construction Construction of Buildings Term Loan Prime plus 2.75% 5/27/2041 100.0
 98.7
 97.3
 0.05%
^Premier Athletic Center of Ohio, Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/27/2026 87.5
 84.3
 84.6
 0.04%
^MNM Printing and Marketing Solutions LLC dba AlphaGraphics of Saint Louis Printing and Related Support Activities Term Loan Prime plus 2.75% 5/27/2026 18.8
 18.1
 15.2
 0.01%
^Mersada Holdings LLC Nonstore Retailers Term Loan Prime plus 2.75% 5/26/2026 337.5
 325.0
 326.1
 0.16%
^Jack Frost Firewood Inc. and David Dubinsky Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/26/2041 206.3
 204.5
 200.1
 0.10%
^Southwest Division Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 5/26/2026 8.3
 7.9
 7.1
 %
^International Kitchen Supply LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 5/25/2026 186.8
 179.8
 160.3
 0.08%
^PennyLion LLC dba Creamistry Food Services and Drinking Places Term Loan Prime plus 2.75% 5/25/2026 81.0
 81.0
 70.1
 0.03%
^Groth Lumber Co. Inc. dba True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/25/2026 22.5
 21.7
 21.7
 0.01%
^Island Life Graphics Inc dba FASTSIGNS #576 Miscellaneous Manufacturing Term Loan Prime plus 2.75% 5/24/2026 22.5
 21.7
 18.5
 0.01%
^Powerspec Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/24/2026 87.5
 84.3
 71.0
 0.03%

95
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Horseshoe Barbecue, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 5/23/2029 15.0
 14.2
 14.4
 0.01%
^Pro Auto Repair LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/20/2026 7.5
 7.2
 6.9
 %
^Elderfriend Inc dba Granny Nannies dba GN Live Scan Social Assistance Term Loan Prime plus 2.75% 5/20/2026 12.8
 12.3
 10.3
 %
^CM Lab Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/20/2026 172.6
 169.5
 156.1
 0.07%
^National Air Cargo Holdings Inc Air Transportation Term Loan Prime plus 2.75% 5/20/2026 1,250.0
 1,205.2
 1,174.9
 0.56%
^J&A Laundromat Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 5/18/2026 67.5
 65.0
 56.3
 0.03%
^HBA LLC dba Palmetto Twist-Vista Repair and Maintenance Term Loan Prime plus 2.75% 5/18/2026 22.5
 21.7
 18.7
 0.01%
^Dedicated Incorporated Administrative and Support Services Term Loan Prime plus 2.75% 5/18/2041 46.5
 46.1
 45.9
 0.02%
^Studio Find It Georgia Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/13/2026 22.5
 21.7
 18.9
 0.01%
^FJN Catering Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 5/13/2041 262.5
 260.7
 266.9
 0.13%
^LED Lighting Enterprises LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 5/13/2026 22.5
 21.7
 18.8
 0.01%
^J. Harris Trucking, LLC Truck Transportation Term Loan Prime plus 2.75% 5/13/2026 60.0
 41.6
 37.4
 0.02%
^Luv 2 Play OC Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 5/12/2026 62.5
 62.5
 52.6
 0.03%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano Social Assistance Term Loan Prime plus 2.75% 5/12/2041 132.5
 131.4
 129.1
 0.06%
^The Delon Group LLC dba I Love Juice Bar Food Services and Drinking Places Term Loan Prime plus 2.75% 5/12/2026 55.0
 53.0
 44.6
 0.02%
^Sabir Inc. dba Bear Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 5/11/2041 123.8
 122.9
 124.1
 0.06%
^Gator D'Lites LLC dba D'Lites Emporium Food and Beverage Stores Term Loan Prime plus 2.75% 5/5/2026 22.5
 21.7
 18.2
 0.01%
^Warner Home Comfort, LLC dba Smith Piping Specialty Trade Contractors Term Loan Prime plus 2.75% 4/29/2041 82.5
 81.7
 80.4
 0.04%
^Keller, Fishback & Jackson LLP Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/29/2026 131.8
 125.1
 125.5
 0.06%

96
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/29/2026 22.5
 21.5
 18.1
 0.01%
^May-Craft Fiberglass Products Inc Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 4/29/2041 247.5
 245.0
 253.3
 0.12%
^Alpha Omega Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 4/29/2041 175.8
 174.7
 180.6
 0.09%
^Scoler LLC dba Gold's Gym Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/29/2026 262.5
 251.1
 222.2
 0.11%
^Loriet LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 4/29/2026 7.5
 7.2
 6.1
 %
^La Nopalera Mexicano 2, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 4/29/2026 125.5
 123.0
 123.5
 0.06%
^Euro Car Miami LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 4/29/2026 62.5
 59.9
 60.1
 0.03%
^Hard Exercise Works Winter Park LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/29/2026 40.8
 39.0
 32.8
 0.02%
^Empowerschool LLC and Empower Autism Academy, LLC Social Assistance Term Loan Prime plus 2.75% 4/29/2041 151.9
 150.4
 155.2
 0.07%
^Inner Beauty Salon and Suite LLC Personal and Laundry Services Term Loan Prime plus 2.75% 4/28/2041 65.0
 64.4
 65.8
 0.03%
^Atlantic Restaurant Associates LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/28/2041 262.5
 259.9
 263.0
 0.13%
^Costume World Inc Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 4/28/2041 1,250.0
 1,239.6
 1,281.2
 0.61%
^Pecos Inn LLC dba Econo Lodge Accommodation Term Loan Prime plus 2.75% 4/28/2041 677.5
 670.8
 678.0
 0.32%
^North American Manufacturing Company Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 4/28/2026 160.0
 153.1
 153.6
 0.07%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma Real Estate Term Loan Prime plus 2.75% 4/28/2026 9.0
 8.6
 7.2
 %
^Knowledge First Inc dba Magic Years of Learning Social Assistance Term Loan Prime plus 2.75% 4/27/2026 80.0
 76.5
 71.8
 0.03%
^Green Country Filter Manufacturing LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 4/27/2026 84.3
 80.6
 69.8
 0.03%
^Accent Comfort Services, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 4/26/2026 90.0
 86.1
 72.5
 0.03%
^Homecare Casa Rhoda 123 Inc Ambulatory Health Care Services Term Loan Prime plus 2% 4/26/2041 675.0
 667.4
 642.3
 0.31%

97
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^McIntosh Trail Management Services Organization Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/22/2041 425.0
 420.8
 434.9
 0.21%
^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 4/22/2041 250.0
 247.5
 234.1
 0.11%
^AAA Mill Direct, Inc. dba Carpet Mill Outlets Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 4/21/2026 7.9
 7.5
 7.6
 %
^Jande Graphics LLC dba FastSigns #103201 Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/21/2026 56.0
 53.6
 45.1
 0.02%
^Miguel Fernando Borda, P.A. dba BGR Dental Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/15/2026 22.5
 21.5
 18.7
 0.01%
^LE & JS dba Laredo Mercado Y Carniceria Food and Beverage Stores Term Loan Prime plus 2.75% 4/13/2026 20.0
 19.1
 16.1
 0.01%
^Sushiya Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 4/12/2026 87.5
 83.8
 73.6
 0.04%
^Sierra Foothill Cremation & Funeral Service, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 4/7/2026 53.0
 50.8
 42.8
 0.02%
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC Repair and Maintenance Term Loan Prime plus 2.75% 4/6/2041 271.3
 269.3
 270.3
 0.13%
^KNS Early Learning Academy LLC Social Assistance Term Loan Prime plus 2.75% 4/6/2041 51.0
 50.5
 49.4
 0.02%
^Duke's Cleaners Inc Personal and Laundry Services Term Loan Prime plus 2.75% 3/31/2026 47.0
 44.7
 41.0
 0.02%
^Cameo Carter, MD A Professional Corporation Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/31/2026 75.0
 71.3
 60.0
 0.03%
^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 3/31/2026 66.8
 59.6
 50.1
 0.02%
^Christian Soderquist dba Soderquist Plumbing and Heating LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 3/31/2041 56.8
 56.1
 57.7
 0.03%
^Vehicle Safety Supply LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/31/2026 22.5
 21.4
 18.0
 0.01%
^Men of Steel Enterprises LLC and Vogelbacher Properties LLC Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 3/31/2041 393.5
 389.0
 362.2
 0.17%
^Gill Express Inc and Blue Speed LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/31/2041 518.0
 512.1
 505.3
 0.24%
^Dana A. Farley dba Independent Cabinets Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 3/31/2041 67.5
 66.7
 68.9
 0.03%
^NOSO Development, LLC Construction of Buildings Term Loan Prime plus 2.75% 3/30/2026 187.5
 178.2
 149.9
 0.07%
^Wyldewood Cellars, Inc. Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 3/30/2041 986.8
 985.8
 936.7
 0.45%

98
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn Accommodation Term Loan Prime plus 2.75% 3/30/2026 22.5
 21.6
 21.7
 0.01%
^Beale Street Blues Company-West Palm Beach, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 3/30/2026 93.8
 89.1
 77.1
 0.04%
^Tom Sawyer Country Restaurant LLC and AM 3208 LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/30/2041 257.5
 254.6
 258.5
 0.12%
^MTS Car Service LLC Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 3/30/2026 10.5
 10.0
 8.4
 %
^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane Clothing and Clothing Accessories Stores Term Loan Prime plus 2% 3/29/2041 525.0
 513.5
 505.1
 0.24%
^Barrocas Gym LLC dba Snap Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/29/2026 22.5
 21.1
 19.1
 0.01%
^Vinmar Inc. dba Locanda Portofino Food Services and Drinking Places Term Loan Prime plus 2.75% 3/29/2026 81.3
 77.2
 65.0
 0.03%
^Lust for Life Footwear, LLC Leather and Allied Product Manufacturing Term Loan Prime plus 2.75% 3/29/2026 375.0
 356.4
 299.9
 0.14%
^Marathon Engineering Corporation Miscellaneous Manufacturing Term Loan Prime plus 2.75% 3/28/2041 45.0
 44.5
 44.7
 0.02%
^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp. Food Services and Drinking Places Term Loan Prime plus 2.75% 3/28/2026 50.0
 47.5
 42.5
 0.02%
^ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstery Administrative and Support Services Term Loan Prime plus 2.75% 3/28/2026 12.4
 11.8
 11.5
 0.01%
^RCB Enterprises, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 3/25/2026 56.3
 53.5
 45.0
 0.02%
^Revolution Physical Therapy LLC dba Apex Network Physical Therapy Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/25/2026 22.5
 21.6
 18.7
 0.01%
^Excel RP Inc Machinery Manufacturing Term Loan Prime plus 2.75% 3/25/2026 125.0
 118.8
 106.7
 0.05%
^Lowgap Grocery & Grill LLC General Merchandise Stores Term Loan Prime plus 2.75% 3/24/2041 167.5
 165.6
 171.1
 0.08%
^ActKnowledge, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 3/24/2026 125.0
 118.8
 119.1
 0.06%
^International Construction Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 3/24/2041 50.0
 49.5
 48.4
 0.02%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring Specialty Trade Contractors Term Loan Prime plus 2.75% 3/24/2026 50.0
 47.5
 46.2
 0.02%
^Acton Hardware LLC and Mark Allgood & Jamie Allgood Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/24/2041 498.6
 492.9
 472.6
 0.23%

99
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^The Youth Fountain LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/23/2026 47.5
 45.2
 38.0
 0.02%
^Magnation Corporation and Misha Family Trust Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 3/22/2041 101.3
 100.4
 103.7
 0.05%
^growth.period LLC and Potomac Recruiting LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/21/2026 156.3
 148.5
 124.9
 0.06%
^Precious Care LLC and Precious Care Management LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/21/2026 557.5
 529.8
 449.0
 0.21%
^Media Capital Partners, Inc Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 3/21/2026 22.5
 21.4
 18.0
 0.01%
^Pro Tech Technology LLC Support Activities for Transportation Term Loan Prime plus 2.75% 3/18/2026 7.5
 7.1
 6.0
 %
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc Repair and Maintenance Term Loan Prime plus 2.75% 3/18/2041 80.8
 79.8
 81.5
 0.04%
^ERT Group Inc and Curt's Tools Inspection Inc Support Activities for Mining Term Loan Prime plus 2.75% 3/18/2041 1,250.0
 1,237.6
 1,216.3
 0.58%
^Kekoa Enterprises Inc dba Signarama Sandy Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/18/2026 49.5
 47.0
 39.6
 0.02%
^Mariam Diner Inc dba Country Kitchen Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 3/18/2026 52.5
 49.9
 42.0
 0.02%
^Brian T Rice dba BD Logging Forestry and Logging Term Loan Prime plus 2.75% 3/17/2026 15.8
 15.0
 13.5
 0.01%
^Auto and Property Insurance Solutions Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 3/16/2026 16.4
 15.4
 12.9
 0.01%
^Demand Printing Solutions Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 3/16/2026 21.8
 20.7
 19.5
 0.01%
^LAN Doctors Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/16/2026 55.0
 52.3
 52.4
 0.03%
^Evergreen Pallet LLC and Evergreen Recycle LLC Wood Product Manufacturing Term Loan Prime plus 2.75% 3/16/2026 1,039.3
 988.2
 882.4
 0.42%
^K Soles Corp dba Max Collections Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/16/2026 22.5
 21.4
 18.0
 0.01%
^R & D Enterprises Inc dba My Pool Man Administrative and Support Services Term Loan Prime plus 2.75% 3/15/2026 50.0
 47.5
 40.0
 0.02%
^HEWZ, LLC dba Hard Exercise Works Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/14/2026 22.5
 21.4
 18.0
 0.01%

100
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Mustafa Inc and Raouf Properties LLC Food and Beverage Stores Term Loan Prime plus 2.75% 3/14/2041 75.0
 74.1
 75.4
 0.04%
^Country Paint and Hardware Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/11/2026 87.4
 83.0
 71.5
 0.03%
^Wilban LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/11/2026 105.0
 100.2
 94.8
 0.05%
^ABCs & 123s Infant and Child Care Center LP Social Assistance Term Loan Prime plus 2.75% 3/11/2026 11.3
 10.7
 9.0
 %
^Accuair Control Systems LLC dba Accuair Suspension Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 3/11/2026 150.0
 142.6
 122.8
 0.06%
^Dupre Capital LLC dba Fastsigns Miscellaneous Manufacturing Term Loan Prime plus 2.75% 3/11/2026 58.4
 55.5
 46.7
 0.02%
^Magill Truck Line LLC and Jeff J. Ralls Truck Transportation Term Loan Prime plus 2.75% 3/11/2029 210.8
 203.6
 183.0
 0.09%
^Fayette Computer Consulting Company Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/10/2026 22.5
 21.4
 18.9
 0.01%
^State Painting & Decorating Co., Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 3/10/2026 103.8
 98.6
 83.0
 0.04%
^B.P.T.M. of NV LLC and Agentis Bros., LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/9/2041 525.0
 519.0
 513.8
 0.25%
^Step Up Academy of the Arts LLC Educational Services Term Loan Prime plus 2.75% 3/9/2026 8.0
 7.6
 6.4
 %
^A & A Auto Care LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/9/2026 12.2
 11.5
 11.0
 0.01%
^Faith Summit Supply Inc dba Summit Supply and Summit True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/9/2026 22.5
 21.4
 19.4
 0.01%
^Swerve Salon LLC Personal and Laundry Services Term Loan Prime plus 2.75% 3/8/2026 79.0
 75.1
 63.2
 0.03%
^J & W Hardwood Flooring Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 3/7/2026 7.5
 7.1
 6.0
 %
^Labmates LLC and POV Holdings LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 3/4/2041 109.3
 108.0
 111.6
 0.05%
^Hueston and Company CPA LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/4/2026 8.3
 7.7
 6.7
 %
^Almost Home Daycare LLC Social Assistance Term Loan Prime plus 2.75% 3/3/2026 50.0
 47.5
 46.3
 0.02%
^Miles of Smiles Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 3/2/2026 93.5
 90.5
 77.9
 0.04%
^Johnson & Dugan Insurance Services Corp Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 2/28/2026 62.5
 59.0
 49.7
 0.02%

101
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Living Essentials HVAC Corp Specialty Trade Contractors Term Loan Prime plus 2.75% 2/28/2026 15.0
 14.2
 12.1
 0.01%
^Consulting Solutions, Inc. and Mark Luciani Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/28/2026 11.3
 10.6
 10.4
 %
^Doxa Deo Inc dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2026 105.0
 103.5
 90.3
 0.04%
^The River Beas, LLC dba Subway and Punam Singh Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2041 135.9
 134.1
 136.7
 0.07%
^Drug Detection Laboratories, Inc. and Minh Tran Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/28/2026 19.8
 18.7
 16.0
 0.01%
^Powerpits CS1, LLC dba Pita Pit Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2026 18.8
 17.7
 15.8
 0.01%
^Blackstones Hairdressing LLC Personal and Laundry Services Term Loan Prime plus 2.75% 2/23/2026 52.0
 49.4
 42.0
 0.02%
^Aaradhya LLC dba Market Square Laundry Personal and Laundry Services Term Loan Prime plus 2.75% 2/23/2026 80.0
 75.5
 63.5
 0.03%
^R-No-Landscaping LLC Personal and Laundry Services Term Loan Prime plus 2.75% 2/19/2026 8.3
 7.8
 6.7
 %
^BER Enterprise 332 Inc dba Edible Arrangements Food and Beverage Stores Term Loan Prime plus 2.75% 2/19/2026 22.5
 21.3
 18.1
 0.01%
^R & K Contracting Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 2/18/2026 15.8
 15.0
 14.5
 0.01%
^Pacific Coast Medical Group LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/17/2026 245.0
 231.3
 231.9
 0.11%
^B for Blonde, LLC dba Blo Blow Dry Bar Personal and Laundry Services Term Loan Prime plus 2.75% 2/12/2026 62.0
 59.3
 50.0
 0.02%
^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/12/2029 310.3
 298.6
 272.7
 0.13%
^Ei3 Corporation Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/12/2026 326.9
 308.6
 309.5
 0.15%
^Jersey Shore Marina & Boat Sales, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/12/2041 625.0
 617.7
 638.2
 0.31%
^Base USA, Inc. Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 2/2/2026 50.0
 47.2
 47.4
 0.02%
^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer Repair and Maintenance Term Loan Prime plus 2.75% 1/29/2026 105.0
 98.6
 98.9
 0.05%
^Zouk Ltd dba Palma Food Services and Drinking Places Term Loan Prime plus 2.75% 1/29/2026 22.5
 21.1
 21.2
 0.01%

102
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Tammy Lavertue Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 1/28/2026 11.3
 10.5
 10.2
 %
^SuzyQue's LLC dba SuzyQue's Food Services and Drinking Places Term Loan Prime plus 2.75% 1/28/2026 22.5
 21.2
 21.2
 0.01%
^Wildflour Bakery & Cafe LLC Social Assistance Term Loan Prime plus 2.75% 1/28/2026 62.5
 58.6
 57.2
 0.03%
^New Image Building Services, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 1/19/2026 83.1
 78.0
 69.1
 0.03%
^Oak Tree Storage LLC Other Information Services Term Loan Prime plus 2.75% 1/19/2026 78.8
 73.8
 63.4
 0.03%
^Gendron Funeral and Cremation Services, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 1/11/2041 112.5
 109.4
 113.0
 0.05%
^Dolarian Realty LLC and OV's Restaurant Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 1/5/2041 67.8
 66.9
 69.1
 0.03%
^Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt Food and Beverage Stores Term Loan Prime plus 2.75% 12/29/2025 112.5
 104.8
 91.8
 0.04%
^MCF Forte LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 12/29/2025 18.8
 17.5
 14.9
 0.01%
^Panditos LLC dba White Lotus Home Miscellaneous Manufacturing Term Loan Prime plus 2.75% 12/28/2025 15.9
 14.8
 12.5
 0.01%
^Bright Dialysis LLC and Ft Pierce Kidney Care LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/28/2025 1,250.0
 1,164.4
 982.9
 0.47%
^V2 Tango LLC dba Palette 22 Food Services and Drinking Places Term Loan Prime plus 2.75% 12/23/2025 250.0
 232.9
 202.5
 0.10%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/23/2040 102.5
 100.8
 100.7
 0.05%
^800 on the Trax LLC and Matrix Z LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 12/23/2040 240.0
 237.2
 235.1
 0.11%
^Optima Health Care Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/23/2025 62.5
 58.2
 58.4
 0.03%
^B&B Organics LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 12/22/2040 375.0
 368.9
 381.0
 0.18%
^Joyce Outdoor Advertising Chicago LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/22/2040 300.0
 297.0
 292.6
 0.14%
^The LAX Shop Inc Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 12/22/2025 125.0
 91.4
 91.6
 0.04%
^Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Gates Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/22/2028 882.0
 840.0
 848.3
 0.41%

103
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Hattingh Incorporated dba Prosthetic Care Facility Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/21/2025 18.0
 16.8
 14.9
 0.01%
^G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/18/2040 1,025.0
 1,008.3
 1,041.3
 0.50%
^Trip Consultants U.S.A. Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/18/2025 175.0
 163.0
 137.1
 0.07%
^Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/18/2025 73.0
 69.8
 60.5
 0.03%
^Accent Tag and Label Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 12/18/2040 665.8
 652.2
 649.1
 0.31%
^Abbondanza Market LLC dba Hampton Falls Village Market Food and Beverage Stores Term Loan Prime plus 2.75% 12/18/2025 73.8
 62.7
 54.7
 0.03%
^Capital Scrap Metal LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/18/2025 36.0
 33.5
 28.7
 0.01%
^Labmates LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 12/18/2040 162.5
 159.9
 165.1
 0.08%
^Sourceco Limited Liability Company Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/17/2025 62.5
 58.3
 51.0
 0.02%
^Mustafa Inc dba Adiba Grocery Food and Beverage Stores Term Loan Prime plus 2.75% 12/17/2025 103.8
 96.7
 96.2
 0.05%
^Learning Skills LLC and Christopher Shrope Educational Services Term Loan Prime plus 2.75% 12/17/2025 10.8
 10.1
 8.5
 %
^New York Home Health Care Equipment, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/16/2025 875.0
 817.8
 801.9
 0.38%
^Moments to Remember USA LLC dba Retain Loyalty Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/16/2025 75.0
 70.0
 65.3
 0.03%
^Swalm Sreet LLC and New York Home Health Care Equipment LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/16/2040 375.0
 370.1
 376.1
 0.18%
^JAG Unit 1, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 12/16/2025 250.0
 233.3
 196.2
 0.09%
^D&G Capital LLC dba Miami Grill 277 Food Services and Drinking Places Term Loan Prime plus 2.75% 12/16/2025 83.8
 87.2
 80.6
 0.04%
^Abitino's JFK LLC dba Abitino's Food Services and Drinking Places Term Loan Prime plus 2.75% 12/16/2022 125.0
 113.8
 100.8
 0.05%
^SDA Holdings LLC and Les Cheveux Salon Inc Personal and Laundry Services Term Loan Prime plus 2.75% 12/15/2040 428.8
 421.1
 412.2
 0.20%
^Evans & Paul LLC and E&P Holdings I LLC Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 12/15/2025 125.0
 116.4
 101.5
 0.05%

104
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Basista Family Limited Partnership and UPE, Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/14/2040 342.5
 336.9
 333.8
 0.16%
^DC Enterprises Ltd. dba Lakeview True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 12/14/2025 22.5
 21.0
 19.9
 0.01%
^Tri-State Remodeling & Investments, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 12/11/2025 15.9
 14.8
 14.3
 0.01%
^Alexandra Afentoulides dba Vi's Pizza Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 12/11/2040 46.3
 45.5
 47.0
 0.02%
^AGR Foodmart Inc dba Nashua Road Mobil Gasoline Stations Term Loan Prime plus 2.75% 12/11/2025 22.5
 21.0
 19.9
 0.01%
^ENI Inc. dba ENI Group, Inc Other Information Services Term Loan Prime plus 2.75% 12/11/2025 36.0
 33.5
 29.7
 0.01%
^Cares, Inc dba Dumpling Grounds Day Care Center Social Assistance Term Loan Prime plus 2.75% 12/10/2025 7.5
 7.0
 6.9
 %
^Custom Exteriors, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 12/9/2025 100.0
 93.2
 81.5
 0.04%
^Sushiya, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 12/8/2025 108.8
 101.3
 88.9
 0.04%
^My Jewels, LLC dba The UPS Store #6712 Administrative and Support Services Term Loan Prime plus 2.75% 12/7/2025 56.3
 33.2
 27.9
 0.01%
^Food & Fuel Company LLC dba Lowery Food Mart Food and Beverage Stores Term Loan Prime plus 2.75% 12/4/2040 122.5
 120.5
 124.2
 0.06%
^Blue Ox Trucking Inc. Truck Transportation Term Loan Prime plus 2.75% 12/4/2025 12.3
 11.5
 11.5
 0.01%
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC Repair and Maintenance Term Loan Prime plus 2.75% 12/4/2040 502.5
 494.3
 497.1
 0.24%
^American Campgrounds LLC dba Whit's End Campground Accommodation Term Loan Prime plus 2.75% 12/4/2040 293.0
 288.2
 290.4
 0.14%
^Tariq, LLC dba 76 Food Mart Gasoline Stations Term Loan Prime plus 2.75% 12/2/2040 375.0
 368.9
 371.4
 0.18%
^401 JJS, Corp and G. Randazzo's Trattoria Corporation Food Services and Drinking Places Term Loan Prime plus 2.75% 12/1/2040 52.8
 52.1
 51.6
 0.02%
^Delta Aggregate, LLC Mining (except Oil and Gas) Term Loan Prime plus 2.75% 11/30/2025 100.0
 95.4
 95.7
 0.05%
^Block and Grinder LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2025 200.0
 187.5
 186.6
 0.09%
^Hurshell Leon Dutton dba High Jump Party Rentals Rental and Leasing Services Term Loan Prime plus 2.75% 11/30/2025 17.6
 16.2
 16.0
 0.01%
^Japp Business Inc dba Pick and Eat and Japp Drink Corp. Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2025 125.0
 115.6
 102.7
 0.05%

105
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop Food Services and Drinking Places Term Loan Prime plus 2.75% 11/30/2025 125.0
 115.6
 99.6
 0.05%
^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 11/25/2040 146.3
 143.9
 148.4
 0.07%
^State Painting and Decorating Co Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 11/25/2025 100.0
 92.5
 77.8
 0.04%
^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad Electrical Equipment, Appliance, and Component Manufacturing Term Loan Prime plus 2.75% 11/25/2025 22.5
 20.7
 17.4
 0.01%
^DWeb Studio, Inc. Educational Services Term Loan Prime plus 2.75% 11/25/2025 11.3
 10.4
 8.7
 %
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/23/2040 750.0
 747.7
 764.6
 0.37%
^Play and Learn Child Care and School Inc Social Assistance Term Loan Prime plus 2.75% 11/23/2025 11.1
 10.3
 10.3
 %
^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy Health and Personal Care Stores Term Loan Prime plus 2.75% 11/20/2025 89.0
 83.4
 71.7
 0.03%
^Haven Hospitality Group Inc. dba Haven Gastropub Food Services and Drinking Places Term Loan Prime plus 2.75% 11/20/2025 132.5
 122.6
 105.2
 0.05%
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/20/2040 244.4
 240.0
 224.7
 0.11%
^S.B.B. Enterprises Inc dba Williamston Hardware Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/19/2040 108.8
 106.6
 100.1
 0.05%
^Key Pix Productions Inc. dba Air Bud Entertainment Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 11/18/2040 839.8
 824.8
 851.8
 0.41%
^Holloway & CO. P.L.L.C. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/16/2025 75.0
 69.4
 69.5
 0.03%
^RDT Enterprises, L.L.C. Specialty Trade Contractors Term Loan Prime plus 2.75% 11/12/2025 22.5
 20.8
 19.5
 0.01%
^E.S.F.P. LLC dba Volusia Van and Storage Truck Transportation Term Loan Prime plus 2.75% 11/11/2025 91.3
 84.4
 72.8
 0.03%
^Green Life Lawnscapes LLC dba Green Life Lawn Care Administrative and Support Services Term Loan Prime plus 2.75% 11/6/2025 127.3
 117.7
 114.7
 0.05%
^Joseph Nich and Tina M. Nich dba Vic's Greenhouses Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/4/2025 62.5
 58.2
 58.3
 0.03%
^Jumbomarkets Inc dba Rines Jumbomarkets Food and Beverage Stores Term Loan Prime plus 2.75% 11/4/2025 306.3
 283.3
 274.8
 0.13%
^Bisson Transportation Inc dba I & R Associates and Document Secutiry Truck Transportation Term Loan Prime plus 2.75% 10/30/2025 22.5
 20.7
 19.4
 0.01%

106
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Top Cat Ready Mix, LLC, Ples Investments LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 10/28/2025 711.3
 653.6
 572.5
 0.27%
^L.M. Jury Enterprises, Inc dba Midwest Monograms Textile Product Mills Term Loan Prime plus 2.75% 10/28/2025 77.0
 70.6
 60.8
 0.03%
^Windsor Direct Distribution LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 10/26/2025 14.3
 13.0
 11.0
 0.01%
^Financial Network Recovery Administrative and Support Services Term Loan Prime plus 2.75% 10/26/2025 40.0
 36.8
 30.9
 0.01%
^Insurance Fire & Water Restorations, LLC Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 10/23/2025 22.5
 20.7
 19.6
 0.01%
^Jacksonville Beauty Institute Inc. Educational Services Term Loan Prime plus 2.75% 10/23/2025 50.0
 45.9
 38.6
 0.02%
^Werthan Packaging Inc. Paper Manufacturing Term Loan Prime plus 2.75% 10/14/2025 1,162.5
 1,104.0
 1,030.3
 0.49%
^Tannehill Enterprises Inc dba Hobbytown USA Folsom Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 10/14/2025 87.4
 80.2
 67.5
 0.03%
^ADMO Inc dba Mid States Equipment Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 10/8/2025 22.5
 20.7
 17.9
 0.01%
^SCJEN Management Inc dba Bowl of Heaven Food Services and Drinking Places Term Loan Prime plus 2.75% 9/30/2025 71.3
 65.7
 55.2
 0.03%
^Naeem Khan LTD Apparel Manufacturing Term Loan Prime plus 2.75% 9/30/2025 125.0
 114.0
 95.8
 0.05%
^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City Specialty Trade Contractors Term Loan Prime plus 2.75% 9/30/2028 66.5
 62.4
 60.4
 0.03%
^Recycling Consultants, Inc. and Prairie State Salvage and Recycling Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/30/2027 767.5
 714.8
 643.3
 0.31%
^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 9/30/2040 143.0
 140.0
 143.9
 0.07%
^R.H. Hummer Jr., Inc. Truck Transportation Term Loan Prime plus 2.75% 9/30/2025 375.0
 354.3
 338.4
 0.16%
^Bat Bridge Investments Inc dba Kalologie 360 Spa Personal and Laundry Services Term Loan Prime plus 2.75% 9/30/2025 85.5
 79.5
 66.8
 0.03%
^Binky's Vapes LLC Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/30/2025 22.5
 20.5
 17.2
 0.01%
^Joyce Outdoor Advertising LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/29/2040 234.8
 231.0
 235.0
 0.11%
^Greensward of Marco Inc. Administrative and Support Services Term Loan Prime plus 2.75% 9/28/2040 87.5
 85.7
 84.4
 0.04%

107
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^RIM Investments LLC and RIM Architects LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/28/2040 399.0
 390.7
 383.0
 0.18%
^The Grasso Companies LLC and Grasso Pavement Maintenance LLC Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 9/28/2025 518.8
 469.8
 469.2
 0.22%
^South Towne Dental Center, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/25/2025 50.0
 45.6
 45.7
 0.02%
^Hemingway Custom Cabinetry LLC Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 9/25/2025 220.0
 200.6
 172.8
 0.08%
^Daniel W. Stark dba Mountain Valley Lodge and RV Park Accommodation Term Loan Prime plus 2.75% 9/25/2040 13.5
 13.2
 13.6
 0.01%
^Sandlot Ventures LLC and Sandbox Ventures LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/25/2040 442.5
 433.9
 418.9
 0.20%
^Yachting Solutions LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/25/2040 962.5
 942.4
 908.0
 0.43%
^Prestigious LifeCare for Seniors LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/25/2025 9.8
 9.0
 8.2
 %
^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn Accommodation Term Loan Prime plus 2.75% 9/24/2040 625.0
 611.9
 608.5
 0.29%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/24/2040 327.5
 320.7
 331.0
 0.16%
^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/24/2025 21.0
 19.2
 19.2
 0.01%
^Rutledge Enterprises Inc dba BLC Property Management Administrative and Support Services Term Loan Prime plus 2.75% 9/23/2040 62.5
 60.7
 60.4
 0.03%
^Finish Strong Inc dba FASTSIGNS St Peters Miscellaneous Manufacturing Term Loan Prime plus 2.75% 9/23/2025 50.0
 45.6
 38.3
 0.02%
^J3K LLC dba Ronan True Value Hardware Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 9/23/2025 152.5
 139.1
 116.9
 0.06%
^Stormrider Inc dba Shirley's Stormrider Inc Truck Transportation Term Loan Prime plus 2.75% 9/23/2025 67.5
 62.6
 52.6
 0.03%
^Frozen Treats of Hollywood FL, LLC dba Sub Zero Ice Cream Food Services and Drinking Places Term Loan Prime plus 2.75% 9/22/2025 15.8
 14.4
 12.8
 0.01%
^Nova Solutions Inc Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 9/22/2040 320.0
 313.3
 311.9
 0.15%
^Pine Belt Wood Products LLC Forestry and Logging Term Loan Prime plus 2.75% 9/22/2040 163.8
 160.3
 146.9
 0.07%
^IIoka Inc dba New Cloud Networks Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/21/2025 665.0
 609.3
 512.1
 0.24%

108
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Sound Manufacturing Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/21/2025 50.0
 45.6
 40.6
 0.02%
^MiJoy Inc dba Imo's Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 9/18/2025 8.3
 7.5
 6.3
 %
^Vanderhoof LLC dba Soxfords Apparel Manufacturing Term Loan Prime plus 2.75% 9/18/2025 15.9
 14.5
 12.2
 0.01%
^Naeem Khan LTD Apparel Manufacturing Term Loan Prime plus 2.75% 9/17/2025 125.0
 114.0
 95.8
 0.05%
^Import Car Connection Inc dba Car Connection Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/16/2040 407.5
 399.0
 406.5
 0.19%
^FirstVitals Health and Wellness Inc Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/15/2025 150.0
 136.8
 114.9
 0.05%
^Johnson Carwash LLC and Johnson Petroleum LLC Gasoline Stations Term Loan Prime plus 2.75% 9/14/2040 340.0
 334.8
 345.1
 0.17%
^Almost Home Daycare LLC Social Assistance Term Loan Prime plus 2.75% 9/11/2025 62.5
 57.0
 56.3
 0.03%
^Veliu LLC dba FASTSIGNS #15901 Miscellaneous Manufacturing Term Loan Prime plus 2.75% 9/10/2025 50.0
 46.2
 40.0
 0.02%
^B and A Friction Materials Inc Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/9/2025 102.5
 92.7
 77.9
 0.04%
^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 9/8/2040 140.0
 137.1
 141.5
 0.07%
^AIG Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 9/4/2040 363.8
 356.1
 338.8
 0.16%
^Empower Autism Academy Social Assistance Term Loan Prime plus 2.75% 9/4/2040 685.0
 670.7
 692.4
 0.33%
^Higher Grounds Community Coffeehouse, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/2/2025 8.3
 7.5
 6.6
 %
^Delray Scrap Recycling LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 8/31/2025 22.5
 20.1
 16.9
 0.01%
^The Camera House Inc Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 8/31/2025 1,250.0
 1,131.6
 1,036.9
 0.50%
^LAN Doctors Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/28/2025 81.3
 73.6
 66.8
 0.03%
^Elite Institute LLC dba Huntington Learning Center Educational Services Term Loan Prime plus 2.75% 8/28/2025 15.0
 13.7
 11.6
 0.01%
^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon Personal and Laundry Services Term Loan Prime plus 2.75% 8/28/2025 81.3
 76.2
 65.7
 0.03%
^J and K Fitness L.L.C. dba Physiques Womens Fitness Center Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2041 93.8
 92.7
 93.5
 0.04%

109
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Trading Group 3 Inc Nonstore Retailers Term Loan Prime plus 2.75% 8/28/2025 50.0
 45.3
 38.0
 0.02%
^B and J Catering Inc dba Culinary Solutions Food Services and Drinking Places Term Loan Prime plus 2.75% 8/27/2040 547.5
 540.3
 523.4
 0.25%
^God Be Glorified Inc dba GBG Inc Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 8/20/2025 53.0
 48.0
 40.3
 0.02%
^3000 CSI Property LLC and Consulting Solutions Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/20/2040 137.5
 134.4
 136.7
 0.07%
^GDP Gourmet LLC dba Joe and John's Pizza Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 8/19/2040 145.0
 141.7
 140.1
 0.07%
^Screenmobile Management Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 8/14/2025 47.0
 42.5
 36.1
 0.02%
^Gold Jet Corp. Couriers and Messengers Term Loan Prime plus 2.75% 8/14/2025 68.3
 65.3
 59.2
 0.03%
^SKJ Inc dba Subway Food Services and Drinking Places Term Loan Prime plus 2.75% 8/13/2025 84.8
 76.8
 65.5
 0.03%
^LP Industries Inc dba Childforms Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 7/29/2025 125.0
 114.5
 107.0
 0.05%
^Advanced Machine & Technology, Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 7/29/2025 90.3
 81.1
 74.8
 0.04%
^Pauley Tree and Lawn Care Inc Administrative and Support Services Term Loan Prime plus 2.75% 7/28/2025 65.8
 59.2
 53.0
 0.03%
^Beale Street Blues Company-West Palm Beach LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 7/24/2025 66.3
 59.5
 52.2
 0.02%
^Forever & Always of Naples Inc dba Island Animal Hospital Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/24/2025 107.5
 96.6
 88.0
 0.04%
^C& D Medical of Naples, Inc and Forever & Always of Naples, Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/24/2040 135.0
 131.8
 123.2
 0.06%
^Pooh's Corner Realty LLC and Pooh's Corner Inc Social Assistance Term Loan Prime plus 2.75% 7/23/2040 103.8
 101.4
 103.8
 0.05%
^Smart Artists Inc. Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 7/23/2025 22.5
 20.2
 17.0
 0.01%
^Free Ion Advisors LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 7/21/2025 64.3
 57.7
 48.5
 0.02%
^Murrayville Donuts, Inc dba Dunkin' Donuts Food and Beverage Stores Term Loan Prime plus 2.75% 7/15/2040 344.5
 340.4
 329.4
 0.16%
^Union 2 LLC dba The Standard Food Services and Drinking Places Term Loan Prime plus 2.75% 7/10/2025 91.5
 85.9
 79.1
 0.04%

110
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^The Smile Place LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/30/2040 283.9
 276.6
 282.4
 0.14%
^BJ's Tavern LLC and BJ's Cabana Bar Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2040 212.5
 207.1
 210.9
 0.10%
^Jonathan E Nichols and Nichols Fire and Security LLC Administrative and Support Services Term Loan Prime plus 2.75% 6/30/2025 75.0
 66.9
 65.2
 0.03%
^Thrifty Market, Inc. dba Thrifty Foods Food and Beverage Stores Term Loan Prime plus 2.75% 6/30/2030 262.5
 246.5
 231.3
 0.11%
^All About Smiles P A Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/30/2040 237.7
 231.6
 236.4
 0.11%
^Danny V, LLC dba Hugo's Taproom Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2040 54.0
 50.1
 49.0
 0.02%
^Anglin Cultured Stone Products LLC dba Anglin Construction Specialty Trade Contractors Term Loan Prime plus 2.75% 6/30/2025 281.8
 251.3
 232.6
 0.11%
^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/29/2025 337.5
 301.0
 273.0
 0.13%
^Summit Beverage Group LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 8/29/2030 291.9
 274.4
 261.4
 0.13%
^Myclean Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 6/29/2025 15.9
 14.2
 12.7
 0.01%
^E & G Enterprises LLC dba Comfort Keepers Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/26/2025 22.5
 20.1
 18.0
 0.01%
^SofRep, Inc dba Force 12 Media Other Information Services Term Loan Prime plus 2.75% 6/26/2025 66.3
 59.1
 52.9
 0.03%
^Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling Gasoline Stations Term Loan Prime plus 2.75% 6/26/2040 380.0
 370.3
 374.9
 0.18%
^TJU-DGT Inc dba The Lorenz Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 6/26/2029 20.6
 19.2
 19.5
 0.01%
^CEM Autobody LLC dba Dawn's Autobody Repair and Maintenance Term Loan Prime plus 2.75% 6/26/2040 135.5
 132.0
 132.6
 0.06%
^Wolf Enviro Interests, LLC and Enviromax Services Inc Administrative and Support Services Term Loan Prime plus 2.75% 6/25/2040 246.5
 240.2
 234.0
 0.11%
^Ohs Auto Body, Inc. dba Ohs Body Shop Repair and Maintenance Term Loan 7.28% 6/25/2040 1,207.5
 1,187.4
 1,190.9
 0.57%
^Evinger PA One, Inc. dba Postal Annex, Falcon Miscellaneous Store Retailers Term Loan Prime plus 2.75% 6/24/2025 22.5
 20.1
 18.8
 0.01%
^Amboy Group, LLC dba Tommy's Moloney's Food Manufacturing Term Loan Prime plus 2.75% 6/24/2025 454.0
 406.2
 410.1
 0.20%
^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical Specialty Trade Contractors Term Loan Prime plus 2.75% 6/23/2040 551.8
 537.6
 561.8
 0.27%
^RJI Services, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/23/2025 22.5
 19.9
 17.8
 0.01%

111
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Real Help LLC dba Real Help Decorative Concrete Administrative and Support Services Term Loan Prime plus 2.75% 6/22/2025 53.1
 47.4
 47.1
 0.02%
^PM Cassidy Enterprises, Inc. dba Junk King Waste Management and Remediation Services Term Loan Prime plus 2.75% 6/19/2025 14.9
 13.3
 11.9
 0.01%
^KRN Logistics, LLC,Newsome Trucking, Inc Truck Transportation Term Loan Prime plus 2.75% 6/19/2025 543.5
 484.8
 458.5
 0.22%
^Inverted Healthcare Staffing of Florida LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/18/2025 61.3
 54.7
 49.0
 0.02%
^Square Deal Siding Company,LLC dba Square Deal Siding Company Specialty Trade Contractors Term Loan Prime plus 2.75% 6/18/2025 22.5
 20.4
 20.6
 0.01%
^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/17/2025 437.5
 390.2
 390.4
 0.19%
^AM PM Properties, LLC and AM PM Willington, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/17/2040 87.1
 84.6
 87.5
 0.04%
^Nelson Sargsyan dba HDA Trucking Support Activities for Transportation Term Loan Prime plus 2.75% 6/16/2025 130.5
 117.0
 104.7
 0.05%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 6/12/2040 338.8
 135.2
 128.3
 0.06%
^Bizzare Foods Inc dba Trooper Foods Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 6/12/2025 125.0
 108.7
 97.3
 0.05%
^Anturio Marketing Inc dba Logic Consulting Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/12/2040 290.3
 282.8
 295.5
 0.14%
^Eldredge Tavern LLC dba Gonyea's Tavern Food Services and Drinking Places Term Loan Prime plus 2.75% 6/8/2040 56.3
 54.8
 57.3
 0.03%
^Nicor LLC dba Fibrenew Sacramento Repair and Maintenance Term Loan Prime plus 2.75% 6/5/2022 13.8
 11.4
 10.2
 %
^Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta Food Services and Drinking Places Term Loan Prime plus 2.75% 6/5/2025 16.1
 14.0
 12.5
 0.01%
^ViAr Visual Communications, Inc. dba Fastsigns 281701 Miscellaneous Manufacturing Term Loan Prime plus 2.75% 6/5/2025 62.0
 55.3
 50.4
 0.02%
^Video Vault & Tanning LLC and Mosaic Salon LLC Rental and Leasing Services Term Loan Prime plus 2.75% 6/4/2040 90.5
 88.4
 92.3
 0.04%
^Medworxs LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/3/2025 125.0
 111.5
 100.4
 0.05%
^DTM Parts Supply Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/2/2025 62.8
 56.0
 50.1
 0.02%
^XCESSIVE THROTTLE, INC dba Jake's Roadhouse Food Services and Drinking Places Term Loan Prime plus 2.75% 5/29/2025 8.3
 7.3
 6.5
 %
^God is Good LLC dba BurgerFi Food Services and Drinking Places Term Loan Prime plus 2.75% 5/27/2025 67.3
 16.6
 16.7
 0.01%

112
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Villela CPA PL Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 5/27/2025 9.0
 8.0
 7.3
 %
^Pen Tex Inc dba The UPS Store Administrative and Support Services Term Loan Prime plus 2.75% 5/20/2025 22.0
 19.5
 17.5
 0.01%
^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse Accommodation Term Loan Prime plus 2.75% 5/20/2040 174.1
 169.4
 173.9
 0.08%
^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/15/2025 717.3
 638.0
 581.7
 0.28%
^15 McArdle LLC and No Other Impressions Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 5/15/2040 257.1
 250.1
 247.5
 0.12%
^E-Z Box Storage, Inc. Real Estate Term Loan Prime plus 2.75% 5/11/2025 89.3
 73.3
 74.0
 0.04%
^Guard Dogs MFS LLC Repair and Maintenance Term Loan Prime plus 2.75% 5/8/2025 65.0
 57.5
 51.8
 0.02%
^George S Cochran DDS Inc Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/7/2025 130.0
 115.5
 103.6
 0.05%
^South Park Properties LLC and Midlothian Hardware LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 5/6/2040 170.5
 164.8
 172.1
 0.08%
^Matthew Taylor and Landon Farm LLC Personal and Laundry Services Term Loan Prime plus 2.75% 5/4/2040 100.0
 98.0
 93.7
 0.04%
^Cares Inc dba Dumpling Grounds Day Care Center Social Assistance Term Loan Prime plus 2.75% 5/1/2040 81.9
 78.8
 82.4
 0.04%
^RDRhonehouse ENT. LLC dba Chill Skinz Miscellaneous Store Retailers Term Loan Prime plus 2.75% 4/29/2025 88.9
 79.8
 71.5
 0.03%
^Orchid Enterprises Inc dba Assisting Hands of Sussex County Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/24/2025 15.0
 13.2
 11.8
 0.01%
^Ragazza Restaurant Group, Inc. dba Bambolina Food Services and Drinking Places Term Loan Prime plus 2.75% 4/21/2025 22.5
 19.8
 18.3
 0.01%
^Diamond Solutions LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 4/21/2025 22.5
 19.3
 17.3
 0.01%
^Giacchino Maritime Consultants Inc Personal and Laundry Services Term Loan Prime plus 2.75% 4/17/2025 22.5
 19.8
 17.7
 0.01%
^Sound Coaching Inc Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 4/14/2025 44.4
 39.0
 34.9
 0.02%
^Carolina Beefs, LLC dba Beef O'Brady's Food Services and Drinking Places Term Loan Prime plus 2.75% 4/13/2025 19.5
 17.1
 15.3
 0.01%
^Faramarz Nikourazm dba Car Clinic Center Repair and Maintenance Term Loan Prime plus 2.75% 4/3/2040 73.8
 71.5
 72.3
 0.03%

