April 30, 2012 – Newtek Business Services (dba “The Small Business Authority”) announced today that it has signed an agreement and simultaneously received $10 million in mezzanine debt from a group of lenders led by Summit Partners. “We are very happy about our new relationship with Summit Partners as an established major investor of equity and debt capital for growth businesses. We plan on using this additional liquidity primarily to build our fast-growing small business lending platform, and also provide working capital to enhance and grow our “Small Business Authority” brand of business services with emphasis on expanding our offerings of cloud computing solutions,” said Barry Sloane, Chairman, President and CEO of Newtek.
Based on conditions that Newtek expects will occur, the company will be able to draw an additional $5 million within six months from the initial closing date. The financing will be used to support Newtek’s continued growth and provide working capital necessary to expand its product offerings.
“The Small Business Authority provides a full suite of high-quality business and financial services that help entrepreneurs increase revenues, reduce expenses, and minimize risks. We are pleased to partner with Newtek Business Services and support Barry and his team’s efforts to enhance and expand this robust platform,” said Gregg Nardone, Managing Director of Summit Partners’ credit affiliate, Summit Partners Credit Advisors.
Newtek Business Services is a distributor of a range of business services and financial products to the small- and medium-sized business market under the Newtek brand. The company provides the following products and services: electronic payment processing; managed technology solutions (cloud computing); ecommerce; business lending; insurance services; web services; data back-up, storage and retrieval; accounts receivable financing; and payroll processing. The company was founded in 1999 and is based in New York, NY (www.thesba.com).
Summit Partners provides private equity and venture capital for growth companies. Founded in 1984, Summit has raised more than $14 billion in capital and has provided equity, recapitalization, and management buyout financing to more than 300 companies across a range of industries. Summit Partners has offices in Boston, MA; Palo Alto, CA; London, UK; and Mumbai, India (www.summitpartners.com).