113
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Advance Case Parts RE Holdings LLC and Advance Case Parts Inc Repair and Maintenance Term Loan Prime plus 2.75% 3/31/2040 758.3
 737.4
 723.8
 0.35%
^T and B Boots Inc dba Takkens Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 3/31/2025 807.8
 705.6
 688.1
 0.33%
^HAVANA CENTRAL NJ1, LLC dba Havana Central Food Services and Drinking Places Term Loan Prime plus 2.75% 3/31/2025 250.0
 225.0
 225.6
 0.11%
^Mid-South Lumber Co. of Northwest Florida, Inc. Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 3/31/2040 428.8
 415.7
 406.4
 0.19%
^Copper Beech Financial Group LLC Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 3/30/2025 125.0
 109.0
 103.4
 0.05%
^Delta Aggregate LLC Mining (except Oil and Gas) Term Loan Prime plus 2.75% 3/30/2025 90.0
 83.7
 84.5
 0.04%
^Sunset Marine Resort LLC and GoXpeditions LLC Accommodation Term Loan Prime plus 2.75% 3/27/2040 301.8
 292.6
 305.6
 0.15%
^Shorr Enterprises Inc dba New Design Furniture Manufacturers Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 3/27/2025 106.5
 92.9
 89.1
 0.04%
^South Florida Air Conditioning and Refrigeration Corp. Specialty Trade Contractors Term Loan Prime plus 2.75% 3/27/2040 155.5
 150.8
 155.8
 0.07%
^Shellhorn and Hill Inc dba Total Fleet Service Nonstore Retailers Term Loan Prime plus 2.75% 3/27/2040 1,040.3
 1,004.8
 982.4
 0.47%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC Real Estate Term Loan Prime plus 2.75% 3/27/2025 1,238.3
 1,079.5
 965.3
 0.46%
^Geo Los Angeles LLC dba Geo Film Group Rental and Leasing Services Term Loan Prime plus 2.75% 3/26/2025 130.0
 113.4
 108.2
 0.05%
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/26/2040 54.0
 52.4
 54.2
 0.03%
^Zero-In Media Inc Data Processing, Hosting, and Related Services Term Loan Prime plus 2.75% 3/25/2025 22.5
 19.6
 17.5
 0.01%
^Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 3/25/2040 810.0
 785.4
 816.3
 0.39%
^Loriet LLC Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/24/2025 12.0
 10.5
 9.4
 %
^Shelton Incorporated dba Mrs. Winners Food Services and Drinking Places Term Loan Prime plus 2.75% 3/20/2040 112.5
 109.1
 113.6
 0.05%
^Jaymie Hazard dba Indigo Hair Studio and Day Spa Personal and Laundry Services Term Loan Prime plus 2.75% 3/20/2040 42.9
 41.6
 41.9
 0.02%
^R & R Security and Investigations Inc dba Pardners Lake Buchanan Food Services and Drinking Places Term Loan Prime plus 2.75% 3/19/2040 85.4
 82.9
 86.5
 0.04%

114
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^MMS Realty, LLC and Molecular MS Diagnostics LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/18/2040 160.7
 155.8
 156.1
 0.07%
^Royal Crest Motors LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/16/2040 91.3
 88.5
 89.8
 0.04%
^BND Sebastian Limited Liability Company and Sebastian Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/16/2040 172.5
 167.3
 171.6
 0.08%
^Douglas Printy Motorsports, Inc. dba Blackburn Trike Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 3/9/2040 191.8
 185.9
 186.2
 0.09%
^Luigi's on Main LLC and Luigi's Main Street Pizza Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 3/4/2025 11.3
 9.8
 9.9
 %
^Calhoun Satellite Communications Inc and Transmission Solutions Group Broadcasting (except Internet) Term Loan Prime plus 2.75% 2/27/2025 952.8
 825.3
 763.2
 0.37%
^Road to Sedona Inc dba Thirteen Food Services and Drinking Places Term Loan Prime plus 2.75% 2/27/2025 56.6
 49.0
 44.3
 0.02%
^Baystate Firearms and Training, LLC Educational Services Term Loan Prime plus 2.75% 2/27/2025 63.4
 54.7
 49.3
 0.02%
^Kingseal LLC dba Desoto Health and Rehab Center Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 2/26/2040 1,250.0
 1,210.1
 1,263.9
 0.60%
^Pace Motor Lines, Inc. Truck Transportation Term Loan Prime plus 2.75% 2/26/2025 66.2
 57.3
 57.8
 0.03%
^Nelson Financial Services LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 2/24/2025 12.5
 10.8
 9.6
 %
^Kiddie Steps 4 You Inc. Social Assistance Term Loan Prime plus 2.75% 2/19/2040 61.8
 59.7
 59.6
 0.03%
^Triangle Trash LLC dba Bin There Dump That Waste Management and Remediation Services Term Loan Prime plus 2.75% 2/18/2025 74.4
 64.3
 60.6
 0.03%
^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 2/11/2040 171.6
 166.3
 166.0
 0.08%
^740 Barry Street Realty LLC and Wild Edibles Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 2/10/2040 492.5
 476.7
 498.0
 0.24%
^Kostekos Inc dba New York Style Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 2/6/2040 66.3
 64.1
 64.8
 0.03%
^DuCharme Realty LLC and DuCharme Enterprises LLC Wood Product Manufacturing Term Loan Prime plus 2.75% 2/2/2040 225.1
 217.9
 215.7
 0.10%
^Limameno LLC dba Sal's Italian Ristorante Food Services and Drinking Places Term Loan Prime plus 2.75% 1/23/2025 83.3
 71.4
 65.4
 0.03%
^Palmabak Inc dba Mami Nora's Food Services and Drinking Places Term Loan Prime plus 2.75% 1/22/2025 21.5
 15.9
 16.1
 0.01%

115
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Jung Design Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 1/20/2022 8.4
 6.5
 5.8
 %
^Grand Blanc Lanes, Inc. and H, H and H, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/31/2039 133.0
 128.5
 133.0
 0.06%
^Bear Creek Entertainment, LLC dba The Woods at Bear Creek Accommodation Term Loan Prime plus 2.75% 12/30/2024 106.3
 90.7
 91.4
 0.04%
^Evans and Paul LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/30/2024 223.8
 190.5
 188.1
 0.09%
^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern Food Services and Drinking Places Term Loan Prime plus 2.75% 12/30/2039 245.5
 238.2
 234.6
 0.11%
^First Prevention and Dialysis Center, LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/30/2024 273.3
 248.4
 241.4
 0.12%
^Bowlerama Inc Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/24/2039 1,202.5
 1,161.9
 1,213.0
 0.58%
^401 JJS Corporation and G. Randazzo Corporation Food Services and Drinking Places Term Loan Prime plus 2.75% 12/23/2039 473.5
 460.9
 473.5
 0.23%
^The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/23/2039 530.3
 511.6
 500.9
 0.24%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 12/23/2039 500.0
 482.4
 503.6
 0.24%
^Carolina Flicks Inc dba The Howell Theater Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 12/23/2032 163.3
 153.0
 151.0
 0.07%
^Atlantis of Daytona LLC and Ocean Club Sportswear Inc Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 12/23/2039 240.0
 214.8
 224.3
 0.11%
^Beale Street Blues Company-West Palm Beach, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 12/22/2024 187.5
 159.6
 148.4
 0.07%
^MM and M Management Inc dba Pizza Artista Food Services and Drinking Places Term Loan Prime plus 2.75% 4/19/2025 46.3
 40.4
 36.7
 0.02%
^The Jewelers Inc. dba The Jewelers of Las Vegas Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 12/19/2024 1,250.0
 1,063.3
 959.5
 0.46%
^B.S. Ventures LLC dba Dink's Market Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/19/2039 53.8
 51.9
 54.1
 0.03%
^B & W Towing, LLC and Boychucks Fuel LLC Repair and Maintenance Term Loan Prime plus 2.75% 12/17/2039 164.5
 160.0
 159.4
 0.08%
^All American Games, LLC and Sportslink - The Game, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 12/10/2024 400.0
 340.4
 318.1
 0.15%

116
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Kemmer LLC and Apples Tree Top Liquors LLC Food and Beverage Stores Term Loan Prime plus 2.75% 12/4/2039 138.4
 133.5
 131.8
 0.06%
^Trading Group 3, Inc. Miscellaneous Store Retailers Term Loan Prime plus 2.75% 11/26/2024 22.5
 19.0
 17.0
 0.01%
^The Red Pill Management, Inc. dba UFC Gym Matthews Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 11/26/2024 54.3
 46.6
 43.2
 0.02%
^Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman Food Services and Drinking Places Term Loan Prime plus 2.75% 11/25/2039 148.8
 143.3
 143.9
 0.07%
^DeRidder Chiropractic LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/25/2024 13.2
 11.1
 11.2
 0.01%
^Modern Manhattan LLC Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 11/25/2024 220.0
 185.8
 167.8
 0.08%
^Stormrider Inc dba Shirley's Stormrider, Inc Truck Transportation Term Loan Prime plus 2.75% 11/25/2024 150.0
 129.1
 115.3
 0.06%
^Meridian Hotels, LLC dba Best Western Jonesboro Accommodation Term Loan Prime plus 2.75% 11/25/2039 228.0
 220.6
 230.3
 0.11%
^Legacy Estate Planning Inc dba American Casket Enterprises Personal and Laundry Services Term Loan Prime plus 2.75% 11/21/2024 42.0
 35.5
 31.7
 0.02%
^J&D Resources, LLC dba Aqua Science Specialty Trade Contractors Term Loan Prime plus 2.75% 11/21/2024 767.9
 641.4
 582.5
 0.28%
^DC Real LLC and DC Enterprises LTD dba Lakeview True Value Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 11/20/2039 119.4
 115.5
 118.5
 0.06%
^MLM Enterprises LLC and Demand Printing Solutions Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 11/18/2024 70.5
 59.5
 57.5
 0.03%
^JEJE Realty LLC and La Familia Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 11/10/2039 205.8
 197.1
 198.2
 0.09%
^Joey O's LLC and Jennifer Olszewski Specialty Trade Contractors Term Loan Prime plus 2.75% 11/7/2024 13.1
 0.9
 0.8
 %
^Heartland American Properties LLC and Skaggs RV Outlet LLC Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 10/31/2039 479.0
 460.6
 471.0
 0.23%
^Golden Transaction Corporation dba Bleh Sunoco Gasoline Stations Term Loan Prime plus 2.75% 10/30/2039 156.7
 150.7
 155.4
 0.07%
^Seelan Inc dba Candleridge Market Gasoline Stations Term Loan Prime plus 2.75% 10/27/2039 90.5
 87.0
 87.3
 0.04%
^185 Summerfield Inc and Valcon Contracting Corp Construction of Buildings Term Loan Prime plus 2.75% 10/24/2039 162.3
 156.0
 160.5
 0.08%
^Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy Personal and Laundry Services Term Loan Prime plus 2.75% 10/24/2039 89.0
 85.7
 84.6
 0.04%
^3 F Management LLC and ATC Port Charlotte LLC dba Around The Clock Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 10/17/2024 131.3
 109.9
 102.5
 0.05%

117
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^One Hour Jewelry Repair Inc Repair and Maintenance Term Loan Prime plus 2.75% 10/14/2024 20.6
 17.2
 15.4
 0.01%
^DNT Storage and Properties LLC Real Estate Term Loan Prime plus 2.75% 10/10/2039 101.8
 97.8
 101.0
 0.05%
^Capitol Waste and Recycling Services LLC Waste Management and Remediation Services Term Loan Prime plus 2.75% 10/10/2024 257.8
 215.8
 202.7
 0.10%
^Sound Manufacturing Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 10/10/2024 187.5
 157.1
 145.6
 0.07%
^Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 10/10/2039 1,250.0
 1,216.5
 1,270.0
 0.61%
^Boilermaker Industries LLC dba PostNet Administrative and Support Services Term Loan Prime plus 2.75% 10/9/2024 18.8
 5.7
 5.8
 %
^Smith Spinal Care Center P.C. and James C. Smith Ambulatory Health Care Services Term Loan Prime plus 2.75% 10/8/2039 60.0
 57.7
 58.8
 0.03%
^Doctors Express Management of Central Texas LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 10/8/2024 105.0
 77.8
 76.5
 0.04%
^Michael Rey Jr. and Lynn J. Williams and GIG Petcare dba Hickory Personal and Laundry Services Term Loan Prime plus 2.75% 10/3/2039 126.9
 120.2
 123.6
 0.06%
^Sumad LLC dba BrightStar Care of Encinitas Administrative and Support Services Term Loan Prime plus 2.75% 10/2/2024 92.5
 44.5
 44.9
 0.02%
^Roccos LLC and Sullo Pantalone Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 9/30/2039 255.8
 245.5
 244.8
 0.12%
^Keller Holdings LLC and David H Keller III and Carie C Keller Scenic and Sightseeing Transportation Term Loan Prime plus 2.75% 9/30/2039 100.0
 96.0
 99.7
 0.05%
^Orange County Insurance Brokerage Inc dba Beaty Insurance Agency Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 9/29/2039 325.1
 313.1
 326.7
 0.16%
^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC Accommodation Term Loan Prime plus 2.75% 9/29/2039 513.3
 495.1
 516.6
 0.25%
^Keys Phase One LLC dba The Grand Guesthouse Accommodation Term Loan Prime plus 2.75% 9/26/2039 736.3
 706.7
 725.2
 0.35%
^Gordon E Rogers dba Stonehouse Motor Inn Accommodation Term Loan Prime plus 2.75% 9/26/2039 57.5
 55.2
 57.6
 0.03%
^Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud Gasoline Stations Term Loan Prime plus 2.75% 9/26/2024 22.5
 18.7
 17.2
 0.01%
^Colts V LLC and Nowatzke Service Center, Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/26/2039 601.8
 578.6
 591.7
 0.28%
^North Columbia LLC and Loop Liquor and Convenience Store LLC Food and Beverage Stores Term Loan Prime plus 2.75% 9/24/2039 159.3
 152.9
 156.6
 0.07%
^6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc Administrative and Support Services Term Loan Prime plus 2.75% 9/24/2039 452.5
 435.8
 422.4
 0.20%

118
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^R A Johnson Inc dba Rick Johnson Auto and Tire Repair and Maintenance Term Loan Prime plus 2.75% 9/23/2039 301.3
 289.2
 301.8
 0.14%
^Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out Food Services and Drinking Places Term Loan Prime plus 2.75% 9/23/2024 37.8
 29.5
 26.4
 0.01%
^Play and Stay LLC dba Zoom Room Tinton Falls Personal and Laundry Services Term Loan Prime plus 2.75% 9/18/2024 42.1
 35.4
 31.6
 0.02%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/17/2039 145.5
 139.7
 145.7
 0.07%
^Modern Leather Goods Repair Shop Inc Repair and Maintenance Term Loan Prime plus 2.75% 9/17/2024 58.8
 48.3
 43.2
 0.02%
^Tavern Properties LLC and Wildwood Tavern LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/15/2039 425.0
 410.7
 419.6
 0.20%
^RDT Enterprises LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 9/15/2027 162.8
 143.6
 143.5
 0.07%
^Animal Intrusion Prevention Systems Holding Company, LLC Administrative and Support Services Term Loan Prime plus 2.75% 9/15/2024 272.5
 226.3
 211.6
 0.10%
^KW Zion, LLC and Key West Gallery Inc Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/12/2039 1,250.0
 1,199.9
 1,230.5
 0.59%
^Indy East Smiles Youth Dentistry LLC dba Prime Smile East Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/11/2024 630.2
 523.3
 469.6
 0.22%
^B&P Diners LLC dba Engine House Restaurant Food Services and Drinking Places Term Loan Prime plus 2.75% 9/10/2024 80.0
 66.4
 59.3
 0.03%
^Feel The World Inc dba Xero Shoes and Invisible Shoes Leather and Allied Product Manufacturing Term Loan Prime plus 2.75% 9/5/2024 51.9
 43.1
 39.3
 0.02%
^Delta Aggregate LLC Mining (except Oil and Gas) Term Loan Prime plus 2.75% 8/28/2039 911.3
 862.4
 900.0
 0.43%
^Lamjam LLC, Goldsmith Lambros Inc Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 8/27/2024 133.8
 110.4
 111.2
 0.05%
^Orange County Cleaning Inc Administrative and Support Services Term Loan Prime plus 2.75% 8/27/2024 41.3
 34.0
 30.3
 0.01%
^Qycell Corporation Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 8/26/2024 121.0
 99.7
 94.5
 0.05%
^Atlas Auto Body Inc dba Atlas Auto Sales Repair and Maintenance Term Loan Prime plus 2.75% 8/22/2039 51.6
 49.4
 49.6
 0.02%
^Katie Senior Care LLC dba Home Instead Senior Care Social Assistance Term Loan Prime plus 2.75% 8/15/2024 124.3
 102.3
 91.3
 0.04%
^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/15/2039 433.5
 404.3
 421.9
 0.20%
^Alpha Preparatory Academy LLC Social Assistance Term Loan Prime plus 2.75% 8/15/2039 145.2
 139.7
 145.8
 0.07%

119
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Almost Home Property LLC and Almost Home Daycare LLC Social Assistance Term Loan Prime plus 2.75% 8/7/2039 715.8
 686.9
 710.4
 0.34%
^AGV Enterprises LLC dba Jet's Pizza #42 Food Services and Drinking Places Term Loan Prime plus 2.75% 7/31/2024 54.8
 44.8
 40.8
 0.02%
^iFood, Inc. dba Steak N Shake Food Services and Drinking Places Term Loan Prime plus 2.75% 7/31/2024 379.1
 321.6
 304.2
 0.15%
^575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST Food Services and Drinking Places Term Loan Prime plus 2.75% 7/30/2039 22.5
 21.2
 22.1
 0.01%
^L&S Insurance & Financial Services Inc Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 7/25/2024 22.5
 18.4
 16.6
 0.01%
^Honeyspot Investors LLP and Pace Motor Lines Inc Truck Transportation Term Loan Prime plus 2.75% 7/24/2039 150.0
 143.6
 149.5
 0.07%
^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 7/17/2039 100.0
 96.6
 98.4
 0.05%
^AMG Holding, LLC and Stetson Automotive, Inc Repair and Maintenance Term Loan Prime plus 2.75% 6/30/2039 208.0
 198.7
 211.2
 0.10%
^Highway Striping Inc Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 6/30/2024 53.1
 43.0
 42.7
 0.02%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/30/2024 100.0
 81.0
 82.6
 0.04%
^Honeyspot Investors LLP and Pace Motor Lines Inc Truck Transportation Term Loan Prime plus 2.75% 6/30/2039 875.3
 837.8
 890.1
 0.43%
^iFood, Inc. dba Steak N Shake Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2039 629.8
 602.1
 626.0
 0.30%
^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern Food Services and Drinking Places Term Loan Prime plus 2.75% 6/27/2039 321.8
 307.3
 324.1
 0.16%
^Zinger Hardware and General Merchant Inc Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/26/2024 110.5
 89.4
 89.9
 0.04%
^JPM Investments LLC and Carolina Family Foot Care P.A. Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/26/2039 136.1
 132.6
 140.2
 0.07%
^Nikobella Properties LLC and JPO Inc dba Village Car Wash Repair and Maintenance Term Loan Prime plus 2.75% 6/25/2039 476.3
 456.1
 481.5
 0.23%
^Big Sky Plaza LLC and Strickland, Incorporated Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 6/20/2039 233.4
 222.9
 235.1
 0.11%
^510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/19/2024 332.0
 269.1
 274.3
 0.13%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn Accommodation Term Loan Prime plus 2.75% 6/17/2039 920.3
 878.8
 934.4
 0.45%
^Hotels of North Georgia LLC dba Comfort Inn and Suites Accommodation Term Loan Prime plus 2.75% 6/17/2039 837.5
 799.8
 850.4
 0.41%

120
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Global Educational Delivery Services LLC Educational Services Term Loan Prime plus 2.75% 6/16/2024 60.0
 49.2
 50.2
 0.02%
^Rainbow Dry Cleaners Personal and Laundry Services Term Loan Prime plus 2.75% 6/13/2024 122.5
 99.1
 98.7
 0.05%
^NVR Corporation dba Discount Food Mart Food and Beverage Stores Term Loan Prime plus 2.75% 6/11/2039 68.3
 63.5
 67.5
 0.03%
^Sico & Walsh Insurance Agency Inc and The AMS Trust Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 6/6/2039 250.0
 89.2
 94.9
 0.05%
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel Food and Beverage Stores Term Loan Prime plus 2.75% 6/3/2024 22.5
 18.2
 18.1
 0.01%
^Long Island Barber + Beauty LLC Educational Services Term Loan Prime plus 2.75% 6/2/2039 55.5
 53.0
 55.7
 0.03%
^CJR LLC and PowerWash Plus, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 5/30/2024 53.0
 42.5
 43.0
 0.02%
^Pocono Coated Products, LLC Printing and Related Support Activities Term Loan Prime plus 2.75% 5/30/2024 22.5
 18.0
 18.3
 0.01%
^EGM Food Services Inc dba Gold Star Chili Food Services and Drinking Places Term Loan Prime plus 2.75% 5/29/2024 19.2
 15.4
 15.3
 0.01%
^R. A. Johnson, Inc. dba Rick Johnson Auto & Tire Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 5/29/2039 943.8
 899.8
 956.7
 0.46%
^Wilton Dental Care P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/29/2024 128.1
 105.0
 103.4
 0.05%
^Jonesboro Health Food Center LLC Health and Personal Care Stores Term Loan Prime plus 2.75% 5/27/2024 60.0
 48.1
 47.3
 0.02%
^USI Properties LLC dba U Store It Real Estate Term Loan Prime plus 2.75% 5/23/2039 144.6
 137.9
 146.4
 0.07%
^Bay State Funeral Services, LLC and Riley Funeral Home Inc Personal and Laundry Services Term Loan Prime plus 2.75% 5/21/2039 134.9
 129.0
 137.1
 0.07%
^Hae M. and Jin S. Park dba Buford Car Wash Repair and Maintenance Term Loan Prime plus 2.75% 5/15/2039 166.5
 158.0
 165.6
 0.08%
^Moochie's LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 5/13/2024 100.5
 81.6
 80.6
 0.04%
^The River Beas LLC and Punam Singh Food Services and Drinking Places Term Loan Prime plus 2.75% 5/8/2039 90.3
 86.0
 90.7
 0.04%
^AS Boyals LLC dba Towne Liquors Food and Beverage Stores Term Loan Prime plus 2.75% 4/29/2039 117.5
 111.8
 118.9
 0.06%
^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/25/2024 500.0
 397.5
 390.5
 0.19%
^Gerami Realty, LC Sherrill Universal City Corral, LP Food Services and Drinking Places Term Loan Prime plus 2.75% 4/23/2027 78.8
 67.5
 69.6
 0.03%

121
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Complete Body & Paint, Inc. Repair and Maintenance Term Loan Prime plus 2.75% 4/23/2039 20.8
 19.9
 21.1
 0.01%
^Island Wide Realty LLC and Long Island Partners, Inc. Real Estate Term Loan Prime plus 2.75% 4/22/2039 103.8
 98.8
 105.1
 0.05%
^Wilshire Media Systems Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 4/17/2024 186.3
 148.3
 146.7
 0.07%
^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 4/9/2039 137.5
 129.9
 137.4
 0.07%
^Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 3/31/2039 449.0
 426.5
 450.8
 0.22%
^Dantanna's Tavern LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2024 164.3
 131.5
 130.9
 0.06%
^Little People's Village II LLC and Iliopoulos Realty LLC Social Assistance Term Loan Prime plus 2.75% 3/31/2039 92.1
 88.1
 91.9
 0.04%
^RDT Enterprises, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 12/31/2028 141.2
 123.9
 128.3
 0.06%
^Little People's Village II LLC and Iliopoulos Realty LLC Social Assistance Term Loan Prime plus 2.75% 3/31/2039 101.5
 97.1
 101.4
 0.05%
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC Truck Transportation Term Loan Prime plus 2.75% 3/31/2024 1,250.0
 590.9
 602.4
 0.29%
^Kemmer, LLC and Pitts Package Store, Inc. Food and Beverage Stores Term Loan Prime plus 2.75% 3/31/2039 117.5
 111.8
 115.7
 0.06%
^Wilban LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 3/28/2039 427.5
 407.2
 429.7
 0.21%
^Lake Area Autosound LLC and Ryan H. Whittington Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 7/28/2039 125.0
 120.5
 126.7
 0.06%
^Hascher Gabelstapler Inc Repair and Maintenance Term Loan Prime plus 2.75% 3/26/2024 143.3
 114.5
 115.4
 0.06%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox Social Assistance Term Loan Prime plus 2.75% 3/21/2039 145.0
 138.0
 144.6
 0.07%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated Food and Beverage Stores Term Loan Prime plus 2.75% 3/20/2039 110.8
 105.4
 112.0
 0.05%
^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co. Primary Metal Manufacturing Term Loan Prime plus 2.75% 3/20/2039 497.5
 477.3
 507.2
 0.24%
^Kinisi, Inc. dba The River North UPS Store Administrative and Support Services Term Loan Prime plus 2.75% 3/18/2024 41.3
 26.2
 26.4
 0.01%
^SE Properties 39 Old Route 146, LLC, SmartEarly Clifton Park LLC Social Assistance Term Loan Prime plus 2.75% 3/14/2039 408.0
 388.7
 413.0
 0.20%
^Tortilla King Inc. Food Manufacturing Term Loan Prime plus 2.75% 3/14/2039 216.9
 206.9
 216.0
 0.10%

122
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Tortilla King, Inc. Food Manufacturing Term Loan Prime plus 2.75% 3/14/2029 1,033.1
 926.1
 943.6
 0.45%
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/13/2039 223.5
 212.3
 225.6
 0.11%
^Avayaan2 LLC dba Island Cove Gasoline Stations Term Loan Prime plus 2.75% 3/7/2039 157.5
 149.6
 157.8
 0.08%
^Onofrio's Fresh Cut Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/6/2024 75.0
 59.1
 59.9
 0.03%
^R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern Food and Beverage Stores Term Loan Prime plus 2.75% 2/28/2039 417.5
 396.0
 416.4
 0.20%
^Summit Beverage Group LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 2/28/2024 350.6
 273.7
 275.2
 0.13%
^952 Boston Post Road Realty, LLC and HNA LLC dba Styles International Personal and Laundry Services Term Loan Prime plus 2.75% 2/28/2039 211.0
 200.1
 209.9
 0.10%
^Choe Trade Group Inc dba Rapid Printers of Monterey Printing and Related Support Activities Term Loan Prime plus 2.75% 2/28/2024 159.3
 124.4
 126.8
 0.06%
^Faith Memorial Chapel LLC Personal and Laundry Services Term Loan Prime plus 2.75% 2/28/2039 214.2
 203.6
 213.3
 0.10%
^96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki Food Services and Drinking Places Term Loan Prime plus 2.75% 2/12/2039 141.3
 134.5
 142.9
 0.07%
^JWB Industries, Inc. dba Carteret Die Casting Primary Metal Manufacturing Term Loan Prime plus 2.75% 2/11/2024 280.0
 218.6
 216.4
 0.10%
^Awesome Pets II Inc dba Mellisa's Pet Depot Miscellaneous Store Retailers Term Loan Prime plus 2.75% 2/7/2024 83.2
 65.7
 65.2
 0.03%
^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 2/7/2039 99.1
 94.4
 99.5
 0.05%
^Sovereign Communications LLC Broadcasting (except Internet) Term Loan Prime plus 2.75% 2/7/2024 907.8
 712.6
 702.2
 0.34%
^Sarah Sibadan dba Sibadan Agency Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 1/27/2039 129.4
 122.5
 129.7
 0.06%
^3Fmanagement LLC and ATC Fitness Cape Coral, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 1/24/2024 425.0
 328.7
 326.6
 0.16%
^JDR Industries Inc dba CST-The Composites Store, JetCat USA Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 1/21/2024 140.3
 108.5
 108.2
 0.05%
^Icore Enterprises Inc dba Air Flow Filters Inc Miscellaneous Manufacturing Term Loan Prime plus 2.75% 1/15/2024 21.8
 16.8
 17.1
 0.01%
^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/30/2027 712.5
 616.3
 635.8
 0.30%
^Nutmeg North Associates LLC Steeltech Building Products Inc Construction of Buildings Term Loan Prime plus 2.75% 12/31/2038 897.8
 868.1
 909.1
 0.43%

123
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's Food Manufacturing Term Loan Prime plus 2.75% 12/27/2023 656.3
 511.4
 521.0
 0.25%
^Shane M. Howell and Buck Hardware and Garden Center, LLC Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 12/27/2038 322.5
 304.7
 318.7
 0.15%
^KK International Trading Corporation Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/23/2028 190.0
 165.0
 169.4
 0.08%
^Kurtis Sniezek dba Wolfe's Foreign Auto Repair and Maintenance Term Loan Prime plus 2.75% 12/20/2038 88.9
 84.0
 89.2
 0.04%
^Mosley Auto Group LLC dba America's Automotive Repair and Maintenance Term Loan Prime plus 2.75% 12/20/2038 221.5
 209.3
 221.5
 0.11%
^Lefont Theaters Inc. Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 12/19/2023 14.4
 11.0
 11.0
 0.01%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 12/19/2038 555.3
 524.6
 550.6
 0.26%
^TAK Properties LLC and Kinderland Inc Social Assistance Term Loan Prime plus 2.75% 12/18/2038 405.0
 383.2
 402.7
 0.19%
^Any Garment Cleaner-East Brunswick, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 12/18/2023 53.8
 41.4
 41.9
 0.02%
^TOL LLC dba Wild Birds Unlimited Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 12/13/2023 18.0
 14.3
 14.2
 0.01%
^8 Minute Oil Change of Springfield Corporation and John Nino Repair and Maintenance Term Loan Prime plus 2.75% 12/12/2038 196.8
 182.0
 192.9
 0.09%
^920 CHR Realty LLC V. Garofalo Carting Inc Waste Management and Remediation Services Term Loan Prime plus 2.75% 12/10/2038 418.1
 395.0
 419.6
 0.20%
^DKB Transport Corp Truck Transportation Term Loan Prime plus 2.75% 12/5/2038 138.8
 131.1
 139.2
 0.07%
^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle Specialty Trade Contractors Term Loan Prime plus 2.75% 12/3/2038 104.3
 98.5
 102.3
 0.05%
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 12/2/2023 387.3
 296.6
 296.7
 0.14%
^BVIP Limousine Service LTD Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 11/27/2038 76.5
 72.1
 76.2
 0.04%
^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 11/27/2023 67.2
 51.0
 50.4
 0.02%
^Wallace Holdings LLC,GFA International Inc Professional, Scientific, and Technical Services Term Loan Prime plus 2.5% 11/25/2023 125.0
 94.5
 92.5
 0.04%

124
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^AcuCall LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/21/2023 15.8
 11.9
 11.6
 0.01%
^Seven Peaks Mining Inc and Cornerstone Industrial Minerals Corporation Mining (except Oil and Gas) Term Loan Prime plus 2.75% 11/18/2038 1,250.0
 1,175.6
 1,218.3
 0.58%
^Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 11/18/2023 45.0
 34.8
 34.3
 0.02%
^Yousef Khatib dba Y&M Enterprises Wholesale Electronic Markets and Agents and Brokers Term Loan Prime plus 2.75% 11/15/2023 75.0
 56.9
 56.2
 0.03%
^Howell Gun Works LLC Sporting Goods, Hobby, Musical Instrument, and Book Stores Term Loan Prime plus 2.75% 11/14/2023 8.3
 6.4
 6.2
 %
^Polpo Realty, LLC, Polpo Restaurant, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 11/6/2038 62.5
 58.9
 62.5
 0.03%
^Twinsburg Hospitality Group LLC dba Comfort Suites Accommodation Term Loan Prime plus 2.75% 10/31/2038 945.0
 893.7
 937.8
 0.45%
^Mid-Land Sheet Metal Inc Specialty Trade Contractors Term Loan Prime plus 2.75% 10/31/2038 137.5
 129.6
 136.9
 0.07%
^Master CNC Inc & Master Properties LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 10/31/2038 596.6
 561.6
 585.4
 0.28%
^Janice B. McShan and The Metropolitan Day School, LLC Social Assistance Term Loan Prime plus 2.75% 10/31/2023 42.8
 33.1
 33.7
 0.02%
^1 North Restaurant Corp dba 1 North Steakhouse Food Services and Drinking Places Term Loan Prime plus 2.75% 10/31/2038 212.5
 200.0
 211.6
 0.10%
^Meridian Hotels LLC dba Best Western Jonesboro Accommodation Term Loan Prime plus 2.75% 10/29/2038 664.5
 625.3
 664.1
 0.32%
^New Image Building Services Inc. dba New Image Repair Services Repair and Maintenance Term Loan Prime plus 2.75% 10/29/2023 331.3
 248.9
 247.0
 0.12%
^Greenbrier Technical Services, Inc Repair and Maintenance Term Loan Prime plus 2.75% 10/24/2023 240.1
 164.4
 167.5
 0.08%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd��Specialty Trade Contractors Term Loan Prime plus 2.75% 10/24/2038 246.3
 231.8
 242.6
 0.12%
^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash Repair and Maintenance Term Loan Prime plus 2.75% 10/18/2023 87.5
 65.7
 65.3
 0.03%
^Cencon Properties LLC and Central Connecticut Warehousing Company Warehousing and Storage Term Loan Prime plus 2.75% 9/30/2038 344.5
 324.0
 343.7
 0.16%
^Onofrios Enterprises LLC Onofrios Fresh Cut, Inc Food Manufacturing Term Loan Prime plus 2.75% 9/30/2038 312.5
 294.6
 310.8
 0.15%
^Discount Wheel and Tire Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 9/30/2038 223.8
 210.1
 220.5
 0.11%

125
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^First Steps Real Estate Company, LLC and First Steps Preschool Social Assistance Term Loan Prime plus 2.75% 9/30/2038 97.6
 91.7
 95.7
 0.05%
^Lenoir Business Partners LLC LP Industries, Inc dba Childforms Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 9/30/2038 322.7
 308.0
 324.4
 0.16%
^Top Properties LLC and LP Industries, Inc dba Childforms Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 9/30/2038 120.0
 114.3
 121.4
 0.06%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/27/2038 335.1
 314.6
 331.2
 0.16%
^Gabrielle Realty, LLC Gasoline Stations Term Loan Prime plus 2.75% 9/27/2038 757.6
 711.3
 746.0
 0.36%
^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Homes Personal and Laundry Services Term Loan Prime plus 2.75% 9/26/2038 100.0
 94.0
 99.8
 0.05%
^Eastside Soccer Dome, Inc . Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/26/2038 463.8
 435.4
 462.1
 0.22%
^Southeast Chicago Soccer, Inc. Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/26/2038 51.3
 48.1
 51.1
 0.02%
^HJ & Edward Enterprises, LLC dba Sky Zone Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/26/2023 262.5
 201.7
 203.3
 0.10%
^Kiddie Steps 4 You Inc. Social Assistance Term Loan Prime plus 2.75% 9/25/2038 89.3
 85.6
 89.5
 0.04%
^Diamond Memorials Incorporated Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/25/2023 14.3
 9.7
 9.5
 %
^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta Educational Services Term Loan Prime plus 2.75% 9/20/2023 46.3
 34.6
 34.2
 0.02%
^Faith Memorial Chapel LLC Personal and Laundry Services Term Loan Prime plus 2.75% 9/20/2038 268.4
 252.8
 266.1
 0.13%
^Westville Seafood LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 9/19/2038 112.3
 105.4
 110.7
 0.05%
^Maynard Enterprises Inc dba Fastsigns of Texarkana Miscellaneous Store Retailers Term Loan Prime plus 2.75% 9/18/2023 16.1
 12.1
 12.0
 0.01%
^Grafio Inc dba Omega Learning Center-Acworth Educational Services Term Loan Prime plus 2.75% 9/13/2023 156.3
 123.3
 122.2
 0.06%
^Sound Manufacturing Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 9/12/2028 54.8
 46.9
 47.7
 0.02%
^The Berlerro Group, LLC dba Sky Zone Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/12/2023 421.3
 323.5
 320.0
 0.15%
^Prospect Kids Academy Inc Educational Services Term Loan Prime plus 2.75% 9/11/2038 124.3
 116.4
 122.8
 0.06%

126
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Alma J. and William R. Walton and Almas Child Day Care Center Social Assistance Term Loan Prime plus 2.75% 9/11/2038 39.5
 37.1
 39.4
 0.02%
^B for Brunette dba Blo Personal and Laundry Services Term Loan Prime plus 2.75% 9/10/2023 53.4
 40.3
 39.5
 0.02%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC dba Companio Personal and Laundry Services Term Loan Prime plus 2.75% 9/4/2038 224.2
 208.8
 219.1
 0.10%
^Excel RP Inc Machinery Manufacturing Term Loan Prime plus 2.75% 8/30/2023 130.3
 96.0
 97.5
 0.05%
^IlOKA Inc dba Microtech Tel and NewCloud Networks Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/30/2023 687.5
 506.6
 504.2
 0.24%
^ACI Northwest Inc. Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 8/30/2023 906.3
 452.8
 459.3
 0.22%
^Spectrum Radio Fairmont, LLC Broadcasting (except Internet) Term Loan Prime plus 2.75% 8/30/2023 187.5
 164.3
 167.0
 0.08%
^Gulfport Academy Child Care and Learning Center, Inc. Social Assistance Term Loan Prime plus 2.75% 8/30/2023 43.3
 31.9
 32.3
 0.02%
^Ramard Inc and Advanced Health Sciences Inc Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 8/28/2023 187.5
 138.2
 135.3
 0.06%
^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins Nonstore Retailers Term Loan Prime plus 2.75% 8/26/2023 85.8
 59.8
 60.9
 0.03%
^JSIL LLC dba Blackstones Hairdressing Personal and Laundry Services Term Loan Prime plus 2.75% 8/16/2023 19.5
 14.2
 14.1
 0.01%
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 8/14/2038 445.0
 326.6
 341.3
 0.16%
^Caribbean Concepts, Inc. dba Quick Bleach Ambulatory Health Care Services Term Loan Prime plus 2.75% 8/12/2023 22.5
 16.7
 16.4
 0.01%
^209 North 3rd Street, LLC, Yuster Insurance Group Inc Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 7/29/2038 83.9
 78.5
 82.7
 0.04%
^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic Specialty Trade Contractors Term Loan Prime plus 2.75% 7/26/2038 190.0
 177.7
 186.2
 0.09%
^Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/24/2023 11.3
 8.2
 8.4
 %
^Angkor Restaurant Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 7/19/2038 93.0
 87.1
 92.1
 0.04%
^Harbor Ventilation Inc and Estes Investment, LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 7/19/2038 92.1
 22.4
 23.7
 0.01%
^Tri County Heating and Cooling Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 7/19/2023 87.8
 64.0
 65.0
 0.03%
^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC Truck Transportation Term Loan Prime plus 2.75% 7/17/2023 53.8
 39.2
 38.4
 0.02%

127
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Maxiflex LLC Miscellaneous Manufacturing Term Loan Prime plus 2.75% 6/28/2023 153.5
 110.5
 112.9
 0.05%
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat Personal and Laundry Services Term Loan Prime plus 2.75% 6/28/2038 97.5
 91.0
 97.1
 0.05%
^JRA Holdings LLC, Jasper County Cleaners Inc dba Superior Cleaner Personal and Laundry Services Term Loan Prime plus 2.75% 6/28/2038 121.0
 112.0
 119.4
 0.06%
^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc. Truck Transportation Term Loan Prime plus 2.75% 6/19/2026 1,250.0
 788.0
 812.6
 0.39%
^CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services Heavy and Civil Engineering Construction Term Loan Prime plus 2.75% 6/18/2028 875.0
 737.8
 765.6
 0.37%
^KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 6/14/2023 343.8
 248.2
 249.4
 0.12%
^Elite Structures Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 6/12/2038 932.8
 847.9
 904.0
 0.43%
^Willowbrook Properties LLC, Grove Gardens Landscaping Inc. Administrative and Support Services Term Loan Prime plus 2.75% 6/5/2038 186.3
 173.9
 184.9
 0.09%
^Absolute Desire LLC and Mark H. Szierer, Sophisticated Smile Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/5/2038 188.3
 175.9
 186.1
 0.09%
^RKP Service dba Rainbow Carwash Repair and Maintenance Term Loan Prime plus 2.75% 5/31/2023 300.0
 216.7
 218.1
 0.10%
^RXSB, Inc dba Medicine Shoppe Health and Personal Care Stores Term Loan Prime plus 2.75% 5/30/2023 186.3
 133.3
 133.7
 0.06%
^Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD Ambulatory Health Care Services Term Loan Prime plus 2.75% 5/28/2023 63.5
 45.3
 45.8
 0.02%
^Ryan D. Thornton and Thornton & Associates LLC Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 5/24/2023 68.8
 37.3
 37.4
 0.02%
^PowerWash Plus, Inc. and CJR, LLC Repair and Maintenance Term Loan Prime plus 2.75% 4/30/2038 550.0
 512.3
 543.3
 0.26%
^Peanut Butter & Co., Inc. Food Manufacturing Term Loan Prime plus 2.75% 4/30/2023 100.0
 70.3
 70.6
 0.03%
^Brothers International Desserts Food Manufacturing Term Loan Prime plus 2.75% 4/26/2023 230.0
 162.6
 164.9
 0.08%
^Kidrose, LLC dba Kidville Riverdale Educational Services Term Loan Prime plus 2.75% 4/22/2023 78.8
 56.3
 56.9
 0.03%
^Vernon & Stephanie Scott and Little Stars Day Care Center, Inc. Educational Services Term Loan Prime plus 2.75% 4/18/2038 151.0
 140.5
 149.8
 0.07%
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc Miscellaneous Store Retailers Term Loan Prime plus 2.75% 3/29/2038 124.6
 115.7
 122.4
 0.06%
^Capital Scrap Metal, LLC and Powerline Investment, LLC Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 3/29/2038 500.0
 441.7
 470.7
 0.23%

128
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads; Food Manufacturing Term Loan Prime plus 2.75% 3/29/2038 336.0
 312.5
 330.0
 0.16%
^Neyra Industries, Inc. and Edward Neyra Nonmetallic Mineral Product Manufacturing Term Loan Prime plus 2.75% 3/27/2023 217.5
 152.1
 155.1
 0.07%
^A & M Commerce, Inc. dba Cranberry Sunoco Gasoline Stations Term Loan Prime plus 2.75% 3/27/2038 330.3
 306.4
 325.7
 0.16%
^Xela Pack, Inc. and Aliseo and Catherine Gentile Paper Manufacturing Term Loan Prime plus 2.75% 3/27/2028 271.8
 225.8
 234.1
 0.11%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 3/25/2038 537.5
 499.0
 528.7
 0.25%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc. Miscellaneous Store Retailers Term Loan Prime plus 2.75% 3/22/2038 67.5
 62.7
 66.6
 0.03%
^M & H Pine Straw Inc and Harris L. Maloy Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 3/21/2023 288.8
 201.8
 205.1
 0.10%
^Truth Technologies Inc dba Truth Technologies Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 3/21/2023 79.5
 55.6
 55.9
 0.03%
^J. Kinderman & Sons Inc., dba BriteStar Inc. Electrical Equipment, Appliance, and Component Manufacturing Term Loan Prime plus 2.75% 12/31/2018 181.3
 129.5
 129.8
 0.06%
^Stellar Environmental LLC Waste Management and Remediation Services Term Loan Prime plus 2.75% 3/18/2023 56.3
 39.4
 40.1
 0.02%
^Sound Manufacturing, Inc. and Monster Power Equipment Inc. Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 3/15/2023 523.0
 364.8
 369.5
 0.18%
^Golden Gate Lodging LLC Accommodation Term Loan Prime plus 2.75% 3/12/2038 115.0
 106.8
 113.4
 0.05%
^Bakhtar Group LLC dba Malmaison Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2023 103.8
 72.4
 72.6
 0.03%
^River Club Golf Course Inc dba The River ClubAmusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2038 475.2
 440.2
 467.2
 0.22%
^Osceola River Mill, LLC(EPC) Ironman Machine, Inc. Machinery Manufacturing Term Loan Prime plus 2.75% 2/20/2038 86.3
 79.9
 84.9
 0.04%
^Java Warung, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 2/19/2038 51.0
 47.3
 50.3
 0.02%
^Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC Printing and Related Support Activities Term Loan Prime plus 2.75% 2/15/2038 106.3
 98.5
 104.6
 0.05%
^Orient Direct, Inc. dba Spracht, Celltek, ODI Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 2/12/2023 84.9
 58.0
 58.1
 0.03%
^Knits R Us, Inc. dba NYC SportsTextile Mills Term Loan Prime plus 2.75% 2/11/2038 125.0
 116.0
 123.6
 0.06%

129
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^North Country Transport, LLC Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 2/6/2023 15.0
 10.4
 10.6
 0.01%
^MJD Investments, LLC dba The Community Day School Social Assistance Term Loan Prime plus 2.75% 1/31/2038 258.3
 238.9
 253.2
 0.12%
^Sherill Universal City dba Golden Corral Food Services and Drinking Places Term Loan Prime plus 2.75% 1/28/2038 440.5
 409.0
 433.7
 0.21%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace MantelsSpecialty Trade Contractors Term Loan Prime plus 2.75% 12/31/2022 97.5
 66.0
 66.2
 0.03%
^Macho LLC Madelaine Chocolate Novelties Inc dba The Madelai Food Manufacturing Term Loan Prime plus 2.75% 12/31/2037 500.0
 463.9
 494.1
 0.24%
^WI130, LLC & Lakeland Group, Inc dba Lakeland Electrical Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 12/31/2028 271.5
 226.7
 233.0
 0.11%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/28/2027 46.3
 34.4
 35.0
 0.02%
^John Duffy Fuel Co., Inc. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/28/2022 513.8
 348.0
 354.7
 0.17%
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restauran Food Services and Drinking Places Term Loan Prime plus 2.75% 12/27/2037 517.5
 479.6
 510.7
 0.24%
^Martin L Hopp, MD PHD A Medical Corp dba Tower ENT Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/21/2022 66.3
 44.7
 45.1
 0.02%
^United Woodworking, Inc Wood Product Manufacturing Term Loan 6% 12/20/2022 17.3
 11.7
 11.9
 0.01%
^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 12/20/2022 225.0
 152.3
 154.0
 0.07%
^Ezzo Properties, LLC and Great Lakes Cleaning, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/20/2027 389.6
 318.7
 326.0
 0.16%
^The Amendments Group LLC dba Brightstar Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/17/2022 22.5
 15.2
 15.5
 0.01%
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/30/2037 286.5
 265.0
 281.5
 0.13%
^Aegis Creative Communications, Inc. Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 11/30/2022 387.5
 252.3
 252.6
 0.12%
^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 11/28/2037 223.8
 206.2
 219.5
 0.10%
^D&L Rescources, Inc. dba The UPS Store Miscellaneous Store RetailersTerm Loan Prime plus 2.75% 11/27/2022 9.8
 6.5
 6.5
 %
^Richmond Hill Mini Market, LLC Food and Beverage Stores Term Loan Prime plus 2.75% 11/27/2037 185.3
 170.7
 181.3
 0.09%
^DRV Enterprise, Inc. dba Cici's Pizza # 339 Food Services and Drinking Places Term Loan Prime plus 2.75% 11/26/2022 65.0
 40.5
 41.3
 0.02%

130
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Clean Brothers Company Inc dba ServPro of North Washington County Repair and Maintenance Term Loan Prime plus 2.75% 11/21/2022 17.0
 7.7
 7.8
 %
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart Gasoline Stations Term Loan Prime plus 2.75% 11/21/2037 96.3
 88.7
 94.4
 0.05%
^Pioneer Windows Manufacturing Corp, Pioneer Windows Fabricated Metal Product ManufacturingTerm Loan Prime plus 2.75% 11/21/2022 275.0
 184.0
 186.0
 0.09%
^R & J Petroleum LLC Manar USA, Inc. Gasoline Stations Term Loan Prime plus 2.75% 11/20/2037 180.0
 165.8
 176.3
 0.08%
^St Judes Physical Therapy P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/19/2022 21.0
 14.0
 14.3
 0.01%
^Hi-Def Imaging, Inc. dba SpeedPro Imaging Printing and Related Support Activities Term Loan Prime plus 2.75% 11/9/2022 22.2
 14.9
 15.0
 0.01%
^Reidville Hydraulics Mfg Inc dba Summit Machinery ManufacturingTerm Loan Prime plus 2.75% 11/2/2037 265.9
 245.2
 258.7
 0.12%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe It or Not Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 10/26/2022 180.0
 121.8
 122.0
 0.06%
^LA Diner Inc dba Loukas L A Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 9/28/2037 677.5
 625.7
 666.0
 0.32%
^ATC Fitness LLC dba Around the Clock Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/28/2022 180.0
 120.7
 122.5
 0.06%
^University Park Retreat, LLC dba Massage Heights Personal and Laundry Services Term Loan Prime plus 2.75% 9/27/2022 76.0
 49.6
 50.5
 0.02%
^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery Food and Beverage Stores Term Loan Prime plus 2.75% 9/26/2037 183.8
 169.9
 180.0
 0.09%
^LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark Food Services and Drinking Places Term Loan Prime plus 2.75% 9/21/2037 252.3
 231.4
 245.0
 0.12%
^O'Rourkes Diner LLC dba O'Rourke's Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 9/19/2037 65.5
 60.1
 63.5
 0.03%
^Michael J. Speeney & Joyce Speeney and R2 Tape, Inc. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 8/31/2037 367.5
 336.4
 358.1
 0.17%
^AJK Enterprise LLC dba AJK Enterprise LLC Truck Transportation Term Loan Prime plus 2.75% 8/27/2022 16.5
 10.6
 10.8
 0.01%
^New Image Building Services, Inc. dba New Image Repair Services Repair and Maintenance Term Loan Prime plus 2.75% 8/23/2037 285.7
 261.6
 275.7
 0.13%
^Suncoast Aluminum Furniture, Inc Furniture and Related Product Manufacturing Term Loan Prime plus 2.75% 8/17/2037 360.0
 329.8
 351.0
 0.17%
^Hofgard & Co., Inc. dba HofgardBenefits Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 7/27/2022 107.3
 68.3
 69.3
 0.03%
^Georgia Safe Sidewalks LLC Specialty Trade Contractors Term Loan Prime plus 2.75% 7/27/2022 15.0
 9.4
 9.5
 %

131
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Scoville Plumbing & Heating Inc and Thomas P. Scoville Specialty Trade Contractors Term Loan Prime plus 2.75% 7/25/2022 50.0
 33.5
 34.1
 0.02%
^Central Tire, Inc. dba Cooper Tire & Auto Services Repair and Maintenance Term Loan Prime plus 2.75% 6/29/2037 288.5
 262.8
 280.1
 0.13%
^WPI, LLC Transportation Equipment Manufacturing Term Loan Prime plus 2.75% 6/29/2024 129.5
 92.0
 94.2
 0.05%
^Havana Central (NY) 5, LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/29/2022 1,166.8
 766.6
 780.9
 0.37%
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change Repair and Maintenance Term Loan Prime plus 2.75% 6/27/2037 69.8
 63.5
 67.8
 0.03%
^KIND-ER-ZZ Inc dba Kidville Educational Services Term Loan Prime plus 2.75% 6/15/2022 50.0
 31.2
 31.6
 0.02%
^Graphish Studio, Inc. and Scott Fishoff Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 6/14/2022 20.3
 12.7
 12.9
 0.01%
^ALF, LLC, Mulit-Service Eagle Tires Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 5/31/2037 62.9
 57.2
 61.1
 0.03%
^Craig R Freehauf dba Lincoln Theatre Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 5/31/2022 47.9
 22.0
 22.4
 0.01%
^Lefont Theaters, Inc. Motion Picture and Sound Recording Industries Term Loan Prime plus 2.75% 5/30/2022 137.0
 85.2
 86.6
 0.04%
^Christou Real Estate Holdings LLC dba Tops American Grill Food Services and Drinking Places Term Loan Prime plus 2.75% 5/17/2037 284.0
 257.9
 275.4
 0.13%
^Tracey Vita-Morris dba Tracey Vita's School of Dance Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 5/10/2022 22.5
 14.0
 14.2
 0.01%
^Bisson Transportation, Inc. Truck Transportation Term Loan Prime plus 2.75% 5/7/2037 588.1
 553.0
 588.9
 0.28%
^Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real Truck Transportation Term Loan Prime plus 2.75% 5/7/2022 528.8
 350.0
 356.3
 0.17%
^Fair Deal Food Mart Inc dba Neighbors Market Gasoline Stations Term Loan Prime plus 2.75% 5/3/2037 381.3
 346.5
 370.3
 0.18%
^Tanner Optical, Inc. dba Murphy Eye Care Ambulatory Health Care Services Term Loan Prime plus 2.75% 4/27/2022 8.3
 5.0
 5.1
 %
^Zane Filippone Co Inc dba Culligan Water Conditioning Nonstore Retailers Term Loan Prime plus 2.75% 4/12/2022 558.2
 344.0
 350.0
 0.17%
^Indoor Playgrounds Limited Liability Company dba Kidville Educational Services Term Loan Prime plus 2.75% 4/5/2022 19.5
 8.4
 8.6
 %
^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/30/2031 231.5
 195.9
 205.8
 0.10%

132
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Access Staffing, LLC Administrative and Support Services Term Loan Prime plus 2.75% 3/30/2022 187.5
 113.6
 114.8
 0.05%
^Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 3/29/2037 755.4
 696.2
 743.5
 0.36%
^Manuel P. Barrera and Accura Electrical Contractor, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 3/23/2028 103.7
 82.0
 84.9
 0.04%
^Shweiki Media, Inc. dba Study Breaks Magazine Publishing Industries (except Internet) Term Loan Prime plus 2.75% 3/22/2027 1,178.8
 916.7
 947.4
 0.45%
^ATC Fitness, LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2022 10.2
 6.1
 6.2
 %
^ATI Jet, Inc. Air Transportation Term Loan Prime plus 2.75% 12/28/2026 852.8
 643.1
 664.9
 0.32%
^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 12/22/2036 495.0
 452.5
 482.9
 0.23%
^K's Salon, LLC d/b/a K's Salon Personal and Laundry Services Term Loan Prime plus 2.75% 12/20/2021 73.6
 42.8
 43.2
 0.02%
^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 12/16/2021 250.0
 144.1
 146.2
 0.07%
^M & H Pinestraw, Inc. and Harris L. Maloy Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 12/15/2021 238.3
 138.6
 140.5
 0.07%
^Taylor Transport, Inc Truck Transportation Term Loan Prime plus 2.75% 12/8/2021 515.5
 219.2
 223.1
 0.11%
^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc. Specialty Trade Contractors Term Loan Prime plus 2.75% 11/16/2021 62.5
 35.6
 36.3
 0.02%
^MRM Supermarkets, Inc. dba Constantin's Breads Food Manufacturing Term Loan Prime plus 2.75% 11/10/2021 137.5
 79.0
 80.2
 0.04%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc Publishing Industries (except Internet) Term Loan Prime plus 2.75% 10/26/2021 58.8
 34.4
 34.8
 0.02%
^28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma Food Services and Drinking Places Term Loan Prime plus 2.75% 10/25/2021 22.5
 12.5
 12.7
 0.01%
^PTK, Incorporated dba Night N Day 24 HR Convenience Store Food and Beverage Stores Term Loan Prime plus 2.75% 9/30/2036 137.5
 122.9
 131.0
 0.06%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/30/2036 28.5
 25.3
 26.9
 0.01%
^39581 Garfield, LLC and Tri County Neurological Associates, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 9/30/2036 83.3
 74.3
 79.1
 0.04%
^Robert E. Caves, Sr. and American Plank dba Caves Enterprises Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/30/2021 302.5
 165.5
 168.3
 0.08%

133
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/28/2021 1,070.0
 589.1
 594.4
 0.28%
^Polymer Sciences, Inc. dba Polymer Sciences, Inc. Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 9/28/2036 422.6
 377.3
 402.4
 0.19%
^Equity National Capital LLC & Chadbourne Road Capital, LLC Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 9/26/2021 62.5
 34.8
 35.2
 0.02%
^Bryan Bantry Inc. Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 9/8/2021 400.0
 148.1
 149.4
 0.07%
^SBR Technologies d/b/a Color Graphics Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/31/2021 806.2
 433.9
 441.2
 0.21%
^Michael S. Decker & Janet Decker dba The Hen House Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 8/30/2036 16.4
 14.7
 15.6
 0.01%
^Qycell Corporation Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 8/19/2021 187.5
 97.1
 98.2
 0.05%
^Trademark Equipment Company Inc and David A. Daniel Miscellaneous Store Retailers Term Loan Prime plus 2.75% 8/19/2036 133.6
 119.1
 126.8
 0.06%
^Valiev Ballet Academy, Inc Performing Arts, Spectator Sports, and Related Industries Term Loan Prime plus 2.75% 8/12/2036 91.5
 37.8
 40.3
 0.02%
^A & A Auto Care, LLC dba A & A Auto Care, LLC Repair and Maintenance Term Loan Prime plus 2.75% 8/12/2036 101.0
 90.1
 96.0
 0.05%
^LaHoBa, LLC dba Papa John's Food Services and Drinking Places Term Loan Prime plus 2.75% 8/3/2036 77.5
 68.6
 73.2
 0.04%
^Kelly Chon LLC dba Shi-Golf Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 7/29/2021 17.5
 6.9
 7.0
 %
^MTV Bowl, Inc. dba Legend Lanes Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/30/2036 248.5
 223.0
 237.7
 0.11%
^Lavertue Properties LLP dba Lavertue Properties Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan Prime plus 2.75% 6/29/2036 44.8
 39.8
 42.5
 0.02%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/29/2036 338.1
 312.0
 332.9
 0.16%
^Pierce Developments, Inc. dba Southside Granite Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 6/13/2036 256.1
 227.3
 242.2
 0.12%
^Major Queens Body & Fender Corp Repair and Maintenance Term Loan Prime plus 2.75% 6/10/2021 28.6
 15.2
 15.4
 0.01%

134
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^J&K Fitness, LLC dba Physiques Womens Fitness Center Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/8/2036 449.3
 407.6
 434.9
 0.21%
^Peanut Butter & Co., Inc. dba Peanut Butter & Co. Merchant Wholesalers, Nondurable Goods Term Loan Prime plus 2.75% 6/3/2021 65.5
 33.6
 34.0
 0.02%
^Demand Printing Solutions, Inc. and MLM Enterprises, LLC dba Demand Printing and Related Support Activities Term Loan Prime plus 2.75% 5/27/2021 16.5
 8.6
 8.7
 %
^Modern on the Mile, LLC dba Ligne Roset Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 5/25/2021 212.5
 110.0
 111.4
 0.05%
^Music Mountain Water Company, LLC Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 4/25/2036 138.1
 121.4
 129.6
 0.06%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C. Repair and Maintenance Term Loan Prime plus 2.75% 4/20/2036 127.5
 112.6
 120.2
 0.06%
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store Nonstore Retailers Term Loan Prime plus 2.75% 4/18/2036 129.5
 116.5
 124.4
 0.06%
^Michael S. Korfe dba North Valley Auto Repair Repair and Maintenance Term Loan Prime plus 2.75% 3/24/2036 15.5
 13.7
 14.6
 0.01%
^Actknowledge,Inc dba Actknowledge Personal and Laundry Services Term Loan Prime plus 2.75% 3/21/2021 57.3
 29.0
 29.4
 0.01%
^Food & Beverage Associates Of N.J. Inc Food Services and Drinking Places Term Loan Prime plus 2.75% 3/11/2021 10.0
 4.4
 4.5
 %
^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins Food and Beverage Stores Term Loan Prime plus 2.75% 3/10/2021 153.0
 77.5
 78.4
 0.04%
^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra Ambulatory Health Care Services Term Loan Prime plus 2.75% 2/25/2023 63.0
 36.2
 37.1
 0.02%
^SuzyQue’s LLC dba Suzy Que’s Food Services and Drinking Places Term Loan Prime plus 2.75% 2/11/2036 61.0
 53.8
 57.4
 0.03%
^Little People’s Village, LLC dba Little People’s Village Social Assistance Term Loan Prime plus 2.75% 1/31/2036 31.1
 27.3
 29.1
 0.01%
^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc. Support Activities for Transportation Term Loan Prime plus 2.75% 1/28/2036 113.4
 99.4
 106.1
 0.05%
^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel Food and Beverage Stores Term Loan Prime plus 2.75% 12/29/2020 7.6
 3.5
 3.5
 %
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown Support Activities for Transportation Term Loan 5.25% 12/28/2035 145.9
 137.4
 146.2
 0.07%
^Shree OM Lodging, LLC dba Royal Inn Accommodation Term Loan Prime plus 2.75% 12/17/2035 27.7
 24.2
 25.8
 0.01%
Groundworks Unlimited LLC Specialty Trade Contractors Term Loan 6% 12/17/2023 120.0
 81.2
 83.4
 0.04%
^Lodin Medical Imaging, LLC dba Watson Imaging Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/1/2020 66.4
 30.7
 31.1
 0.01%

135
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center Repair and Maintenance Term Loan Prime plus 2.75% 11/30/2035 34.0
 29.7
 31.6
 0.02%
^Any Garment Cleaner-East Brunswick, Inc dba Any Garment Cleaner Personal and Laundry Services Term Loan Prime plus 2.75% 11/18/2020 42.5
 16.9
 17.1
 0.01%
^West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 11/12/2035 148.7
 129.9
 138.3
 0.07%
^Lincoln Park Physical Therapy Ambulatory Health Care Services Term Loan Prime plus 2.75% 10/20/2020 43.5
 19.9
 20.2
 0.01%
^K9 Bytes, Inc & Epazz, Inc Publishing Industries (except Internet) Term Loan Prime plus 2.75% 9/30/2020 18.5
 8.7
 8.8
 %
^Elan Realty, LLC and Albert Basse Asociates, Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 9/30/2035 228.2
 198.3
 211.3
 0.10%
^Success Express,Inc. dba Success Express Couriers and Messengers Term Loan Prime plus 2.75% 9/29/2020 91.8
 41.1
 41.4
 0.02%
^Modern Manhattan, LLC Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 9/20/2020 204.0
 92.5
 93.5
 0.04%
^Dirk's Trucking, L.L.C. dba Dirk's Trucking Truck Transportation Term Loan Prime plus 2.75% 9/17/2020 17.7
 7.9
 8.0
 %
^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery Repair and Maintenance Term Loan Prime plus 2.75% 9/2/2035 50.1
 43.4
 46.3
 0.02%
^Newsome Trucking Inc and Kevin Newsome Truck Transportation Term Loan Prime plus 2.75% 9/2/2035 423.1
 208.3
 221.6
 0.11%
^California College of Communications, Inc. Educational Services Term Loan Prime plus 2.75% 11/2/2020 172.5
 79.7
 80.5
 0.04%
^DDLK Investments LLC dba Smoothie King Food Services and Drinking Places Term Loan Prime plus 2.75% 8/30/2020 7.5
 2.6
 2.6
 %
^Planet Verte,LLC dba Audio Unlimited Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 9/20/2020 40.0
 17.9
 18.0
 0.01%
^Members Only Software Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 8/30/2020 40.3
 17.6
 17.8
 0.01%
^ActKnowledge,Inc dba ActKnowledge Personal and Laundry Services Term Loan Prime plus 2.75% 6/30/2020 50.0
 21.4
 21.6
 0.01%
^I-90 RV & Auto Supercenter Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 6/29/2035 74.9
 64.6
 68.9
 0.03%
^WeaverVentures, Inc dba The UPS Store Postal Service Term Loan Prime plus 2.75% 7/28/2020 23.8
 10.3
 10.5
 0.01%
^CJ Park Inc. dba Kidville Midtown West Educational Services Term Loan Prime plus 2.75% 6/25/2020 26.4
 8.9
 9.0
 —%
^Zouk, Ltd. dba Palma Food Services and Drinking Places Term Loan Prime plus 2.75% 8/25/2020 27.5
 12.2
 12.3
 0.01%

136
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Tanner Optical Inc. dba Murphy Eye Care Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/22/2035 94.6
 81.7
 87.1
 0.04%
^M & H Pine Straw, Inc.and Harris Maloy Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 7/10/2020 67.5
 29.2
 29.6
 0.01%
^Excel RP, Inc., Kevin and Joann Foley Machinery Manufacturing Term Loan Prime plus 2.75% 7/8/2028 50.0
 37.9
 39.6
 0.02%
ValleyStar, Inc. dba BrightStar HealthCare Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/28/2020 0.6
 2.6
 2.6
 —%
^ValleyStar, Inc. dba BrightStar Healthcare Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/28/2020 7.5
 3.2
 3.2
 —%
^Diag, LLC dba Kidville Educational Services Term Loan Prime plus 2.75% 6/21/2020 37.5
 15.6
 15.8
 0.01%
^M & H Pine Straw, Inc and Harris L. Maloy Support Activities for Agriculture and Forestry Term Loan 6% 4/30/2020 183.3
 59.4
 60.2
 0.03%
^New Economic Methods LLC dba Rita's Food Services and Drinking Places Term Loan Prime plus 2.75% 7/15/2020 24.8
 0.7
 0.7
 —%
^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 4/26/2020 6.3
 2.5
 2.6
 —%
^Vortex Automotive LLC Repair and Maintenance Term Loan Prime plus 2.75% 3/5/2035 76.6
 65.8
 70.1
 0.03%
^ATC Fitness LLC dba Around the Clock Fitness Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 2/28/2019 15.0
 4.5
 4.5
 —%
^Lahoba,LLC dba Papa John's Pizza Food Services and Drinking Places Term Loan Prime plus 2.75% 12/30/2034 42.5
 36.2
 38.6
 0.02%
^Music Mountain Water Company,LLC dba Music Mountain Water Co. Beverage and Tobacco Product Manufacturing Term Loan Prime plus 2.75% 12/29/2019 185.4
 69.1
 69.9
 0.03%
^Animal Intrusion Prevention Systems Holding Company, LLC Administrative and Support Services Term Loan Prime plus 2.75% 3/29/2024 126.5
 29.0
 29.9
 0.01%
^David A. Nusblatt, D.M.D, P.C. Ambulatory Health Care Services Term Loan Prime plus 2.75% 12/11/2019 9.0
 3.3
 3.3
 —%
^CMA Consulting dba Construction Management Associates Construction of Buildings Term Loan Prime plus 2.75% 12/11/2019 58.5
 19.5
 19.7
 0.01%
^KMC RE, LLC & B&B Kennels Personal and Laundry Services Term Loan Prime plus 2.75% 11/19/2034 58.3
 49.5
 52.7
 0.03%
^Demand Printing Solutions, Inc. Printing and Related Support Activities Term Loan Prime plus 2.75% 12/12/2019 10.0
 3.6
 3.7
 —%
^Planet Verte, LLC dba Audio Unlimited of Oceanside Administrative and Support Services Term Loan Prime plus 2.75% 11/28/2019 57.0
 20.3
 20.5
 0.01%
^Demand Printing Solutions, Inc Printing and Related Support Activities Term Loan Prime plus 2.75% 10/29/2034 147.5
 124.9
 132.9
 0.06%

137
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Supreme Screw Products Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 4/17/2019 308.2
 87.6
 88.4
 0.04%
^Gray Tree Service, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/18/2018 50.0
 12.4
 12.5
 0.01%
^Envy Salon & Spa LLC Personal and Laundry Services Term Loan Prime plus 2.75% 12/4/2018 20.3
 4.9
 4.9
 —%
^Gourmet to You, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2019 12.1
 3.3
 3.3
 —%
^The Alba Financial Group, Inc. Securities, Commodity Contracts, and Other Financial Investments and Related Activities Term Loan 6% 1/10/2019 22.5
 12.1
 12.2
 0.01%
^Grapevine Professional Services, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 1/22/2019 8.2
 2.0
 2.0
 —%
^Inflate World Corporation Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 9/30/2018 7.5
 1.3
 1.3
 —%
^Peter Thomas Roth Labs LL Merchant Wholesalers, Durable Goods Term Loan Prime plus 2.75% 9/26/2018 425.0
 93.3
 93.9
 0.04%
^Dream Envy, Ltd. dba Massage Envy Personal and Laundry Services Term Loan Prime plus 2.75% 11/9/2018 88.0
 20.6
 20.7
 0.01%
^CBA D&A Pope, LLC dba Christian Brothers Automotive Repair and Maintenance Term Loan Prime plus 2.75% 6/14/2018 144.9
 28.8
 28.9
 0.01%
^Gilbert Chiropractic Clinic, Inc. Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/7/2018 22.5
 4.0
 4.1
 —%
^D & D's Divine Beauty School of Esther, LLC Educational Services Term Loan 6% 8/1/2031 57.7
 51.3
 54.1
 0.03%
^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service Repair and Maintenance Term Loan Prime plus 2.75% 3/29/2018 9.4
 1.6
 1.6
 —%
^Burks & Sons Development LLC dba Tropical Smoothie Cafe Food Services and Drinking Places Term Loan Prime plus 2.75% 3/22/2018 49.8
 8.0
 8.0
 —%
Bliss Coffee and Wine Bar, LLC Food Services and Drinking Places Term Loan 6% 3/19/2018 87.5
 69.9
 70.2
 0.03%
^Zog Inc. Other Information Services Term Loan 6% 3/17/2018 97.5
 62.1
 62.3
 0.03%
^Saan M.Saelee dba Saelee's Delivery Service Truck Transportation Term Loan Prime plus 2.75% 3/12/2018 9.8
 1.6
 1.6
 —%
Integrity Sports Group, LLC Performing Arts, Spectator Sports, and Related Industries Term Loan 6% 3/6/2018 75.0
 31.7
 31.8
 0.02%
^Enewhere Custom Canvas, LLC Textile Product Mills Term Loan Prime plus 2.75% 2/15/2018 12.0
 1.9
 1.9
 —%
^A & A Acquisition, Inc. dba A & A International Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 2/15/2018 100.0
 14.8
 14.9
 0.01%

138
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^All American Printing Printing and Related Support Activities Term Loan Prime plus 2.75% 10/26/2032 69.8
 37.6
 39.8
 0.02%
^Seo's Paradise Cleaners, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 1/19/2018 9.8
 0.6
 0.6
 —%
^Margab, Inc. dba Smoothie King Food Services and Drinking Places Term Loan Prime plus 2.75% 12/28/2017 44.0
 5.7
 5.7
 —%
^RCB Enterprises, Inc. Administrative and Support Services Term Loan Prime plus 2.75% 12/18/2017 21.2
 3.4
 3.4
 —%
^Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Service Repair and Maintenance Term Loan Prime plus 2.75% 12/17/2017 8.4
 0.8
 0.8
 —%
^Parties By Pat, Inc. and Jose M. Martinez Jr. Food Services and Drinking Places Term Loan Prime plus 2.75% 12/11/2017 93.1
 11.8
 11.8
 0.01%
^Tammy's Bakery, Inc. dba Tammy's Bakery Food Manufacturing Term Loan Prime plus 2.75% 12/10/2017 71.8
 9.9
 10.0
 —%
^Maria C. Sathre and David N. Sathre dba Black Forest Liquor Store Food and Beverage Stores Term Loan Prime plus 2.75% 11/28/2017 18.6
 2.2
 2.2
 —%
^MJ Mortgage & Tax Services, Inc. Credit Intermediation and Related Activities Term Loan Prime plus 2.75% 11/14/2017 6.9
 0.4
 0.4
 —%
^Kings Laundry,LLC Personal and Laundry Services Term Loan Prime plus 2.75% 10/30/2017 64.5
 7.1
 7.1
 —%
^Quality Engraving Services Inc. and Ian M. Schnaitman Miscellaneous Store Retailers Term Loan Prime plus 2.75% 10/17/2017 15.0
 1.7
 1.7
 —%
^Louis B. Smith dba LAQ Funeral Coach Transit and Ground Passenger Transportation Term Loan Prime plus 2.75% 9/15/2017 12.6
 1.2
 1.2
 —%
^1911 East Main Street Holdings, Corp Repair and Maintenance Term Loan Prime plus 2.75% 5/18/2032 15.8
 12.3
 13.1
 0.01%
^Metano IBC Services, Inc. and Stone Brook Leasing, LLC Rental and Leasing Services Term Loan Prime plus 2.75% 8/17/2017 315.0
 25.2
 25.3
 0.01%
^Mala Iyer, MD dba Child and Family Wellness Center Ambulatory Health Care Services Term Loan Prime plus 2.75% 8/11/2017 50.0
 4.8
 4.9
 —%
^Twietmeyer Dentistry PA Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/30/2017 148.9
 9.9
 9.9
 —%
^Water Works Laundromat, LLC Personal and Laundry Services Term Loan Prime plus 2.25% 9/7/2027 267.3
 184.0
 187.1
 0.09%
^Dave Kris, and MDK Ram Corp. Food and Beverage Stores Term Loan Prime plus 2.75% 2/5/2026 221.0
 32.3
 33.4
 0.02%
^No Thirst Software LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/26/2017 6.8
 0.2
 0.2
 —%
^CCIPTA, LLC Clothing and Clothing Accessories Stores Term Loan Prime plus 2.75% 1/17/2017 47.0
 0.2
 0.2
 —%

139
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Gill Express Inc. dba American Eagle Truck Wash Repair and Maintenance Term Loan Prime plus 2.75% 1/5/2027 286.9
 187.3
 194.8
 0.09%
^Spain Street LLC Food Services and Drinking Places Term Loan Prime plus 2.75% 6/29/2017 63.0
 0.9
 0.9
 —%
^Kyoshi Enterprises, LLC Educational Services Term Loan Prime plus 2.75% 12/29/2016 22.5
 
 
 —%
^Nora A. Palma and Julio O Villcas Food Services and Drinking Places Term Loan Prime plus 2.75% 6/27/2017 56.3
 0.1
 0.1
 —%
^Smooth Grounds, Inc. Food Services and Drinking Places Term Loan 7.75% 12/31/2018 64.5
 30.6
 30.8
 0.01%
^Fran-Car Corporation dba Horizon Landscape Management Administrative and Support Services Term Loan Prime plus 2.75% 3/3/2028 407.8
 161.0
 168.0
 0.08%
^Head To Toe Personalized Pampering, Inc. Personal and Laundry Services Term Loan Prime plus 2.75% 1/27/2031 52.0
 9.0
 9.5
 —%
^Maxwell Place, LLC Nursing and Residential Care Facilities Term Loan 6.5% 12/31/2018 1,076.8
 772.5
 779.2
 0.37%
^Christopher F. Bohon & Pamela D. Bohon Social Assistance Term Loan Prime plus 2.75% 10/28/2026 14.2
 3.2
 3.4
 —%
^Shree Om Lodging, LLC dba Royal Inn Accommodation Term Loan Prime plus 2.75% 5/2/2030 333.3
 64.1
 67.4
 0.03%
^Pedzik's Pets, LLC Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 3/31/2030 53.5
 9.0
 9.4
 —%
^Nancy Carapelluci & A & M Seasonal Corner Inc. Building Material and Garden Equipment and Supplies Dealers Term Loan Prime plus 2.75% 3/1/2025 106.9
 14.5
 15.0
 0.01%
^Moonlight Multi Media Production, Inc. Other Information Services Term Loan 5.3% 2/1/2025 19.7
 3.3
 3.4
 —%
David M. Goens dba Superior Auto Paint & Body, Inc. Repair and Maintenance Term Loan 6% 8/26/2024 250.0
 17.5
 18.1
 0.01%
^McCallister Venture Group, LLC and Maw's Vittles, Inc. Food Services and Drinking Places Term Loan Prime plus 2.75% 7/30/2029 75.0
 11.6
 12.1
 0.01%
^Computer Renaissance dba Dante IT Services, Inc. Electronics and Appliance Stores Term Loan Prime plus 3.75% 3/1/2018 100.0
 1.6
 1.6
 —%
^Chong Hun Im dba Kim's Market Food and Beverage Stores Term Loan Prime plus 2.5% 2/27/2024 80.0
 9.5
 9.7
 —%
Whirlwind Car Wash, Inc. Repair and Maintenance Term Loan Prime plus 2% 4/9/2029 333.3
 65.5
 65.8
 0.03%
^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge Amusement, Gambling, and Recreation Industries Term Loan 6% 6/5/2026 1,333.0
 863.5
 895.8
 0.43%
^Center-Mark Car Wash, Ltd Specialty Trade Contractors Term Loan Prime plus 2.75% 5/18/2024 221.3
 27.9
 28.7
 0.01%
^Shuttle Car Wash, Inc. dba Shuttle Car Wash Repair and Maintenance Term Loan Prime plus 2.25% 11/10/2028 109.8
 17.2
 17.5
 0.01%

140
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Min Hui Lin Food Services and Drinking Places Term Loan Prime plus 2.75% 1/30/2028 134.3
 17.5
 18.2
 0.01%
^Delta Partners, LLC dba Delta Carwash Repair and Maintenance Term Loan Prime plus 2.5% 4/5/2029 280.9
 42.5
 44.0
 0.02%
^Auto Sales, Inc. Motor Vehicle and Parts Dealers Term Loan 6% 8/17/2023 75.0
 7.8
 8.0
 —%
^B & J Manufacturing Corporation and Benson Realty Trust Fabricated Metal Product Manufacturing Term Loan Prime plus 2% 3/30/2021 250.0
 18.8
 18.8
 0.01%
^RAB Services, Inc. & Professional Floor Installations Specialty Trade Contractors Term Loan Prime plus 2.5% 1/31/2023 62.5
 7.0
 7.1
 —%
^Ralph Werner dba Werner Transmissions Gasoline Stations Term Loan Prime plus 2.75% 12/29/2021 26.6
 2.3
 2.4
 —%
^Taste of Inverness, Inc. dba China Garden Food Services and Drinking Places Term Loan Prime plus 2% 6/29/2025 73.8
 8.8
 8.8
 —%
^M. Krishna, Inc. dba Super 8 Motel Accommodation Term Loan Prime plus 2% 3/20/2025 250.0
 9.4
 9.5
 —%
^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC Amusement, Gambling, and Recreation Industries Term Loan 6% 9/14/2023 185.8
 31.5
 32.3
 0.02%
^OrthoQuest, P.C. Ambulatory Health Care Services Term Loan Prime plus 2% 3/12/2022 56.8
 4.3
 4.3
 —%
^CPN Motel, L.L.C. dba American Motor Lodge Accommodation Term Loan Prime plus 2.25% 4/30/2024 379.0
 30.8
 31.1
 0.01%
^Track Side Collision & Tire, Inc. Plastics and Rubber Products Manufacturing Term Loan Prime plus 2.75% 6/16/2025 44.8
 4.9
 5.0
 —%
^Duttakrupa, LLC dba Birmingham Motor Court Accommodation Term Loan Prime plus 2.25% 9/8/2023 98.8
 12.2
 12.3
 0.01%
^Deesha Corporation, Inc. dba Best Inn & Suites Accommodation Term Loan Prime plus 2.25% 2/14/2025 250.0
 27.4
 27.8
 0.01%
^Maruti, Inc Accommodation Term Loan Prime plus 2.25% 11/25/2024 220.0
 25.4
 25.7
 0.01%
Willington Hills Equestrian Center LLC Animal Production and Aquaculture Term Loan Prime plus 2.75% 10/19/2022 85.0
 12.8
 13.1
 0.01%
^LABH, Inc. Accommodation Term Loan Prime plus 2.25% 9/27/2024 555.0
 40.8
 41.3
 0.02%
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 3/13/2023 68.8
 7.0
 7.2
 —%
^Gain Laxmi, Inc. dba Super 8 Motel Accommodation Term Loan Prime plus 2.25% 5/31/2023 202.5
 20.0
 20.2
 0.01%
^Naseeb Corporation Accommodation Term Loan Prime plus 2.25% 3/31/2024 402.5
 29.8
 30.2
 0.01%
^Stillwell Ave Prep School Social Assistance Term Loan Prime plus 2.75% 1/14/2023 72.0
 6.4
 6.5
 —%

141
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Karis, Inc. Accommodation Term Loan Prime plus 2% 12/22/2023 148.8
 13.4
 13.4
 0.01%
^Five Corners, Ltd. Gasoline Stations Term Loan Prime plus 2.75% 12/11/2019 85.0
 4.7
 4.8
 —%
^Alyssa Corp dba Knights Inn Accommodation Term Loan Prime plus 2.25% 9/30/2023 350.0
 42.0
 42.4
 0.02%
^Bhailal Patel dba New Falls Motel Accommodation Term Loan Prime plus 2.75% 3/27/2023 100.0
 3.7
 3.8
 —%
^Pegasus Automotive, Inc. Gasoline Stations Term Loan Prime plus 2.75% 12/23/2022 112.5
 10.9
 11.2
 0.01%
^Delyannis Iron Works Fabricated Metal Product Manufacturing Term Loan 6% 12/8/2022 16.0
 1.0
 1.1
 —%
^P. Agrino, Inc. dba Andover Diner Food Services and Drinking Places Term Loan Prime plus 2.75% 7/18/2021 150.0
 8.9
 9.1
 —%
^Golden Elevator Co., Inc. Support Activities for Agriculture and Forestry Term Loan Prime plus 2.75% 1/31/2022 50.0
 0.4
 0.4
 —%
^RJS Service Corporation Gasoline Stations Term Loan Prime plus 2.75% 8/20/2021 79.0
 6.2
 6.3
 —%
Chez Rurene Bakery Food Services and Drinking Places Term Loan Prime plus 2.75% 6/20/2017 150.0
 9.2
 9.2
 —%
Total Performing SBA Unguaranteed Investments         $235,664.6
 $204,850.6
 $202,886.6
 97.03%
                 
Non-Performing SBA Unguaranteed Investments (3)                
^200 North 8th Street Associates LLC and Enchanted Acres Fa Food Manufacturing Term Loan Prime plus 2.75% 5/4/2028 $468.8
 $469.3
 $441.3
 0.21%
^214 North Franklin, LLC and Winter Ventures, Inc. Nonstore Retailers Term Loan 6% 11/29/2037 81.7
 81.7
 29.7
 0.01%
^A + Quality Home Health Care, Inc. Ambulatory Health Care Services Term Loan 6% 8/1/2016 1.3
 1.3
 1.2
 —%
Almeria Marketing 1, Inc. Personal and Laundry Services Term Loan 7.75% 10/15/2015 4.3
 4.3
 0.6
 —%
^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc Motor Vehicle and Parts Dealers Term Loan 6.25% 9/18/2040 129.3
 129.5
 109.0
 0.05%
^AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc. Ambulatory Health Care Services Term Loan 6% 3/14/2038 305.3
 305.7
 28.8
 0.01%
AWA Fabrication & Construction, L.L.C. Fabricated Metal Product Manufacturing Term Loan 6% 4/30/2025 34.7
 34.8
 19.4
 0.01%
^B&B Fitness and Barbell, Inc. dba Elevations Health Club Amusement, Gambling, and Recreation Industries Term Loan 6% 6/22/2035 206.4
 206.7
 201.6
 0.10%
Baker Sales, Inc. d/b/a Baker Sales, Inc. Nonstore Retailers Term Loan 6% 3/29/2036 177.0
 177.4
 80.2
 0.04%
^Fieldstone Quick Stop LLC(OC) Barber Investments LLC (EPC) Thadius M B Gasoline Stations Term Loan 6% 9/30/2038 646.4
 648.0
 327.6
 0.16%

142
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar D Gasoline Stations Term Loan Prime plus 2.75% 8/15/2039 146.0
 146.3
 
 —%
Bwms Management, LLC Food Services and Drinking Places Term Loan 0% 3/1/2018 5.1
 5.1
 4.9
 —%
^Chickamauga Properties, Inc., MSW Enterprises, LLP Amusement, Gambling, and Recreation Industries Term Loan 6.25% 12/22/2035 59.0
 59.0
 56.4
 0.03%
^Chickamauga Properties, Inc. and MSW Enterprises, LLP Amusement, Gambling, and Recreation Industries Term Loan 6.25% 10/19/2022 43.4
 43.5
 
 —%
^Custom Software, Inc. a Colorado Corporation dba M-33 Access Professional, Scientific, and Technical Services Term Loan 6.25% 6/17/2021 285.5
 286.2
 43.1
 0.02%
^Custom Software, Inc. a Colorado Corporation dba M-33 Access Broadcasting (except Internet) Term Loan 6.25% 4/30/2022 94.1
 94.3
 
 —%
^Danjam Enterprises, LLC dba Ariel Dental Care Ambulatory Health Care Services Term Loan 6% 3/31/2035 172.8
 173.0
 158.3
 0.08%
^Danjam Enterprises, LLC dba Ariel Dental Care Ambulatory Health Care Services Term Loan 6% 3/29/2023 64.7
 64.8
 58.6
 0.03%
^DC Realty, LLC dba FOGO Data Centers Professional, Scientific, and Technical Services Term Loan 6% 3/23/2037 2,646.6
 2,673.3
 2,609.4
 1.25%
^DC Realty, LLC dba FOGO Data Centers Professional, Scientific, and Technical Services Term Loan 6.25% 3/23/2022 178.9
 179.3
 169.4
 0.08%
^Dean 1021 LLC dba Pure Pita Food Services and Drinking Places Term Loan Prime plus 2.75% 4/29/2025 63.9
 64.0
 49.6
 0.02%
^Dill Street Bar and Grill Inc and WO Entertainment, Inc Food Services and Drinking Places Term Loan 6% 9/27/2027 78.2
 78.4
 1.2
 —%
Dr. Francis E. Anders, DVM Professional, Scientific, and Technical Services Term Loan 6% 8/9/2015 1.6
 1.6
 1.5
 —%
^Europlast Ltd Plastics and Rubber Products Manufacturing Term Loan 6% 9/26/2022 316.1
 316.9
 36.5
 0.02%
^Europlast Ltd Plastics and Rubber Products Manufacturing Term Loan 6% 5/31/2023 155.2
 155.6
 114.8
 0.05%
^Event Mecca LLC Other Information Services Term Loan 6% 4/10/2023 12.6
 12.6
 9.4
 —%
^EZ Towing, Inc. Support Activities for Transportation Term Loan 6% 1/31/2023 123.2
 123.5
 107.1
 0.05%
^Gator Communications Group LLC dba Harvard Printing Group Printing and Related Support Activities Term Loan 6.25% 3/30/2022 232.9
 233.5
 22.7
 0.01%
^Gator Communications Group LLC dba Harvard Printing Group Printing and Related Support Activities Term Loan 6.25% 4/25/2022 157.4
 157.8
 
 —%
^Gator Communications Group, LLC dba Harvard Printing Group Printing and Related Support Activities Term Loan 6.25% 3/27/2023 13.3
 13.3
 
 —%

143
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^Grand Manor Realty, Inc. & Kevin LaRoe Real Estate Term Loan 6% 2/20/2023 18.9
 19.0
 17.8
 0.01%
Guzman Group,LLC Rental and Leasing Services Term Loan 6% 1/30/2016 189.7
 190.2
 154.5
 0.07%
^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook Motor Vehicle and Parts Dealers Term Loan 6% 8/8/2039 176.7
 177.1
 156.6
 0.07%
Harrelson Materials Management,Inc Waste Management and Remediation Services Term Loan 6% 6/24/2021 464.2
 465.4
 36.4
 0.02%
^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC Ambulatory Health Care Services Term Loan Prime plus 2.75% 6/30/2026 478.9
 480.1
 127.1
 0.06%
^Home Again Restaurant LLC Food Services and Drinking Places Term Loan 6.25% 6/30/2040 58.7
 58.8
 52.9
 0.03%
^J Olson Enterprises LLC and Olson Trucking Direct, Inc. Truck Transportation Term Loan 6% 6/28/2025 647.5
 649.1
 226.8
 0.11%
^J&M Concessions, Inc.dba A-1 Liquors Food and Beverage Stores Term Loan 6.25% 3/3/2039 130.2
 130.6
 91.9
 0.04%
^J&M Concessions Inc dba A 1 Liquors Food and Beverage Stores Term Loan Prime plus 2.75% 2/27/2025 79.8
 80.0
 11.7
 0.01%
Jenny's Wunderland, Inc. Social Assistance Term Loan 6% 6/29/2036 149.7
 150.1
 52.2
 0.02%
^Karykion, Corporation dba Karykion Corporation Professional, Scientific, and Technical Services Term Loan 6% 6/28/2022 144.4
 144.8
 140.4
 0.07%
^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 10/29/2039 63.4
 63.5
 57.2
 0.03%
Krishna of Orangeburg, Inc. Accommodation Term Loan 6% 2/20/2032 10.3
 10.3
 5.6
 —%
^Kup's Auto Spa Inc Repair and Maintenance Term Loan 6.25% 11/15/2038 373.2
 374.1
 351.8
 0.17%
Kup’s Auto Spa, Inc. Repair and Maintenance Term Loan 6.25% 10/23/2025 59.1
 59.3
 55.7
 0.03%
^Las Torres Development LLC dba Houston Event Centers Real Estate Term Loan 6% 8/27/2028 51.0
 51.0
 4.0
 —%
^M and C Renovations Inc Construction of Buildings Term Loan Prime plus 2.75% 10/31/2024 15.9
 16.0
 12.1
 0.01%
^Matchless Transportation LLC dba First Class Limo Transit and Ground Passenger Transportation Term Loan 6.25% 8/3/2022 126.4
 126.7
 17.5
 0.01%
^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution Merchant Wholesalers, Durable Goods Term Loan 6% 6/10/2036 152.8
 152.9
 140.3
 0.07%
^Mojo Brands Media, LLC Broadcasting (except Internet) Term Loan 6% 8/28/2023 723.1
 725.0
 486.9
 0.23%
Morris Glass and Construction Specialty Trade Contractors Term Loan 6% 3/7/2021 44.8
 44.8
 3.0
 —%
^New Paltz Dental Care, PLLC dba Ariel Dental Care Ambulatory Health Care Services Term Loan 6% 6/19/2025 97.3
 97.5
 88.4
 0.04%
Our Two Daughters L.L.C. dba Washington's Restaurant Food Services and Drinking Places Term Loan 6% 6/18/2026 169.8
 170.3
 22.7
 0.01%
^E & I Holdings, LP & PA Farm Products, LLC Food Manufacturing Term Loan 6% 4/30/2030 1,227.7
 1,230.8
 436.4
 0.21%

144
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
^NB & T Services, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 4/27/2026 36.5
 36.6
 
 —%
Professional Systems, LLC and Professional Cleaning Administrative and Support Services Term Loan 6% 7/30/2020 132.0
 132.1
 7.2
 —%
^Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC) d Food Services and Drinking Places Term Loan 6.25% 9/30/2039 535.1
 536.4
 368.5
 0.18%
^Seven Stars Enterprises, Inc. dba Atlanta Bread Company Food Services and Drinking Places Term Loan Prime plus 2.75% 6/30/2018 18.8
 18.8
 18.5
 0.01%
Sheikh M Tariq dba Selbyville Foodrite Gasoline Stations Term Loan 6% 3/13/2023 21.2
 21.2
 
 —%
^Shivsakti, LLC dba Knights Inn Accommodation Term Loan 6.25% 12/20/2032 69.7
 69.9
 62.9
 0.03%
^STK Ventures Inc dba JP Dock Service & Supply Specialty Trade Contractors Term Loan 6% 5/9/2037 31.6
 31.6
 2.3
 —%
Stormwise South Florida dba Stormwise Shutters Specialty Trade Contractors Term Loan 6% 11/7/2036 403.1
 404.1
 324.8
 0.16%
Stormwise South Florida dba Stormwise Shutters Specialty Trade Contractors Term Loan 6% 8/26/2024 201.1
 201.6
 
 —%
Tequila Beaches, LLC dba Fresco Restaurant Food Services and Drinking Places Term Loan 6% 9/16/2021 0.2
 0.2
 0.2
 —%
^The Conibear Corporation and Conibear Trucking, LLC Truck Transportation Term Loan Prime plus 2.75% 12/5/2024 7.9
 7.9
 0.9
 —%
The Lucky Coyote, LLC Miscellaneous Manufacturing Term Loan 6% 5/8/2017 6.2
 6.2
 2.3
 —%
^Will Zac Management LLC dba Papa John's Food Services and Drinking Places Term Loan 6.25% 12/19/2024 42.4
 42.5
 41.3
 0.02%
^Winter Ventures Inc and 214 N Franklin LLC Nonstore Retailers Term Loan 6% 4/29/2024 56.5
 56.6
 
 —%
^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall Nonstore Retailers Term Loan 6% 12/23/2024 149.1
 149.3
 
 —%
^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall Nonstore Retailers Term Loan 6% 4/3/2029 134.4
 134.5
 
 —%
^Wired LLC and Moulison North Corporation Specialty Trade Contractors Term Loan 6.25% 6/30/2024 325.2
 326.0
 306.6
 0.15%
^Wired LLC and Moulison North Corporation Specialty Trade Contractors Term Loan 6.25% 7/3/2024 137.9
 138.3
 13.8
 0.01%
Woody's Trucking LLC Truck Transportation Term Loan Prime plus 2.75% 1/12/2026 11.7
 11.7
 3.1
 —%
Total Non-Performing SBA Unguaranteed Investments         $14,879.8
 $14,933.6
 $8,584.6
 4.11%
                 
Total SBA Unguaranteed Investments         $250,544.4
 $219,784.2
 $211,471.2
 101.14%
                 
Performing SBA Guaranteed Investments (4)                
HMG Strategy, LLC Professional, Scientific, and Technical Services Term Loan Prime plus 2.75% 12/14/2026 200.0
 150.0
 165.9
 0.08%

145
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Techni-Pro Institute LLC Educational Services Term Loan Prime plus 2.75% 12/15/2026 760.0
 570.0
 630.6
 0.30%
Sempco, Inc. Miscellaneous Manufacturing Term Loan Prime plus 2.75% 12/15/2041 168.0
 126.0
 142.3
 0.07%
Means Enterprises LLC dba FastFrame Frisco Furniture and Home Furnishings Stores Term Loan Prime plus 2.75% 12/16/2026 150.0
 127.5
 141.1
 0.07%
New Image Building Services, Inc.dba The Maids Servicing Oakland &Maco Administrative and Support Services Term Loan Prime plus 2.75% 12/21/2026 175.0
 131.3
 145.2
 0.07%
Jacliff Investments Inc. dba International health Technologies Publishing Industries (except Internet) Term Loan Prime plus 2.75% 12/23/2026 500.0
 375.0
 414.9
 0.20%
Joshua L. Baker Insurance Carriers and Related Activities Term Loan Prime plus 2.75% 12/23/2026 105.0
 89.3
 98.7
 0.05%
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point Food Services and Drinking Places Term Loan Prime plus 2.75% 12/27/2041 1,679.5
 1,259.6
 1,420.2
 0.68%
Fort Smith Wings Inc. dba Wing Stop Food Services and Drinking Places Term Loan Prime plus 2.75% 12/28/2026 130.0
 110.5
 122.2
 0.06%
Elite Structures Inc Fabricated Metal Product Manufacturing Term Loan Prime plus 2.75% 10/27/2029 900.0
 675.0
 754.3
 0.36%
Angelo Faia dba AVF Construction Construction of Buildings Term Loan Prime plus 2.75% 5/27/2041 394.9
 296.1
 334.3
 0.16%
Franklin Firm LLC dba Luv 2 Play Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 7/15/2041 691.5
 518.7
 585.4
 0.28%
Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 6/23/2041 1,500.0
 1,125.0
 1,268.4
 0.61%
Worldwide Estate, Inc. dba Washington Heights Manor Nursing and Residential Care Facilities Term Loan Prime plus 2.75% 10/21/2041 900.0
 467.3
 527.7
 0.25%
Bear Creek Entertainment LLC dba The Woods at Bear Creek Accommodation Term Loan Prime plus 2.75% 8/12/2041 1,750.0
 837.3
 944.0
 0.45%
Nevey's LLC dba Stark Food III Food and Beverage Stores Term Loan Prime plus 2.75% 6/30/2041 1,175.5
 739.7
 833.0
 0.40%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC Amusement, Gambling, and Recreation Industries Term Loan Prime plus 2.75% 12/24/2041 2,000.0
 1,099.4
 1,240.3
 0.59%
Middlesex Auto Sales Corp Motor Vehicle and Parts Dealers Term Loan Prime plus 2.75% 10/31/2041 500.0
 142.5
 160.9
 0.08%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero Food Services and Drinking Places Term Loan Prime plus 2.75% 11/3/2041 510.1
 107.5
 121.1
 0.06%
Surgarloaf Concepts LLC dba Fat Biscuit Food Services and Drinking Places Term Loan Prime plus 2.75% 11/8/2026 675.0
 287.6
 317.9
 0.15%
MIK LLC dba Firehouse Subs Food Services and Drinking Places Term Loan Prime plus 2.75% 11/9/2026 800.0
 490.0
 542.1
 0.26%

146
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
Roast Beef Levittown LLC dba Arby's Food Services and Drinking Places Term Loan Prime plus 2.75% 12/13/2026 1,860.0
 163.7
 180.8
 0.09%
Imaginarium Foods LLC, Food Services and Drinking Places Term Loan Prime plus 2.75% 2/28/2042 1,506.9
 373.3
 421.0
 0.20%
Total SBA Guaranteed Performing Investments         $19,031.4
 $10,262.3
 $11,512.3
 5.51%
                 
Total SBA Unguaranteed and Guaranteed Investments         $269,575.8
 $230,046.5
 $222,983.5
 106.64%
                 
Controlled Investments (5)                
Advanced Cyber Security Systems, LLC (6) (16)                                         
 Data processing, hosting and related services. 50% Membership Interest —%  
 
 
 —%
    Term Loan 3%  December 2014 1,120.0
 381.0
 
 —%
*Automated Merchant Services, Inc. (7) (16)
 Data processing, hosting and related services. 100% Common Stock —%  
 
 
 —%
CDS Business Services, Inc. (8)                                                                                         
 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 100% Common Stock —%  
 4,428.0
 750.0
 0.36%
    Line of Credit Prime Plus 2.5% August 2018 2,690.0
 2,690.0
 2,690.0
 1.29%
CrystalTech Web Hosting, Inc. (11)                                                                                         
 Data processing, hosting and related services. 100% Common Stock —%  
 8,434.0
 20,109.0
 9.62%
*Fortress Data Management, LLC (16)                                                                                    
 Data processing, hosting and related services. 100% Membership Interest —%  
 
 
 —%
Newtek Insurance Agency, LLC (13) (16)                                                                           
 Insurance Carriers and Related Activities 100% Membership Interests —%  
 
 2,500.0
 1.20%
PMTWorks Payroll, LLC (9)                                                                                    
 Data processing, hosting and related services. 100% Membership Interests —%  
 725.1
 860.0
 0.41%
    Term Loan 10%-12% Various maturities through May 2018 1,685.0
 1,685.0
 1,185.0
 0.57%
Secure CyberGateway Services, LLC (10) (16)                                                                                                                     
 Data processing, hosting and related services. 66.7% Membership Interests —%  
 
 
 —%
    Term Loan 7%  June 2017 2,400.0
 300.0
 
 —%
Small Business Lending, LLC. (12) (16)                                                                       
 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 100% Membership Interest —%  
 
 3,300.0
 1.58%
Titanium Asset Management LLC (15) (16)
 Administrative and Support Services 100% Membership Interest —%  
 
 
 —%
    Term Loan 3% July 2017 2,200.0
 660.4
 508.1
 0.24%

147
See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
Portfolio Company Industry Type of Investment Interest Rate (2) Maturity Principal Cost Fair Value % of Net Assets
ADR Partners, LLC dba banc-serv Partners, LLC (12)
 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 100% Membership Interest —%  
 5,260.3
 5,400.0
 2.58%
*Summit Systems and Designs, LLC (14) (16)                                                                     
 Data processing, hosting and related services. 100% Membership Interest —%  
 
 
 —%
Premier Payments LLC (11)
 Data processing, hosting and related services. 100% Membership Interest —%  
 16,438.0
 21,000.0
 10.04%
Universal Processing Services of Wisconsin, LLC (11) (16)                                           
 Data processing, hosting and related services. 100% Membership Interest —%  
 
 63,000.0
 30.13%
Total Controlled Investments         $10,095.0
 $41,001.8
 $121,302.1
 58.01%
                 
Non-control/Non-affiliate Investments                
Excel WebSolutions, LLC Data processing, hosting and related services. Term Loan 10% September 2018 $1,020.2
 $903.5
 $903.5
 0.43%
    Warrants —%  
 
 
 —%
          $1,020.2
 $903.5
 $903.5
 0.43%
                 
Investments in Money Market Funds                
UBS Select Treasury Institutional Fund - 0.29% yield         $9.6
 $9.6
 $9.6
 —%
Peapack Gladstone High Yield IMMA - 0.30% yield         25.8
 25.8
 25.8
 0.01%
Total Money Market Funds         $35.4
 $35.4
 $35.4
 0.02%
                 
Total Investments         $280,726.4
 $271,987.2
 $345,224.5
 165.10%

^ Denotes investment that has been pledged as collateral under the Securitization Trusts.
* Denotes non-income producing security.
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded Preferred Lender Program (“PLP”) status from the SBA. The portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to qualified investors.
(2) Prime Rate is equal to 3.50% as of December 31, 2016.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.

148
See accompanying notes to unaudited condensed consolidated financial statements.




(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 18.35% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 31.8% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(9) 25% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 66.7% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Banc-Serv Acquisition, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 30% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 17.8% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(16) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were expensed when incurred.
(17) All of the Company's investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(18) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At December 31, 2016, 5.5% of total assets are non-qualifying assets. As of December 31, 2016, the federal tax cost of investments was $263,179,000 resulting in estimated gross unrealized gains and losses of $99,380,000 and $17,335,000, respectively.




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See accompanying notes to unaudited condensed consolidated financial statements.




NEWTEK BUSINESS SERVICES CORP.NEWTEKONE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

Newtek Business Services Corp. is a Maryland corporation which was formed in August 2013 and is an internally managed, closed end, non-diversified investment company. The Company’s investment strategy is to maximize the investment portfolio’s return by generating current income from the debt investments the Company makes and generate dividend income from equity investments in controlled portfolio companies.


The Company has formed certain Taxable Subsidiaries, which are taxedis a financial holding company that is a leading provider of business and financial solutions to independent business owners (SMBs) and provides SMBs with the following Newtek® branded business and financial solutions: Newtek Bank, Newtek Lending, Newtek Payments, Newtek Insurance, Newtek Payroll and Newtek Technology.

NewtekOne reports on a consolidated basis the financial condition and results of operations for the following consolidated subsidiaries: Newtek Bank; SBL; NSBF; NMS; Mobil Money; NBC; PMT; NIA; TAM; POS; Holdco 6; NCL; and NTS. In addition, as corporations for federal income tax purposes. These Taxable Subsidiaries allowa result of commitments made to the Federal Reserve, the Company will divest or otherwise terminate the activities conducted by NTS by January 6, 2025, subject to hold equity securitiesany extension. As of portfolio companies organizedthe date of this filing, the Company has concluded that the assets, liabilities and operations of NTS do not qualify for Discontinued Operations.

Except as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.
The following wholly-owned subsidiaries are consolidatedotherwise noted, all financial information included in the financial statements oftables in the Company:following footnotes is stated in thousands, except per share data.
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
The Whitestone Group, LLC
Wilshire Colorado Partners, LLC
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana Bidco, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire New York Partners IV, LLC
Wilshire New York Partners V, LLC
Wilshire Partners, LLC
CCC Real Estate Holdings, LLC
Banc-Serv Acquisition, Inc.
Exponential Business Development Co., Inc.
Newtek LSP Holdco, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.

The accompanying notes to the unaudited condensed consolidated financial statements should be read in conjunction with Newtek’sthe Company’s Annual Report on Form 10-K for the year ended December 31, 20162023, filed on April 1, 2024 (the “2023 Form 10-K.10-K”). The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certaindo not include all information and footnotes and other information normally included innecessary for a fair presentation of the consolidated financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The annualized results of operations for an interim period maythe three months ended March 31, 2024 are not give a true indicationnecessarily indicative of the results of operations that may be expected for the entire fiscal year. The December 31, 20162023 consolidated statement of assets and liabilities has been derived from the audited financial statements as of that date. All intercompany balances and transactions have been eliminated in consolidation.

Consolidation

The consolidated financial statements include the accounts of NewtekOne, its subsidiaries and certain VIEs. Significant intercompany balances and transactions have been eliminated. The Company considers a voting rights entity to be a subsidiary and consolidates it if the Company has a controlling financial interest in the entity. VIEs are consolidated if NewtekOne has the power to direct the activities of the VIE that significantly impact financial performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE (i.e., NewtekOne is the primary beneficiary). The determination of whether the Company is the primary beneficiary of a VIE is reassessed on an ongoing basis. Investments in companies which are not VIEs but in which the Company has more than minor influence over the operating and financial policies are accounted for using the equity method of accounting. Investments in VIEs, where NewtekOne is not the primary beneficiary of a VIE, are accounted for using the equity method of accounting. The maximum potential exposure to losses relative to investments in VIEs is generally limited to the investment balance. Refer to NOTE 4—INVESTMENTS.

Reclassifications and Restatements

Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation.
Except
In addition, as otherwise noted, alldisclosed in our 2023 Form 10-K, the Company’s prior year condensed comparative financial information includedstatements have been adjusted to correct errors made in the tables inCompany’s financial statements previously issued for the following footnotes is stated in thousands, except per share data.first, second, and third quarters of 2023. Balances as of and results for the three months ended March 31, 2023 are presented as restated. Refer to our 2023 Form 10-K for further detail.


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NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:
Fair Value

The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date. 

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requiresA more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3. 

Any changes to the valuation methodology are reviewed by management and the Board to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See furtherdetailed description of fair value methodology in Note 6.
Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.

Consolidation

As provided under Regulation S-X and ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company.

Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements forour accounting sale treatment are reflected in the Company’s condensed consolidated statements of assets and liabilities as investments. Those assets are owned by the securitization trusts, and arepolicies is included in the Company’s condensed consolidated financial statements. The creditors of2023 Form 10-K, which accounting policies remain significantly unchanged. There have been no other significant changes to our accounting policies, or the special purpose entities have received security interestsestimates made pursuant to those policies as described in such assets and such assets are not intended to be available to the creditors of the Company.our 2023 Form 10-K.


Distributions

Dividends and distributions to the Company's common stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board each quarter and is generally based upon the taxable earnings estimated by management.
Cash and Cash Equivalents


The Company considers all highly liquid investmentsinstruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments. As of September 30, 2017,March 31, 2024, cash deposits in excess of insured amounts totaled $11,068,000.$34.2 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of September 30, 2017.March 31, 2024.
Restricted Cashcash


Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of a voluntary agreementagreements with the SBA, and cash reserves associated with securitization transactions.transactions, and cash margin as collateral for derivative instruments. As of September 30, 2017,March 31, 2024, total restricted cash was $26,602,000.$35.8 million.


Broker
Interest bearing deposits in banks

The Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest.

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of March 31, 2024 and 2023 and December 31, 2023:

March 31, 2024March 31, 2023December 31, 2023
Cash and due from banks$12,295 $29,103 $15,398 
Restricted cash35,759 73,421 30,919 
Interest bearing deposits in banks115,152 94,620 137,689 
Cash and restricted cash$163,206 $197,144 $184,006 

Allowance for Credit Losses – Loans

Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans.

The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data.

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Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. The SBA 7(a) loan portfolio is the single loan pool where management solely utilizes historical internal data to determine the loss rate as an input to the model. The data utilized represents the most recent economic cycle and management determines the loss rate by analyzing defaulted principal and net charge offs to calculate the historical loss rate. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, four quarters currently represents a reasonable and supportable forecast period, followed by a four-quarter reversion to historical mean levels for each of the various economic indicators.

The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis.

The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Significant management judgment is required at each point in the measurement process.

Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, supplemented with peer loss information, and results in expected probabilities of default and expected losses given default. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors.

Expected losses are applied to loans grouped in portfolio segments, which are pools of loans aggregated based on type of borrower and collateral, generally based upon federal call report segmentation. Portfolio segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. These portfolio segments are as follows:

CRE:The CRE portfolio is comprised of loans to borrowers on small offices, owner-occupied commercial buildings, industrial/warehouse properties, income producing/investor real estate properties, and multi-family loans secured by first mortgages. The Company’s underwriting standards generally target a loan-to-value ratio of 75%, depending on the type of collateral, and requires debt service coverage of a minimum of 1.2 times.

C&I:     The C&I portfolio consists of loans made for general business purposes consisting of short-term working capital loans, equipment loans and unsecured business lines.

SBA 7(a):     The SBA 7(a) portfolio includes loans originated under the federal Section 7(a) loan program. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 50% and 90% of the principal and interest due. Under the SBA’s 7(a) lending program, a bank or other lender licensed by the SBA may underwrite loans between $5.0 thousand and $5.0 million for a variety of general business purposes based on the SBA’s loan program requirements. The guaranteed portion of the loans are held for sale and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL.

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Individually Evaluated Loans. Loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.

Accrued Interest. Accrued interest receivable balances are presented within other assets on the consolidated balance sheet. Accrued interest is excluded from the measurement of the allowance for credit losses, including investments and loans. Generally, accrued interest is reversed when a loan is placed on non-accrual or is written-off. Current year accrued interest is reversed through interest income while accrued interest from prior years is written-off through the ACL. Historically, we have not experienced uncollectible accrued interest receivable on investment debt securities.

Allowance for off-balance sheet credit exposures. The exposure is a component of other liabilities in the consolidated balance sheet and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit and standby and commercial letters of credit. The process used to determine the allowance for these exposures is consistent with the process for determining the allowance for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to provision for credit losses on the consolidated statements of income is made to account for the change in the allowance on off-balance sheet exposures between reporting periods.

Allowance for Credit Losses – Available-for Sale (“AFS”) Debt Securities

The impairment model for AFS debt securities differs from the CECL approach utilized for financial instruments measured at amortized cost because AFS debt securities are measured at fair value. For AFS debt securities in an unrealized loss position, Newtek Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2024, the Company determined that the unrealized loss positions in the AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.

Accrued Interest Receivable


BrokerUpon the Acquisition and adoption of CECL, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.

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Settlement Receivable

Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been tradedsold at period endperiod-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at March 31, 2024 was $51.1 million. The settlement receivable also includes $5.8 million of premiums, which have been recognized in Net Gains on Sales of Loans.

Income Taxes


Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Such deferred tax assets and liabilities recorded on the statements of financial condition were a deferred tax asset, net of $2.7 million and $5.2 million at March 31, 2024 and December 31, 2023, respectively.


Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and its political subdivisions. Significant judgments and estimates are required in determining the consolidated income tax expense.

The Company’s U.S. federal and state income tax returns prior to fiscal year 20142020 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

Interest and penalties assessed by tax jurisdictions for income tax matters are presented as income tax expense on the consolidated statement of income.
The Company has elected to be treated
Formerly, as a RIC under the Code beginningending with the 2015 taxCompany’s December 31, 2022 fiscal year and operates in a manner so asend, the Company was not subject to continue to qualify forcorporate level income tax. Beginning on January 1, 2023 with the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. Nonestart of the Company’s other subsidiaries are included2023 fiscal year, the Company no longer qualifies as a RIC and is subject to corporate level income tax. See NOTE 18—INCOME TAXES.

Recently Adopted Accounting Pronouncements

Current Expected Credit Losses (Topic 326): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the RIC tax return. The Company will evaluateFASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and record any deferred taxHedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and liabilities of the subsidiariescertain other instruments that are not included inmeasured at fair value. CECL replaced the RIC tax return. In order to maintain its RIC tax treatment, among other things,“incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company is requiredbeginning January 1, 2023; however, the Company continues to meet certain source of incomemeasure NSBF’s SBA 7(a) loan portfolio at fair value and asset diversification requirements and timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. The Company intends to makedo so until the requisite distributions to its stockholders, which will generally relieveportfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company from U.S. federal income taxes withowns and consolidates Newtek Bank, which applies CECL.
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Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02): In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this guidance is twofold. First, the guidance eliminates TDR recognition and measurement guidance that has been deemed no longer necessary under CECL. The guidance also adds a requirement to incorporate current year gross charge-offs by origination year into the vintage tables. With respect to any income that is distributed to its stockholders as dividends.

Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions, and would distribute such taxable income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income,TDR impacts, under CECL, credit losses for financial assets measured at amortized cost are determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the three and nine months ended September 30, 2017 and 2016, no U.S. federal excise taxes were due.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate ratestotal current expected credit losses over the life of the financial asset or group of financial assets. Due to the Acquisition, any aspects of credit deterioration to include modifications to loans for borrowers experiencing financial difficulty were captured in purchase accounting and the allowance as of the Acquisition date. Therefore, credit losses on the net unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $5,240,000 and $5,983,000 at September 30, 2017 and December 31, 2016, respectively, and are recordedfinancial assets that have been modified as a deferred tax

liabilities on the condensed consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investmentsTDRs would have largely been incorporated in the condensed consolidated statementsallowance upon initial recognition. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which adopted the ASU on January 1, 2023, on a prospective basis. Under ASU 2022-02, the Company evaluated whether loan modifications previously characterized as TDRs represent a new loan or a continuation of operations.

Investment Income

Interest on debt investments is accrued and includedan existing loan in income based on contractual rates appliedaccordance with ASC Topic 310, Receivables. The guidance also added new disclosures that require an entity to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When aprovide information related to loan becomes 90 days or more past due, or if we otherwise do not expectmodifications made to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.

Dividend income is recognized on an accrual basis for preferred equity securities to the extent that such amounts are expectedborrowers deemed to be collected or realized.in financial difficulty. The impact of these amendments was not material.

Fair Value Measurement (ASU 2022-03): In determiningJune 2022, the amount of dividend income to recognize, if any, from cash distributions on common equity securities, we will assess many factors including a portfolio company’s cumulative undistributed income and operating cash flow. Cash distributions from common equity securities receivedFASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820), which clarifies the guidance in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.

The Company earns servicing income related to the guaranteed portions of SBA loan investments which it sells into the secondary market. These recurring fees are earned daily and recordedTopic 820 when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.

The Company earns a variety of fees from borrowers in the ordinary course of conducting its business, including packaging, legal, late payment and prepayment fees. All other income is recorded when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new debt investments with non-affiliates.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes inmeasuring the fair value of investments as a componentan equity security subject to contractual restrictions that prohibit the sale of the net changean equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in unrealized appreciation (depreciation) onaccordance with Topic 820. The amendments affect all entities that have investments in the condensed consolidated statements of operations.

Stock – Based Compensation

The Company accounts for its equity-based compensation plan using theequity securities measured at fair value method, as prescribed by ASC Topic 718, Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s common stock on the date of the grant and amortizes this fair valuethat are subject to salaries and benefits ratably over the requisite service period or vesting term.

New Accounting Standards

In November 2016, the FASB issueda contractual sale restriction. ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force),” which requires that the statement of cash flow explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU2022-03 is effective for annual reporting periodspublic business entities for fiscal years beginning after December 15, 2017,2023, and interim periods within those periods.fiscal years. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The impact of these amendments was not material.

New Accounting Standards

Improvements to Reportable Segment Disclosures (ASU 2023-07)
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. Management does not expect the impact to be material.

Improvements to Income Tax Disclosures (ASU 2023-09)
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material.

Compensation—Stock Compensation (ASU 2024-01)
In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not believe this ASUanticipate it will have a material impact on its consolidated financial statementsstatements.
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NOTE 3—BUSINESS COMBINATIONS

Acquisition of NBNYC

On January 6, 2023, the Company completed the Acquisition of NBNYC, a national bank regulated and disclosures.

In February 2016,supervised by the FASBOCC, pursuant to which the Company acquired from the NBNYC shareholders all of the issued ASU 2016-02, “Leases,” which amends various aspectsand outstanding stock of existing accounting guidanceNBNYC for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted.$20 million, in an all-cash transaction. The Company has not completed its reviewalso agreed to pay the seller’s acquisition costs of approximately $1.3 million. NBNYC was renamed Newtek Bank and became a wholly owned subsidiary of the new guidance; however,Company. In connection with the completion of the Acquisition, the Company anticipates that upon adoptioncontributed to Newtek Bank $31 million of cash and two of the standard it will recognize additional assetsCompany’s subsidiaries, NBL and corresponding liabilities related to leases on its consolidated statements of assets and liabilities.

In January 2016,SBL (NBL was subsequently merged into SBL). Upon the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which, among other things, requires an entity to present separately in other comprehensive income the portionconsummation of the total changeAcquisition, Newtek Bank entered into an operating agreement with the OCC concerning certain matters including capital, liquidity and concentration limits, and memorializing the business plan submitted to the OCC.

The NBNYC transaction was accounted for in accordance with ASC 805, Business Combinations, and the Company performed a purchase price allocation under the acquisition method. Under ASC 805, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which shall not exceed one year from the acquisition date, the acquirer shall adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date.

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The purchase price, including costs incurred by the Company on behalf of the seller directly associated with the Acquisition, was preliminarily allocated to net assets acquired. Final allocation was obtained and the purchase allocations finalized at December 31, 2023. The following table summarizes the allocation of consideration paid for the fair value of a liability resultingassets acquired and liabilities assumed from a change in theNBNYC:


instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance
Purchase price consideration$21,281 
Fair value of assets acquired:
Cash and due from banks29,138
Interest-bearing deposits in banks3,284
Total cash and cash equivalents32,422
Available-for-sale securities (at fair value)5,004
Other investments1,226
Loans receivable159,155
Federal Reserve Bank stock, at cost54
Federal Home Loan Bank stock, at cost1,470
Accrued interest receivable353
Deferred income taxes495
Goodwill271
Core deposit intangible1,040
Other assets399
Total assets$201,889 
Fair value of liabilities assumed:
Deposits:
Demand$21,878 
Savings, Super NOW, and Money Market10,975
Certificates of deposit104,162
Total deposits137,015
Advances from the Federal Home Loan Bank27,817
Accrued expenses and other liabilities15,776
Total liabilities$180,608 

In connection with the fair value option for financial instruments. Additionally,Acquisition, the ASU changesCompany recorded $0.3 million of goodwill, which represents the disclosure requirements for financial instruments. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.

Segments

The Company has determined that it has a single reporting segment and operating unit structure. The Company issues debt and makes equity investments in portfolio companies in various industries. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these debt and equity investment relationships have similar business and economic characteristics, they have been aggregated into a single lending and investment segment.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.
NOTE 3—INVESTMENTS:

Investments, all of which are in portfolio companies in the United States, consistedexcess of the following at:
  September 30, 2017 December 31, 2016
  Cost Fair Value Cost Fair Value
Money market funds $9
 $9
 $35
 $35
Non-affiliate debt investments 286,769
 281,224
 230,950
 223,887
Controlled investments        
Equity 46,356
 128,020
 35,285
 116,919
Debt 12,535
 8,929
 5,716
 4,383
Total investments $345,669
 $418,182
 $271,986
 $345,224

In April 2017, the Company invested in 100% of the common stock of a new wholly-owned, controlled portfolio company, IPM. IPM provides consulting, design and implementation of technology solutions for enterprise and commercial clients. Total consideration for the investment was $11,120,000 and consisted of $1,000,000 in restricted shares of Newtek common stock, $8,752,000 in cash and $1,368,000 to be paid in cash in two equal installments in 2018 and 2019 based on IPM attaining specific EBITDA levels for 2017 and 2018. As of September 30, 2017,purchase price over the fair value of the contingentnet assets acquired. Goodwill is an asset representing the acquired future economic benefits such as synergies that are not individually identified and separately recognized (i.e., it is measured as a residual). The amount of goodwill recognized is also impacted by measurement differences resulting from certain assets and liabilities not being recorded at fair value (e.g., income taxes, employee benefits). In accordance with ASC 805-30-30-1, the measurement of goodwill occurs on the Acquisition Date and, other than qualifying measurement period adjustments, no adjustments are made to goodwill recognized as of the Acquisition Date until and unless it becomes impaired.

ASC 805 provides for a period of time during which the acquirer may adjust provisional amounts recognized at the acquisition date to their subsequently determined acquisition-date fair values, referred to as the “measurement period.” Adjustments during the measurement period are not limited to just those relating to assets acquired and liabilities assumed but apply to all aspects of business combination accounting (e.g., the consideration transferred). Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. In accordance with ASC 805, the Company recorded a measurement period adjustment and decreased goodwill by $1.0 million related to the finalization of the consideration transferred.
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Information regarding the allocation of goodwill to the Company’s reportable segments, as well as the carrying amounts and amortization of the core deposit intangible, can be found within NOTE 8—GOODWILL AND INTANGIBLE ASSETS. None of the goodwill is tax deductible. Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the NBNYC Acquisition.

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities.

Investment securities available-for-sale. Quoted market prices for the securities acquired were used to determine their fair values. If quoted market prices were not available for a specific security, then quoted prices for similar securities in active markets were used to estimate the fair value.

Loans. Each loan was $620,000assessed individually. The fair values for loans were estimated using a discounted cash flow methodology that considered factors including the type of loan and the related collateral, classification status, fixed or variable interest rate, remaining term, amortization status, and current discount rates. In addition, the probability of default, loss given default, and prepayment assumptions that were derived based on loan characteristics, historical loss experience, comparable market data, and current and forecasted economic conditions were used to estimate expected credit losses. The discount rates used for loans and leases were based on current market rates for new originations or comparable loans and leases and include adjustments for liquidity. The discount rate did not include credit losses as that was included as a reduction to the estimated cash flows. We determined the fair value of the PCD loans using the asset and income approach. We used the income approach for PCD loans where there was evidence that the borrower may be able to continue to service the loan and more likely than not continue to pay. We used the asset approach for PCD loans when the loan is on non-accrual status. Acquired loans were marked to fair value and adjusted for any PCD gross up as of the Acquisition Date.

Core Deposit Intangible. CDI is a measure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists.

Deposit Liabilities. The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the Acquisition date. The fair values for time deposits were estimated using a discounted cash flow methodology that applies interest rates currently being offered to the contractual interest rates on such time deposits.

Borrowings. The estimated fair value of borrowed funds is based on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities.

PCD loans. Purchased loans that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the NBNYC Acquisition with credit deterioration and associated credit loss reserve at acquisition:

Par value (unpaid principal balance)$42,443 
ACL at acquisition(870)
Non-credit (discount)(1,559)
Fair Value$40,014 

Transaction costs describe the broad category of costs the Company incurs in connection with signed and/or closed acquisitions. Transaction costs include expenses associated with legal, accounting, regulatory, and other transition services rendered in connection with acquisition, travel expense, and other non-recurring direct expenses associated with acquisitions.

The Company incurred transaction costs related to the NBNYC Acquisition during the year ended December 31, 2023 of $0.2 million. These costs have been included in Accounts Payable, Accrued Expensesthe Consolidated Statement of Operations in Professional Services Expense.

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NOTE 4—INVESTMENTS:

Investments consisted of the following at:
March 31, 2024December 31, 2023
CostFair ValueCostFair Value
Debt securities available-for-sale, at fair value$28,319 $28,127 $32,372 $32,171 
Federal Home Loan Bank and Federal Reserve Bank stock3,773 3,773 3,635 3,635 
Non-controlled investments772 728 796 728 
Joint ventures, at fair value45,108 48,247 37,864 40,859 
Total investments$77,972 $80,875 $74,667 $77,393 

The Company’s Alternative Lending Program (ALP)

NCL JV:On May 20, 2019, the Company and other liabilitiesits joint venture partner launched NCL JV to provide ALP loans (formerly referred to as non-conforming conventional commercial and industrial term loans) to U.S. middle-market companies and small businesses. NCL JV is a 50/50 joint venture between NCL a wholly-owned subsidiary of the Company, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq: TCPC). NCL JV ceased funding new ALP loans during 2020. On January 28, 2022, NCL JV closed a securitization with the sale of $56.3 million of Class A Notes, NCL Business Loan Trust 2022-1, Business Loan-Backed Notes, Series 2022-1, secured by a segregated asset pool consisting primarily of NCL JV’s portfolio of ALP loans secured by liens on commercial or residential mortgaged properties, originated by NCL JV and NBL. The Notes were rated “A” (sf) by DBRS Morningstar. The Notes were priced at a yield of 3.209%. The proceeds of the condensed consolidated statement of assetssecuritization were used, in part, to repay NCL JV’s credit facility and liabilities.return capital to the NCL JV partners.

During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed.
The following table showstables show certain summarized financial information for NCL JV:
Selected Statement of Assets and Liabilities Information (Unaudited)March 31, 2024December 31, 2023
Cash$677 $612 
Restricted cash4,145 3,298 
Investments in loans, at fair value (amortized cost of $62,158 and $70,083, respectively)62,158 70,083 
Other Assets1,612 1,614 
Total assets68,592 75,607 
Securitization notes payable$33,799 $38,805 
Other liabilities885 905 
Total liabilities34,684 39,710 
Net assets33,908 35,897 
Total liabilities and net assets$68,592 $75,607 

Selected Statements of Operations Information (Unaudited)Three Months Ended March 31,
20242023
Interest and other income$1,373 $1,644 
Total expenses472 659 
Net investment income901 985 
Unrealized (depreciation) appreciation on investments(2,131)712 
Net (decrease) increase in net assets resulting from operations$(1,230)$1,697 

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TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. (“TSO II”) entered into a joint venture, TSO JV, governed by the Company’s portfolioAmended and Restated Limited Partnership Agreement for the TSO JV. TSO JV began making investments in ALP loans during the fourth quarter of 2022. NCL and TSO II each committed to contribute an equal share of equity funding to the TSO JV and each have equal voting rights on all material matters. TSO JV intends to deploy capital over the course of time with additional leverage supported by industry at September 30, 2017 and December 31, 2016:a warehouse line of credit.


The following tables show certain summarized financial information for TSO JV:
Selected Statement of Assets and Liabilities Information (Unaudited)March 31, 2024December 31, 2023
Cash$1,728 $4,401 
Restricted cash4,356 1,183 
Investments in loans, at fair value (amortized cost of $93,945 and $66,689, respectively)93,945 66,689 
Other assets1,542 1,374 
Total assets$101,571 $73,647 
Bank notes payable$40,986 $29,636 
Other liabilities591 1,092 
Total liabilities41,577 30,728 
Net assets59,994 42,919 
Total net assets$101,571 $73,647 

Selected Statements of Operations Information (Unaudited)Three Months Ended March 31,
20242023
Interest and other income$2,343 $615 
Total expenses1,464 550 
Net investment income879 65 
Unrealized appreciation (depreciation) on investments872 (513)
Realized loss on investments— (16)
Realized gain on derivative transactions265 275 
Unrealized gain (loss) on derivative transactions574 (436)
Net increase (decrease) in net assets resulting from operations$2,590 $(625)


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  September 30, 2017 December 31, 2016
  Cost Fair Value Cost Fair Value
Data processing, hosting and related services $29,583
 $103,605
 $29,010
 $107,180
Food Services and Drinking Places 28,314
 27,752
 21,941
 21,702
Amusement, Gambling, and Recreation Industries 19,452
 20,037
 18,486
 18,995
Securities, Commodity Contracts, and Other Financial Investments and Related Activities 18,302
 19,966
 12,909
 12,649
Ambulatory Health Care Services 14,474
 13,645
 13,068
 11,976
Repair and Maintenance 12,990
 13,391
 12,066
 12,228
Professional, Scientific, and Technical Services 27,676
 27,171
 12,240
 11,582
Accommodation 10,566
 11,243
 9,455
 9,849
Specialty Trade Contractors 9,029
 8,712
 8,311
 7,595
Merchant Wholesalers, Durable Goods 6,404
 6,330
 6,211
 5,989
Truck Transportation 15,483
 14,615
 7,469
 6,938
Food and Beverage Stores 5,187
 5,160
 5,221
 5,194
Heavy and Civil Engineering Construction 4,530
 4,430
 4,328
 4,209
Fabricated Metal Product Manufacturing 11,113
 11,511
 5,922
 5,961
Administrative and Support Services 5,873
 5,268
 6,379
 5,727
Social Assistance 6,869
 7,013
 4,903
 4,905
Motor Vehicle and Parts Dealers 5,059
 5,156
 5,059
 5,051
Food Manufacturing 9,437
 7,507
 5,596
 4,873
Transit and Ground Passenger Transportation 3,482
 3,302
 1,836
 1,703
Clothing and Clothing Accessories Stores 3,600
 3,675
 4,221
 4,134
Personal and Laundry Services 10,333
 10,861
 4,255
 4,206
Gasoline Stations 6,136
 5,807
 5,938
 5,570
Printing and Related Support Activities 3,790
 3,495
 3,547
 3,183
Insurance Carriers and Related Activities 833
 3,366
 1,126
 3,631
Other 77,154
 75,164
 62,489
 60,194
Total $345,669
 $418,182
 $271,986
 $345,224
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NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Transactions with Affiliated Companies


An affiliated company is an unconsolidated entity in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is an entity in which the Company owns more than 25% of its voting securities. Transactions related to our joint ventures and non-controlled investments with controlled companies for the ninethree months ended September 30, 2017March 31, 2024 and 2023 were as follows:

CompanyFair Value at December 31, 2023Purchases (Cost)Principal ReceivedReturn of InvestmentNet Realized Gains/(Losses)Net Unrealized Gains/(Losses)Fair Value at March 31, 2024Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC$19,400 $— $— $— $— $(1,150)$18,250 $379 
Newtek TSO II Conventional Credit Partners, LP21,459 7,243 — — — 1,295 29,997 — 
Total Joint Ventures$40,859 $7,243 $— $— $— $145 $48,247 $379 
Non-Control Investments
EMCAP Loan Holdings, LLC$368 $— $— $(24)$— $24 $368 $
Biller Genie Software, LLC360 — — — — — 360 — 
Total Non-Control Investments$728 $— $— $(24)$— $24 $728 $
Total Affiliate Investments$41,587 $7,243 $— $(24)$— $169 $48,975 $386 

CompanyFair Value at December 31, 2022Purchases (Cost)Principal ReceivedReturn of InvestmentNet Realized Gains/(Losses)Net Unrealized Gains/(Losses)Fair Value at March 31, 2023Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC$16,587 $— $— $— $— $2,313 $18,900 $484 
Newtek TSO II Conventional Credit Partners, LP6,435 — — — — (313)6,122 — 
Total Joint Ventures$23,022 $— $— $— $— $2,000 $25,022 $484 
Non-Control Investments
EMCAP Loan Holdings, LLC$1,000 $— $— $— $— $— $1,000 $20 
Biller Genie Software, LLC360 — — — — — 360 — 
Total Non-Control Investments$1,360 $— $— $— $— $— $1,360 $20 
Total Affiliate Investments$24,382 $— $— $— $— $2,000 $26,382 $504 


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Portfolio Company Fair Value at December 31, 2016 Purchases (Cost) Principal Received (Cost) Net Realized Gains/(Losses) Net Unrealized Gains/(Losses) Fair Value at September 30, 2017 Interest and Other Income Dividend Income
Controlled Investments                
Universal Processing Services of Wisconsin, LLC $63,000
 $
 $
 $
 $3,000
 $66,000
 $
 $5,250
Premier Payments LLC 21,000
 
 
 
 
 21,000
 
 1,200
Newtek Technology Solutions, Inc. 20,109
 
 (50) 
 (4,059) 16,000
 
 
International Professional Marketing, Inc. (1) 
 10,000
 (1,000) 
 
 9,000
 6
 550
banc-serv Partners, LLC 5,400
 
 
 
 (2,000) 3,400
 
 
CDS Business Services, Inc. 3,440
 15,703
 (10,498) 
 4,750
 13,395
 376
 200
Small Business Lending, LLC 3,300
 
 
 
 (800) 2,500
 
 100
Newtek Insurance Agency, LLC 2,500
 
 
 
 
 2,500
 
 
PMTWorks Payroll, LLC 2,045
 1,000
 
 
 (3,045) 
 
 
Titanium Asset Management LLC 508
 
 (466) 
 (42) 
 6
 
Excel WebSolutions, LLC 904
 
 (368) 
 (47) 489
 56
 
SIDCO, LLC 
 2,665
 
 
 
 2,665
 2
 
Summit Systems and Designs, LLC 
 
 
 
 
 
 54
 
Secure CyberGateway Services, LLC 
 
 
 
 
 
 10
 26
Total Controlled Investments $122,206
 $29,368
 $(12,382) $
 $(2,243) $136,949
 $510
 $7,326


Debt Securities Available-for-Sale
(1) Refer to Note 3 for discussion
The following tables summarize the amortized cost and fair value of investment in IPM.available-for-sale securities by major type as of March 31, 2024 and December 31, 2023:


Prior to January 2017, EWS
March 31, 2024December 31, 2023
Amortized CostUnrealized GainsUnrealized LossesFair ValueAmortized CostUnrealized GainsUnrealized LossesFair Value
U.S. Treasury notes$25,319 $— $87 $25,232 $29,372 $— $67 $29,305 
Government agency debentures3,000 1052,895 3,000 1342,866 
Total available for sale securities$28,319 $— $192 $28,127 $32,372 $— $201 $32,171 
As of March 31, 2024 and December 31, 2023, there was a non-control/non-affiliate investment. During the nine months ended September 30, 2017, the Company exercised warrants to purchase a 50% membership$13.9 thousand and $0.2 million of accrued interest in EWS. Interest, fees, and dividends attributable to the investment in EWS that were credited to income prior to January 2017 arereceivable on available-for-sale securities, respectively, included in investment income from non-affiliate investments onOther assets in the condensed consolidated statementsaccompanying Consolidated Statements of operations.Financial Condition.


During the three months ended September 30, 2017,March 31, 2024 and 2023, no securities were sold or settled.

Unrealized Losses

The following tables summarize the gross unrealized losses and fair value of available-for-sale securities by length of time each major security type has been in a portioncontinuous unrealized loss position:

March 31, 2024
Less Than 12 Months12 Months or MoreTotal
Fair ValueUnrealized LossesFair ValueUnrealized LossesNumber of Holdings Fair ValueUnrealized Losses
U.S. Treasury notes$25,232 $(87)$— $— $25,232 $(87)
Government agency debentures2,895 (105)— — 2,895 (105)
Total$28,127 $(192)$— $— $$28,127 $(192)

December 31, 2023
Less Than 12 Months12 Months or MoreTotal
Fair ValueUnrealized LossesFair ValueUnrealized LossesNumber of Holdings Fair ValueUnrealized Losses
U.S. Treasury notes$29,305 $67 $— $— $29,305 $67 
Government agency debentures2,866 134 — — 2,867 134 
Total$32,171 $201 $— $— $$32,172 $201 

Management evaluates available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. The evaluation considers the extent to which the security’s fair value is less than cost, the financial condition and near-term prospects of IPM’s business was spun off intothe issuer, and intent and ability of the Company to retain its investment in the security for a new wholly-owned controlledperiod of time sufficient to allow for any anticipated recovery in fair value. These unrealized losses are primarily the result of non-credit-related volatility in the market and market interest rates. Since none of the unrealized losses relate to marketability of the securities or the issuers' ability to honor redemption obligations and the Company has the intent and ability to hold the securities for a sufficient period of time to recover unrealized losses, none of the losses have been recognized in the Company’s Consolidated Statements of Income.

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Contractual Maturities

The following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity:

March 31, 2024At December 31, 2023
Amortized CostFair ValueAmortized CostFair Value
Maturing within 1 year$16,713 $16,588 $32,372 $32,171 
After 1 year through 5 years11,606 11,539 — — 
Total available for sale securities$28,319 $28,127 $32,372 $32,171 

Other information

The following table summarizes Newtek Bank’s available-for-sale securities pledged for deposits, borrowings, and other purposes:

March 31, 2024December 31, 2023
Pledged for deposits$— $— 
Pledged for borrowings and other28,127 30,730 
Total available for sale securities pledged$28,127 $30,730 


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NOTE 5—LOANS:

Loans held for investment (HFI)

Loans held for investment (HFI) included SBA 7(a) loans originated by NSBF and Newtek Bank, as well as CRE and C&I loans originated by Newtek Bank. The following tables shows the Company’s loan portfolio company, SIDCO. As a result,by industry for loans held for investment, at fair value and loans held for investment, at amortized cost:

Loans Held for Investment, at Fair Value
March 31, 2024December 31, 2023
CostFair ValueCostFair Value
Food Services and Drinking Places$41,147 $41,361 $43,779 $43,955 
Specialty Trade Contractors39,276 34,659 40,193 35,451 
Professional, Scientific, and Technical Services34,584 33,734 36,248 35,377 
Ambulatory Health Care Services26,757 25,373 27,291 26,633 
Amusement, Gambling, and Recreation Industries18,923 20,281 21,289 22,839 
Administrative and Support Services20,521 18,847 21,319 19,521 
Merchant Wholesalers, Durable Goods19,815 18,476 21,873 21,152 
Repair and Maintenance15,513 16,584 15,886 17,005 
Merchant Wholesalers, Nondurable Goods13,841 13,662 15,623 15,573 
Personal and Laundry Services12,612 13,320 12,867 13,584 
Fabricated Metal Product Manufacturing11,825 12,608 12,439 13,205 
Truck Transportation15,138 11,156 15,590 12,113 
Construction of Buildings9,715 9,810 9,868 9,890 
Accommodation9,213 9,668 9,259 10,162 
Social Assistance8,730 9,547 8,857 9,721 
Food Manufacturing10,160 8,573 10,233 8,714 
Motor Vehicle and Parts Dealers8,055 8,358 9,046 9,382 
Transportation Equipment Manufacturing7,619 7,974 7,687 7,999 
Support Activities for Mining7,942 7,290 8,455 7,754 
Food and Beverage Stores6,750 7,058 7,026 7,306 
Rental and Leasing Services6,657 7,054 6,764 7,178 
Nursing and Residential Care Facilities6,126 6,581 6,182 6,709 
Building Material and Garden Equipment and Supplies Dealers5,876 5,750 7,384 6,781 
Educational Services5,148 5,356 5,368 5,636 
Other95,638 89,848 102,037 96,161 
Total$457,581 $442,928 $482,563 $469,801 


Loans Held for Investment, at Amortized Cost
March 31, 2024December 31, 2023
SBA$214,038 $163,918 
CRE169,869 163,803 
C&I13,404 8,191 
Total Loans397,311 335,912 
Deferred fees and costs, net314 393 
Loans held for investment, at amortized cost, net of deferred fees and costs$397,625 $336,305 

27

Past Due and Non-Accrual Loans

The following tables summarize the underlying IPM business has not changed. aging of accrual and non-accrual loans by class:
As of March 31, 2024
30-59 Days Past Due and Accruing60-89 Days Past Due and Accruing
90 or more Days Past Due and Accruing(1)
Non- accrualTotal past Due and Non-accrualCurrentTotal Carried at Amortized CostTotal Loans Accounted for Under the Fair Value OptionTotal Loans Held for Investment
At amortized cost
SBA$9,818 $— $— $2,017 $11,835 $202,203 $214,038 $— $214,038 
CRE326 946 — 5,998 7,270 162,599 169,869 — 169,869 
C&I— — — — — 13,404 13,404 — 13,404 
Total, at amortized cost$10,144 $946 $— $8,015 $19,105 $378,206 $397,311 $— $397,311 
Deferred fees and costs314 — 314 
Total, at amortized cost net of deferred fees and costs$397,625 $— $397,625 
Allowance for credit losses(16,126)— (16,126)
Total, at amortized cost, net$381,499 $— $381,499 
At fair value
SBA$61,314 $548 $3,829 $46,001 $111,692 $331,236 $— $442,928 $442,928 
Total loans held for investment$71,458 $1,494 $3,829 $54,016 $130,797 $709,442 $381,499 $442,928 $824,427 
1Represents loans that are considered well secured and in the process of collection.
As of December 31, 2023
30-59 Days Past Due and Accruing60-89 Days Past Due and Accruing90 or more Days Past Due and AccruingNon- accrualTotal past Due and Non-accrualCurrentTotal Carried at Amortized CostTotal Loans Accounted for Under the Fair Value OptionTotal Loans Held for Investment
At amortized cost
SBA$3,637 $311 $— $752 $4,700 $159,218 $163,918 $— $163,918 
CRE948 — — 4,621 5,569 158,234 163,803 — 163,803 
C&I— — — — — 8,191 8,191 — 8,191 
Total, at amortized cost$4,585 $311 $— $5,373 $10,269 $325,643 $335,912 $— $335,912 
Deferred fees and costs393 393 
Total, at amortized cost net of deferred fees and costs$336,305 $— $336,305 
Allowance for credit losses(12,574)— (12,574)
Total, at amortized cost, net$323,731 $— $323,731 
At fair value
SBA$20,380 $16,075 $— $48,174 $84,629 $385,172 $— $469,801 $469,801 
Total loans held for investment$24,965 $16,386 $— $53,547 $94,898 $710,815 $323,731 $469,801 $793,532 


28

Credit Quality Indicators

The Company uses internal loan reviews to assess the performance of individual loans. In addition, an independent review of the loan portfolio is performed annually by an external firm. The goal of the Company’s annual review of each borrower’s financial performance is to validate the adequacy of the risk grade assigned.

The Company uses a grading system to rank the quality of each loan and lease. The grade is periodically evaluated and adjusted as performance dictates. Loan and lease grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 7 represent classified loans in Newtek Bank’s portfolio. The following guidelines govern the assignment of these risk grades:

Exceptional (1 Rated): These loans are of the highest quality, with strong, well-documented sources of repayment. These loans and leases will typically have multiple demonstrated sources of repayment with no significant identifiable risk to collection, exhibit well-qualified management, and have liquid financial statements relative to both direct and indirect obligations.

Quality (2 Rated): These loans are of very high credit quality, with strong, well-documented sources of repayment. These loans and leases exhibit very strong, well defined primary and secondary sources of repayment, with no significant identifiable risk of collection and have internally generated cash flow that more than adequately covers current maturities of long-term debt.

Satisfactory (3 Rated): These loans exhibit satisfactory credit risk and have excellent sources of repayment, with no significant identifiable risk of collection. These loans and leases have documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. They have adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor.

Acceptable (4 Rated): These loans show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans and leases may have unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected performance. They may also contain marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and
liquidation value to the net worth of the borrower or guarantor.

Special mention (5 Rated): These loans show signs of weaknesses in either adequate sources of repayment or collateral. These loans and leases may contain underwriting guideline tolerances and/or exceptions with no mitigating factors; and/or instances where adverse economic conditions develop subsequent to origination that do not jeopardize liquidation of the debt but substantially increase the level of risk.

Substandard (6 Rated): Loans graded Substandard are inadequately protected by current sound net worth, paying capacity of the obligor, or pledged collateral. Loans and leases classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans and leases are consistently not meeting the repayment schedule.

Doubtful (7 Rated): Loans graded Doubtful have all the weaknesses inherent in those classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Once the loss position is determined, the cost basisamount is charged off.

Loss (8 Rated): Loss rated loans are considered uncollectible and of its investmentssuch little value that their continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this credit even though partial recovery may be affected in IPMthe future.

29

The following tables present asset quality indicators by portfolio class and SIDCO to be $8,800,000origination year as of March 31, 2024.

Term Loans Held for Investment by Origination Year
20242023202220212020PriorTotal
SBA 7(a) Unguaranteed, net of deferred fees and costs
Risk Grades 1-4$50,645 $154,273 $— $— $— $— $204,918 
Risk Grades 5-6771 8,349 — — — — 9,120 
Risk Grade 7— — — — — — — 
Risk Grade 8— — — — — — — 
Total$51,416 $162,622 $— $— $— $— $214,038 
SBA, at fair value
Risk Grades 1-4$— $33,261 $145,730 $50,577 $26,696 $134,400 $390,664 
Risk Grades 5-6— 325 9,564 6,090 1,276 34,098 51,353 
Risk Grade 7— — — — — — — 
Risk Grade 8— — 149 17 22 723 911 
Total$— $33,586 $155,443 $56,684 $27,994 $169,221 $442,928 
CRE
Risk Grades 1-4$10,101 $26,144 $33,519 $16,555 $399 $74,091 $160,809 
Risk Grades 5-6— — — 686 870 7,504 9,060 
Risk Grade 7— — — — — — — 
Total$10,101 $26,144 $33,519 $17,241 $1,269 $81,595 $169,869 
C&I
Risk Grades 1-4$2,901 $8,486 $— $— $— $2,017 $13,404 
Risk Grades 5-6— — — — — — — 
Risk Grade 7— — — — — — — 
Total$2,901 $8,486 $— $— $— $2,017 $13,404 
Total$64,418 $230,838 $188,962 $73,925 $29,263 $252,833 $840,239 
30

The following tables present asset quality indicators by portfolio class and $2,320,000, respectively. Refer to Note 3.origination year as of December 31, 2023:


Related Party Transactions
December 31, 202320232022202120202019PriorTotal
SBA 7(a) Unguaranteed, net of deferred fees and costs
Risk Grades 1-4$161,263 $— $— $— $— $— $161,263 
Risk Grades 5-62,655 — — — — — 2,655 
Risk Grade 7— — — — — — — 
Risk Grade 8— — — — — — — 
Total$163,918 $— $— $— $— $— $163,918 
SBA, at fair value
Risk Grades 1-4$34,289 $151,929 $53,998 $27,870 $52,175 $94,751 $415,012 
Risk Grades 5-6349 8,968 5,813 1,257 11,764 25,727 53,878 
Risk Grade 7— — — — — — — 
Risk Grade 8— 149 17 22 16 707 911 
Total$34,638 $161,046 $59,828 $29,149 $63,955 $121,185 $469,801 
CRE
Risk Grades 1-4$53,567 $28,224 $14,590 $— $8,888 $49,771 $155,040 
Risk Grades 5-6— — 948 910 2,284 4,621 8,763 
Risk Grade 7— — — — — — — 
Total$53,567 $28,224 $15,538 $910 $11,172 $54,392 $163,803 
C&I
Risk Grades 1-4$6,174 $— $— $— $— $2,017 $8,191 
Risk Grades 5-6— — — — — — — 
Risk Grade 7— — — — — — — 
Total$6,174 $— $— $— $— $2,017 $8,191 
Total$258,297 $189,270 $75,366 $30,059 $75,127 $177,594 $805,713 


Note Payable - Related Parties

Allowance for Credit Losses
In June 2015, the Company entered into
See NOTE 2—SIGNIFICANT ACCOUNTING POLICIES for a Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance bears interest at a rate equal to (a) LIBOR (with a floor of 0.50%) plus (b) 6% or at a rate equal to (y) the greaterdescription of the Prime Rate or 3.5% plus (z) 5%. At September 30, 2017,methodologies used to estimate the Related Party RLOC bears interest at a rate of 7.31%. ACL.

The Related Party RLOC has a maturity date of June 21, 2021. Outstanding borrowings from UPSW and NTS at September 30, 2017 were $20,541,000.
Interest expense incurred underfollowing table details activity in the Related Party RLOCACL for the three months ended September 30, 2017March 31, 2024 and 2016 was $378,000 and $19,000, respectively. Interest expense incurred under2023.

March 31, 2024March 31, 2023
CREC&ISBATotalCREC&ISBATotal
Beginning Balance$1,408 $314 $10,852 12,574 $— $— $— — 
Adjustment to Beginning Balance due to PCD marks1
— — — 775 96 — 871 
Charge offs— — (370)(370)— — — — 
Recoveries— — — — — — — — 
Provision for Credit Losses2
(130)(17)4,069 3,922 1,185 127 1,318 
Total$1,278 $297 $14,551 $16,126 $1,960 $223 $$2,189 
1 Given the Related Party RLOCJanuary 6, 2023 transition to a financial holding company, the Company established an ACL representing the purchased credit deteriorated loans acquired through the NBNYC Acquisition.
2 Excludes $93 thousand of the Provision for Credit Losses relating to unfunded commitments for the ninethree months ended September 30, 2017March 31, 2024, which is recorded within accounts payable, accrued expenses and 2016 was $418,000 and $196,000, respectively.other liabilities in accordance with ASC 326.

31



Expenses Incurred from Controlled Portfolio Companies

The Company incursidentified twelve and five loans as of March 31, 2024 and December 31, 2023, respectively, that did not share similar risk characteristics with the loan segments identified in NOTE 2—SIGNIFICANT ACCOUNTING POLICIES and evaluated them for impairment individually.

The following table presents the individually evaluated and collectively evaluated ACL by segment:

March 31, 2024December 31, 2023
ACLCREC&ISBATotalCREC&ISBATotal
Individually Evaluated$— $— $711 $711 $— $— $102 $102 
Collectively Evaluated1,278 297 13,840 15,415 1,408 314 10,750 12,472 
Total$1,278 $297 $14,551 $16,126 $1,408 $314 $10,852 $12,574 

The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment:

March 31, 2024December 31, 2023
Recorded InvestmentCREC&ISBATotalCREC&ISBATotal
Individually Evaluated$5,998 $— $1,881 $7,879 $4,621 $— $727 $5,348 
Collectively Evaluated163,871 13,404 212,157 389,432 159,182 8,191 163,191 330,564 
Total$169,869 $13,404 $214,038 $397,311 $163,803 $8,191 $163,918 $335,912 

The amortized cost basis of loans on nonaccrual status and the individually assessed ACL are as follows:

March 31, 2024December 31, 2023
Nonaccrual without AllowanceNonaccrual with AllowanceACLNonaccrual without AllowanceNonaccrual with AllowanceACL
SBA$710 $1,171 $711 $625 $102 $102 
CRE5,998 — — 4,621 — — 
Total$6,708 $1,171 $711 $5,246 $102 $102 

The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type:

March 31, 2024December 31, 2023
Real Estate CollateralUnsecuredTotalACLReal Estate CollateralUnsecuredTotalACL
SBA$625 $1,256 $1,881 $711 $625 $102 $727 $102 
CRE5,998 — 5,998 — 4,621 — 4,621 — 
     Total$6,623 1,256 7,879 711 $5,246 102 5,348 102 

Accrued interest on loans totaled $13.7 million as of March 31, 2024, and is excluded from the estimate of credit losses. The Company writes off accrued interest receivable by reversing interest income and typically occurs upon loans becoming 90 to 120 days past due.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The Company did not make any loan modifications to borrowers experiencing financial difficulty that would require disclosure, such as principal forgiveness, term extension, or interest rate reductions during the three months ended March 31, 2024 and 2023. Additionally there were no troubled debt restructurings under legacy U.S. GAAP during the three months ended March 31, 2024 and 2023.

32

Loans held for sale
March 31, 2024December 31, 2023
At FVAt LCMAt FVAt LCM
SBA 504 First Lien$83,571 $39,381 $66,387 $38,787 
SBA 504 Second Lien28,102 6,850 20,757 5,741 
SBA 7(a)261 3,181 262 64 
SBA 7(a) Partials192 9,609 104 11,237 
ALP74,978 — 31,357 — 
Subtotal187,104 59,021 118,867 55,829 
Deferred fees and costs— 859 — 778 
Loans held for sale, net of deferred fees and costs$187,104 $59,880 $118,867 $56,607 

NOTE 6—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Due to/from affiliated companies

The following table summarizes the amounts due to and due from affiliated companies as of March 31, 2024 and December 31, 2023:

March 31, 2024December 31, 2023
Due to affiliated companies1
$172 $158 
Due from affiliated companies2
53 
Total due to/due from affiliated companies$119 $151 
1 Included within Other Assets
2 Included within Accounts payable, accrued expenses, and other Liabilities

Transactions with joint ventures and non-control investments

Refer to NOTE 4—INVESTMENTS for a schedule of transactions with our joint ventures and non-control equity investments.

The following table summarizes the income earned from our joint ventures for the periods ended March 31, 2024 and 2023:

Three Months Ended March 31,
20242023
Servicing income$348 $252 

Newtek Bank Deposits

In the normal course of business, Newtek Bank holds FDIC insured deposits from certain controlled portfolio companies including managed technology servicesof the Company’s officers, directors and their associated companies. The following table summarizes the amounts due of deposits from NTS, loan processing and closing expenses from various related parties and payroll processing fees from NPS.
  Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Managed technology services $186
 $297
 $656
 $747
Loan related processing and auditing fees 101
 6
 139
 21
Referral fees 54
 8
 82
 8
Payroll processing 10
 9
 29
 26
Total $351
 $320
 906
 802

Beginning in April 2016, the Company began sub-leasing portionstheir affiliated companies as of its office space in Lake Success, New York to certain portfolio companies. Amounts charged were as follows:

Portfolio Company Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Universal Processing Services of Wisconsin, LLC $39
 $6
 $110
 $17
Small Business Lending, LLC 19
 34
 61
 76
Newtek Insurance Agency, LLC 23
 23
 63
 31
CDS Business Services, Inc. 15
 25
 47
 59
Premier Payments LLC 10
 19
 35
 40
PMTWorks Payroll, LLC 12
 8
 37
 19
Titanium Asset Management LLC 6
 
 13
 
Total $124
 $115
 $366
 $242

Amounts due from related parties were $2,553,000 and $3,748,000 at September 30, 2017March 31, 2024 and December 31, 2016, respectively. Amounts due to related parties were $812,000 and $1,227,000 at September 30, 2017 and December 31, 2016, respectively.2023:


Managerial Assistance Fees from Controlled Investments
March 31, 2024December 31, 2023
FDIC insured deposits$4,316 $4,388 
Non-FDIC insured deposits1,178 1,167 
Total deposits from related parties and their affiliated companies$5,494 $5,555 


The Company offers managerial assistance to all portfolio companies and currently provides managerial assistance to certain controlled portfolio companies. Amounts are charged based on estimates of time and effort spent by certain employees providing managerial services for certain controlled portfolio companies. Fees are recorded on a quarterly basis, are recurring in nature and are charged at an arm’s length basis. The table below summarizes amounts charged to each controlled portfolio company for the three and nine months ended September 30, 2017 and 2016. The amounts are recorded as a credit to salaries and benefits in the condensed consolidated statements of operations.



33

Portfolio Company Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Universal Processing Services of Wisconsin, LLC $101
 $112
 $314
 $347
Newtek Technology Solutions, Inc. 138
 160
 407
 519
Newtek Insurance Agency, LLC 57
 52
 161
 187
Small Business Lending, LLC 85
 108
 279
 427
Premier Payments LLC 38
 56
 135
 142
International Professional Marketing, Inc. 33
 
 52
 
banc-serv Partners, LLC 52
 58
 150
 58
CDS Business Services, Inc. 9
 
 19
 
SIDCO, LLC 20
 
 35
 
Summit Systems and Designs, LLC 
 5
 10
 15
Secure CyberGateway Services, LLC 
 
 2
 
PMTWorks Payroll, LLC 18
 26
 63
 79
Total $551
 $577
 $1,627
 $1,774
Table of Contents

NOTE 5—7—SERVICING ASSETS:
At September 30, 2017Servicing assets held by NSBF and December 31, 2016, servicing assetsNewtek Bank, including Newtek Bank’s subsidiary SBL, are measured at fair value.value and lower of cost or market, respectively. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells. As of March 31, 2024 the Company services $1.9 billion in SBA 7(a) loans and $88.6 million in ALP loans. Refer to NOTE 9—FAIR VALUE MEASUREMENTS for a rollforward of servicing assets at fair value.
The following tabletables summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2017March 31, 2024 and December 31, 2016:2023:
March 31, 2024December 31, 2023
WeightedRangeWeightedRange
Unobservable InputAmountAverageMinimumMaximumAmountAverageMinimumMaximum
Servicing Assets at FV:$27,601 $29,336 
Discount factor1
13.50 %13.50 %13.50 %13.50 %13.50 %13.50 %
Cumulative prepayment rate22.50 %22.50 %22.50 %22.50 %22.50 %22.50 %
Average cumulative default rate19.00 %19.00 %19.00 %19.00 %19.00 %19.00 %
Servicing Assets at LCM:13,571 10,389 
Discount factor1
13.50 %13.50 %13.50 %13.50 %13.50 %13.50 %
Cumulative prepayment rate30.41 %22.50 %75.00 %29.76 %22.50 %75.00 %
Average cumulative default rate19.15 %19.00 %20.00 %19.14 %19.00 %20.00 %
Total$41,172 $39,725 
 September 30, 2017 December 31, 2016
Fair Value$19,092
 $16,246
Discount factor (1)12.20% 12.03%
Cumulative prepayment rate18.50% 15.50%
Average cumulative default rate20.00% 20.00%
(1)1 Determined based on risk spreads and observable secondary market transactions.

Servicing fee income earned for the three months ended September 30, 2017March 31, 2024 and 20162023 was $1,794,000$5.4 million and $1,551,000, respectively. Servicing fee income earned for the nine months ended September 30, 2017 and 2016 was $5,163,000 and $4,581,000,$4.4 million, respectively.

34

NOTE 6—FAIR VALUE MEASUREMENTS:8—GOODWILL AND INTANGIBLE ASSETS:


Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management uses various valuation approaches, all of which have been approved by the Company’s Board. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

Goodwill

The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The levels of the fair value hierarchy are as follows:

Level 1Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.
Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the nine months ended September 30, 2017 or 2016. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. 

When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities,table summarizes changes in the interest rate environment andcarrying amount of goodwill:

March 31, 2024December 31, 2023
Banking$271 $271 
Payments13,814 $13,814 
Technology11,800 $11,800 
Total goodwill$25,885 $25,885 

Banking:

In connection with the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary methods for determining enterprise value include a discounted cash flow analysis and a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA or revenue. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired,Acquisition, the Company will userecorded $0.3 million of goodwill, which represents the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired,excess of the Company uses a market interest rate yield analysis to determine fair value. 

In addition, for certain debt investments, the Company may base its valuation on quotes provided by an independent third party broker. 

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value,purchase price over the fair value of the investments may differ significantlynet assets acquired. Goodwill is an asset representing the acquired future economic benefits such as synergies that are not individually identified and separately recognized (i.e., it is measured as a residual). The amount of goodwill recognized is also impacted by measurement differences resulting from certain assets and liabilities not being recorded at fair value (e.g., income taxes, employee benefits). In accordance with ASC 805-30-30-1, the values that would have been used had a ready market existed for such investments and may differ materially frommeasurement of goodwill occurs on the values that may ultimately be received or settled. Further, such investments are generally subject to legalAcquisition Date and, other restrictions or otherwisethan qualifying measurement period adjustments, no adjustments are less liquid than publicly traded instruments. Ifmade to goodwill recognized as of the Acquisition Date until and unless it becomes impaired.

Payments and Technology:

The goodwill in the payments and technology segments was generated from acquisitions prior to 2022 by the legal entities within those segments.

Intangible Assets

The following table summarizes intangible assets:

At March 31, 2024At December 31, 2023
Gross carrying AmountAccumulated AmortizationNet Carrying amountGross carrying AmountAccumulated AmortizationNet Carrying amount
Core Deposits$1,040 $(243)$797 $1,040 $(197)$843 
Payments Customer Lists— — — 8,575 (8,562)13 
Technology Customer Lists6,525 (3,263)3,262 6,525 (3,146)3,379 
Total intangible assets$7,565 $(3,506)$4,059 $16,140 $(11,905)$4,235 

As of March 31, 2024 and December 31, 2023, the Company were requiredhad $3.3 million and $3.4 million, respectively, of intangible assets relating to liquidatecustomer lists. In addition, The Company had $0.8 million and $0.8 million on core deposits at Newtek Bank as of March 31, 2024 and December 31, 2023, respectively.

Core Deposit Intangible. CDI is a portfolio investmentmeasure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a forced or liquidation sale,business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company may realize significantly less thanevaluates such identifiable intangibles for impairment when an indication of impairment exists.

Customer Lists. The intangible asset for customer lists are within the value at which such investment had previouslytechnology segment and existed prior to the consolidation of the technology segment into NewtekOne following the 2023 Acquisition. The payments customer list has been recorded. disposed of.



35

Amortization expense for the three months ended March 31, 2024 and 2023 was $0.2 million and $0.4 million, respectively, and is included in Depreciation and amortization on the Consolidated Statements of Income.

The Company’s investments are subject to market risk. Market riskremaining estimated aggregate future amortization expense for intangible assets as of March 31, 2024 is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.as follows:


Amortization Expense
2024$480 
2025622 
2026601 
2027580 
2028560 
Thereafter1,216 
Total$4,059 


36

NOTE 9—FAIR VALUE MEASUREMENTS:

The following tables present fair value measurements of certain of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of September 30, 2017March 31, 2024 and December 31, 2016:2023:
 Fair Value Measurements at March 31, 2024
TotalLevel 1Level 2Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes$25,232 $25,232 $— $— 
Government agency debentures2,895 — 2,895 — 
Loans held for sale, at fair value187,104 — — 187,104 
Loans held for investment, at fair value442,928 — — 442,928 
Other real estate owned 1
2,438 — — 2,438 
Non-controlled/affiliate investments728 — — 728 
Servicing assets27,601 — — 27,601 
Joint ventures48,247 — — 48,247 
Total assets measured at fair value$737,173 $25,232 $2,895 $709,046 
Liabilities:
Equity warrants3
$76 $— $— $76 
Derivative instruments2,3
38 — 38 — 
Total liabilities measured at fair value$114 $— $38 $76 
 Fair Value Measurements at September 30, 2017 Using:
 Total Level 1 Level 2 Level 3
Assets:       
Investments in money market funds$9
 $9
 $
 $
SBA unguaranteed non-affiliate investments257,136
 
 
 257,136
SBA guaranteed non-affiliate investments24,088
 
 24,088
 
Controlled investments136,949
 
 
 136,949
Other real estate owned (1)890
 
 890
 
Servicing assets19,092
 
 
 19,092
Total assets$438,164
 $9
 $24,978
 $413,177
Liabilities:       
Contingent consideration liabilities (2)$620
 $
 $
 $620

(1)1 Included in Other Assets on the Condensed Consolidated Statements of Assets and LiabilitiesFinancial Condition.

2 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(2) 3 Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Condensed Consolidated Statements of Assets and Liabilities. Refer to Note 3.Financial Condition.


The change in unrealized appreciation (depreciation) included in the condensed consolidated statements of operations attributable to Level 3 investments held at September 30, 2017 includes $238,000 in unrealized appreciation on SBA unguaranteed non-affiliate investments, $2,243,000 in unrealized depreciation on controlled investments and $1,601,000 in unrealized depreciation on servicing assets.
 Fair Value Measurements at December 31, 2023
TotalLevel 1Level 2Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes$29,305 $29,305 $— $— 
Government agency debentures2,866 — 2,866 — 
Loans held for sale, at fair value118,867 — — 118,867 
Loans held for investment, at fair value469,801 — — 469,801 
Other real estate owned 1
1,110 — — 1,110 
Non-controlled/affiliate investments728 — — 728 
Servicing assets29,336 — — 29,336 
Joint ventures40,859 — — 40,859 
Total assets measured at fair value$692,872 $29,305 $2,866 $660,701 
Liabilities:
Equity warrants3
$141 $— $— $141 
Derivative instruments2,3
630 — 630 — 
Total liabilities measured at fair value$771 $— $630 $141 

 Fair Value Measurements at December 31, 2016 Using:
 Total Level 1 Level 2 Level 3
Assets:       
Investments in money market funds$35
 $35
 $
 $
SBA unguaranteed non-affiliate investments211,471
 
 
 211,471
SBA guaranteed non-affiliate investments11,512
 
 11,512
 
Controlled investments121,302
 
 
 121,302
Other real estate owned (1)875
 
 875
 
Non-control/Non-affiliate investments904
 
 
 904
Servicing assets16,246
 
 
 16,246
Total assets$362,345
 $35
 $12,387
 $349,923

(1)1 Included in Other Assets on the Condensed Consolidated Statements of Assets andFinancial Condition.
2 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
3 Included in Other Liabilities on the Consolidated Statements of Financial Condition.


37

The following tabletables represents the changes in the investments, and servicing assets and liabilities measured at fair value using Level 3 inputs for the ninethree months ended September 30, 2017March 31, 2024 and 2016:2023:

Three Months Ended March 31, 2024
Loans HFI,
at FV
Loans HFS,
at FV
Joint VenturesServicing AssetsNon-Control Investments
Warrant Liabilities2
Other Real Estate Owned1
Fair value, December 31, 2023$469,801 $118,867 $40,859 $29,336 $728 $141 $1,110 
Sales(1,848)(31,323)— — — — (74)
Principal payments received(21,713)(166)— — — — — 
Foreclosed real estate acquired(1,447)— — — — — 1,447 
SBA loans, funded27 4,203 — — — — — 
ALP loans, funded— 66,905 — — — — — 
Mortgage loans, funded— 24,179 — — — — — 
Capital contributions/(distributions)— — 7,243 — — — — 
Change in valuation due to:
Changes in valuation inputs or assumptions— 4,426 145 — — (65)— 
Other factors(1,892)13 — (1,735)— — (45)
Fair value, March 31, 2024$442,928 $187,104 $48,247 $27,601 $728 $76 $2,438 

1 Included in Other Assets on the Consolidated Statements of Financial Condition.
2 Included in Other Liabilities on the Consolidated Statements of Financial Condition.

Three Months Ended March 31, 2023
Loans HFI, at FVLoans HFS,
at FV
Controlled InvestmentsJoint VenturesServicing AssetsNon-Control Investments
Warrant Liabilities2
Other Real Estate Owned1
Fair value, Fair value, December 31, 2022$505,268 $19,171 $259,217 $23,022 $30,268 $1,360 $— $3,529 
Removal of new entities consolidating in current period— 69,745 (259,217)— — — — — 
Reclass of Loans HFS to HFI8,745 (8,745)— — — — — — 
Change in valuation due to:
Changes in valuation inputs or assumptions— — — 2,000 2,654 — (162)— 
Other factors6,077 (172)— — (1,735)— — (45)
Realized gain (loss)(7,532)11,877 — — — — — — 
SBA investments, funded36,859 132,753 — — — — — — 
ALP loans, funded— 12,150 — — — — — — 
Mortgage loans, funded— 11,855 — — — — — — 
Foreclosed real estate acquired(694)— — — — — — 673 
Purchases and repurchases of loans5,797 32,534 — — — — — — 
Sales— (154,184)— — — — — (641)
Principal payments received(21,732)(1,345)— — — — — — 
Additions— — — — 2,164 — 311 — 
Fair Value, March 31, 2023$532,788 $125,639 $— $25,022 $33,351 $1,360 $149 $3,516 
1 Included in Other Assets on the Consolidated Statements of Financial Condition.
2 Included in Other Liabilities on the Consolidated Statements of Financial Condition.

38

 Nine Months Ended September 30, 2017
 SBA Unguaranteed Investments Controlled Investments Servicing Assets Non-Control/Non-Affiliate Investments Contingent Consideration Liabilities
Fair value, December 31, 2016$211,471
 $121,302
 $16,246
 $904
 $
Net change in unrealized appreciation (depreciation)238
 (2,243) (1,601) 
  
Realized loss(131) 
 
 
 
SBA unguaranteed non-affiliate investments, funded62,185
 
 
 
 
Foreclosed real estate acquired(212) 
 
 
 
Purchase of investments
 29,366
 
 3,255
 
Purchase of loan from SBA3,821
 
 
 
 
Transfer of Excel WebSolutions, LLC from Non-control/Non-affiliate to Controlled Investments
 904
 
 (904) 
Record fair value of contingent consideration liabilities
 
 
 
 1,368
Change in fair value of contingent consideration liabilities
 
 
 
 (748)
Purchase of loan portfolio175
 
 
 
 
Net accretion of premium/discount19
 
 
 
 
Return of investment
 (50) 
 
 
Principal payments received on debt investments(20,430) (12,330) 
 (3,255) 
Additions to servicing assets
 
 4,447
 
 
Fair value, September 30, 2017$257,136
 $136,949
 $19,092
 $
 $620

 Nine Months Ended September 30, 2016
 SBA Unguaranteed Investments Controlled Investments Non-Control/Non-Affiliate Investments Servicing Assets
Fair value, December 31, 2015$158,355
 $104,376
 $1,824
 $13,042
Net change in unrealized appreciation (depreciation)869
 10,362
 (43) (1,341)
Realized loss(763) 
 
 
SBA unguaranteed non-affiliate investments, funded51,567
 
 
 
Foreclosed real estate acquired(387) 
 
 
Purchase of investments
 6,275
 1,020
 
Transfer from due from related parties
 435
 
 
Transfer of Titanium Asset Management LLC from Non-control/Non-affiliate to Controlled Investments
 1,146
 (1,146) 
Purchase of loan from SBA2,057
 
 
 
Principal payments received on debt investments(15,074) (2,174) (635) 
Additions to servicing assets
 
 
 3,918
Fair value, September 30, 2016$196,624
 $120,420
 $1,020
 $15,619


The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2017March 31, 2024 and December 31, 2016.2023. In addition to the techniques and inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at September 30, 2017March 31, 2024 and December 31, 2016.2023.



Fair Value as ofWeightedRange
March 31, 2024Unobservable InputAverageMinimumMaximum
Assets:
HFI, at fair value - accrual loans$396,927 Market yields7.75 %7.75 %7.75 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate19.00 %19.00 %19.00 %
HFI, at fair value - non-accrual loans$46,001 Market yields7.50 %7.50 %7.50 %
Cumulative prepayment rate— %— %— %
Average cumulative default rate30.00 %30.00 %30.00 %
HFS, at fair value$187,104 Market yields7.68 %7.21 %8.12 %
Cumulative prepayment rate61.03 %55.60 %75.00 %
Average cumulative default rate20.00 %20.00 %20.00 %
Joint ventures$48,247 Market yields8.30 %8.30 %8.30 %
Cost of equity12.00 %10.00 %14.00 %
Weighted average cost of capital8.50 %7.50 %9.50 %
Non-control equity investments$368 Market yields10.00 %8.00 %12.00 %
$360 Cost basisN/AN/AN/A
Servicing assets1
$27,601 Market yields13.50 %13.50 %13.50 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate19.00 %19.00 %19.00 %
Other real estate owned$2,438 Appraised valueN/AN/AN/A
Liabilities:
Equity warrants$76 Expected volatility44.00 %44.00 %44.00 %
Dividend yield6.90 %6.90 %6.90 %
Risk free rate4.20 %4.20 %4.20 %
1 $27.6 million of servicing assets at held at FV and $13.6 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.
39

          Range
  Fair Value as of September 30, 2017 Valuation Techniques Unobservable Input Weighted Average Minimum Maximum
Assets:            
SBA unguaranteed non-affiliate investments - performing loans $247,347
 Discounted cash flow Market yields 5.50% 5.50% 5.50%
SBA unguaranteed non-affiliate investments - non-performing loans $9,789
 Discounted cash flow Market yields 5.53% 5.53% 5.53%
Controlled equity investments (A)(B) $128,020
 Market comparable companies EBITDA multiples (B) 5.80x
 3.50x
 6.62x
    Market comparable companies Revenue multiples (B) 1.11x
 0.22x
 2.49x
    Discounted cash flow Weighted average cost of capital (B) 12.68% 10.30% 22.50%
Controlled debt investments $8,441
 Discounted cash flow Market yields 6.62% 4.75% 10.00%
  $488
 Liquidation value Asset value N/A
 N/A
 N/A
Servicing assets $19,092
 Discounted cash flow Market yields 12.20% 12.20% 12.20%
Contingent consideration liabilities $620
 Discounted cash flow Projected EBITDA and probability of achievement N/A
 N/A
 N/A
Fair Value as ofWeightedRange
December 31, 2023Unobservable InputAverageMinimumMaximum
Assets:
HFI, at fair value - accrual loans$421,627 Market yields7.75 %7.75 %7.75 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate19.00 %19.00 %19.00 %
HFI, at fair value - accrual loans$48,174 Market yields7.39 %7.39 %7.39 %
Cumulative prepayment rate— %— %— %
Average cumulative default rate30.00 %30.00 %30.00 %
HFS, at fair value$118,867 Market yields6.85 %6.50 %7.75 %
Cumulative prepayment rate61.03 %55.60 %75.00 %
Average cumulative default rate20.00 %20.00 %20.00 %
Joint ventures$40,859 Market yields8.00 %8.00 %8.00 %
Cost of equity12.00 %10.00 %14.00 %
Weighted average cost of capital8.50 %7.50 %9.50 %
Non-control equity investments$368 Market yields10.00 %8.00 %12.00 %
$360 Cost basisN/AN/AN/A
Servicing assets1
$29,336 Market yields13.50 %13.50 %13.50 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate19.00 %19.00 %19.00 %
Other real estate owned$1,110 Appraised valueN/AN/AN/A
Liabilities:
Equity warrants$141 Expected volatility43.00 %43.00 %43.00 %
Dividend yield5.20 %5.20 %5.20 %
Risk free rate3.88 %3.88 %3.88 %

1 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS
(A) In determining


40

Estimated Fair Value of Other Financial Instruments

GAAP also requires disclosure of the fair value of financial instruments carried at book value on the Company’s controlled equity investments asConsolidated Statements of September 30, 2017, the proportion of the market comparable companies valuation techniqueFinancial Condition. The carrying amounts and the discounted cash flow valuation technique were 45.5% and 54.5%, respectively, on a weighted average basis.

(B) The Company valued $116,620,000 of investments using an equal weighting of EBITDA and revenue multiples and none of its investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $11,400,000 of investments using only discounted cash flows.


          Range
  Fair Value as of December 31, 2016 Valuation Techniques Unobservable Input Weighted Average Minimum Maximum
Assets:            
SBA unguaranteed non-affiliate investments - performing loans $202,887
 Discounted cash flow Market yields 5.50% 5.50% 5.50%
SBA unguaranteed non-affiliate investments - non-performing loans $8,584
 Discounted cash flow Market yields 6.19% 6.19% 6.19%
Controlled equity investments (A)(B) $116,919
 Market comparable companies EBITDA multiples (B) 6.10x
 3.01x
 6.99x
    Market comparable companies Revenue multiples (B) 1.21x
 0.62x
 3.08x
    Discounted cash flow Weighted average cost of capital (B) 12.57% 11.00% 15.30%
Controlled debt investments $3,875
 Discounted cash flow Market yields 7.05% 5.75% 10.00%
  $508
 Liquidation value Asset value N/A
 N/A
 N/A
Non-control/non-affiliate debt investments $904
 Liquidation value Asset value N/A
 N/A
 N/A
Servicing assets $16,246
 Discounted cash flow Market yields 12.20% 12.20% 12.20%

(A) In determining theestimated fair valuevalues of the Company’s controlled equity investmentsfinancial instruments not measured at fair value on a recurring or non-recurring basis are as follows:

March 31, 2024
Carrying AmountFair Value Amount by Level:Total Fair Value
Level 1Level 2Level 3
Financial Assets:
Cash and due from banks$12,295 $12,295 $— $— $12,295 
Restricted cash35,759 35,759 — — 35,759 
Interest bearing deposits in banks115,152 115,152 — — 115,152 
Debt securities available-for-sale, at fair value28,127 25,232 2,895 — 28,127 
Loans HFS, at fair value187,104 — — 187,104 187,104 
Loans HFS, at LCM59,880 — — 60,227 60,227 
Loans HFI, at fair value442,928 — — 442,928 442,928 
Total loans HFI, at amortized cost, net of deferred fees and costs397,625 — — 398,453 398,453 
Federal Home Loan Bank and Federal Reserve Bank stock3,773 — 3,773 — 3,773 
Joint ventures, at fair value48,247 — — 48,247 48,247 
Non-control investments728 — — 728 728 
Financial Liabilities:
Time deposits209,721 — 210,519 — 210,519 
Borrowings662,488 — 190,576 471,728 662,304 
December 31, 2023
Carrying AmountFair Value Amount by Level:Total Fair Value
Level 1Level 2Level 3
Financial Assets:
Cash and due from banks$15,398 $15,398 $— $— $15,398 
Restricted cash30,919 30,919 — — 30,919 
Interest bearing deposits in banks137,689 137,689 — — 137,689 
Debt securities available-for-sale, at fair value32,171 29,305 2,866 — 32,171 
Loans HFS, at fair value118,867 — — 118,867 118,867 
Loans HFS, at LCM56,607 — — 56,733 56,733 
Loans HFI, at fair value469,801 — — 469,801 469,801 
Total loans HFI, at amortized cost, net of deferred fees and costs336,305 — — 337,133 337,133 
Federal Home Loan Bank and Federal Reserve Bank stock3,635 — 3,635 — 3,635 
Joint ventures, at fair value40,859 — — 40,859 40,859 
Non-control investments728 — — 728 728 
Financial Liabilities:
Time deposits167,041 — 168,542 — 168,542 
Borrowings644,122 — 187,555 454,239 641,794 

41

NOTE 10—DEPOSITS:

The following table summarizes deposits by type:
March 31, 2024December 31, 2023
Non-interest-bearing:
Demand$5,466 $10,053 
Interest-bearing:
Checking16,870 11,456 
Money market27,290 15,803 
Savings253,595 259,152 
Time deposits209,721 167,041 
Total interest-bearing507,476 453,452 
Total deposits$512,942 $463,505 
Time deposits, money market, and interest-bearing checking obtained through brokers$58,295 $53,548 
Aggregate amount of deposit accounts that exceeded the FDIC limit$74,699 $66,511 
Demand deposit overdrafts reclassified as loan balances$$53 
Certificates of deposit in excess of $0.25 million$29,266 $20,070 

The following table summarizes the scheduled maturities of time deposits:

2024$92,829 
202564,999 
202631,530 
202719,574 
2028711 
Thereafter78 
Total time deposits$209,721 

42

NOTE 11—BORROWINGS:

At March 31, 2024 and December 31, 2016, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 46.1% and 53.9%, respectively, on a weighted average basis.

(B) The Company valued $106,609,000 of investments using an equal weighting of EBITDA and revenue multiples and $860,000 of investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $9,450,000 of investments using only discounted cash flows.
NOTE 7—BORROWINGS:

At September 30, 2017 and December 31, 2016,2023, the Company had borrowings comprisedcomposed of the following:
 September 30, 2017 December 31, 2016
 Commitments Borrowings Outstanding Weighted Average Interest Rate Commitments Borrowings Outstanding Weighted Average Interest Rate
Capital One line of credit - guaranteed (1)
$100,000
 $36,926
 4.00% $50,000
 $5,100
 4.50%
Capital One line of credit - unguaranteed (1)

 29,220
 5.00% 
 
 %
Notes due 202140,250
 39,027
 7.00% 40,250
 38,767
 7.00%
Notes due 20228,324
 7,915
 7.50% 8,324
 7,853
 7.50%
Notes payable - related parties50,000
 20,541
 7.31% 38,000
 1,400
 7.67%
Notes payable - Securitization trusts97,607
 95,376
 4.41% 120,945
 118,122
 3.79%
Total$296,181
 $229,005
 5.23% $257,519
 $171,242
 4.75%
March 31, 2024December 31, 2023
CommitmentsBorrowings OutstandingWeighted Average Interest RateCommitmentsBorrowings OutstandingWeighted Average Interest Rate
Bank Lines of Credit1:
Webster NMS Note54,871 35,624 7.93 %54,871 36,628 7.94 %
SPV I Capital One Facility60,000 20,241 8.18 %60,000 16,080 8.20 %
SPV II Deutsche Bank Facility50,000 18,063 10.02 %50,000 6,799 10.04 %
SPV III One Florida Bank Facility30,000 29,753 9.50 %30,000 257 9.50 %
FHLB Advances110,433 19,726 2.24 %113,891 23,184 2.13 %
Notes issued by Parent Company1:
2024 Notes38,250 38,178 5.75 %38,250 38,124 5.75 %
2025 5.00% Notes30,000 29,651 5.00 %30,000 29,563 5.00 %
2025 8.125% Notes50,000 49,564 8.13 %50,000 49,433 8.13 %
2026 Notes115,000 113,743 5.50 %115,000 113,564 5.50 %
  2028 Notes40,000 38,465 8.00 %40,000 38,378 8.00 %
Notes payable - Securitization Trusts2
273,269 269,480 7.85 %296,223 292,112 7.84 %
Total$851,823 $662,488 7.21 %$878,235 $644,122 7.04 %

1 Net of deferred financing costs.
(1) Total combined commitments2 At March 31, 2024 and December 31, 2023, the net assets of the guaranteedconsolidated Trusts totaled $14.5 million and unguaranteed$14.8 million, respectively.

Outstanding borrowings that are presented net of deferred financing costs, which include the bank lines of credit, are $100,000,000 at September 30, 2017the 2024, 2025, 2026, and $50,000,000 December 31, 2016.


Outstanding borrowings under2028 Notes, and the Notes due 2022, Notes due 2021 and Notes payable - Securitization trustsTrusts consisted of the following:

March 31, 2024December 31, 2023
Principal balanceUnamortized deferred financing costs
Net carrying amount1
Principal balanceUnamortized deferred financing costs
Net carrying amount1
Bank Lines of Credit:
Webster NMS Note$35,884 $(260)$35,624 $36,881 $(253)$36,628 
SPV I Capital One Facility20,400 (159)20,241 16,300 (220)16,080 
SPV II Deutsche Bank Facility18,136 (73)18,063 6,900 (101)6,799 
SPV III One Florida Bank Facility29,850 (97)29,753 375 (118)257 
Notes issued by Parent Company:
2024 Notes38,250 (72)38,178 38,250 (126)38,124 
2025 5.00% Notes30,000 (349)29,651 30,000 (437)29,563 
2025 8.125% Notes50,000 (436)49,564 50,000 (567)49,433 
2026 Notes115,000 (1,257)113,743 115,000 (1,436)113,564 
2028 Notes40,000 (1,535)38,465 40,000 (1,622)38,378 
Notes Payable - Securitization Trusts273,269 (3,789)269,480 296,223 (4,111)292,112 
1 Net of deferred financing costs. Negative borrowings outstanding are the result of the facilities being paid down to zero principal balance as of March 31, 2024 while the associated deferred financing costs remain.
 September 30, 2017 December 31, 2016
 Notes Due 2022 Notes Due 2021 Notes Payable- Securitization Trusts Notes Due 2022 Notes Due 2021 Notes Payable- Securitization Trusts
Principal$8,324
 $40,250
 $97,607
 $8,324
 $40,250
 $120,945
Unamortized deferred financing costs(409) (1,223) (2,231) (471) (1,483) (2,823)
Net carrying amount$7,915
 $39,027
 $95,376
 $7,853
 $38,767
 $118,122



At September 30, 2017March 31, 2024 and December 31, 2016,2023, the carrying amount of the Company’s borrowings under the Capital One, Deutsche Bank, Webster, and One Florida lines of credit, Notes payable - related parties and the Notes payable - Securitization trusts,Trusts, approximates fair value due to their variable interest rates.


43

At March 31, 2024, the $19.7 million carrying amount of Newtek Bank’s FHLB borrowings includes a $0.1 million purchase accounting adjustment..

The fair valuevalues of the fixed rate 2028 Notes, due 20222026 Notes and 2024 Notes due 2021 isare based on the closing public share price on the date of measurement. On September 30, 2017,measurement as included in the closing price of the Notes due 2022 was $26.36 per note, or $8,777,000. On September 30, 2017, the closing price of the Notes due 2021 was $25.50 per note, or $41,055,000. chart below.
March 31, 2024December 31, 2023
Closing PriceFair ValueClosing PriceFair Value
2028 Notes$25.15 $40,240 $25.04 $40,070 
2026 Notes24.32 111,872 23.75 109,250 
2024 Notes25.14 38,464 24.99 38,235 

These borrowings are not recorded at fair value on a recurring basis. The fixed rate 2025 Notes are held at par as of March 31, 2024 and December 31, 2023.
Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three months ended September 30, 2017March 31, 2024 and 20162023 was $2,981,000$12.6 million and $2,328,000,$12.7 million, respectively. Total

NOTE 12—DERIVATIVE INSTRUMENTS:

The Company historically uses derivative instruments primarily to economically manage the fair value variability of certain fixed rate assets caused by interest expenserate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
Fair ValueRemainingFair ValueRemaining
Contract Type
Notional1
Asset
Liability2
Maturity (years)
Notional1
Asset
Liability2
Maturity (years)
5-year Treasury Futures$(43,517)$— $38 0.25 years$(27,869)$— $630 0.25 years
1 Shown as a negative number when the position is sold short.
2 Shown in Accounts Payable, Accrued Expenses, and Other Liabilities in the accompanying consolidated balance sheets.

The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives as included in Other Noninterest Income in the consolidated statements of operations for the ninethree months ended September 30, 2017March 31, 2024 and 20162023:
Three Months Ended
March 31, 2024March 31, 2023
Contract TypeUnrealized Appreciation/(Depreciation)Realized Gain/(Loss)Unrealized Appreciation/(Depreciation)Realized Gain/(Loss)
5-year Treasury Futures$592 $(268)$(693)$197 

Collateral posted with our futures counterparty is segregated in the Company’s books and records. Historically, the Company’s counterparty has held cash margin as collateral for derivatives, which is included in restricted cash in the consolidated balance sheets. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a futures commission merchant. The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Variation margin pledged on all Company borrowings was $8,118,000 and $5,764,000, respectively.the Company’s centrally cleared interest rate futures is settled against the realized results of these futures.
44


NOTE 8—13—COMMITMENTS AND CONTINGENCIES:
Operating and Employment Commitments
The Company leases office space and other office equipment in several states under operating lease agreements which expire at various dates through 2027. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses. In addition, during 2024, the Company entered into one-year employment agreements with its named executive officers.
The following summarizes the Company’s obligations and commitments, as of March 31, 2024 for future minimum cash payments required under operating lease and employment agreements:
YearOperating Leases
Employment Agreements1
Total
2024$2,075 $2,274 $4,349 
20252,461 740 3,201 
20261,835 — 1,835 
2027429 — 429 
2028— — — 
Thereafter— — — 
Total$6,800 $3,014 $9,814 
1 Employment agreements with certain of the Company’s named executive officers.

Legal Matters


FromThe Company and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to the Company’s business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to time,a variety of topics.

Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, the Company may be involved in litigation arising outunable to develop an estimate or range of its operations inloss.

The Company evaluates legal proceedings based on information currently available, including advice of counsel. The Company establishes accruals for those matters, pursuant to ASC 450, when a loss is considered probable and the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on the Company in connection with the activities of its portfolio companies.related amount is reasonably estimable. While the outcomefinal outcomes of any current legal proceedings cannot at this time be predicted with certainty,are inherently unpredictable, management is currently of the Company does not expectopinion that any currentthe outcomes of pending and threatened matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings willnot have a material adverse effect on itsthe Company’s business, consolidated financial condition orposition, results of operations or cash flows as a whole. As of March 31, 2024, the Company had accrued an immaterial reserve that we believe is appropriate to cover potential settlements.

As available information changes, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any future reporting period.

On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana.  The Company closed on its $5,400,000 investment in BSP in June 2016.  The Company is monitoring the situation and is cooperating fully with the authorities. While the outcome of this situation cannot at this timesuch matter could be predicted with certainty, the Company does not expect that the matter will materially affectmaterial to the Company’s business, consolidated financial condition orposition, results of operations.operations, or cash flows as a whole for any particular reporting period of occurrence.
Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBCS. Maximum borrowings under the Sterling Receivable and Inventory Facility are $15,000,000. The Sterling Receivable and Inventory Facility matures in February 2018. At September 30, 2017, total principal owed by NBCS was $10,041,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is also a guarantor on the Sterling 504 Facility at NBCS. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in August 2018. At September 30, 2017, total principal owed by NBCS was $2,609,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.


The Company is a guarantor on the Goldman Facility, a term loan facility between UPSW, NTS, Premier, BSP and SBL with Goldman Sachs with an aggregate principal amount up to $50,000,000. The Goldman Facility matures in June 2021. At September 30, 2017, total principal outstanding was $40,000,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.


NOTE 9—FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:

  Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Per share data (1)    
Net asset value at beginning of period $14.30
 $14.06
Net investment loss (0.29) (0.52)
Net realized gain 1.61
 1.55
Net unrealized (depreciation) appreciation on investments (0.05) 0.82
Net unrealized depreciation on servicing assets (0.09) (0.09)
Change in provision for deferred taxes 0.04
 (0.31)
Net increase in net assets 1.22
 1.45
Dividends to common stockholders from net investment income (0.36) 
Distributions to common stockholders from capital gains (0.84) (1.13)
Total dividends paid (1.20) (1.13)
Stock-based compensation expense 0.05
 0.02
Consolidation of Exponential Business Development Co., Inc. 
 (0.03)
Accretive effect of stock offerings (issuing shares above NAV per share) 0.05
 
Accretive effect of shares issued in connection with investments (issuing shares above NAV per share) 0.01
 
Dilutive effect of purchase of vested stock for employee payroll tax withholding (purchase of shares above NAV) (0.01) 
Impact of restricted stock awards 
 (0.11)
Other (5) (0.02) 
Net asset value at end of period $14.40
 $14.26
     
Per share market value at end of period $17.82
 $14.26
Total return based on market value (3) 19.62 % 10.27 %
Total return based on average net asset value (2)(3)(4) 12.12 % 12.61 %
Shares outstanding at end of period (in thousands) 17,750
 14,594
     
Ratios/Supplemental Data:    
Net assets at end of period $255,612
 $208,172
Ratio of expenses to average net assets (2) 19.2 % 19.06 %
Ratio of net investment loss to average net assets (2.85)% (3.68)%
Portfolio turnover 81.49 % 89.03 %
Average debt outstanding $200,124
 $154,640
Average debt outstanding per share $11.27
 $10.60
Asset coverage ratio 212 % 217 %


(1) Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2) Annualized.
(3) Assumes dividends are reinvested.
(4) Total return based on average net asset value was calculated using the sum of ending net asset value plus dividends to stockholders during the period, divided by the beginning net asset value.
(5) Includes the impact of the different share amountsaddition. as a result of calculatinga litigation brought by the Federal Trade Commission (the “FTC”) in October 2012, NMS voluntarily entered into, and continues to operate under, a permanent injunction with respect to certain per share data based on weighted average shares outstanding duringof its business practices.
45

Unfunded Commitments

At March 31, 2024, the periodCompany had $108.8 million of unfunded commitments consisting of $15.9 million in connection with its SBA 7(a) loans, $87.7 million in connection with its SBA 504 loans, none in connection with its ALP loans, and certain per share data based on shares outstanding as of a period end or transaction date.$5.3 million relating to commercial and industrial loans. The Company anticipates these commitments will be funded from the same sources it used to fund its other loan commitments.


NOTE 10—14—STOCK BASED COMPENSATION:


Stock PlanPlans


The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards, the Company measuredmeasures the grant date fair value based upon the market price of its common stockCommon Stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation expense over the requisite service period, which is generally the vesting term.
 
The Compensation, Corporate Governance and Nominating Committee of the Board approves the issuance of sharesawards of restricted stock to employees and directors pursuant to the Equity2023 Stock Incentive Plan, which was approved by the Board in April 2023 and the Company’s shareholders on June 14, 2023. No new awards may be granted under the 2015 Stock Incentive Plan, which was terminated by the Board in April 2023. The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:

2023 Plan2
2015 Plan
Restricted Stock authorized under the plan1
3.0 million1.5 million
Net restricted stock (granted)/forfeited during:
Year ended December 31, 2020 and prior(223)
Year ended December 31, 2021(215)
Year ended December 31, 2022(251)
Year ended December 31, 2023(82)28
Three months ended March 31, 2024(45)
Total net restricted stock (granted)/forfeited(127)(661)
1 No stock options were granted under the 2015 or 2023 Stock Incentive Plan. These
2 The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

Awards of restricted stock granted under the 2015 and 2023 Stock Incentive Plans generally vest over a one or two year- to three-year period from the grant date.date; awards of restricted stock granted under the 2023 Stock Incentive Plan to non-employee directors generally vest over a one-year period. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances under the Equity Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of September 30, 2017.


Restricted stock authorized under the plan (1)1,500,000
Less restricted stock granted during:
Year ended December 31, 2016(120,933)
Nine months ended September 30, 2017(5,007)
Restricted stock available for issuance as of September 30, 20171,374,060

(1) A maximum of 20% of total shares of common stock issued and outstanding, calculated on a fully diluted basis, not to exceed 3,000,000 shares, are available for awards of restricted stock and stock options under the Equity Incentive Plan. No more than 50% of the shares of stock reserved for the grant of awards under the Equity Incentive Plan may be restricted stock awards at any time during the term of the Equity Incentive Plan. No stock options have been granted under the Equity Incentive Plan.

For the three months ended September 30, 2017 and 2016, the Company recognized total stock-based compensation expense of $152,000 and $226,000, respectively. For the nine months ended September 30, 2017 and 2016, the Company recognized total stock-based compensation expense of $904,000 and $226,000, respectively.

As of September 30, 2017,March 31, 2024, there was $276,000$3.5 million of total unrecognized compensation expense related to unvested shares of restricted shares.stock granted. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately 1.491.8 years as of September 30, 2017.March 31, 2024.


Shares outstanding

As of March 31, 2024, the Company has 345 thousand shares outstanding related to grants of restricted stock awards. The awards were issued at a weighted average grant date fair value of $17.89. In addition, there are 35 thousand shares outstanding relating to dividends on unvested restricted stock awards as of March 31, 2024.

During the three months ended March 31, 2024 and 2023, additional shares were issued related to dividends on unvested shares of restricted stock granted as follows:
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
# of Shares$ of Shares# of Shares$ of Shares
Dividends on Unvested Shares of Restricted Stock Grants6$715$60

For the three months ended March 31, 2024 and 2023 the Company recognized total stock-based compensation expense of $0.7 million and $0.7 million, respectively.
46

NOTE 11—COMMON STOCK:15—SHAREHOLDERS EQUITY:


The following table summarizes the totalPreferred Stock

On February 3, 2023, we entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Patriot Financial Partners IV, L.P., and Patriot Financial Partners Parallel IV, L.P. (collectively, “Patriot”) in respect of 20 thousand shares issued and proceeds received net of underwriting and offering costs in public offerings of the Company’s commonSeries A Convertible Preferred Stock, par value $0.02 per share (the “Series A Preferred Stock”), in a private placement transaction. The aggregate purchase price was $20.0 million. Each share of Series A Preferred Stock was issued at a price of $1.0 thousand per share and is convertible at the holder’s option into 47.54053782 shares of the Company’s Common Stock. The Company had not issued preferred stock since conversionprior to a BDC:February 3, 2023.



Warrants for Common Stock

    Year Ended
  Nine Months Ended September 30, 2017 December 31, 2016 December 31, 2015 December 31, 2014
Shares issued 2,587,500
 
 2,300,000
 2,530,000
Offering price per share $15.25
 $
 $16.50
 $12.50
Proceeds net of underwriting discounts and offering costs $37,042
 $
 $35,290
 $27,883

In January 2017On February 3, 2023, pursuant to the Securities Purchase Agreement, the Company priced a public offering of 2,250,000issued warrants to Patriot to purchase, in the aggregate, 47.54 thousand shares of its common stock at a public offering price of $15.25Common Stock for $21.03468 per share. The Company also sold an additional 337,500Warrants are exercisable in whole or in part until the ten year anniversary of the entry into the Securities Purchase Agreement and may be exercised for cash or on a “net share” basis, with the number of shares of its common stock at a public offeringwithheld determined based on the closing price of $15.25 per share pursuant to the underwriter’s full exerciseCommon Stock on the date of such exercise. Warrants are included in Other Liabilities on the over-allotment option.Consolidated Statements of Financial Condition.


Common Stock

ATM Program


The Company’s shelf registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On March 20, 2017,November 17, 2023, the Company entered into anthe 2023 ATM Equity Distribution Agreement. The 2023 ATM Equity Distribution Agreement provides that the Company may offer and sell up to 2,900,0003.0 million shares of common stockCommon Stock from time to time through the Placement Agents. On September 6, 2017, theplacement agents (the “ATM Program”). The Company entered into an amended ATM Equity Distribution Agreement for the purpose of adding D.A. Davidson as placement agent. During the nine months ended September 30, 2017, the Company sold 455,000 shares of its common stock at a weighted average price of $17.19 per share. Proceeds, net of offering costs and expenses were $7,666,000. As of September 30, 2017, there were 20,000 shares traded that had not settled and are not includedmay, subject to market conditions, engage in shares issued and outstanding on the face of the condensed consolidated balance sheet, but are included in the weighted average share outstanding in the condensed consolidated statement of operations and in the shares used to calculate net asset value per share. As of September 30, 2017, there were 2,445,000 shares of common stock available for saleactivity under the ATM Equity Distribution Agreement.Program.


The Company used the net proceeds for funding investments in debt
Dividends and equity securities in accordance with its investment objective and strategies.Distributions


Investment in IPM

In connection with its investment in IPM,On February 3, 2023, the Company issued 60,490 restricted common20 thousand shares of the Company’s Series A Convertible Preferred Stock, par value $0.02 per share, in a private placement transaction. The aggregate purchase price was $20.0 million. Each share of Series A Preferred Stock was issued at a price of $1.0 thousand per share and is convertible at the holder’s option into 47.54 shares of the Company’s Common Stock. During the three months ended March 31, 2024 and 2023 the Company had $0.4 million and $0.2 million in dividends on its preferred stock, respectively.

During the three months ended March 31, 2024 and 2023, an additional 6,300 and 4,700 shares valued at $1,000,000.$0.1 million and $0.1 million, respectively, were issued related to dividends on unvested shares of restricted stock granted.


Share Repurchase Plan

On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. This program terminated on May 21, 2017.

On May 11, 2016, the Company announced that its Board approved a share repurchase program under which the Company could repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016.

During the nine months ended September 30, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for $866,000 as detailed in the table below. This program terminated on June 3, 2016

Purchase date Number of Shares Purchased Price per Share Total
March 10, 2016 10
 $12.34
 $123
March 18, 2016 20
 $12.45
 249
March 18, 2016 30
 $12.48
 375
March 23, 2016 10
 $11.88
 119
Total 70
   $866

NOTE 12—EARNINGS PER SHARE:

The following table summarizes the calculations for the net increase in net assets per common share for the three and nine months ended September 30, 2017 and 2016:
  Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Net increase in net assets $8,077
 $10,040
 $20,912
 $21,016
Weighted average shares outstanding 17,487
 14,556
 17,076
 14,515
Net increase in net assets per common share $0.46
 $0.69
 $1.22
 $1.45

NOTE 13—DIVIDENDS AND DISTRIBUTIONS:

The Company’s dividends and distributions on the Company’s common shares are recorded on the declaration date. Effective December 8, 2023, the Company terminated the DRIP. The following table summarizes the Company’s dividend declarations and distributions during the ninethree months ended September 30, 2017March 31, 2024 and 2016.2023:

Date DeclaredRecord DatePayment DateAmount Per ShareCash DistributionDRIP Shares IssuedDRIP
Shares Value
Three months ended March 31, 2024
March 19, 2024April 1, 2024April 15, 2024$0.19 $4,617 — $— 
Three months ended March 31, 2023
February 27, 2023April 4, 2023April 14, 2023$0.18 $4,291 $72 


47

Date Declared Record Date Payment Date Amount Per Share Cash Distribution DRIP Shares Issued DRIP Shares Value
September 30, 2017            
March 6, 2017 March 20, 2017 March 31, 2017 $0.36
 $6,062
 6
 $89
May 4, 2017 May 31, 2017 June 30, 2017 $0.40
 $6,804
 7
 $112
August 21, 2017 September 22, 2017 September 29, 2017 $0.44
 $7,585
 11
 $184
             
September 30, 2016            
February 25, 2016 March 22, 2016 March 31, 2016 $0.35
 $4,708
 29
 $362
June 9, 2016 June 20, 2016 June 30, 2016 $0.35
 $4,985
 7
 $83
September 7, 2016 September 20, 2016 September 30, 2016 $0.43
 $6,152
 6
 $77
NOTE 16—EARNINGS PER SHARE:


DuringBasic and diluted earnings per share are computed based on the nineweighted average number of shares outstanding during each period. Diluted earnings per share reflects the potential dilution that could occur upon the exercise of stock options, to the extent outstanding, or upon the vesting of restricted stock grants, any of which would result in the issuance of common stock that would then share in the net income of the Company.
Three Months Ended March 31,
20242023
Basic earnings per share:
Net income available to common shareholders$9,250 $18,301 
Weighted-average basic shares outstanding24,287 24,223 
Basic earnings per share$0.38 $0.76 
Diluted earnings per share:
Net income, for diluted earnings per share$9,250 $18,301 
Total weighted-average basic shares outstanding24,287 24,223 
Add effect of dilutive warrants and restricted stock awards3
71 658 
Total weighted-average diluted shares outstanding24,358 24,881 
Diluted earnings per share1,2
$0.38 $0.74 
Anti-dilutive warrants and restricted stock awards1,065 248 
1 For the three months ended September 30, 2017,March 31, 2024 and 2023, the convertible preferred stock was not included in the diluted share count because the result would have been anti-dilutive under the if-converted method.
2 For the three months ended March 31, 2024 and 2023, the Warrants have an additional 6,591anti-dilutive impact on earnings per share.
3 Incremental diluted shares valued at $110,000 were issued related to dividends from unvested restricted stock awards.awards under the treasury stock method.

NOTE 14—SUPPLEMENTAL FINANCIAL DATA:17—BENEFIT PLANS:
Summarized Financial InformationDefined Contribution Plan
The Company’s employees participate in a defined contribution 401(k) plan (the “Plan”) adopted in 2004 which covers substantially all employees based on eligibility. The Plan is designed to encourage savings on the part of Our Unconsolidated Subsidiarieseligible employees and qualifies under Section 401(k) of the Code. Under the Plan, eligible employees may elect to have a portion of their pay, including overtime and bonuses, reduced each pay period, as pre-tax contributions up to the maximum allowed by law. The Company may elect to make a matching contribution equal to a specified percentage of the participant’s contribution, on their behalf as a pre-tax contribution.

Employee Stock Purchase Plan (ESPP)

On June 14, 2023, the Company's stockholders approved the ESPP. The initial aggregate number of shares of Common Stock that may be purchased under the ESPP will not exceed 0.2 million shares. Under the terms of the ESPP, employees may authorize the withholding of up to 15% of their eligible compensation to purchase our shares of Common Stock, not to exceed $25 thousand of Common Stock for any calendar year. The purchase price per shares acquired under the ESPP will never be less than 85% of the fair market value of the lesser of our Common Stock on the offering date or purchase date. The Compensation, Corporate Governance and Nominating Committee of our Board of Directors in its discretion may terminate the ESPP at any time with respect to any shares for which options have not been granted and has the right to amend the ESPP with stockholder approval within 12 months before or after the adoption of the amendment. The difference between the Common Stock’s fair value and the employee’s discounted purchase price is expensed at the time of purchase.

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The following table summarizes the Company’s ESPP activity from inception through March 31, 2024:

Period Ended March, 31 2024Year Ended December 31, 2023
Offering Period 2Offering Period 1
Commencement date10/1/202310/1/2023
End date3/15/202412/15/2023
Shares purchased
Weighted average share price$9.83 $13.05 
Total purchased$51 $51 

NOTE 18—INCOME TAXES:

The Company holdselected to be treated as a controlling interest,RIC under the Code beginning with the 2015 tax year and, through the year ended December 31, 2022, operated in a manner so as definedto continue to qualify for the tax treatment applicable to RICs. The Company filed its final RIC tax return for the year ended December 31, 2022. Beginning with 2023, the Company no longer qualifies as a RIC and instead will file a consolidated U.S. federal income tax return. Financial holding companies are subject to federal and state income taxes in essentially the same manner as other corporations.

One of the Company’s former consolidated holding companies is undergoing a NYS tax audit for the fiscal years ended December 31, 2020 and December 31, 2021.

Effective Tax Rate and Net Operating Losses

The effective tax rate was 26.33% for the three months ended March 31, 2024. The effective tax rate differs from the federal tax rate of 21% for the three months ended March 31, 2024 due primarily to the addition of estimated state tax.

At December 31, 2022, the Company had NOLs in the amount of $35.4 million. Certain of these NOLs ($4.6 million) expire in 2029 through 2037 with the remainder NOLs ($30.8 million) having indefinite lives. The Company expects to apply $31.7 million of the total NOLs against 2023 taxable income and will carry forward the remaining balance of $3.7 million to apply against future taxable income. The Tax Cuts & Jobs Act of 2017 limits the amount of net operating loss utilized each year after December 31, 2020 to 80% of taxable income.

The Company’s and its subsidiaries’ federal income tax returns are generally open to review by the 1940 Acttax authorities for the tax years ended in portfolio companies that are not consolidated2020 and beyond. However, the Company’s NOLs continue to be subject to review by tax authorities in the Company’s condensed consolidated financial statements. Belowperiod utilized notwithstanding origination in closed periods.

The Company does not have any material interest and penalties recorded in the income statement for the periods ended March 31, 2024 and 2023.

NOTE 19—SEGMENTS:

The Company's management reporting process measures the performance of its operating segments based on internal operating structure, which is subject to change from time to time. Accordingly, the Company operates four reportable segments for management reporting purposes as discussed below:

Banking - Newtek Bank originates, services and sells SBA 7(a) loans in a brief descriptionsimilar manner to NSBF’s historic business model (see Non-Bank Lending below) and originates and services SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services.

NSBF - relates to NSBF’s legacy portfolio held outside Newtek Bank, no new originating activity takes place. NSBF’s legacy portfolio consists of SBA 7(a) Loans, a portfolio company that is required to have supplemental disclosure incorporatedmaterial portion of which reside in our financial statements in accordance with Regulation S-X section 4-08(g), along with summarized financial information as of September 30, 2017securitization trusts.
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Payments - Includes NMS, POS and 2016.

Universal Processing Services of Wisconsin, LLC

UPSWMobil Money. NMS markets credit and debit card processing services, check approval services, and ancillary processing equipment, and software toand:
Assist merchants who accept credit cards, debit cards, checkswith initial installation of equipment and on-going service, as well as any other special processing needs that they may have.
Handles payment processing for Mobil Money’s merchant portfolio of taxi cabs and related licensed payment processing software.
POS is a provider of a cloud based Point of Sale (POS) system for a variety of restaurant, retail, assisted living, parks and golf course businesses, which provides not only payments and purchase technology solutions, but also inventory, customer management, reporting, employee time clock, table and menu layouts, and ecommerce solutions as the central operating system for an SMB.

Technology - NTS provides website hosting, web design and development, dedicated server hosting, cloud hosting, internet marketing, ecommerce, data storage, backup and disaster recovery, and other non-cash formsrelated services including consulting and implementing technology solutions for enterprise and commercial clients across the U.S. As a result of payment.commitments made to the Federal Reserve, the Company will divest or otherwise terminate the activities conducted by NTS within two years of becoming a financial holding company, subject to any extension of the two-year period.



Corporate and Other - The information provided under the caption “Corporate and Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries including Newtek Insurance and Newtek Payroll, and elimination adjustments to reconcile the results of the operating segments to the condensed consolidated financial statements prepared in conformity with GAAP.

The summarizedfollowing table provide financial information of our unconsolidated subsidiary is as follows:for the Company's segments:

As of and for the three months ended March 31, 2024
BankingTechnologyNSBFPaymentsCorporate and OtherEliminationsConsolidated
Interest income$13,571 $$10,744 $545 $3,323 $(1,117)$27,067 
Interest expense5,853 — 5,966 796 6,663 (1,117)18,161 
Net interest income/(loss)7,718 4,778 (251)(3,340)— 8,906 
Provision for loan credit losses4,015 — — — — — 4,015 
Net interest income after provision for loan credit losses3,703 4,778 (251)(3,340)— 4,891 
Noninterest income29,982 7,318 (1,212)11,749 17,771 (16,241)49,367 
Noninterest expense20,249 7,212 4,486 8,102 9,865 (8,755)41,159 
Income before taxes13,436 107 (920)3,396 4,566 (7,486)13,099 
Income tax expense (benefit)4,035 — — — (586)— 3,449 
Net income9,401 107 (920)3,396 5,152 (7,486)9,650 
Assets$736,100 $22,523 $600,877 $56,892 $786,420 $(693,235)$1,509,577 
Balance Sheets - Universal Processing Services of Wisconsin, LLC As of September 30, 2017 As of December 31, 2016
Current assets $8,014
 $11,522
Noncurrent assets 19,265
 4,907
Total assets $27,279
 $16,429
Current liabilities 3,500
 5,619
Noncurrent liabilities 30,499
 16,432
Total liabilities $33,999
 $22,051
Total deficit $(6,720) $(5,622)

Statements of Income - Universal Processing Services of Wisconsin, LLC Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Revenue $27,119
 $26,466
 $82,879
 $76,947
Expenses 24,925
 24,553
 76,559
 71,410
Income from operations $2,194
 $1,913
 $6,320
 $5,537
Interest (expense) income, net (328) (384) (1,115) (1,048)
Income before tax $1,866
 $1,529
 $5,205
 $4,489
NOTE 20—SUBSEQUENT EVENTS:


The Company recordedperformed a review of events subsequent to the following related to its investment in UPSW:

  Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Dividend income $1,750
 $1,700
 $5,250
 $4,500
Unrealized appreciation $2,000
 $5,900
 $3,000
 $9,600


NOTE 15—SUBSEQUENT EVENTS:

Portfolio Company Developments

On October 13, 2017,balance sheet date through the Company announceddate the financial statements were issued and determined that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana.  The Company closed on its $5,400,000 investment in BSP in June 2016.  The Company is monitoring the situation and is cooperating fully with the authorities. While the outcome of this situation cannot at this time be predicted with certainty, the Company does not expect that the matter will materially affect the Company’s financial condition or results of operations.

On October 24, 2017, the Company invested in 100% of the membership interests of a new wholly-owned, controlled portfolio company, United Capital Source, LLC (“UCS”), which is a lead generator for commercial financing companies. Total consideration paid by the Company was $3,050,000 and consisted of $500,000 in restricted shares of Newtek common stock and $1,950,000 in cash, with the $600,000 balance to be paid in cash and Newtek common stock, in two equal installments in 2018 and 2019 based on UCS attaining specific EBITDA targets for 2019 and 2020.

Common Stock

From October 1, 2017 through November 6, 2017 the Company sold 245,746 shares of its common stock at a weighted average price of $17.54 per share under the ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $4,223,000. As of November 6, 2017, there were 2,199,000 shares of common stock available for sale under the ATM Equity Distribution Agreement.



Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Nine Months Ended September 30, 2017

Portfolio Company Type of Investment (1) Amount of Realized Gain (Loss) Amount of Unrealized Appreciation (Depreciation) Amount of Interest or Dividends Credited to Income (3) Fair Value at December 31, 2016 Gross Additions (4) Gross Reductions (5) Fair Value at September 30, 2017
Advanced Cyber Security Systems, LLC 50% Membership Interest (2) $
 $
 $
 $
 $
 $
 $
  Term Loan (3%) (2) 
 
 
 
 
 
 
                 
Automated Merchant Services, Inc. 100% Common Stock (2) 
 
 
 
 
 
 
                 
CDS Business Services, Inc. 100% Common Stock 
 4,750
 200
 750
 4,750
 
 5,500
  Line of Credit (Prime + 2.5%) (6) 
 
 376
 2,690
 15,703
 (10,498) 7,895
                 
Newtek Technology Solutions, Inc. 100% Common Stock 
 (4,059) 
 20,109
 
 (4,109) 16,000
                 
Fortress Data Management, LLC 100% Membership Interest (2) 
 
 
 
 
 
 
                 
Newtek Insurance Agency, LLC 100% Membership Interest (2) 
 
 
 2,500
 
 
 2,500
                 
PMTWorks Payroll, LLC 100% Membership Interest (2) 
 (860) 
 860
 
 (860) 
  Term Loans (10%-12%) (2) 
 (2,185) 
 1,185
 1,000
 (2,185) 
                 
Secure CyberGateway Services, LLC 66.7% Membership Interest 
 
 26
 
 
 
 
  Term Loan (7%) 
 
 10
 
 
 
 
                 
Premier Payments LLC 100% Membership Interest 
 
 1,200
 21,000
 
 
 21,000
                 
Small Business Lending, LLC 100% Membership Interest 
 (800) 100
 3,300
 
 (800) 2,500

Portfolio Company Type of Investment (1) Amount of Realized Gain (Loss) Amount of Unrealized Appreciation (Depreciation) Amount of Interest or Dividends Credited to Income (3) Fair Value at December 31, 2016 Gross Additions (4) Gross Reductions (5) Fair Value at September 30, 2017
                 
banc-serv Partners, LLC 100% Membership Interest 
 (2,000) 
 5,400
 
 (2,000) 3,400
                 
International Professional Marketing, Inc. (8) 100% Common Stock 
 
 550
 
 8,800
 
 8,800
  Line of Credit (Prime + 0.5%) (6) 
 
 6
 
 1,200
 (1,000) 200
                 
SIDCO, LLC (8) 100% Membership Interest (2) 
 
 
 
 2,320
 
 2,320
  Line of Credit (Prime + 0.5%) (6) 
 
 2
 
 345
 
 345
                 
Excel WebSolutions LLC (7) Term Loans (10%) 
 (47) 56
 904
 
 (415) 489
  50% Membership Interest (2) 
 
 
 
 
 
 
                 
Titanium Asset Management, LLC 100% Membership Interest (2) 
 (42) 
 
 
 
 
  Term Loans (3%) (2) 
 
 6
 508
 
 (508) 
                 
Summit Systems and Designs, LLC 100% Membership Interest (2) 
 
 54
 
 
 
 
                 
Universal Processing Services of Wisconsin, LLC 100% Membership Interest 
 3,000
 5,250
 63,000
 3,000
 
 66,000
                 
Total Controlled Investments   $
 $(2,243) $7,836
 $122,206
 $37,118
 $(22,375) $136,949

This schedule should be read in connection with the Company’s Condensed Consolidated Financial Statements, including the Consolidated Schedule of Investments and Notes to the Condensed Consolidated Financial Statements.

(1) The principal amount and ownership detail as shownno material events requiring recognition or disclosure in the Company’s Consolidated Schedule of Investments.financial statements.
(2) Represents non-income producing security.
(3) Represents the total amount of interest, fees or dividends credited to income for the period.
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(4) Gross additions includes increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and the exchange of one or more existing securities for one or more new securities. Gross additions also includes net increases in unrealized appreciation or net decreases in unrealized depreciation.

(5) Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.


(6) Index based floating rate debt investments bear interest at rate of Prime plus a contractual spread which typically resets monthly. At September 30, 2017, the Prime rate was 4.25%.
(7) Prior to January 2017, EWS was a non-control/non-affiliate investment. Refer to Note 4.
(8) During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $8,800,000 and $2,320,000, respectively. Refer to Note 3.

ITEM 2. MANAGEMENT’SMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


Forward-Looking Statements


The matters discussed in this report, as well as in future oral and written statements by Company management of Newtek Business Services Corp., that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identifyThese forward-looking statements by terminologyare not historical facts, but rather are based on current expectations, estimates and projections about us, our industry, our beliefs, and our assumptions. Words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or othervariations of these words and similar expressions.expressions are intended to identify forward-looking statements. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, including recent economic and market events and unrelated bank failures and declines in depositor confidence in certain types of depository institutions, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report, includeincluding the documents we incorporate by reference, involve risks and uncertainties, including statements as to:
our future operating results;
our business prospects and the prospects of our prospective portfolio companies;subsidiaries;
the impact of investments that we expect to make;
our informalcontractual arrangements and relationships with third parties;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
our ability to access debt markets and equity markets;
the ability of our portfolio companiesbusiness to achieve theirits objectives;
the impact of a protracted decline in the liquidity of credit markets on our expected financings and investments;business;
our regulatory structure and tax status;
our ability to operate as a BDC and a RIC;
our ability to maintain our license under the SBA 7(a) program;
the adequacy of our cash resources and working capital;
our ability to operate as a financial holding company and increased compliance and other costs associated with such operations;
our ability to adequately manage liquidity, deposits, capital levels and interest rate risk;
our ability to operate our subsidiary Newtek Bank, a national bank regulated and supervised by the OCC, and increased compliance and other costs associated with such operations;
the timing of cash flows, if any, from the operations of our portfolio companies;subsidiaries;
These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the timing, formforward-looking statements, including without limitation:

an economic downturn, which could impair our subsidiaries’ ability to continue to operate or repay their borrowings, which could adversely affect our results;
a contraction of available credit and/or an inability to access the equity markets could impair our lending and amount of any dividend distributions;business activities;
the impact of fluctuations inhigher interest rates and the impacts on macroeconomic conditions and Company’s funding costs;
changes to the SBA 7(a) loan program, including recent revisions to SBA Standard Operating Procedure (“SOP”); and
the risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this report and in our business;filings with the SEC, including the documents we incorporate by reference.
the valuation of any investments in portfolio companies, particularly those having no liquid trading market; and
our ability to recover unrealized losses.


The following discussion should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this report. In addition to historical information, the following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include the ability of Newtek Bank to originate loans under the SBA 7(a) program, maintain PLP status, sell SBA guaranteed portions of SBA 7(a) loans at premiums and grow deposits; our ability to originate new loans; our subsidiaries’ ability to generate revenue and obtain and maintain certain margins and levels of profitability; and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report, including the documents that we incorporate by reference herein, should not be regarded as a representation by us that our plans and objectives will be achieved. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under Item 1A-“Part II “Item 1A. Risk Factors” of Part II of this quarterly report on Form 10-Q Item 1A-“and “Item 1A. Risk Factors” of our annual report on2023 Form 10-K, filedand in any subsequent filings we have made with the SEC that are incorporated by reference into this report.
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You should not place undue reliance on March 13, 2017 and under “Forward-Looking Statements”these forward-looking statements, which apply only as of the date of this Item 2.report. And while we believe such information forms, or will form, a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely on these statements. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made, and the Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made, except as required by applicable law.

Executive Overview


WeConversion to a Financial Holding Company

As of January 6, 2023, we are a leading national non-bank lender and own and control certain portfolio companies under the Newtek® brand (our “controlled portfolio companies,” as defined below)financial holding company that, providetogether with our consolidated subsidiaries, provides a wide range of business and financial productssolutions under the NewtekOne® brand to SMBs. Newtek's productsthe independent business owner market. Effective January 6, 2023, following authorization by our shareholders, we withdrew our previous election to be regulated as a BDC under the 1940 Act. Prior to such time, we operated as a BDC under the 1940 Act. Contemporaneously with withdrawing our election to be regulated as a BDC, on January 6, 2023, we completed the Acquisition of NBNYC, a national bank regulated and services include:supervised by the OCC, pursuant to which we acquired from NBNYC’s shareholders all of the issued and outstanding stock of NBNYC. NBNYC has been renamed Newtek Bank and has become our wholly owned bank subsidiary. In connection with the completion of the Acquisition, we contributed to Newtek Bank $31 million of cash and two of our subsidiaries, NBL and SBL (subsequently, NBL was merged into SBL). As a result of the Acquisition, we are now a financial holding company subject to the regulation and supervision of the Federal Reserve and the Federal Reserve Bank of Atlanta. We no longer qualify as a RIC under Subchapter M of the Code for federal income tax purposes and no longer qualify for accounting treatment as an investment company. As a result, in addition to Newtek Bank and its consolidated subsidiary SBL, the following former portfolio companies and subsidiaries are now consolidated non-bank subsidiaries in our financial statements: NSBF; NMS; Mobil Money; NBC; PMT; NIA; TAM; Holdco 6; NCL; NTS and POS. In addition, as a result of commitments made to the Federal Reserve, we will divest or otherwise terminate the activities conducted by NTS by January 6, 2025, subject to any extension. See “Item 1A. Risk Factors – Risks Related to Operating as a Financial Holding CompanyWe are subject to extensive regulation and supervision as a financial holding company, which may adversely affect our business.”

Effective January 13, 2023, we filed Articles of Amendment amending our Charter to change the name of the Company to “NewtekOne, Inc.”

On April 13, 2023, the Company, NSBF and the SBA entered into the Wind-down Agreement, pursuant to which NSBF has begun to wind-down its operations and NSBF’s SBA 7(a) pipeline of new loans was transitioned to Newtek Bank. During this wind-down process, NSBF will continue to own the SBA 7(a) loans and PPP Loans currently in its SBA loan portfolio to maturity, liquidation, charge-off or (subject to SBA’s prior written approval) sale or transfer. SBL will service and liquidate NSBF’s SBA loan portfolio pursuant to an SBA approved lender service provider agreement. In addition, during the wind-down process, NSBF will be subject to minimum capital requirements established by the SBA, be required to continue to maintain certain amounts of restricted cash available to meet any obligations to the SBA, have restrictions on its ability to make dividends and distributions to the Company, and remain liable to the SBA for post-purchase denials and repairs on the guaranteed portions of SBA 7(a) loans originated and sold by NSBF, from the proceeds generated by NSBF’s SBA loan portfolio. The Company has guaranteed certain of NSBF’s obligations to the SBA and has funded a $10 million account at Newtek Bank to secure these potential obligations.

Historical Business Regulation and Taxation

Prior to January 6, 2023, we operated as an internally managed non-diversified closed-end management investment company that elected to be regulated as a BDC under the 1940 Act. As a BDC under the 1940 Act we were not permitted to acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets, and we were not permitted to issue senior securities unless the ratio of its total assets (less total liabilities other than indebtedness represented by senior securities) to its total indebtedness represented by senior securities plus preferred stock, if any, was at least 150%. As of December 31 2022, our asset coverage was 169%. Although we are no longer regulated as a BDC, certain covenants in our outstanding 2024 and 2026 Notes require us to maintain an asset coverage of at least 150% as long as the 2024 and 2026 Notes are outstanding. See “Item 1A. Risk Factors – Risks Related to Our Notes – We are subject to 150% asset coverage requirements due to covenants contained in the indentures under which the 2024 and 2026 Notes were issued.”

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Additionally, prior to January 6, 2023, due to our status as a BDC, we elected to be treated as a RIC for U.S. federal income tax purposes, beginning with our 2015 tax year. As an entity electing to be treated as a RIC, we generally did not have to pay U.S. federal income taxes at corporate rates on any ordinary income or capital gains that we distributed to our shareholders as dividends. To maintain our qualification as a RICfor U.S. federal income tax purposes, we were required to, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, in order to obtain tax benefits applicable to an entity treated as a RIC for U.S. federal income tax purposes, we were required to distribute to our shareholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses.

The Company and its subsidiaries no longer qualify as a RIC for U.S. federal income tax purposes and will file a consolidated U.S. federal income tax return beginning with the 2023 fiscal year. Financial holding companies are subject to federal and state income taxes in essentially the same manner as other corporations. Taxable income is generally calculated under applicable sections of the Internal Revenue Code of 1986, as amended (the “Code”), including Sections 581 through 597 that apply specifically to financial institutions. Some modifications are required by state law and the 2017 tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Among other things, the Tax Act (i) established a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allowed the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limited the deduction for net interest expense incurred by U.S. corporations, (iv) allowed businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminated or reduced certain deductions related to meals and entertainment expenses, (vi) modified the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarified the definition of a covered employee and (vii) limited the deductibility of deposit insurance premiums. There can be no assurance as to the actual effective rate because it will be dependent upon the nature and amount of future income and expenses as well as actual investments generating investment tax credits and transactions with discrete tax effects.

From 2012 through December 31, 2022, NSBF, a wholly-owned subsidiary, was consistently the largest non-bank SBA 7(a) lender in the U.S. based on dollar volume of loan approvals, and, as of December 31, 2022, was the third largest SBA 7(a) lender in the United States. Currently, Newtek Bank is ranked as the second largest SBA 7(a) lender based on dollar volume of loans approved. Historically, NSBF structured its loans so that it could both sell the government guaranteed portions of SBA 7(a) loans and securitize the unguaranteed portions. This structure generally allowed NSBF to recover its capital and earn excess capital on each loan, typically within a year. Pursuant to the Wind-down Agreement described above, in April 2023 NSBF transitioned its SBA 7(a) loan originations to Newtek Bank and is in the process of winding down its operations and will continue to own the 7(a) Loans and PPP Loans in its SBA loan portfolio to maturity, liquidation, charge-off or (subject to SBA’s prior written approval) sale or transfer.

Additionally, we and our subsidiaries have historically provided a wide range of business and financial solutions to independent business owner relationships, including Business Lending, including the SBA’swhich includes SBA 7(a) loans, SBA 504 loans and 504 lending,our ALP loans, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, The Secure Gateway, The Newtek Advantage®, personal and commercial lines Insurance Services, Web Services, Data Backup, StoreStorage and Retrieval, and Payroll and Benefits Solutions to SMB accountsindependent business owner relationships nationwide across all industries. We support the operations of our subsidiaries by providing access to our proprietary and patented technology platform, including NewTracker®, our patented prospect management software. We have an establishedhistorically defined independent business owners (SMBs) as companies having revenues of $1 million to $100 million, and reliable platform that is not limited by client size, industry type, or location. As a result, we believe we have a strong and diversified client base across every stategenerally estimated the SMB market to be over 33 million businesses in the U.SUnited States. We have historically made loans and across a variety of different industries. In addition, we have developed aprovided business and financial and technology based business model that enables ussolutions to the SMB market through NSBF and our controlled portfolio companies (now subsidiaries). In addition, we have begun to acquireoffer the Newtek Advantage®, the One Dashboard for All of Your Business Needs®, which provides independent business owners with instant access to a team of NewtekOne business and process our SMB clientsfinancial solutions experts in a very cost effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software, which is similar to butthe areas of Business Lending, Electronic Payment Processing, Managed Technology Solutions, personal and commercial lines Insurance Services and Payroll and Benefits Solutions. Moreover, we believe better thanthat the system popularized by Salesforce.com. We believeNewtek Advantage can provide our independent business owner clients with analytics on their businesses, as well as transactional capabilities that this technology and business model distinguishes us fromother organizations do not presently offer.

Following the Acquisition, there can be no assurance regarding our competitors.



We consolidate the following wholly-owned subsidiaries:
Newtek Small Business Finance, LLC
Newtek Asset Backed Securities, LLC
The Whitestone Group, LLC
Wilshire Colorado Partners, LLC
Wilshire DC Partners, LLC
Wilshire Holdings I, Inc.
Wilshire Louisiana Bidco, LLC
Wilshire Louisiana Partners II, LLC
Wilshire Louisiana Partners III, LLC
Wilshire Louisiana Partners IV, LLC
Wilshire New York Advisers II, LLC
Wilshire New York Partners III, LLC
Wilshire New York Partners IV, LLC
Wilshire New York Partners V, LLC
Wilshire Partners, LLC
CCC Real Estate Holdings, LLC
Banc-Serv Acquisition, Inc.
Exponential Business Development Co., Inc.
Newtek LSP Holdco, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.

We are an internally-managed, closed-end, non-diversified investment company that has elected to be regulatedcontinued lending prospects or operations as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we have electedfinancial holding company.See “Item 1A. Risk Factors – Risks Related to be treatedOperating as a RIC under the Code beginning in our 2015 tax year ended December 31, 2015. AsFinancial Holding Company – We have a BDC andlimited operating history as a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code. We converted to a BDC in November 2014. As a result, previously consolidated subsidiaries are now recorded as investments in controlled portfolio companies, at fair value. NSBF is a consolidated subsidiary and originates loans under the SBA's 7(a) program.financial holding company.”


Our common shares are currently listed on the Nasdaq Global Market under the symbol “NEWT”.


NSBF has been granted PLP status
53


Newtek Bank is a national bank and nationally licensed SBA lender under the federal Section 7(a) loan program, and originates, sells and services SBA 7(a) small business loansloans. Newtek Bank has been granted PLP status and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender with PLP status allows NSBFNewtek Bank to expedite the origination of loans since NSBFNewtek Bank is not required to present applications to the SBA for concurrent review and

approval. The loss of PLP status couldwould adversely impact our marketing efforts and ultimately our loan origination volume, which couldwould negatively impact our results of operations.

As a BDC, our investment objective is See “Item 1A. Risk Factors - Risks Related to generate both current incomeSBA Lending - There can be no guarantee that Newtek Bank and capital appreciation primarily through loans originated by our small business finance platformNSBF will be able to maintain their SBA 7(a) lending licenses” and “Item 1A. Risk Factors - Risks Related to SBA Lending - A governmental failure to fund the SBA could adversely affect NSBF’s and Newtek Bank’s SBA 7(a) loan originations and our equity investmentsresults of operations.”

Economic Developments

We have observed and continue to observe supply chain interruptions, significant labor and resource shortages, commodity inflation, rising interest rates, unrelated bank failures and declines in depositor confidence in certain portfolio companies that we control.

We target our debt investments, which are principally made through our small business finance platform undertypes of depository institutions. Additionally geopolitical events, such as trade disruptions, the SBA 7(a) program, to produce a coupon rateongoing war between Russia and Ukraine, the Israel conflict with Hamas, rising tensions in Asia, and elements of prime plus 2.75% which enables us to generate rapid sales of loanseconomic and financial market instability in the secondary market. We typically structure our debt investments withUnited States, the maximum seniorityUnited Kingdom, the European Union and collateral along with personal guarantees from portfolio company owners, in many cases collateralized by other assets including real estate. In most cases, our debt investment will be collateralized by a first lien on the assets of the portfolio company and a first or second lien on assets of guarantors, in both cases primarily real estate. All SBA loans are made with personal guarantees from any owner(s) of 20%China have led to increased economic uncertainty. One or more of the portfolio company’s equity.

We typically structure our debt investmentsthese factors may contribute to include non-financial covenants that seek to minimize our risk of capital loss such as lien protection and prohibitions against change of control. Our debt investmentsincreased market volatility, may have strong protections, including default penalties, information rights and, in some cases, board observation rights and affirmative, negative and financial covenants. Debt investments in portfolio companies, including the controlled portfolio companies, have historically and are expected to continue to comprise the majority of our overall investments in number and dollar volume.

While the vast majority of our investments have been structured as debt, we havelong term effects in the pastUnited States and expectworldwide financial markets, and may cause economic uncertainties or deterioration in the futureUnited States and worldwide. Additionally, in the event that the U.S. economy enters into a protracted recession, it is possible that the businesses and industries in which our customers operate and to make selective equity investments primarily as either strategic investmentswhich we lend to enhance the integrated operating platform or,could experience deterioration, which could ultimately lead to a lesser degree, under the Capco programs. For investmentsdifficulty in meeting debt service requirements and an increase in defaults. While we are not seeing signs of an overall, broad deterioration in our controlled portfolio companies, we focus more on tailoring them to the long term growth needs of the companies than to immediate return. Our objectives with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise and as another means of supporting their development.

We regularly engage in discussions with third parties with respect to various potential transactions. We may acquire an investment or a portfolio of investments or an entire company or sell a portion of our portfolio on an opportunistic basis. We, our subsidiaries, or our affiliates may also agree to manage certain other funds that invest in debt, equity or provide other financing or services to companies in a variety of industries for which we may earn management or other fees for our services. We may also invest in the equity of these funds, along with other third parties, from which we would seek to earn a return and/or future incentive allocations. Some of these transactions could be material to our business. Consummation of any such transaction will be subject to completion of due diligence, finalization of key business and financial terms (including price) and negotiation of final definitive documentation as well as a number of other factors and conditions including, without limitation, the approval of our board of directors and required regulatory or third party consents and, in certain cases, the approval of our shareholders. Accordingly,operating results at this time, there can be no assurance that any such transaction wouldthe performance of certain of our subsidiaries and our current and prospective borrowers will not be consummated. Anynegatively impacted by economic conditions, which could have a negative impact on our future results.

In addition, concerns have arisen with respect to the financial condition of these transactions or funds may require significant management resources either duringa number of banking organizations in the transaction phase or on an ongoing basis depending onUnited States, in particular those with exposure to certain types of depositors, large portfolios of investment securities and exposures to CRE. On March 10, 2023 Silicon Valley Bank was closed by the termsCalifornia Department of Financial Protection and Innovation and the Federal Deposit Insurance Corporation was appointed receiver of Silicon Valley Bank. On March 11, 2023, Signature Bank was similarly closed and placed into receivership and concurrently the Federal Reserve Board announced it will make available additional funding to eligible depository institutions to assist eligible banking organizations with potential liquidity needs. Subsequently, First Republic Bank entered FDIC receivership and its assets were sold to JPMorgan Chase Bank, N.A. While the Company’s business, balance sheet and depositor profile differ substantially from banking institutions that are the focus of the transaction.greatest scrutiny, the operating environment and public trading prices of financial services sector securities can be highly correlated, in particular in times of stress, which may adversely affect the trading price of the Company’s Common Stock and potentially its results of operations.


Revenues

Income
We generate revenue
For the quarterly period ended March 31, 2024, we generated income in the form of interest, dividend,net gains on sale of the guaranteed portions of SBA 7(a) loans originated, dividends, electronic payment processing income, technology and IT support income, servicing income, and other fee income on debtgenerated by loan originations and equity investments. Our debt investmentsby our subsidiaries. We originated loans that typically have terms of 10 to 25 years and bear interest at prime plus a margin. In some instances, we receivereceived payments on our debt investmentsloans based on scheduled amortization of the outstanding balances. In addition, we receivereceived repayments of some of our debt investmentsloans prior to their scheduled maturity date. The frequency or volume of these repayments fluctuatesfluctuated significantly from period to period. Our portfolio activity for the quarterly period ended March 31, 2024 also reflects the proceeds of sales of securities. We receiveguaranteed portions of SBA 7(a) loans we originated. In addition, we received servicing income related to the guaranteed portions of SBA investments7(a) loans which we selloriginated and sold into the secondary market. These recurring fees arewere earned daily and recorded when earned. In addition, we may generategenerated revenue in the form of loan packaging, loan prepayment, legal and late fees. We recordrecorded such fees related to loans as other income. Dividends are recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income is recorded at the time dividends are declared. Distributions of earnings from portfolio companies areour joint ventures were evaluated to determine if the distribution iswas income, return of capital or realized gain.


We recognizerecognized realized gains or losses on investmentsloans based on the difference between the net proceeds from the disposition and the cost basis of the investmentloan without regard to unrealized gains or losses previously recognized. We recordrecorded current period changes in fair value of investmentsloans and assets that arewere measured at fair value as a component of the net change in unrealized

appreciation (depreciation) on investmentsthe loans or servicingservicing assets, as appropriate, in the condensed consolidated statements of operations.


54


Expenses


OurFor the quarterly period ended March 31, 2024, our primary operating expenses arewere salaries and benefits, interest expense including interest on deposits, electronic payment processing expense, technology services expenses, origination and servicing and other general and administrative costs, such as professional fees, marketing, loan relatedreferral fees, servicing costs and rent. Since
The Company’s Alternative Lending Program (ALP)

NCL JV: In 2019, we arelaunched a 50/50 joint venture, NCL JV, between NCL, a wholly-owned subsidiary of Newtek, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq:TCPC). NCL JV provided ALP loans to U.S. middle-market companies and small businesses. NCL JV ceased funding new loans during 2020. On January 28, 2022, NCL JV closed an internally-managed BDCALP loan securitization with no outside adviserthe sale of $56.3 million Class A Notes, NCL Business Loan Trust 2022-1, Business Loan-Backed Notes, Series 2022-1, secured by a segregated asset pool consisting primarily of NCL JV’s portfolio of ALP loans, including loans secured by liens on commercial or management company,residential mortgaged properties, originated by NCL JV and NBL. The Notes were rated “A” (sf) by DBRS Morningstar. The Notes were priced at a yield of 3.209%. The proceeds of the BDC incurssecuritization were used, in part, to repay the Deutsche Bank credit facility and return capital to the NCL partners. Refer to NOTE 4—INVESTMENTS for selected financial information and a schedule of investments of NCL as of March 31, 2024.

TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. (“TSO II”) entered into a joint venture, TSO JV, governed by the Amended and Restated Limited Partnership Agreement for the TSO JV. NCL and TSO II each committed to contribute an equal share of equity funding to the TSO JV and each have equal voting rights on all material matters. The TSO JV intends to deploy capital over the related costscourse of time with additional leverage supported by a warehouse line of credit for the purpose of investing ALP loans made to operatemiddle-market companies as well as small businesses. TSO JV began making investments in ALP loans during the Company.fourth quarter of 2022. Refer to NOTE 4—INVESTMENTS for selected financial information and a schedule of investments of TSO JV as of March 31, 2024.
Guarantees
Unfunded Commitments

At March 31, 2024, the Company had $108.8 million of unfunded commitments consisting of $15.9 million in connection with its SBA 7(a) loans, $87.7 million in connection with its SBA 504 loans, and $5.3 million relating to commercial and industrial loans. The Company funds these commitments from the same sources it uses to fund its other loan commitments.

Discussion and Analysis of Financial Condition

March 31, 2024 vs. December 31, 2023

ASSETS

Total assets at March 31, 2024 were $1.5 billion, an increase of $80.1 million, or 7.0%, compared to total assets of $1.4 billion at December 31, 2023.

Loans
March 31, 2024December 31, 2023Change
Loans held for sale, at fair value$187,104 $118,867 $68,237 
Loans held for sale, at LCM59,880 56,607 3,273 
Loans held for investment, at fair value442,928 469,801 (26,873)
Loans held for investment, at amortized cost, net of deferred fees and costs397,625 336,305 61,320 
Allowance for credit losses(16,126)(12,574)(3,552)
Loans held for investment, at amortized cost, net381,499 323,731 57,768 
Total Loans$1,071,411 $969,006 $102,405 

55


Loans held for sale

Loans held for sale, at fair value increased $68.2 million during the three months ended March 31, 2024, while loans held for sale, at LCM increased $3.3 million during the same period. The overall increase was primarily the result of new loan originations during 2024.

Loans held for investment

At Fair value: Loans held for investment, at fair value was $442.9 million at March 31, 2024 compared to $469.8 million at December 31, 2023. The balance consists primarily of SBA 7(a) loans as well as $7.1 million of loans that the Company owns 100% as a result of originating the loan and subsequently repurchasing the guaranteed portion from the SBA. As previously discussed, NSBF ceased originating loans during 2023, resulting in the decrease in the balance of loans held for investment from December 31, 2023 to March 31, 2024 due to the principal payments of existing loans held by NSBF.

At Amortized Cost: Loans held for investment, at amortized cost consists of loans originated at Newtek Bank. The $61.3 million increase in loans held for investment, at amortized cost is the result of an increase in originations in three months ended March 31, 2024 over 2023.

Credit Quality: The following table presents an analysis of loans held for investment with credit metrics, including a breakdown by days aged:

Credit Quality RatiosMarch 31, 2024December 31, 2023
$%$%
At Amortized Cost
Current$378,206 95.2 %$325,643 96.9 %
Past Due 31-89 Days11,090 2.8 %4,896 1.5 %
Nonaccrual loans8,015 2.0 %5,373 1.6 %
Total, at amortized cost$397,311 100.0 %$335,912 100.0 %
Deferred fees and costs314 393 
Total, at amortized cost, net of deferred fees and costs$397,625 $336,305 
Allowance for credit losses(16,126)4.1 %$(12,574)3.7 %
At Fair Value
Current$331,236 74.7 %$385,172 81.9 %
Past Due 31-89 Days61,862 14.0 %36,455 7.8 %
Past Due 90+ Days and accruing3,829 0.9 %— — %
Nonaccrual loans46,001 10.4 %48,174 10.3 %
Total$442,928 100.0 %$469,801 100.0 %
Past due and nonaccrual loans as % of Outstanding UPB$111,692 99.2 %$84,629 75.2 %
Nonperforming Assets, as a percentage of total assets
Loans HFI, at amortized cost$8,015 0.5 %$5,373 0.4 %
Loans HFI, at fair value46,001 3.0 %48,174 3.3 %
Other real estate owned2,438 0.2 %1,110 0.1 %
  Total Nonperforming Assets$56,454 3.7 %$54,657 3.8 %

56


CRE exposure

The CompanyCompany’s loan portfolio consists of loans to independent business owners (SMBs). The Company’s Loans HFI at amortized cost and Loans HFS at LCM include a total of $216.6 million of loans, including unfunded commitments, backed by CRE and considered non-owner occupied as of March 31, 2024. The average loan-to-value for this CRE portfolio was 59.4%. The table below presents a detail of the loans considered non-owner occupied CRE that are not carried at fair value:

March 31, 2024December 31, 2023
HFI at Amortized Cost, net of deferred fees and costsHFS at LCMTotalLTV
by CRE Type
HFI at Amortized Cost, net of deferred fees and costsHFS at LCMTotalLTV
by CRE Type
Loans not backed by CRE$259,183 $22,646 $281,829 $203,405 $— $203,405 
Loans backed by CRE138,442 37,234 175,676 132,900 56,607 189,507 
Total loans397,625 59,880 457,505 336,305 56,607 392,912 
Loans backed by CRE by type:
Retail$47,645 $— $47,645 52.2 %$40,400 $— $40,400 49.7 %
1-4 Family30,183 — 30,183 57.5 %31,700 — 31,700 57.6 %
Multifamily29,308 — 29,308 51.7 %29,800 — 29,800 51.3 %
Industrial23,267 — 23,267 47.0 %23,400 — 23,400 47.3 %
Office4,108 — 4,108 48.8 %4,100 — 4,100 48.9 %
Construction and land development— 27,134 27,134 73.9 %— 51,907 51,907 83.1 %
Hotel— 10,100 10,100 59.2 %— 4,700 4,700 55.3 %
Other3,931 — 3,931 51.6 %3,500 — 3,500 52.8 %
Total non-owner occupied HFI at amortized cost$138,442 $37,234 $175,676 59.4 %$132,900 $56,607 $189,507 60.3 %
Unfunded Commitments
Construction and land development$— $40,777 $40,777 73.9 %$— $4,493 $4,493 83.1 %
Hotel— 90 90 59.2 %— — — 55.3 %
Multifamily30 — 30 — — — — — 
Total unfunded commitments30 40,867 40,897 — 4,493 4,493 
Total CRE Loans$138,472 $78,101 $216,573 59.4 %$132,900 $61,100 $194,000 60.8 %
1 Construction land development includes first and second lien loans. The LTV on first lien is generally 65%. Second liens are typically taken out by the SBA following project completion.

Goodwill and Intangibles

March 31, 2024December 31, 2023
GoodwillIntangible AssetsTotalGoodwillIntangible AssetsTotal
NBNYC acquisition$271 $797 $1,068 $271 $843 $1,114 
Payments segment13,814 — 13,814 13,814 13 13,827 
Technology segment11,800 3,262 15,062 11,800 3,379 15,179 
Total$25,885 $4,059 $29,944 $25,885 $4,235 $30,120 

The change in goodwill and intangible assets relates to amortization of intangible assets during the three months ended March 31, 2024.

57


Settlement Receivable

Settlement receivables were $56.9 million as of March 31, 2024, a guarantordecrease of $5.3 million compared to December 31, 2023. The settlement receivable arises from the guaranteed portions of SBA 7(a) loans that were traded in the period but did not settle during the current period end and the cash was not received from the purchasing broker during the current period; the amount varies depending on loan origination volume and timing of sales at quarter end.

LIABILITIES

Total liabilities at March 31, 2024, were $1.3 billion, an increase of $75.0 million, or 6.4%, compared to total liabilities of $1.2 billion at December 31, 2023.

Deposits

Total deposits were $512.9 million at March 31, 2024, consisting of $5.5 million in non-interest bearing deposits and $507.5 million in interest bearing deposits, a $49.4 million increase from the Sterling Receivablebalance as of December 31, 2023.

Borrowings
Borrowings OutstandingMarch 31, 2024December 31, 2023Change
Other Bank Borrowings1:
Webster NMS Note35,624 36,628 (1,004)
SPV I Capital One Facility20,241 16,080 4,161 
SPV II Deutsche Bank Facility18,063 6,799 11,264 
SPV III One Florida Bank Facility29,753 257 29,496 
FHLB Advances19,726 23,184 (3,458)
Total Lines of Credit123,407 82,948 40,459 
Parent Company Notes due 2024, 2025, 2026, and 20281:
2024 5.75% Notes38,178 38,124 54 
2025 5.00% Notes29,651 29,563 88 
2025 8.125% Notes49,564 49,433 131 
2026 5.50% Notes113,743 113,564 179 
2028 8.00% Notes38,465 38,378 87 
Total 2024, 2025, 2026, and 2028 Notes269,601 269,062 539 
Notes Payable - Securitization Trusts1
269,480 292,112 (22,632)
Total$662,488 $644,122 $18,366 
1 Net of deferred financing costs.

Borrowings were $662.5 million at March 31, 2024 compared to $644.1 million at December 31, 2023. This increase was primarily due to an additional $4.2 million, $11.3 million, and Inventory Facility at NBCS. Maximum$29.5 million of borrowings under the Sterling ReceivableSPV I, II, and Inventory Facility are $15,000,000. III facilities, respectively. These increases were partially offset by a $22.6 million reduction in our notes payable on securitization trusts, and $3.5 million paydown of FHLB advances.

Deferred Taxes
The Sterling Receivabledeferred tax assets and Inventory Facility maturesliabilities represent the cumulative timing differences between book and tax to the extent such assets or liabilities give rise to taxable income or expense in February 2018. At September 30, 2017, total principal owed by NBCS was $10,041,000. In addition,future periods. Within this balance is the deferred tax asset on net operating loss (NOL) carryforwards not expected to be utilized in the current year. The Company deposited $750,000 to collateralize the guarantee. At September 30, 2017, the Companyevaluated all NOLS for a valuation allowance and determined that it is not probable that payments would be required to be made under the guarantee.none were required.

The Company is also a guarantor on the Sterling 504 Facility at NBCS. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in August 2018. At September 30, 2017, total principal owed by NBCS was $2,609,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the Goldman Facility, a term loan facility between UPSW, NTS, Premier, BSP and SBL with Goldman Sachs with an aggregate principal amount up to $50,000,000. The Goldman Facility matures in June 2021. At September 30, 2017, total principal outstanding was $40,000,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.


Loan Portfolio Asset Quality and Composition
The following tables set forth distribution by business type of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
58
Distribution by Business Type        
Business Type # of Loans  Balance Average Balance % of Balance
Existing Business 1,139
 $216,247
 $190
 81.6%
Business Acquisition 182
 35,237
 194
 13.3%
Start-Up Business 134
 13,648
 102
 5.1%
Total 1,455
 $265,132
 $182
 100.0%
As of December 31, 2016


Distribution by Business Type        
Business Type # of Loans Balance Average Balance % of Balance
Existing Business 921
 $177,430
 $193
 80.7%
Business Acquisition 169
 30,454
 180
 13.9%
Start-Up Business 138
 11,900
 86
 5.4%
Total 1,228
 $219,784
 $179
 100.0%
The following tables set forth distribution by borrower’s credit score of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Borrower Credit Score        
Credit Score # of Loans  Balance Average Balance % of Balance
500 to 550 17
 $2,657
 $156
 1.0%
551 to 600 45
 10,021
 223
 3.8%
601 to 650 209
 41,938
 201
 15.8%
651 to 700 429
 82,185
 192
 31.0%
701 to 750 433
 78,979
 182
 29.8%
751 to 800 271
 43,835
 162
 16.5%
801 to 850 41
 3,740
 91
 1.4%
Not available 10
 1,777
 178
 0.7%
Total 1,455
 $265,132
 $182
 100.0%

As of December 31, 2016
Distribution by Borrower Credit Score        
Credit Score # of Loans  Balance Average Balance % of Balance
500 to 550 17
 $2,036
 $120
 0.9%
551 to 600 38
 6,748
 178
 3.1%
601 to 650 160
 32,912
 206
 15.0%
651 to 700 344
 64,923
 189
 29.5%
701 to 750 372
 67,006
 180
 30.5%
751 to 800 250
 39,600
 158
 18.0%
801 to 850 40
 4,124
 103
 1.9%
Not available 7
 2,435
 348
 1.1%
Total 1,228
 $219,784
 $179
 100.0%
The following tables set forth distribution by primary collateral type of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Primary Collateral Type        
Collateral Type # of Loans  Balance Average Balance % of Balance
Commercial Real Estate 704
 $157,940
 $224
 59.6%
Machinery and Equipment 227
 43,374
 191
 16.4%
Residential Real Estate 307
 25,255
 82
 9.5%
Other 60
 21,693
 362
 8.2%
Accounts Receivable and Inventory 103
 13,359
 130
 5.0%
Liquid Assets 13
 645
 50
 0.2%
Furniture and Fixtures 12
 1,822
 152
 0.7%
Unsecured 29
 1,044
 36
 0.4%
Total 1,455
 $265,132
 $182
 100.0%
As of December 31, 2016
Distribution by Primary Collateral Type        
Collateral Type # of Loans  Balance Average Balance % of Balance
Commercial Real Estate 589
 $133,263
 $226
 60.6%
Machinery and Equipment 201
 37,426
 186
 17.0%
Residential Real Estate 264
 21,211
 80
 9.7%
Other 45
 13,822
 307
 6.3%
Accounts Receivable and Inventory 80
 12,075
 151
 5.5%
Liquid Assets 15
 667
 44
 0.3%
Unsecured 23
 883
 38
 0.4%
Furniture and Fixtures 11
 437
 40
 0.2%
Total 1,228
 $219,784
 $179
 100.0%

The following tables set forth distribution by days delinquent of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Days Delinquent        
Delinquency Status # of Loans  Balance Average Balance % of Balance
Current 1,289
 $226,704
 $176
 85.5%
1 to 30 days 54
 13,126
 243
 5.0%
31 to 60 days 23
 5,058
 220
 1.9%
61 to 90 days 
 
 
 %
91 days or greater 89
 20,244
 227
 7.6%
Total 1,455
 $265,132
 $182
 100.0%
As of December 31, 2016
Distribution by Days Delinquent        
Delinquency Status # of Loans  Balance Average Balance % of Balance
Current 1,119
 $199,170
 $178
 90.6%
1 to 30 days 35
 3,680
 105
 1.7%
31 to 60 days 7
 1,570
 224
 0.7%
61 to 90 days 
 
 
 %
91 days or greater 67
 15,364
 229
 7.0%
Total 1,228
 $219,784
 $179
 100.0%
Consolidated Results of Operations


As a BDC and a RIC, we are subject to certain constraints on our operations, including limitations imposed by the 1940 Act and the Code.
Comparison of the three months ended September 30, 2017March 31, 2024 and 20162023
Investment Income
As disclosed in our 2023 Form 10-K, the Company’s prior year condensed comparative financial statements have been adjusted to correct errors made in the Company’s financial statements previously issued for the first, second, and third quarters of 2023. Results for the three months ended March 31, 2023 are presented as restated. Refer to our 2023 Form 10-K for further detail.
(in thousands)Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change
Investment income:     
Interest income$4,551
 $2,675
 $1,876
Dividend income2,551
 2,933
 (382)
Servicing income1,794
 1,551
 243
Other income705
 692
 13
Total investment income$9,601
 $7,851
 $1,750

Interest IncomeSummary

For the three months ended March 31, 2024, the Company reported net income of $9.65 million, or $0.38 per basic and diluted share, compared to net income of $18.55 million, or $0.76 per basic and $0.74 per diluted share, respectively, for the three months ended March 31, 2023, respectively.

The increasedecrease in interestnet income was attributable to the following items:

Three Months Ended March 31,
2024
2023
(as restated)
Change
Net interest income after provision for credit losses$4,891 $3,265 $1,626 
Noninterest income49,367 42,356 7,011 
Noninterest expense41,159 39,023 2,136 
Net income before taxes13,099 6,598 6,501 
Income tax (benefit)/expense3,449 (11,952)15,401 
Net income$9,650 $18,550 $(8,900)

Net Interest Income

Three Months Ended March 31,
2024
2023
(as restated)
Change
Interest income
Debt securities available-for-sale$460 $232 $228 
Loans and fees on loans24,985 17,502 7,483 
Other interest earning assets1,622 981 641 
Total interest income27,067 18,715 8,352 
Interest expense
Deposits5,576 1,475 4,101 
Notes and securitizations10,827 8,718 2,109 
Bank and FHLB borrowings1,758 3,939 (2,181)
Total interest expense18,161 14,132 4,029 
Net interest income8,906 4,583 4,323 
Provision for credit losses4,015 1,318 2,697 
Net interest income after provision for credit losses$4,891 $3,265 $1,626 

Interest Income
Loans and fees on loans: The $7.5 million increase in interest income on the Company’s loan portfolio was attributable to an increase in interest rates as well as the average outstanding performingaccrual portfolio of SBA non-affiliate investmentsloans held for investment increasing to $233,535,000$987.5 million from $196,481,000$746.4 million for the three months ended September 30, 2017March 31, 2024 and 2016, respectively, combined with an increase in the Prime Rate from 3.50% to 4.25%.2023, respectively. The increase in the average outstanding performingaccrual loan portfolio resulted from the origination of new SBA non-affiliate investments7(a) loans period over period.

Dividend Income
(in thousands)Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change
Universal Processing Services of Wisconsin, LLC$1,750
 $1,700
 $50
Premier Payments LLC375
 450
 (75)
Newtek Technology Solutions, Inc.
 330
 (330)
International Professional Marketing, Inc.200
 
 200
Small Business Lending, LLC
 200
 (200)
banc-serv Partners, LLC
 240
 (240)
CDS Business Services, Inc.200
 
 200
The Secure CyberGateway, LLC26
 13
 13
Total dividend income$2,551
 $2,933
 $(382)

Dividend income decreased $382,000 period over period. During the three months ended September 30, 2017, we earned $200,000 of dividendOther interest earning assets: The $0.6 million increase in interest income from NBCS, as compared to zero during the three months ended September 30, 2016. We also earned $200,000 of dividend income from IPM, a new wholly-owned controlled portfolio company that we invested in on April 6, 2017. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current quarter dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents the NSBF originated servicing portfolio and servicing income earned for the three months ended September 30, 2017 and 2016:
(in thousands):Three Months Ended September 30, 2017 Three Months Ended September 30, 2016  Change
Total NSBF originated servicing portfolio (1)
$1,127,760
 $902,604
 $225,156
Total servicing income earned$1,794
 $1,551
 $243
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $791,536,000 and $645,906,000 for the three months ended September 30, 2017 and 2016, respectively.
The increase in servicing incomeother interest earnings assets was attributable to the increaserising interest rates on cash and due from banks as well as interest bearing deposits in total portfolio investments for which we earn servicing income. The portfoliobanks, including Newtek Bank earning servicing income increased $145,630,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from September 30, 2017 to September 30, 2016.interest on Federal Reserve Bank cash deposits.
Other Income
59
Other income relates primarily to legal, packaging, and late fees earned from the origination of SBA 7(a) loans. The $13,000 increase period over period was related to an increase in legal and packaging fees earned.

Expenses:
(in thousands)Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change
Expenses:     
Salaries and benefits$4,776
 $3,665
 $1,111
Interest2,986
 2,341
 645
Depreciation and amortization107
 84
 23
Professional fees605
 807
 (202)
Origination and servicing1,433
 1,537
 (104)
Change in fair value of contingent consideration liabilities(748) 
 (748)
Other general and administrative costs1,634
 1,542
 92
Total expenses$10,793
 $9,976
 $817

Salaries and Benefits


Salaries and benefits increased $1,111,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations.
Interest Expense
The following is a summary of interest expense by facility for the three months ended September 30, 2017March 31, 2024 and 2016:2023:
Three Months Ended
March 31, 2024
March 31, 2023
(as restated)
Change
Deposits$5,576 $1,475 $4,101 
Notes and securitizations:
Notes payable - Securitization Trusts5,966 5,034 932 
2024 Notes604 605 (1)
2025 5.00% Notes462 434 28 
2025 8.125% Notes1,147 884 263 
2026 Notes1,761 1,761 — 
2028 Notes887 — 887 
Total notes and securitizations10,827 8,718 2,109 
Bank and FHLB Borrowings:
Bank notes payable1,614 3,732 (2,118)
FHLB Advances144 207 (63)
Total bank and FHLB borrowings1,758 3,939 (2,181)
Total interest expense$18,161 $14,132 $4,029 
(in thousands)Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change
Notes payable - Securitization trusts$1,294
 $929
 $365
Bank notes payable341
 393
 (52)
Notes due 2022177
 177
 
Notes due 2021792
 810
 (18)
Notes payable - related parties378
 19
 359
Other4
 13
 (9)
Total interest expense$2,986
 $2,341
 $645


The increase in interest expense period over period is primarily relatedfrom additional interest expense on deposits of $4.1 million, The Company also completed a public offering in August 2023, resulting in an additional $0.9 million of interest relating to interest from the Notes payable - Securitization trusts and Notes payable - related parties.2028 Notes. The increase from Notes payable - Securitization trusts wasis partially offset by a $2.2 million reduction in interest on bank and FHLB borrowings.

Provision for Credit Losses
The provision for loan and lease credit losses represents the result of an additional securitization transaction completedamount necessary to be charged against the current period’s earnings to maintain the ACL on loans at a level that the Company believes is appropriate in November 2016. The increase from Notes payable - related parties was relatedrelation to the increaseestimated losses inherent in the average outstanding balance during each period.loan portfolio.

Change in Fair Value of Contingent Consideration

A portion of our investment in IPM consisted of contingent consideration based on IPM attaining specific EBITDA levels for 2017 and 2018. DuringFor the three months ended September 30, 2017, we reducedMarch 31, 2024 and 2023, there was a provision for credit losses of $4.0 million and $1.3 million, respectively. The increase was due to an increase in loans held for investment at amortized cost, specifically SBA 7(a) loans, as well as a sequential build of the contingent consideration liabilityprovision year over year as March 31, 2023 was the Company's first quarter as a financial holding company.
60


Net Interest Income and Margin

Average Balances and Yields. The following table presents information regarding average balances for assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amount of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. The yields and costs for the periods indicated are derived by $748,000dividing the income or expense by the average balances for assets or liabilities, respectively, for the periods presented and annualizing that result. Loan fees are included in interest income on loans.

Three Months Ended March 31,
20242023 (as restated)
Average BalanceInterestAverage Yield / RateAverage BalanceInterestAverage Yield / Rate
Interest-earning assets:
Interest-earning balances in other banks$128,117 $1,622 5.09 %$114,911 $981 3.42 %
Investment securities38,883 460 4.76 20,874 232 4.51 
Loans held for sale154,983 5,027 13.05 91,697 2,907 12.86 
Loans held for investment903,626 19,958 8.88701,766 14,595 8.43
Total interest-earning assets1,225,609 27,067 8.88929,248 18,715 7.99
Less: Allowance for credit losses on loans(12,613)(2,092)
Noninterest earning assets188,558 187,891 
Total assets$1,401,554 $1,115,047 
Interest-bearing liabilities
Demand$18,730 $29 0.62 %$24,267 $— — %
Savings, Super NOW251,766 3,163 5.05 8,859 92 4.22 
Money Market16,868 198 4.72 20,420 219 4.35 
Time177,985 2,186 4.94 113,756 1,164 4.15 
Total deposits465,349 5,576 4.82 167,302 1,475 3.58 
Borrowings636,523 12,585 7.95 672,156 12,657 7.64 
Total interest-bearing liabilities1,101,872 18,161 6.63 839,458 14,132 6.83 
Noninterest-bearing deposits202 2,471 
Noninterest-bearing liabilities61,649 66,017 
Shareholders’ equity237,831 207,101 
Total liabilities and shareholders' equity$1,401,554 $1,115,047 
Net interest income and interest rate spread$8,906 2.25 %$4,583 1.16 %
Net interest margin2.92 %2.00 %
Ratio of average interest-earning assets to average interest bearing liabilities111.23 %110.70 %


61




Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, increases or decreases attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the probability of IPM attaining specific EBITDA levels for 2017 and 2018.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or salechanges due to rate and the cost basischanges due to volume.


Three Months Ended March 31,Three Months Ended March 31,
2024 vs. 20232023 vs. 2022
Increase (Decrease) Due toIncrease (Decrease) Due to
RateVolumeTotalRate
Volume1
Total
Interest income:
Interest-earning balances in other banks$528 $113 $641 $382 $(69)$313 
Investment securities31 200 231 — 232 232 
Loans held for sale113 2,007 2,120 (4,346)1,947 (2,399)
Loans held for investment1,160 4,200 5,360 10,108 2,718 12,826 
Total interest income1,832 6,520 8,352 6,144 4,828 10,972 
Interest expense:
Demand29 — 29 — — — 
Savings, Super NOW546 2,525 3,071 — 92 92 
Money Market17 (38)(21)— 219 219 
Time365 656 1,021 — 1,164 1,164 
Borrowings599 (671)(72)836 7,154 7,990 
Total interest expense1,556 2,472 4,028 836 8,629 9,465 
Net interest income$276 $4,048 $4,324 $5,308 $(3,801)$1,507 
1 Includes income and expense associated with the Acquisition of our investments without regardNBNYC on January 6, 2023, and the associated withdrawal of the election to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Net realized gains forbe treated as a BDC.

Noninterest Income
Three months ended March 31,2024/2023 Increase/(Decrease)
2024
2023
(as restated)
AmountPercent
Dividend income$386 $504 $(118)(23.4)%
Loan servicing asset revaluation(1,735)919 (2,654)(288.8)
Servicing income5,357 4,403 954 21.7 
Net gains on sales of loans20,292 6,367 13,925 218.7 
Net gain on loans under the fair value option2,798 5,905 (3,107)(52.6)
Technology and IT support income5,770 6,709 (939)(14.0)
Electronic payment processing income10,987 10,328 659 6.4 
Other noninterest income5,512 7,221 (1,709)(23.7)
  Total noninterest income$49,367 $42,356 $7,011 16.6 %

Dividend Income

For the three months ended September 30, 2017March 31, 2024 and 2016 were $9,938,0002023, dividend income was dependent on the earnings of our joint ventures.

62


Loan Servicing Asset Revaluation
The Company accounts for servicing assets in accordance with ASC Topic 860-50 - Transfers and $8,716,000, respectively. Realized losses were $87,000Servicing - Servicing Assets and $777,000Liabilities. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells. Servicing assets for loans originated by the Company’s nonbank subsidiaries are measured at FV at each reporting date and the Company reports changes in the FV of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgment is required to estimate the fair value of servicing assets and, as such, these assets are classified as Level 3 in our fair value hierarchy. Servicing assets for loans originated by Newtek Bank are measured at LCM and amortized based on their estimated life, and impairment is recorded to the extent the amortized cost exceeds the asset’s FV.
The decrease in loan servicing asset revaluation is due to the decrease in NSBF”s total portfolio of investments during the wind-down.
Servicing Income, Net of Amortization
The increase in servicing income was related to an increase of $210.9 million in the average total loan portfolio for which we earn servicing income period over period.

Net Gains on Sales of Loans

Net gains on sales of loans for the years ended three months ended September 30, 2017March 31, 2024 and 2016,2023 were $20.3 million and $6.4 million, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.


Net Realized Gains on SBA Non-Affiliate Investments
 Three Months Ended
 March 31, 2024
March 31, 2023
(as restated)
$ Amount$ Amount
Realized gains recognized on sale of SBA loans$20,777 $13,882 
Realized losses recognized on sale of SBA loans(485)(7,515)
Net gains on sales of loans$20,292 $6,367 

 Three Months Ended
 September 30, 2017 September 30, 2016
(in thousands)# of Debt Investments $ Amount # of Debt Investments $ Amount
SBA non-affiliate investments originated during the quarter122
 $103,635
 96
 $85,895
SBA guaranteed non-affiliate investments sold during the quarter117
 $68,461
 98
 $66,453
Realized gains recognized on sale of SBA guaranteed non-affiliate investments
 $10,025
 
 $9,489
Average sale price as a percent of principal balance (1)
 112.31% 
 111.84%
 Three Months Ended
 March 31, 2024
March 31, 2023
(as restated)
# of Loans$ Amount# of Loans$ Amount
SBA loans originated489 $211,504 321 $147,911 
SBA guaranteed loans sold408 156,417 248 109,551 
Average sale price as a percent of principal balance1
111.23 %111.83 %

(1)1 Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflectsreflect amounts net of split with the SBA.


For the three months ended March 31, 2024, the average sale price as a percent of principal balance was 111.23% compared to 111.83% for the prior period. The decrease in sales prices in 2024 resulted from more loan originations than anticipated coupled with higher demand, leading to the Company selling more loans than anticipated while forward rates increased. The increase in overall net gains on sales of loans resulted from higher volumes of sales compared to the prior year.

During the wind-down of NSBF’s operations, NSBF will be required to continue to own its SBA 7(a) loans and PPP Loans in its SBA loan portfolio to maturity, liquidation, charge-off, or (subject to SBA’s prior written approval) sale or transfer. In addition, NSBF will be required to continue to service and liquidate its SBA Loan Portfolio, including processing forgiveness and loan reviews for PPP Loans pursuant to an SBA approved lender service provider agreement with SBL. The Company will continue to measure NSBF’s SBA 7(a) loan portfolio at fair value until the portfolio is completely runoff. The Company will report both realized and unrealized gains and losses relating to the fair value adjustments on the legacy NSBF SBA 7(a) portfolio.


63


Net Unrealized Appreciation (Depreciation)Gain (Loss) on InvestmentsLoans Accounted for under the Fair Value Option

(in thousands)Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments$1,151
 $(78) $1,229
Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments(1,023) 1,418
 (2,441)
Net unrealized (depreciation) appreciation on controlled investments(500) 4,638
 (5,138)
Change in benefit (provision) for deferred taxes on unrealized (depreciation) appreciation on investments335
 (2,028) 2,363
Net unrealized loss in credits in lieu of cash and notes payable in credits in lieu of cash
 (1) 1
Total net unrealized (depreciation) appreciation on investments$(37) $3,949
 $(3,986)


Net unrealized appreciation (depreciation)gains (losses) on SBA guaranteed non-affiliate investmentsloans accounted for under the fair value option amounted to $2.8 million and $5.9 million for the three months ended March 31, 2024 and 2023, respectively.

For the three months ended
March 31, 2024
March 31, 2023
(as restated)
Change
SBA 7(a) Unguaranteed Loans$(1,891)$6,076 $(7,967)
SBA 7(a) Guaranteed Loans13 257 (244)
SBA 504 and Non-SBA Loans4,676 (428)5,104 
Net Gain (Loss) on Loans Accounted for Under the Fair Value Option$2,798 $5,905 $(3,107)

Net gain (loss) on loans accounted for under the fair value option relates to the guaranteed portions of SBA debt investmentsloans made which the Company sells into a secondary market. Unrealized appreciationmarket, the unguaranteed portions of SBA guaranteed investmentsloans made which the Company holds, SBA 504 loans that are held for sale, and ALP loans that are held for sale. This unrealized gain (loss) represents the fair value adjustment of guaranteed portionsloans. The amount of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when(depreciation) is determined by the quantity of guaranteed loans held for sale at quarter end, the change in secondary market pricing conditions, and the valuation of the loans that are sold.not held for sale. During the three months ended March 31, 2024, there was an increase in the gain-on-sale pricing as compared to the prior period.


Technology and IT Support Income

Technology and IT support income decreased by $0.9 million from $6.7 million for the three months ended March 31, 2023 to $5.8 million for the three months ended March 31, 2024. The overall decrease was due to a decrease in procurement and professional services revenue, offset by an increase in managed technology services revenue.

Other Noninterest Income

For the three months ended September 30, 2017, net unrealized depreciation on SBA unguaranteed non-affiliate investments consisted of $303,000March 31, 2024 and $720,000 of unrealized depreciation on performing and non-performing SBA unguaranteed non-affiliate investments, respectively.

For the three months ended September 30, 2016, net unrealized appreciation on SBA unguaranteed non-affiliate investments consisted of $1,852,000 of unrealized appreciation and $434,000 of unrealized depreciation on performing and non-performing SBA unguaranteed non-affiliate investments, respectively.

The change in unrealized appreciation (depreciation) on performing SBA unguaranteed non-affiliate investments related to an increase in the discount rate from 5.05% to 5.50% period over period.


Net Unrealized Appreciation (Depreciation) on Controlled Investments

(in thousands)Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Change
Universal Processing Services of Wisconsin, LLC$2,000
 $5,852
 $(3,852)
Newtek Technology Solutions, Inc.(1,500) (1,305) (195)
Premier Payments LLC
 750
 (750)
CDS Business Services, Inc.2,000
 (700) 2,700
PMTWorks Payroll, LLC(1,000) (25) (975)
banc-serv Partners, LLC(2,000) 
 (2,000)
Titanium Asset Management LLC
 66
 (66)
Total net unrealized (depreciation) appreciation on controlled investments$(500) $4,638
 $(5,138)

Unrealized appreciation related to our investment in UPSW was primarily related to a decrease in the weighted average cost of capital during the three months ended September 30, 2017. Unrealized appreciation related to our investment in NBCS was the result of continued growth in EBITDA.

Unrealized depreciation related to our investment in NTS was related to continued weak financial performance. During the three months ended September 30, 2017, we made a $1,000,000 debt investment in NPS. Due to NPS’ continued negative cash flows, we recorded an unrealized loss of $1,000,000 on our debt investment in NPS due to the unlikelihood of collection. During the three months ended September 30, 2017, the Company recorded a $2,000,000 unrealized loss on its investment in BSP to reflect the potential impact to the business and tradename as a result of the FBI investigation discussed in Note 8.

Provision for Deferred Taxes on Unrealized Appreciation of Investments

Certain consolidated subsidiaries are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the three months ended September 30, 2017, we recognized a benefit from deferred taxes of $335,000 related to unrealized depreciation of certain controlled portfolio company investments. During the three months ended September 30, 2016, we recognized a provision for deferred taxes of $2,028,000 related to unrealized appreciation of certain controlled portfolio company investments.
Comparison of the nine months ended September 30, 2017 and 2016
Investment Income
(in thousands)Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change
Investment income:     
Interest income$13,689
 $7,655
 $6,034
Dividend income7,326
 7,719
 (393)
Servicing income5,163
 4,581
 582
Other income2,320
 1,913
 407
Total investment income$28,498
 $21,868
 $6,630
Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $220,367,000 from $182,637,000 for the nine months ended September 30, 2017 and 2016, respectively combined with an increase in the Prime Rate from 3.50% to 4.25%. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period. In addition, during the nine months ended September 30, 2017, we recognized $1,493,000 of interest2023, other income related to accrued non-performing interest owed by two borrowers who paid their accrued interest balance in full.

Dividend Income
(in thousands)Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change
Universal Processing Services of Wisconsin, LLC$5,250
 $4,500
 $750
Premier Payments LLC1,200
 1,350
 (150)
Newtek Technology Solutions, Inc.
 990
 (990)
International Professional Marketing, Inc.550
 
 550
Small Business Lending, LLC100
 600
 (500)
banc-serv Partners, LLC
 240
 (240)
CDS Business Services, Inc.200
 
 200
The Secure CyberGateway, LLC26
 39
 (13)
Total dividend income$7,326
 $7,719
 $(393)

Dividend income decreased $393,000 period over period. During the nine months ended September 30, 2017, we earned $200,000 of dividend income from NBCS and $550,000 of dividend income from IPM, a new wholly-owned controlled portfolio company that we invested in on April 6, 2017. Dividend income earned from UPSW increased $750,000 period over period. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current period dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the nine months ended September 30, 2017 and 2016:
(in thousands):Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016  Change
Total NSBF originated servicing portfolio (1)
$1,127,760
 $902,604
 $225,156
Total servicing income earned$5,163
 $4,581
 $582
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $758,700,000 and $613,817,000 for the nine months ended September 30, 2017 and 2016, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $144,883,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from September 30, 2017 to September 30, 2016.
Other Income
Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA 7(a) loans. The increasedecrease was related to an unrealized gain in the first quarter of 2023 on joint ventures of $2.0 million, offset by an increase in legal, prepayment and packaging fees earned as a result of the larger dollarhigher volume of SBA 7(a) loans funded.originated of 489 loans compared to 321 loans for the three months ended March 31, 2024 and 2023, respectively.


Expenses:
(in thousands)Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change
Expenses:     
Salaries and benefits$14,407
 $10,638
 $3,769
Interest8,133
 5,804
 2,329
Depreciation and amortization292
 209
 83
Professional fees2,054
 2,519
 (465)
Origination and servicing4,086
 4,190
 (104)
Change in fair value of contingent consideration liabilities(748) 
 (748)
Other general and administrative costs5,239
 6,094
 (855)
Total expenses$33,463
 $29,454
 $4,009
Non-Interest Expense

Three months ended March 31,2024/2023 Increase/(Decrease)
2024
2023
(as restated)
AmountPercent
Salaries and employee benefits expense$20,506 $19,073 $1,433 7.5 %
Technology services expense3,408 3,803 (395)(10.4)
Electronic payment processing expense4,846 4,504 342 7.6 
Professional services expense4,565 3,440 1,125 32.7 
Other loan origination and maintenance expense2,244 2,781 (537)(19.3)
Depreciation and amortization532 791 (259)(32.7)
Other general and administrative costs5,058 4,631 427 9.2 
Total other expense$41,159 $39,023 $2,136 5.5 %

Salaries and Benefits
Salaries and benefits increased $3,769,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations.
The increase in salaries and benefits was also relatedprimarily attributable to a $678,000an increase in stock-based compensation expense period over period.entity headcount from 530 employees at March 31, 2023 to 559 employees at March 31, 2024.
Interest Expense
The following is a summary of interest expense by facility for the nine months ended September 30, 2017 and 2016:
64
(in thousands)Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change
Notes payable - Securitization trusts$4,096
 $2,808
 $1,288
Bank notes payable700
 840
 (140)
Notes due 2022530
 531
 (1)
Notes due 20212,372
 1,389
 983
Notes payable - related parties418
 196
 222
Other17
 40
��(23)
Total interest expense$8,133
 $5,804
 $2,329



Professional Fees

The increase in interest expenseprofessional fees period over period is primarily relatedattributable to interest from the Notes payable - Securitization trusts, 2021 Notes and Notes payable - related parties. The increase from Notes payable - Securitization trusts was the result of an additional securitization transaction completed in November 2016.

In April 2016, we issued $40,250,000 of 2021 Notes. During the nine months ended September 30, 2017, we incurred $2,372,000 of interest expense. During the nine months ended September 30, 2016, we incurred only a partial period worth of interest expense.

The increase from Notes payable - related parties wasaudit fees related to the increaseCompany’s first audit reporting as a financial holding company after the Acquisition of NBNYC.

Other Loan Origination and Maintenance Expense

Origination and loan processing expenses during the three months ended March 31, 2024, was $2.2 million compared to $2.8 million for the three months ended March 31, 2023. During the first quarter of 2024, the majority of loans were funded by Newtek Bank, which accounts for loans at amortized cost, net of deferred fees and costs, resulting in a portion of the loan origination fees being deferred and amortized over the life of the loan, compared to the first quarter of 2023, when most loans were funded by NSBF, which accounts for loans at fair value and expenses all origination fees at the time they are incurred.

Results of Segment Operations

The Company has four reportable segments Banking, Technology, NSBF, and Payments. A description of each segment and the methodologies used to measure financial performance is described in NOTE 19—SEGMENTS in the average outstanding balance during each period.

Change in Fair Value of Contingent Consideration

A portion of our investment in IPM consisted of contingent consideration based on IPM attaining specific EBITDA levels for 2017 and 2018. During the nine months ended September 30, 2017, we reduced the contingent consideration liability by $748,000 based on the probability of IPM attaining specific EBITDA levels for 2017 and 2018.
Other General and Administrative Costs

Other general and administrative costs include managed IT services, marketing, rent and other costs. In April 2016, we moved our headquarters to Lake Success, New York and vacated our space in West Hempstead, New York. During the nine months ended September 30, 2016, we incurred a loss of $1,487,000 relatedaccompanying Notes to the remaining liabilities underConsolidated Financial Statements. Net income (loss) by operating segment is presented below:

For the three months ended2024/2023 Increase/(Decrease)
March 31, 2024
March 31, 2023
(as restated)
AmountPercent
Banking$9,401 $(1,918)$11,319 (590)%
Technology107 263 (156)(59)%
NSBF(920)13,547 (14,467)(107)%
Payments3,396 2,664 732 27 %
Other(2,334)3,994 (6,328)(158)%
Consolidated net income$9,650 $18,550 $(8,900)(48)%

Banking - The banking segment includes Newtek Bank as well as its consolidated subsidiary SBL. The financial results include the lease. No such expense was incurred during the nine months ended September 30, 2017. This was offset by $979,000 of bad debt expense related to amounts owed from a related party.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment ororigination, sale, and the cost basisservicing of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Net realized gains for the nine months ended September 30, 2017 and 2016 were $27,537,000 and $22,536,000, respectively. Realized losses were $131,000 and $763,000 during the nine months ended September 30, 2017 and 2016, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Net Realized Gains on SBA Non-Affiliate Investments
 Nine Months Ended
 September 30, 2017 September 30, 2016
(in thousands)# of Debt Investments $ Amount # of Debt Investments $ Amount
SBA non-affiliate investments originated during the period324
 $262,804
 295
 $217,779
SBA guaranteed non-affiliate investments sold during the period322
 $189,349
 287
 $160,171
Realized gains recognized on sale of SBA guaranteed non-affiliate investments
 $27,668
 
 $23,280
Average sale price as a percent of principal balance (1)  112.21%   112.09%

(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with the SBA.

Net Unrealized Appreciation (Depreciation) on Investments

(in thousands)Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change
Net unrealized appreciation on SBA guaranteed non-affiliate investments$1,201
 $690
 $511
Net unrealized appreciation on SBA unguaranteed non-affiliate investments238
 869
 (631)
Net unrealized (depreciation) appreciation on controlled investments(2,243) 10,362
 (12,605)
Change in benefit (provision) for deferred taxes on unrealized (depreciation) appreciation on investments745
 (4,469) 5,214
Net unrealized depreciation on non-control/non-affiliate investments
 (43) 43
Net unrealized depreciation in credits in lieu of cash and notes payable in credits in lieu of cash
 (2) 2
Total net unrealized (depreciation) appreciation on investments$(59) $7,407
 $(7,466)

Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to guaranteed portions of SBA debt investments made which the Company sells into a secondary market. Unrealized appreciation of SBA guaranteed investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when the SBA 7(a) loans, are sold.


Net Unrealized Appreciation (Depreciation) on Controlled Investments

(in thousands)Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Change
Universal Processing Services of Wisconsin, LLC$3,000
 $9,552
 $(6,552)
Newtek Technology Solutions, Inc.(4,059) (1,305) (2,754)
Premier Payments LLC
 3,997
 (3,997)
CDS Business Services, Inc.4,750
 (925) 5,675
PMTWorks Payroll, LLC(3,045) (25) (3,020)
banc-serv Partners, LLC(2,000) 
 (2,000)
Small Business Lending, LLC(800) (1,000) 200
The Secure CyberGateway, LLC
 2
 (2)
Titanium Asset Management LLC(42) 66
 (108)
Excel WebSolutions, LLC(47) 
 (47)
Total net unrealized (depreciation) appreciation on controlled investments$(2,243) $10,362
 $(12,605)

Unrealized appreciation related to our investment in UPSW was related to an increase in EBITDA projections combined with a decrease in504 loans, C&I loans, CRE loans and ABL loans. In addition, the discount ratebank offers depository services. The results include $7.7 million of net interest income during the nine three months ended September 30, 2017. Unrealized appreciation relatedMarch 31, 2024 compared to our investment in NBCS was related to continued growth in its SBA 504 lending program and growth in its accounts receivable and inventory financing programs.

Unrealized depreciation related to our investment in NTS was related to weaker than projected financial performance.$2.1 million of net interest income during the three months ended March 31, 2023. During the nine months ended September 30, 2017, we made an additional $1,000,000 debt investment in NPS. Due to NPS’ continued negative cash flows, we recorded an unrealized lossfirst quarter of $3,045,000 on our total investment in NPS. During2024, the nine months ended September 30, 2017, the Company recorded a $2,000,000 unrealized loss on its investment in BSP to reflect the potential impactmajority of loans were funded by Newtek Bank compared to the businessfirst quarter of 2023, when most loans were funded by NSBF.

Technology - Technology (NTS) provides website hosting, dedicated server hosting, cloud hosting, web design and tradename asdevelopment, internet marketing, e-commerce, data storage, backup and disaster recovery, and other related services including consulting and implementing technology solutions for enterprise and commercial clients across the U.S. As a result of commitments made to the FBI investigation discussed in Note 8.


Provision for Deferred Taxes on Unrealized AppreciationFederal Reserve, the Company will divest or otherwise terminate the activities conducted by NTS within two years of Investments

Certain consolidated subsidiaries of ours arebecoming a financial holding company (i.e., by January 6, 2025), subject to U.S. federalany extension of the two-year period.

NSBF - Relates to NSBF’s legacy portfolio of SBA 7(a) loans held outside Newtek Bank. The decrease in net income (loss) is due to the wind-down of NSBF’s operations.

Payments - Payments includes NMS, POS and stateMobil Money. Within the segment’s results are $11.7 million of noninterest income taxes. These taxable subsidiaries arefor the three months ended March 31, 2024 resulting from marketing credit and debit card processing services, check approval services, processing equipment, and software compared to $11.1 million during the three months ended March 31, 2023. The net income also included $8.1 million and $7.9 million of noninterest expense for the three months ended March 31, 2024 and 2023, respectively.

Corporate and Other - Represents operations not consolidated withconsidered to be reportable segments and/or general operating expenses of the Company, for income tax purposes, but areand includes the parent company, other non-bank subsidiaries including NIA, PMT, non-bank lending, including Holdco 6 and our joint ventures, and elimination adjustments to reconcile the results of the operating segments to the consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differencesfinancial statements prepared in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the nine months ended September 30, 2017, we recognized a benefit from deferred taxes of $745,000 related to unrealized depreciation of certain controlled portfolio company investments. During the nine months ended September 30, 2016, we recognized a provision for deferred taxes of $4,469,000 related to unrealized appreciation of certain controlled portfolio company investments.conformity with GAAP.


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Liquidity and Capital Resources
Overview


Our liquidity and capital resources are derived from our Capital One Facility, Notes payable - related parties, 20212024 Notes, 20222025 5.00% Notes, 2025 8.125% Notes, 2026 Notes, 2028 Notes, securitization transactions and cash flows from operations, including investment sales and repayments, and income earned. OurIn the three months ended March 31, 2024, our primary use of funds from operations includes investments in portfolio companiesincluded originations of loans and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our borrowings and the proceeds from the turnover of our portfolio and from public and private offerings of securities to finance our investment objectives.incurred. We may raise additional equity or debt capital through both registered offerings off of a shelf registration, including “At-The-Market”“at-the-market”, or ATM, and private offerings of securities.

Public Offerings

On January 27, 2023, the Company submitted a Form S-3 with the SEC in order to commence the process of re-establishing an effective shelf registration statement. The registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into the 2023 ATM Program

Equity Distribution Agreement. The 2023 ATM Equity Distribution Agreement provides that wethe Company may offer and sell up to 2,900,0003,000,000 shares of common stockCommon Stock from time to time through the Placement Agents. During the nine months ended September 30, 2017, we sold 455,000 shares of our common stock at a weighted average price of $17.19 per share. Proceeds, net of offering costs and expenses were $7,666,000. placement agents.

Regulatory Capital

The Company may offer upstrives to an additional 2,445,000 sharesmaintain prudent capital levels to absorb risk and maximizing returns to shareholders. The Company and Newtek Bank are primarily constrained by the Total Capital and Leverage ratios given the mix of common stockassets vis a vie capital.

Capital amounts and ratios for the Company as of March 31, 2024 are presented in the table below:
Actual
For Capital Adequacy Purposes1
For Consideration as Well-Capitalized
NewtekOne, Inc. - March 31, 2024AmountRatioAmountRatioAmountRatio
Tier 1 Capital (to Average Assets)$185,313 13.7 %$54,100 4.0 %N/AN/A
Common Equity Tier 1 (to Risk-Weighted Assets)185,313 17.2 %48,567 4.5 %N/AN/A
Tier 1 Capital (to Risk-Weighted Assets)185,313 17.2 %64,755 6.0 %N/AN/A
Total Capital (to Risk-Weighted Assets)218,574 20.3 %86,341 8.0 %N/AN/A
1 Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

Capital amounts and ratios for Newtek Bank as of March 31, 2024, are presented in the table below. As of March 31, 2024, Newtek Bank was categorized as “well-capitalized” under the prompt corrective action measures and met the capital conservation buffer requirements.
Actual
For Capital Adequacy Purposes1
For Consideration as Well-Capitalized
Newtek Bank - March 31, 2024AmountRatioAmountRatioAmountRatio
Tier 1 Capital (to Average Assets)$100,383 15.5 %$25,905 4.0 %$36,957 5.0 %
Common Equity Tier 1 (to Risk-Weighted Assets)100,383 17.7 %25,586 4.5 %56,858 6.5 %
Tier 1 Capital (to Risk-Weighted Assets)100,383 17.7 %34,114 6.0 %45,486 8.0 %
Total Capital (to Risk-Weighted Assets)107,603 18.9 %45,486 8.0 %32,381 10.0 %
1 Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

Public Offerings

ATM Program

The Company’s shelf registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into the 2023 ATM Equity Distribution Agreement. The 2023 ATM Equity Distribution Agreement asprovides that the Company may offer and sell up to three million shares of September 30, 2017.Common Stock from time to time through the placement agents (the “ATM Program”). The Company may, subject to market conditions, engage in activity under the ATM Program.


We intend to use
66


2028 Notes

On August 31, 2023, the net proceeds for funding investments in debt and equity securities in accordance with our investment objective and strategies. Additionally, we may use net proceeds for general corporate purposes, which include funding investments, repaying any outstanding indebtedness, acquisitions and other general corporate purposes.

Equity Offerings

In January 2017 weCompany completed a publicregistered offering of 2,250,000 shares$40.0 million in aggregate principal amount of our common stock at a public offering price of $15.25 per share and an additional 337,500 shares of common stock at a public offering price of $15.25 per share pursuant toits 8.00% 2028 Notes, which includes the underwriter's fullunderwriters’ exercise of the over-allotment option. Proceeds, netoption granted by the Company to purchase an additional $5.0 million in aggregate principal amount of offering coststhe 2028 Notes. The Company received $38.0 million in proceeds, before expenses, from the sale of the 2028 Notes. The 2028 Notes bear interest at a rate of 8.00% per year payable quarterly on March 1, June 1, September 1 and expenses were $37,042,000.December 1 of each year, commencing on December 1, 2023, and trade on the Nasdaq Global Market under the trading symbol “NEWTI.” At March 31, 2024, the Company was in compliance with all covenants related to the 2028 Notes.


Debt Offerings2026 Notes


In April 2016,January 2021, the Company and the Trustee entered into the SecondSeventh Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000$115.0 million aggregate principal amount of 7.0%5.50% 2026 Notes, due 2021. The Company granted an overallotment option of up to $5,250,000including $15.0 million in aggregate principal amount of the 2021 Notes.sold pursuant to a fully-exercised overallotment option. The sale of the 2026 Notes generated proceeds of approximately $33,750,000,$111.3 million, net of underwriter's fees and expenses. In May 2016, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds. The 20212026 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 20212026 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.


The 20212026 Notes will mature on March 31, 2021February 1, 2026 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after April 22, 2017,at the Company’s option upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price ofequal to 100% of the outstanding principal amount thereofof the 2026 Notes to be redeemed, plus accrued and unpaid interest, payments otherwise payable for the then-current quarterly interest period accruedif any, to, but not includingexcluding, the date fixed forof redemption. The 20212026 Notes bear interest at a rate of 7.0%5.50% per year payable quarterly on March 31, June 30, September 30,February 1, May 1, August 1 and December 31November 1 of each year, commencing on June 30, 2016,May 1, 2021, and trade on the Nasdaq Global Market under the trading symbol “NEWTL.“NEWTZ.

The Base Indenture, as supplemented by the Second Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with (regardless of whether it is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act as in effect immediately prior to the issuance of the 2021 Notes, and to provide financial information to the holders of the 2021 Notes and the Trustee if the Company should no longer be subject to

the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the First Supplemental Indenture. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2021 Notes may declare such 2021 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At September 30, 2017,March 31, 2024, the Company was in compliance with all covenants related to the 20212026 Notes.


2024 Notes

In September 2015,July 2019, the Company and the Trustee entered into the Fourth Supplemental Indenture to the Base Indenture between the Company and the First Supplemental IndentureTrustee, relating to the Company'sCompany’s issuance, offer and sale of $8,324,000, including the underwriter's partial exercise$55.0 million aggregate principal amount of their over-allotment5.75% 2024 Notes. The Company granted an overallotment option of up to $8.25 million in aggregate principal amount of the 7.5%2024 Notes. The sale of the 2024 Notes due 2022.generated proceeds of approximately $53.2 million, net of underwriter's fees and expenses. In July 2019 the underwriters exercised their option to purchase $8.25 million in aggregate principal amount of 2024 Notes for an additional $8.0 million in net proceeds. The 20222024 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 20222024 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

The 20222024 Notes will mature on September 30, 2022August 1, 2024 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after September 23, 2018,August 1, 2021, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. Proceeds netThe 2024 Notes bear interest at a rate of offering costs5.75% per year payable quarterly on February 1, May 1, August 1, and expenses were $7,747,000.November 1 of each year, commencing on November 1, 2019, and trade on the Nasdaq Global Market under the trading symbol “NEWTL.” At March 31, 2024, the Company was in compliance with all covenants related to the 2024 Notes.


On February 16, 2021 and May 20, 2021, the Company issued an additional $5.0 million and $10.0 million in aggregate principal amount of its 2024 Notes, respectively. The new 2024 Notes are treated as a single series with the prior 2024 Notes and have the same terms as the prior 2024 Notes. The existing 2024 Notes have the same CUSIP number and are fungible and rank equally with the prior 2024 Notes.

67


On December 29, 2021, the Company redeemed $40.0 million in aggregate principal amount of the $78.25 million of principal amount of 2024 Notes outstanding at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from November 1, 2021 through, but excluding, the redemption date. As of March 31, 2024, the outstanding principal balance of the 2024 Notes was $38.25 million.

The Base Indenture, as supplemented by the First Supplemental Indenture,and each supplemental indenture thereto, contains certain covenants includingcovenants. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding Notes may declare such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. Each supplemental indenture (except for the Tenth Supplemental Indenture) includes covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act (or any successor provisions), to comply with (regardless of whether it is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act and to provide financial information to the holders of the 2022 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by each supplemental indenture thereto. These covenants currently apply to the Second Supplemental Indenture. The Base Indenture provides for customary events of default2024 and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2022 Notes may declare such 2022 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period.2026 Notes. At September 30, 2017,March 31, 2024, the Company iswas in compliance with all covenants related to the 2022 Notes.


2025 Notes (Private Placements)

On November 27, 2020, the Company and Trustee entered into the Fifth Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the issuance, offer and sale of $5.0 million aggregate principal amount of its 2025 6.85% Notes. The offering was consummated pursuant to the terms of a purchase agreement among the Company and an accredited investor, which provided for the 2025 6.85% Notes to be issued to the purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act. The net proceeds from the sale of the notes were approximately $4.8 million, after deducting structuring fees and estimated offering expenses, each payable by the Company. The Company exercised its option to issue up to $10.0 million of additional 2025 6.85% Notes to the purchaser, and issued $10.0 million in additional 2025 6.85% Notes to the purchaser in an exempt offering in January 2021.

On March 31, 2022, the Company caused notices to be issued to the holder of its 2025 6.85% Notes regarding the Company’s exercise of its option to redeem all $15.0 million in aggregate principal amount of the Notes on May 2, 2022. The Notes were redeemed on May 2, 2022 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from February 28, 2022 through, but excluding, May 2, 2022.

On March 31, 2022, the Company completed a private placement of $15.0 million aggregate principal amount of its 5.00% notes due 2025 (2025 5.00% Notes). The offering was consummated pursuant to the terms of a purchase agreement dated March 31, 2022 among the Company and an accredited investor, which provided for the 2025 5.00% Notes to be issued to the purchaser in a transaction that relied on Section 4(a)(2) of the Securities Act to be exempt from registration under the Securities Act. The net proceeds from the sale of the notes were approximately $14.5 million, after deducting structuring fees and estimated offering expenses, each payable by the Company. The 2025 5.00% Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2025 5.00% Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries. Under the purchase agreement, the Company also issued an additional $15.0 million in aggregate principal amount of the 2025 5.0% Notes to the purchaser on May 2, 2022. The 2025 5.00% Notes were issued under the Base Indenture and the Tenth Supplemental Indenture, dated as of March 31, 2022. The 2025 5.00% Notes will mature on March 31, 2025, and under the terms of the Indenture, the Notes are redeemable at any time, at the option of the Company, at a redemption price of 100% of the outstanding principal amount thereof.

On January 23, 2023, we completed a private placement offering of $50.0 million aggregate principal amount of 8.125% notes due 2025. The net proceeds from the sale of the notes were approximately $48.94 million after deducting estimated offering expenses payable by the Company. The Notes will mature on February 1, 2025. The Notes bear interest at a rate of 8.125% per year payable semiannually on February 1 and August 1 each year, commencing on August 1, 2023.

68


NSBF Capital One Facilities

Facility
In May 2017,Prior to October 2023, NSBF amended itsmaintained a $150.0 million Capital One facility to increase the facility from $50,000,000 to $100,000,000finance NSBF’s origination of unguaranteed and provided a reduction in interest rates.guaranteed portions of SBA 7(a) loans. The interest rate on the portion of the facility collateralized by the government guaranteed portion of SBA 7(a) loans is set athad an interest rate of Prime minus 0.25% (previously Prime plus 1.00%),0.75% and there is a quarterly facility fee equal to 0.25% on the unused portion of the revolving credit calculated as of the end of each calendar quarter. The interest rate on the portion of the facility collateralized by the non-guaranteed portion of SBA 7(a) loans is set atwas Prime plus 0.75% (previously Prime plus 1.875%), and there is a quarterly facility fee equal to 0.25% on the unused portion of the revolving credit calculated as of the end of each calendar quarter.. The facility providesprovided for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates,originated, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition,originated and a 90% advance rate on the amendment extendedguaranteed portions of SBA 7(a) loans NSBF originated. NSBF ceased originating new loans in April 2023. On May 7, 2020, NSBF amended the facility to, among other things, extend the maturity date on which the credit facility will convert toconverted into a term loan from May 16, 2017for a period of three years to May 11, 20207, 2023, with the term loan maturing on May 7, 2025. The NSBF Capital One facility was paid off and extended the maturity dateterminated in October of the facility to May 11, 2022. 2023.


In June 2015, NSBF amended the existing facility to eliminate the fixed charge coverage ratio in exchange for a debt service ratio, new EBITDA minimums, the elimination of restrictions on the our ability to pay dividends to shareholders, as well as the release of the guarantees of our former subsidiaries (now treated as portfolio companies).

At September 30, 2017, we had $29,220,000 and $36,926,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At September 30, 2017, we were in full compliance with all applicable loan covenants.

Notes Payable - Related Parties

In June 2015, the Company entered into the Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance bears interest at a rate equal to (a) LIBOR (with a floor of 0.50%) plus (b) 6% or at a rate equal to (y) the greater of the

Prime Rate or 3.5% plus (z) 5%. At September 30, 2017, the Related Party RLOC bears interest at a rate of 7.31%. The Related Party RLOC has a maturity date of June 21, 2021. Outstanding borrowings at September 30, 2017 were $20,541,000.

Securitization Transactions

Since
From 2010 through June 2023, NSBF has engaged in thirteen (13) securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it usessecuritizations, NSBF used a special purpose entity (the “Trust”) which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust’s assets and liabilities. NSBF reflects the assets inlegacy portfolio of SBA Unguaranteed Non-Affiliate Investments7(a) loans and reflects the associated financing in Notes Payable - Securitization Trusts.trusts on the Consolidated Statements of Financial Condition.

In November 2016,June 2023, NSBF completed its sevenththirteenth securitization which resulted in the transfer of $56,073,000$103.9 million of unguaranteed portions of SBA loans to the 2016-12023-1 Trust. The 2016-12023-1 Trust in turn issued securitization notes for the par amount of $53,444,000,$103.9 million, consisting of $43,632,000$84.3 million of Class A notes and $9,812,000$19.6 million Class B notes, against the 2023-1 Trust assets in a private placement. The Class A and Class B notes received an “A-” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is October 2049. The Class A and Class B notes bear interest at an average rate of 30-day average compounded SOFR plus 3.24% across both classes.

In September 2022, NSBF completed its twelfth securitization which resulted in the transfer of $116.2 million of unguaranteed portions of SBA loans to the 2022-1 Trust. The 2022-1 Trust in turn issued securitization notes for the par amount of $116.2 million, consisting of $95.4 million of Class A notes and $20.8 million Class B notes, against the 2022-1 Trust assets in a private placement. The Class A and Class B notes received an “A-” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is October 2049. The Class A and Class B notes bear interest at an average rate of 30-day average compounded SOFR plus 2.97% across both classes.

In December 2021, NSBF completed its eleventh securitization which resulted in the transfer of $103.4 million of unguaranteed portions of SBA loans to the 2021-1 Trust. The 2021-1 Trust in turn issued securitization notes for the par amount of $103.4 million, consisting of $79.7 million of Class A notes and $23.8 million Class B notes, against the 2021-1 Trust assets in a private placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is December 2048. The Class A and Class B notes bear interest at an average rate of adjusted SOFR plus 1.92% across both classes.

In October 2019, NSBF completed its tenth securitization which resulted in the transfer of $118.9 million of unguaranteed portions of SBA loans to the 2019-1 Trust. The 2019-1 Trust in turn issued securitization notes for the par amount of $118.9 million, consisting of $93.5 million of Class A notes and $25.4 million Class B notes, against the 2019-1 Trust assets in a private placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the final maturity date of the notes is December 2044. The Class A and Class B notes bear interest at an average rate of adjusted SOFR plus 1.83% across both classes.

In November 2018, NSBF completed its ninth securitization which resulted in the transfer of $108.6 million of unguaranteed portions of SBA loans to the 2018-1 Trust. The 2018-1 Trust in turn issued securitization notes for the par amount of $108.6 million, consisting of $82.9 million Class A notes and $25.7 million of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB+“BBB-” rating by S&P, respectively, and the final maturity date of the notes is February 2042.2044.


Share Repurchase Plan

69


On November 21, 2016In December 2017, NSBF completed its eighth securitization which resulted in the Company announced that its Board approvedtransfer of $76.2 million of unguaranteed portions of SBA loans to the 2017-1 Trust. The 2017-1 Trust in turn issued securitization notes for the par amount of $75.4 million, consisting of $58.1 million Class A notes and $17.3 million of Class B notes, against the assets in a new share repurchase program under whichprivate placement. The Class A and Class B notes received an “A” and “BBB-” rating by S&P, respectively, and the Company may repurchase up to 200,000final maturity date of the Company’s outstanding common shares onnotes is February 2043. On February 27, 2023, the open market. This program2017-1 Trust was terminated on May 21, 2017.

On May 11, 2016,as a result of NSBF purchasing the Company announced that its Board approved a share repurchase program under which the Company could repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016.

During the nine months ended September 30, 2017, the Company repurchased and retired 70,000 common shares in open market transactions for approximately $866,000 as detailed in the table below. This program terminated on June 3, 2016.

Purchase dateNumber of Shares Purchased Price per Share Total
March 10, 201610
 $12.34
 $123
March 18, 201620
 12.45
 249
March 18, 201630
 12.48
 375
March 23, 201610
 11.88
 119
Total70
   $866

Note Repurchase Plan

The Company had a program which allowed it to repurchase up to 10%, or $832,400 in aggregate principal amount, of its 7.5% Notes due 2022 and up to 10%, or $4,025,000 in aggregate principal amount, of its 7.0% Notes due 2021 through open market purchases, including block purchases, in such manner as will comply2017-1 Trust assets, with the provisions of2017-1 Trust’s noteholders receiving the 1940 Act and the Exchange Act. The program terminated on May 21, 2017. The Company did not make any repurchases under this program during the nine months ended September 30, 2017.redemption price.

Cash Flows and Liquidity
As of September 30, 2017,The following table summarizes the Company’s unusedavailable sources of liquidity consistedas of $20,966,000 available through the Capital One facility; $13,159,000 available through notes payable with related parties; $3,915,000 in unrestricted cash and $9,000 in money market funds.March 31, 2024:

Availability as of
March 31, 2024
Unrestricted cash$12,295
Lines of credit at other commercial banks23,397
Newtek Bank:
Interest bearing deposits in banks115,152
FHLB borrowing availability54,876
Lines of credit at other financial institutions10,000
Total liquidity sources$215,720


Restricted cash of $26,602,000$35.8 million as of September 30, 2017 is primarily held in NSBF. The majority, or $25,851,000March 31, 2024. NSBF holds $17.5 million of the Company’s restricted cash, which includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations and loan principal and interest collected which are due to loan participants andparticipants. In addition, the Company has $10.0 million in a reserve established as partrestricted cash account to fund certain of voluntary agreement with SBA.NSBF’s potential obligations to the SBA pursuant to the Wind-down Agreement. of which the Company is a guarantor. The majority of the Company’s remaining restricted cash is related to payroll processing by PMT, our subsidiary.


The Company generated and used cash as follows:
(in thousands)Nine months ended September 30, 2017 Nine months ended September 30, 2016
Net cash used in operating activities$(76,139) $(23,048)
Net cash used in investing activities(345) (294)
Net cash provided by financing activities78,348
 21,752
Net increase (decrease) in cash and cash equivalents1,864
 (1,590)
Cash and cash equivalents, beginning of period2,051
 4,308
Cash and cash equivalents, end of period$3,915
 $2,718
Three Months Ended March 31, 2024
Three Months Ended March 31, 2023
(as restated)
Net cash used in operating activities$(38,674)$(116,359)
Net cash used in investing activities(43,805)(23,898)
Net cash provided by financing activities61,679 186,899 
Net (decrease) increase in cash and restricted cash(20,800)46,642 
Cash and restricted cash—beginning of period (Note 2)184,006 125,606 
Consolidation of cash and restricted cash from controlled investments and business combinations, net of cash paid— 24,896 
Cash and restricted cash—end of period (Note 2)$163,206 $197,144 

During the ninethree months ended September 30, 2017,March 31, 2024, operating activities used cash of $76,139,000,$38.7 million, consisting primarily of $255.7 million of loans held for sale. This use of cash was offset by (i) an increase$184.3 million of proceeds from the sale of loans and (ii) $1.6 million of principal payments received from loans held for sale and (iii) a $5.3 million decrease in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded in the period but haddid not settled beforesettle during the current period end and represent the amount of cash duewas not received from the purchasing broker;broker during the current period; the amount varies depending on loan origination volume and timing of sales at period end, (ii) $262,804,000quarter end.
Cash used by investing activities primarily comprised of SBA 7(a) loan investments (iii) $15,703,000 of advances to NBCS under a revolving line of credit (iv) $9,952,000 of cash paid(i) $62.1 million in connection with our investment in IPM, (v) a $3,821,000 purchase of an SBA 7(a) loan from the SBA, (vi) a $3,255,000 non-control/non-affiliate investment and (vii) annet increase in restricted cash of $4,585,000.loans held for investment, at cost and (ii) $7.2 million in contributions to non-consolidating joint ventures. These decreasesuses were partially offset by (i) $217,016,000 of proceeds froma $21.7 million in the sale of SBA 7(a) investments and (ii) $35,914,000 of principal payments received consisting of $20,327,000 from SBA non-affiliate investments, $3,255,000 from non-control/non-affiliate investments and $12,332,000 from controlled investments, including $10,497,000 from NBCS.net decrease in loans held for investment, at fair value.
Net cash provided by financing activities was $78,348,000$61.7 million consisting primarily of a (i) $49.1 million net proceeds $37,042,000 from the saleincrease in deposits; and (ii) $43.8 million of 2,857,500 sharesnet payments under our bank notes payable. These sources of common stock, (ii) net proceeds of $7,666,000 from the sale of 455,000 shares of common stock under the ATM Equity Distribution Agreement, (iii) net borrowings of $61,046,000 from our Capital One lines of credit and (iv) $19,141,000 of proceeds under the related party revolving line of credit. These increasescash were offset by (i) $20,836,000 of dividend payments and (ii) $23,414,000$23.0 million of principal payments related to securitizations.securitization notes payable and $4.8 million of dividends paid.
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Contractual Obligations
The following charttable represents the Company’s significant obligations and commitments as of September 30, 2017:
(in thousands)Payments due by period
Contractual ObligationsTotal Less than 1 year 1-3 years 3-5 years More than 5 years
Bank notes payable$66,146
 $36,926
 $29,220
 $
 $
Securitization notes payable (1)97,607
 
  
  
 97,607
Notes due 2022 (1)8,324
 
 
 8,324
 
Notes due 2021 (1)40,250
 
 
 40,250
 
Notes payable - related parties20,541
 
 
 20,541
 
Employment agreements600
 300
 300
 
 
Operating leases (2)12,565
 502
 3,153
 2,298
 6,612
Totals$246,033
 $37,728
  $32,673
  $71,413
 $104,219
(1)March 31, 2024. Amounts represent principal only and are not shown net of unamortized debt issuance costs. See Note 7.NOTE 11—BORROWINGS.
(2) Minimum payments have not been reduced
Payments due by period
Contractual ObligationsTotal20242025202620272028Thereafter
Deposits:
Demand$5,466 $5,466 $— $— $— $— $— 
Checking16,870 16,870 — — — — — 
Money market27,290 27,290 — — — — — 
Savings253,595 253,595 — — — — — 
Time deposits209,721 92,829 64,999 31,530 19,574 711 78 
Webster NMS Note1
35,884 — — — 35,884 — — 
FHLB Advances19,726 7,476 4,902 2,094 5,254 — — 
SPV I Capital One Facility1
20,400 — 20,400 — — — — 
SPV II Deutsche Bank Facility1
18,136 18,136 — — — — — 
SPV III One Florida Bank Facility1
29,850 — 29,850 — — — — 
Securitization Notes Payable273,269 — — — — — 273,269 
Parent Company Notes:
Notes due 202438,250 38,250 — — — — — 
Notes due 202580,000 — 80,000 — — — — 
Notes due 2026115,000 — — 115,000 — — — 
Notes due 202840,000 — — — — 40,000 — 
Employment Agreements3,014 2,274 740 — — — — 
Operating Leases6,800 2,075 2,461 1,835 429 — — 
Totals$1,193,271 $464,261 $203,352 $150,459 $61,141 $40,711 $273,347 
1Guaranteed by minimum sublease rentalsthe parent company

Guarantees

The Company is a guarantor on several warehouse lines of $550,000 duecredit as noted in the futureabove table under non-cancelable subleases.Contractual Obligations. Refer to NOTE 11—BORROWINGS to the consolidated financial statements for the amounts outstanding, line availability, and term. The Company is also a guarantor on an NMS term loan facility. At March 31, 2024, the Company determined that it is not probable that payments would be required to be made under the guarantees. The Company is also a guarantor on certain of NSBF’s potential obligations to the SBA pursuant to the Wind-down Agreement. Specifically, pursuant to the Wind-down Agreement, the Company has guaranteed NSBF’s obligations to the SBA for post-purchase repairs or denials on the guaranteed portion of 7(a) Loans sold by NSBF on the secondary market or servicing/liquidation post-purchase repairs or denial, and has funded a $10.0 million restricted cash account at Newtek Bank to secure these potential obligations.


Critical Accounting Policies and Estimates


The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.policies for the quarterly period ended March 31, 2024.
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Fair Value Measurements


We value investmentsFor the quarterly period ended March 31, 2024, we valued instruments for which market quotations are readily available at their market quotations. However, a readily available market value isdid not expected to exist for many of the investmentsinstruments in our portfolio, and we valuevalued these portfolio investmentsinstruments at fair value as determined in good faith by our Boardmanagement under our valuation policy and process. We may seekhave sought pricing information with respect to certain of our investmentsinstruments from pricing services or brokers or dealers in order to value such investments.instruments. We also employemployed independent third party valuation firms for certain of our investmentsinstruments for which there is not a readily available market value. 


The application of our valuation methods may include comparisons of the portfolio companies to peer companies that are public, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings, discounted cash flow, the markets in which the portfolio company does business and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investmentsour instruments that do not have a readily available market value, the fair value of the investmentsinstruments may differ significantly from the values that would have been used had a readily available market value existed for such investmentsinstruments and may differ materially from values that may ultimately be received or settled.

Our Board is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.


Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels for disclosure purposes. The Company carries all investments at fair value. Additionally, the Company carries its credits in lieu of cash, notes payable in credits in lieu of cash, and servicing assets at fair value.

The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of the significant input to its valuation. The levels of the fair value hierarchy are as follows:
Level 1 ��Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.
Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.
Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights,assets, warrant liabilities, joint ventures, guaranteed loans held at fair value, and highly structured or long-term derivative contracts.


Valuation of InvestmentsInstruments


Level 1 investments areassets and liabilities were valued using quoted market prices. Level 2 investments areassets and liabilities were valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments areassets and liabilities were valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have beenwere engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process.


When determining
For certain investments, the Company generally calculated the
fair value of Level 3 debtthe investment primarily based on the NAV of the entity and equity investments,adjusted the Company may take into accountfair value for other factors that would affect the following factors, where relevant: the enterprisefair value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments andinvestment. The Company used this valuation approach for its earnings and discounted cash flows, the marketsinvestment in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA or revenue. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.

its joint ventures.
In addition, for certain debt investments, the Company may base its valuation on quotes provided by an independent third party broker. 


Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. 


72


The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded. See NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION under the heading “Fair Value Measurements” and NOTE 9—FAIR VALUE MEASUREMENTS for a detailed discussion of determining fair value, including pricing validation processes.


We believe our portfolio as of March 31, 2024 and December 31, 2023 approximates fair value as of those dates based on the markets in which we operate and other conditions in existence on those reporting dates.

As of January 6, 2023, the Company no longer qualifies as a regulated investment company for federal income tax purposes and no longer qualifies for accounting treatment as an investment company and therefore, we no longer fair value the investments in our portfolio companies. During this wind-down of NSBF’s operations, NSBF will be required to continue to own its SBA 7(a) loans and PPP Loans in its SBA loan portfolio to maturity, liquidation, charge-off, or (subject to SBA’s prior written approval), sale or transfer. In addition, NSBF will be required to continue to service and liquidate its SBA Loan Portfolio, including processing forgiveness and loan reviews for PPP Loans, pursuant to an SBA approved lender service provider agreement with SBL. The Company will continue to measure NSBF’s SBA 7(a) loan portfolio at fair value until the portfolio is completely runoff. The Company reports both realized and unrealized gains and losses relating to the fair value adjustments on the legacy NSBF SBA 7(a) portfolio.

Allowance for Credit Losses

The allowance for credit losses consists of the allowance for credit losses and the reserve for unfunded commitments. As a result of the Company’s Acquisition the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) and its related amendments, we developed a methodology for estimating the reserve for credit losses. The standard replaced the “incurred loss” approach with an “expected loss” approach known as current expected credit loss. The CECL approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It removes the incurred loss approach’s threshold that delayed the recognition of a credit loss until it was “probable” a loss event was “incurred.” The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. The reserve for unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The reserve for unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws.

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolio. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio and other financial assets to which CECL applies, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Going forward, the impact of utilizing the CECL approach to calculate the reserve for credit losses will be significantly influenced by the composition, characteristics, and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility in the reserve for credit losses, and therefore, greater volatility to our reported earnings.

Consideration of losses occurs when serious doubt regarding the repayment of the loan is present. For real estate loans, current appraisals will aid in determining the amount to be charged off. For commercial loans, collateral valuations and borrower guarantees should be considered; however, weight to these two sources should be limited. Once a deficiency in collateral is determined, a reserve equal to the deficiency should be made immediately to the Allowance for Credit Losses (ACL). A charge off should be made within 90 days if a full analysis confirms the deficiency cannot be covered via additional collateral or resources of the borrower or guarantors.

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Nonaccrual Loans

As a general rule, the Company does not accrue interest, amortize deferred net loan fees or costs, or accrete discount on any loan (1) which is maintained on a cash basis because of deterioration in the financial condition of the borrower, (2) for which payment in full of principal or interest is not expected, or (3) upon which principal or interest has been in default for a period of 90 days or more unless the asset is both well secured and in the process of collection.

A loan is “well secured” if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is “in the process of collection” if collection of the asset is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or (2) in appropriate circumstances, through collections efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future.

A non-accrual loan may be restored to accrual status when (1) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (2) when it otherwise becomes well secured in the process of collection. If any interest payments received while the asset was in nonaccrual status were applied to reduce the recorded investment in, or the amortized cost basis of, the asset, as applicable, the application of these payments to the asset’s recorded investment or amortize cost basis, as applicable should not be reversed (and interest income should not be credited) when the asset is returned to accrual status.

Valuation of Servicing Assets

For the quarterly period ended March 31, 2024, the Company accounted for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company and Newtek Bank earn servicing fees from the guaranteed portions of SBA 7(a) loans they originate and sell. Servicing assets for loans originated by the Company’s nonbank subsidiaries are measured at FV at each reporting date and the Company reports changes in the FV of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgment is required to estimate the fair value of servicing assets and as such these assets are classified as Level 3 in our fair value hierarchy. Servicing assets for loans originated by Newtek Bank are measured at LCM and amortized based on their estimated life and impairment is recorded to the extent the amortized cost exceeds the asset’s FV.

Income Recognition


Interest on loan investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a methodFor the quarterly period ended March 31, 2024, management reviewed all loans that results in a level rate of return on principal amounts outstanding. When a loan becomesbecame 90 days or more past due on principal or if we otherwise do not expect to receive interest or when there was reasonable doubt that principal or interest would be collected for possible placement on management’s designation of non-accrual status. Interest receivable was analyzed regularly and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued.reserved against when deemed uncollectible. Interest payments received on non-accrual loans were recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans were restored to accrual status when past due principal and interest was paid and, in management’s judgment, were likely to remain current, although there may have been exceptions to this general rule if the loan had sufficient collateral value and was in the process of collection.

In addition, under the PPP that began in the second quarter of 2020, the SBA reimbursed the Company for originating loans. Such SBA reimbursements are included as interest income on non-accrual statusPPP loans. Such fees are treated as reductions of principalaccounted for under ASC-310 Receivables and deferred until the principal is repaid.

loan was sold to one of our Participants. Income earned in connection with the PPP should not be viewed as recurring. NSBF funded the balance of its PPP loans by the end of July 2021. NSBF has redeployed the resources used to generate PPP loans to the origination of SBA 7(a) loans.
We receive
For the quarterly period ended March 31, 2024, we received servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees arewere earned daily and recorded when earned.daily. Servicing income iswas earned for the full term of the loan or until the loan is repaid.


We receiveFor the quarterly period ended March 31, 2024, we received a variety of fees from borrowers in the ordinary course of conducting our business, including packaging fees, legal fees, late fees and prepayment fees. All other income iswas recorded when earned.

Dividend income is recorded at
For the time dividends are declared. Distributionsquarterly period ended March 31, 2024, distributions of earnings from a portfolio companies areour joint ventures were evaluated to determine if the distribution is income, return of capital or realized gain.

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Following our January 2023 conversion to a financial holding company, we generate income in the form of interest, servicing and other fee income on the loans we and Newtek Bank originate. In addition, our portfolio companies became consolidating subsidiaries of the Company in 2023 and therefore, under the new organizational structure, their income is consolidated within the statement of operations along with our joint ventures. With the inclusion of NMS, NIA, PMT, and NTS, we now report Technology and IT Support Income and Electronic Payment Processing Income on our consolidated statements of income, and we include insurance commissions income and payroll processing income within Other Noninterest Income.

Determination of Provision for Income Taxes and Related Accounts


DeferredOur income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are computed based uponsubject to income taxes in the United States. We file income tax returns in approximately 47 jurisdictions: federal, state, and local. The laws and regulations of each jurisdiction are complex and may be subject to different interpretations. Significant judgments and estimates are required in determining consolidated income tax expense for each jurisdiction. Our interpretations of tax laws are subject to audits by various jurisdictions. Potential difference in the interpretation or changes in the tax laws may result in additional accrual of income tax expense or benefit, which could be material to our reported results. We consistently monitor new and reassess existing tax laws for changes and adjust our tax estimates accordingly.

Our provision for income taxes is comprised of current and deferred income taxes. Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax basisplanning strategies, and recent results of assetsoperations. In projecting future taxable income, we begin with historical results adjusted for changes in accounting policies and liabilities usingincorporate assumptions about the enacted tax rates in effect foramount of future state, federal, and foreign pretax operating income, the year in which thosereversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions about future taxable income require significant judgment and are expectedconsistent with the plans and estimates we are using to be realized or settled. If availablemanage the underlying businesses. In evaluating the objective evidence suggests that historical results provide, we consider three years of cumulative operating income (loss).

At least annually, we consider existing evidence, both positive and negative, that could impact our view with regard to future realization of deferred tax assets. We currently hold deferred tax asset attributes related to net operating tax loss carryforwards. We perform regular assessments to determine whether our tax attributes are realizable. As of December 31, 2023, we continue to believe it is more likely than not that some portion or all of the deferred tax assetsbenefit for certain state net operating loss carryforwards will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.

The Company’s U.S. federal and state income tax returns prior to fiscal year 2013 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

The Company has elected to be treated as a RIC beginning with the 2015 tax year under the Code and operates in a manner so as to continue to qualifyFor additional information regarding our provision for the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not part of the RIC. In order to maintain its RIC tax treatment, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its shareholders, which will generally relieve the Company from U.S. federal income taxes, with respectrefer to all income distributed to its shareholders as dividends.

NOTE 18—INCOME TAXES.
Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions,
Recently Adopted Accounting Pronouncements and would distribute such taxable income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the three and nine months ended September 30, 2017 and 2016, no U.S. federal excise taxes were due.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized gains generated by the investments held by the Taxable Subsidiaries. Such deferred tax liabilities were $5,240,000 and $5,983,000 at September 30, 2017 and December 31, 2016, respectively and are recorded as deferred tax liabilities on the condensed consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net realized and unrealized gains in the condensed consolidated statements of operations.
New Accounting Standards


In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force),” which requires that the statement of cash flow explain the change during the period in the total of cash, cash equivalents,Refer to NOTE 2—SIGNIFICANT ACCOUNTING POLICIES for information on recently adopted accounting pronouncements and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods. Early adoption is permitted. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.new accounting standards.


In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. The Company has not completed its review of the new guidance; however, the Company anticipates that upon adoption of the standard it will recognize additional assets and corresponding liabilities related to leases on its consolidated statements of assets and liabilities.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which, among other things, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the ASU changes the disclosure requirements for financial instruments. This

ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.
Off Balance Sheet Arrangements
There were no off
In the normal course of business, the Company enters into various transactions to meet the financing needs of clients, which, in accordance with GAAP, are not included in the consolidated balance sheets. These transactions may include commitments to extend credit, standby letters of credit, and the construction phase of SBA 504 loans, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The SBA 504 loans are expected to partially draw, if not fully draw. All off-balance sheet arrangements ascommitments are included in the determination of September 30, 2017.the amount of risk-based capital that the Company and Newtek Bank are required to hold.

The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and commercial letters of credit is represented by the contractual or notional amount of those instruments. The Company manages risk of exposure to credit losses under these commitments by subjecting them to credit approval and monitoring procedures. The Company assesses the credit risk associated with certain commitments to extend credit and establishes a liability for probable credit losses.

Further information related to financial instruments can be found in NOTE 13—COMMITMENTS AND CONTINGENCIES.
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Recent Developments


Portfolio Company Developments

On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana.  The Company closed on its $5,400,000 investment in BSP in June 2016.  The Company is monitoringperformed a review of events subsequent to the situationbalance sheet date through the date the financial statements were issued and is cooperating fully with the authorities. While the outcome of this situation cannot at this time be predicted with certainty, the Company does not expectdetermined that the matter will materially affect the Company’s financial condition or results of operations.

On October 24, 2017, the Company invested in 100% of the membership interests of a new wholly-owned, controlled portfolio company, United Capital Source, LLC (“UCS”), which is a lead generator for commercial financing companies. Total consideration paid by the Company was $3,050,000 and consisted of $500,000 in restricted shares of Newtek common stock and $1,950,000 in cash, with the $600,000 balance to be paid in cash and Newtek common stock, in two equal installments in 2018 and 2019 based on UCS attaining specific EBITDA targets for 2019 and 2020.

Common Stock

From October 1, 2017 through November 6, 2017 the Company sold 245,746 shares of its common stock at a weighted average price of $17.54 per share under the ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $4,223,000. As of November 6, 2017, there were 2,199,000 shares of common stock available for sale underno such events requiring recognition or disclosure in the ATM Equity Distribution Agreement.financial statements.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We consider the principal types of risk in our investingbusiness activities to be fluctuations in interest rates, the ability to raise funds (deposits, debt, and loan portfolio valuationsor equity) to fund our operations, and the availability of the secondary market for our SBA loans. Risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.
NSBF primarily lends at an
The Company’s interest rate of prime, which resetsprofile on loans is based on a quarterly basis, plus amix of fixed margin.and variable rates. The Capital One revolversame is true for its sources of funding (deposits, warehouse lines as well as theof credit, securitization trust notes, public notes, etc.).Some of our assets and liabilities are on a prime plus a fixed factor basis. As a result, the Company believes it has matched its cost of funds to its interest income in its financing activities. However, because of the differential between the amount lent and the smaller amount financed a significant change in market interest rates will have a material effect on our income. In periods of sharply rising interest rates, our cost of funds will increase at a slower rate thanmatch funded, meaning that the interest income earned on the loans we have made; this should improve our net investment income, holding all other factors constant. However, a reductionrate and duration profiles are closely linked. Managing interest rate risk with matched funding means that movements in interest rates will result inare expected to largely offset between income from assets and expenses on liabilities.For the Company experiencingremainder of our balance sheet, we largely take a reduction in investment income;portfolio approach to managing interest rate and liquidity risk that is its interest income will decline more quickly than interest expense resulting in a net reduction of benefit to investment income.inherently imprecise.
NSBF
The Company depends on the availability of secondary market purchasers of our loans held for sale, but primarily for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. At this time the secondary marketSale prices for the guaranteed portions of SBA 7(a) loans is robust butcould be negatively impacted by market conditions, in particular a higher interest rate environment, which typically lead to higher prepayments during the 2008 and 2009 financial crisisperiod, resulting in lower sale prices in the Company had difficulty selling its loans for a premium; although not expected at this time, if such conditions did recur NSBF would most likely cease making new loans and could experience a substantialsecondary market. A reduction in profitability.the price of guaranteed portions of SBA 7(a) loans or disruptions in the markets to which we sell could negatively impact our business.
We do not have significant exposure to changing interest rates on
The Company’s invested cash (includes cash and cash equivalents and restricted cash and money market funds) which wascash) of approximately $30,527,000 at September 30, 2017.$163.2 million is subject to changes in the Federal Funds rate set by the Federal Open Market Committee. We do not purchase or hold

derivative financial instruments for trading purposes. All of our transactions are conducted in U.S. dollars and we do not have any foreign currency or foreign exchange risk. We do not trade commodities or have any commodity price risk.

We believe that we have placed our demand deposits, cash investments and their equivalents, which include deposits at other institutions, with high credit-quality financial institutions. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments or funds and other investment-grade securities. As of September 30, 2017,March 31, 2024, cash deposits in excess of insured amounts totaled approximately $11,068,000.$34.2 million. The Company and its non-bank subsidiaries have deposit accounts at Newtek Bank that total $52.3 million, of which $49.5 million is uninsured.


Interest rate risk is a significant market risk and can result from timing and volume differences in the repricing of rate-sensitive assets and liabilities, widening or tightening of credit spreads, changes in the general level of market interest rates and changes in the shape and level of market yield curves. The Company manages the interest rate sensitivity of interest-bearing liabilities and interest-earning assets in an effort to minimize the adverse effects of changes in the interest rate environment balanced against maximizing profit. Management of interest rate risk is carried out primarily through strategies involving available-for-sale securities, loan and lease portfolio, and available funding sources.

The Newtek Bank board of directors has established an Asset/Liability Committee (the “ALCO Committee”) to oversee the implementation of an effective process for managing the risk profile inherent in Newtek Bank’s balance sheet and related business activities as well as the ongoing monitoring and reporting thereon. Risks inherent in Newtek Bank’s balance sheet include interest rate risk (i.e., the risk to liquidity and capital resulting from changes in interest rates), liquidity risk (the risk to the availability of funds to execute its business strategy and meet its obligations), and similar risks. The ALCO Committee, subject to Newtek Bank board approval, is responsible for establishing policies, risk limits and capital levels (collectively “ALM Policies”) as well overseeing and monitoring compliance therewith. Newtek Bank’s ALM Policies set forth a risk management framework relating to managing liquidity, managing fluctuations in interest rates, capital management, investments, and hedging and the use of derivatives. The ALCO Committee and Newtek Bank’s board may implement additional policies and procedures relating to these areas in order to manage risk to an appropriate level.

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The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period. The Company analyzes interest rate sensitivity position to manage the risk associated with interest rate movements through the use of two simulation models: economic value of equity (“EVE”) and net interest income (“NII”) simulations. These simulations project both short-term and long-term interest rate risk under a variety of instantaneous parallel rate shocks applied to a static balance sheet. The EVE simulation provides a long-term view of interest rate risk because it analyzes all of the Company’s future cash flows. EVE is defined as the present value of the Company’s assets, less the present value of its liabilities, adjusted for any off-balance sheet items. The results show a theoretical change in the economic value of shareholders’ equity as interest rates change.

EVE and NII simulations are completed routinely on Newtek Bank’s balance sheet and presented to the ALCO Committee. Other positions outside of Newtek Bank are typically match funded or hedged with instruments that have similar terms and/or interest rate features. The simulations provide an estimate of the impact of changes in interest rates on equity and net interest income under a range of assumptions. The numerous assumptions used in the simulation process are provided to the ALCO Committee on at least an annual basis. Changes to these assumptions can significantly affect the results of the simulation. The simulation incorporates assumptions regarding the potential timing in the repricing of certain assets and liabilities when market rates change and the changes in spreads between different market rates. The simulation analysis incorporates management’s current assessment of the risk that pricing margins will change adversely over time due to competition or other factors. Simulation analysis is only an estimate of interest rate risk exposure at a particular point in time. The Company regularly models various forecasted rate projections with non-parallel shifts that are reflective of potential current rate environment outcomes. Under these scenarios, the Company’s interest rate risk profile may increase in asset sensitivity, decrease in asset sensitivity, or depending on the scenario and timing of anticipated rate changes, may transition to a liability sensitive interest rate risk profile. Regular, robust modeling of various interest rate outcomes allows the Company to properly assess and manage potential risks from various rate shifts.

Estimated Changes in EVE and NII. The table below sets forth, as of March 31, 2024, the estimated changes in our (i) EVE that would result from the designated instantaneous changes in the forward rate curves; and (ii) NII that would result from the designated instantaneous changes in the U.S. Treasury yield curve, Prime Rate and the Secured Overnight Finance Rate. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied on as indicative of actual results.

Basis Point ("bp") Change inEstimated Increase/Decrease in Net Interest IncomeEstimated Percentage Change in EVE
Interest Rates12 Months Beginning March 31, 202412 Months Beginning March 31, 2025As of March 31, 2024
+20011.1%12.6%1.4%
+1005.66.10.7
-100(2.4)(3.9)(0.3)
-200(3.3)(5.8)(0.7)

Rates are increased instantaneously at the beginning of the projection. The Company is asset sensitive, as the Company’s variable rate loan portfolio reprices the full amount of the assumed change in interest rates, while fixed-rate Company notes will reprice on maturity and the retail savings and short-term retail certificates of deposits portfolio will reprice with an assumed beta. Interest rates do not normally move all at once or evenly over time, but management believes that the analysis is useful to understanding the potential direction and magnitude of net interest income changes due to changing interest rates.

The EVE analysis shows that the Company would theoretically modestly increase market value in a rising rate environment. The EVE asset sensitivity results from the combination of fixed-rate debt and variable-rate debt which funds the variable-rate loan portfolio outside of Newtek Bank.


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ITEM 4. CONTROLS AND PROCEDURES.


Evaluation of Disclosure Controls and Procedures:

As of March 31, 2024 (the end of the period covered by this report, we, including our chief executive officer and chief accounting officer,report), management evaluated the effectiveness of the design and operation of ourthe Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act).

Based on ourthe evaluation our management, including the chief executive officer and chief accounting officer, concluded thatof our disclosure controls and procedures, were effective in timely alerting management includingconcluded that the chief executive officer and chief accounting officer, of material information about us required to be included in our periodic SEC filings. However, in evaluating theCompany’s disclosure controls and procedures management recognized that any controls and procedures, no matter how well designed and operated, are based uponwere not effective as of March 31, 2024, due to certain assumptions aboutidentified material weaknesses in the likelihood of future events and can provide only reasonable assurance of achieving the desiredCompany’s internal control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. There has not been any change in our internal controls over financial reporting (“ICFR”) that are described in Part II, Item 9A of our 2023 Form 10-K. A material weakness (as defined in Rule 12b-2 under the Exchange Act) is a deficiency, or combination of deficiencies, in ICFR such that there is a reasonable possibility that a material misstatement of annual or interim financial statements will be presented or not detected on a timely basis.

Based on additional analysis and other procedures performed by the Company, management concluded that the Consolidated Financial Statements included in this report fairly present in all material respects the Company’s financial position, results of operations, capital position, and cash flows for the periods presented, in conformity with U.S. GAAP.

Changes in Internal Control over Financial Reporting.

Except as described below under “Remediation Process,” there were no changes in the Company’s ICFR (as defined in Rule 13a-15(f) underof the Exchange Act) that occurred during the period covered by this reportour most recently completed fiscal quarter, that hashave materially affected, or isare reasonably likely to materially affect, the Company’s ICFR.

Remediation Process

Following the identification of the material weaknesses to which are referred above, with the oversight of the Audit Committee of our board of directors (“Audit Committee” and “Board,” respectively), we commenced a process to remediate the underlying causes of those material weaknesses, enhance the control environment and strengthen our ICFR. The initial steps that the Company has taken are described in in Part II, Item 9A of our 2023 Form 10-K.Additional steps taken to-date with respect to remediation of the material weaknesses identified are summarized below:

Established a comprehensive remediation plan that was reviewed and approved by our Board.
Engaged a Big 4 public accounting firm to assist with the remediation of the SOX governance program and execution of the remediation plan.
Identified the Chief Risk Officer as the executive sponsor of the SOX program.
Established a SOX Steering Committee comprised of senior executive management to govern the SOX program and remediation of the previously identified material weaknesses.
Implemented additional layers of review in the process and performance of management review controls.
Strengthened the SOX sub certification process to explicitly require management responsible for the oversight of certain processes and controls within the control environment to attest to the design, implementation, and operating effectiveness of their portion of the control environment on a quarterly basis, as well as communicate any changes thereto.

The status of our remediation plan is being, and will continue to be, reported by management to the Audit Committee on a regular basis. In addition, management has assigned executive owners to oversee the remedial changes to the overall design of the Company’s internal controls over financial reporting.control environment and to address the root causes of our material weaknesses.


While certain actions have been taken to enhance the Company’s ICFR relating to the material weaknesses identified as of the date of this report, we are still in the process of implementing our comprehensive remediation plan. Accordingly, the previously identified material weaknesses cannot be considered remediated until each control has been appropriately designed, has operated for a sufficient period of time, and until management has concluded, through testing, that the control is operating effectively.


As management continues to evaluate and strive to improve the Company’s ICFR, management may take additional measures to address these control deficiencies or modify its comprehensive remediation plan. While management intends to resolve all of the material weaknesses, no assurances can be provided that these remediation efforts will be successful, that the Company’s ICFR will be effective as a result of these efforts by any particular date, nor is it certain whether additional actions will be required.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.


Refer to “NOTE 13—COMMITMENTS AND CONTINGENCIES” within the accompanying Notes to the Consolidated Financial Statements, which is incorporated by reference herein. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on the Company’s business, consolidated financial position, results of operations or cash flows as a whole. As of March 31, 2024, the Company had accrued an immaterial reserve that we believe is appropriate to cover potential settlements.

In addition, as a result of a litigation brought by the ordinary courseFederal Trade Commission (the “FTC”) in October 2012, NMS voluntarily entered into, and is presently operating under, a permanent injunction with respect to certain of its business the Company and its wholly-owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company is not currently involved in any litigation matters.practices.


ITEM 1A. RISK FACTORS.


In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on2023 Form 10-K, for the fiscal year ended December 31, 2016, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report2023 Form 10-K and in our Quarterly Reports on Form 10-K10-Q are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes from the risk factors set forth in our Annual Report on2023 Form 10-K for the year ended December 31, 2016.10-K.


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.


InWe previously issued shares of common stock that are not subject to the registration requirements of the Securities Act in connection with the investment in IPM,DRIP. On December 8, 2023, the Company terminated the DRIP; therefore, during the three months ended March 31, 2024 we issued 60,490 restrictedno shares related to the DRIP. During the three months ended March 31, 2023 we issued 5,800 shares of common stock valued at $0.1 million to shareholders in connection with the DRIP.

We also issue shares in a private transaction as a portionof common stock that are not subject to the registration requirements of the consideration, as discussed herein.Securities Act in connection with dividends on unvested restricted stock awards. During the three months ended March 31, 2024 and March 31, 2023 we issued an additional 6,300 and 4,700 shares, respectively, valued at $0.1 million and $0.1 million, respectively, related to dividends on unvested restricted stock awards.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES.


None.


ITEM 4. MINE SAFETY DISCLOSURES.


None.


ITEM 5. OTHER INFORMATION.


None.Trading Arrangements


On June 16, 2023, Salvatore Mulia, a member of our Board, entered into a written plan for the sale of an aggregate 9,000 shares of Common Stock. The plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plan commenced on September 21, 2023 and terminates on September 22, 2024.

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ITEM 6. EXHIBITS.
Number
NumberDescription
101Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023; (ii) the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023; (iii) the Consolidated Statements of Changes in Stockholders Equity for the three months ended March 31, 2024 and 2023; (iv) the Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023; and (v) the Notes to the Consolidated Financial Statements.
104Cover Page Interactive Data File (formatted in inline XBRL and contained in Exhibit 101)

* Filed herewith
** Furnished herewith

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NEWTEKONE, INC.
Date: May 10, 2024NEWTEK BUSINESS SERVICES CORP.
Date: November 7, 2017By:
/S/    BARRY SLOANE        
Barry Sloane
Chairman and Chief Executive Officer,
President and Chairman of the Board
(Principal Executive Officer)
Date: May 10, 2024By:
/S/    M. SCOTT PRICE       
M. Scott Price
Date: November 7, 2017By:
/S/    JENNIFER EDDELSON        
Jennifer Eddelson
Chief AccountingFinancial Officer
(Principal Financial Officer and Principal Accounting Officer)





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